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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
auto theft authority; fee overpayment
Purpose
Entitles an insurer that has overpaid the fee for each motor vehicle under a motor vehicle liability insurance policy to a refund of the overpaid amount.
Background
The Automobile Theft Authority (ATA) is a division of the Department of Insurance and Financial Institutions (DIFI) that is tasked with determining the scope of motor vehicle theft in Arizona and implementing plans to combat such theft. The ATA allocates monies in the ATA Fund (Fund) to state agencies for the purpose of establishing, maintaining and supporting programs designed to prevent and deter motor vehicle theft (A.R.S. § 41-3451; DIFI).
Each insurer that issues a motor vehicle liability insurance policy must pay a semiannual fee of $0.50 per vehicle insured under a policy issued by the insurer. Monies collected from the fee are deposited in the Fund. The ATA must notify DIFI of an insurer's failure to pay the prescribed fee and, following notice of an insurer's failure to pay the fee, DIFI may suspend the insurer's certificate of authority or impose a civil penalty to be deposited into the Fund (A.R.S. §§ 41-3451 and 41-3453).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Entitles an insurer that has overpaid the motor vehicle liability insurance policy fee to a refund of the overpaid amount, if the insurer:
a) submits a written request for a refund to the ATA within one year after the date that the overpaid assessment was due and payable; and
b) provides satisfactory documentation to the Director of DIFI (Director) to substantiate the overpaid amount.
2. Requires the Director to approve or deny a refund of the amount specified in the insurer’s written request.
3. Stipulates that, if the Director approves a refund request, the Director must refund the insurer in the amount specified in the insurer’s written request from the Fund.
4. Authorizes the Director to audit an insurer that issues motor vehicle liability insurance policies in Arizona for the purpose of determining compliance with motor vehicle liability insurance policy fee collection requirements and specifies that the expenses of the audit must be paid by the insurer.
5. Allows claims initiated by an insurer in 2023 to be approved by the Director until December 31, 2024, if the insurer includes documentation or other information satisfactory to the Director to substantiate the overpaid amount.
6. Makes conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Allows claims that include outlined documentation and were initiated by an insurer in 2023 to be approved by the Director until December 31, 2024.
House Action Senate Action
COM 2/6/24 DPA 9-0-0-1 FICO 3/11/24 DPA 6-0-1
3rd Read 2/29/24 59-0-0-0-1
Prepared by Senate Research
March 7, 2024
MG/JC/cs