ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: FIN DPA 10-0-0-0 | 3^rd Read 28-0-2-0 House: COM DPA 10-0-0-0

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SB 1118: insurance; fees; consent; medicare supplement

Sponsor: Senator Livingston, LD 22

Caucus & COW

Overview

Makes various changes to statutes relating to electronic communications, Medicare supplement insurance, title insurance agencies and motor vehicle liability policies.

History

An insurer may deliver a notice or document to a party by electronic means if the party electronically consents to that method of electronic delivery. An insured is deemed to have consented to receive notices and documents electronically if the insured effectuates insurance transactions by electronic means. An oral communication or a recording of an oral communication does not qualify as consent to deliver a notice or document by electronic means (A.R.S. § 20-239).

Title insurance: a) insures owners of real property against loss or damage suffered by reasons of liens, encumbrances upon, defects in or the unmarketability of the title to such property; or b)  insures the correctness of searches relating to the title to real property (A.R.S. § 20-1562).

An agent for a title insurer is prohibited from adopting a corporate or business name containing certain words or phrases indicating that the agent in the business of title insurance, unless those words are followed by agent or agency (A.R.S. § 20-1583).

A motor vehicle liability policy is an owner's or operator's policy of liability insurance issued by an authorized insurance carrier to the benefit of the named insured and is certified as proof of financial responsibility. A motor vehicle liability policy is not required to insure  certain liabilities as  outlined in statute, which include any worker's compensation law or for intentional damage or injury authorized or executed by the insured (A.R.S. §§ 28-4001 & 28-4009).

Provisions

1. Removes the minimum amount of the nonrefundable fee for a certificate of director, under seal. (Sec. 1)

2. Allows a specified oral communication as a means of consent for an insurer to deliver a notice or document by electronic means. (Sec. 2)

3. Specifies the oral consent to deliver a notice or document electronically applies only to an agreement to the use of electronic communication with the insurer and is not an agreement by the insured to any other insurance matter. (Sec. 2)

4. Changes the definition of advisory organizations to mean a person who assists two or more insurers or rate services organizations in the making of rates. (Sec. 3)

5. Asserts the Director of DIFI may not prohibit Medicare supplement insurance providers from offering discounts to enrollees for early enrollment or for payment method. (Sec. 4)

6. Removes the restrictions on the corporate or business name of an agent for a title insurer. (Sec. 5)

7. Asserts motor vehicle liability policies are not required to provide coverage for any liability that is not required under state law. (Sec. 6)

8. Permits motor vehicle liability policies to contain exclusions except as specifically prohibited by law. (Sec. 6)

9. Makes technical changes. (Sec. 3, 4)

Amendments

Committee on Commerce

1. Adds the requirement for the Arizona Standard Fire Policy to include coverage for loss or damage that results from specified perils if:

a) a fire is the efficient proximate cause of the loss or damage;

b) the fire ended within 180 days after the loss or damage; and

c) coverage would otherwise be provided for the fire.

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                        SB 1118

Initials PRB     Page 0 Caucus & COW

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