Bill Text: AZ SB1134 | 2012 | Fiftieth Legislature 2nd Regular | Chaptered
Bill Title: Automobile insurance; notice to insured
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2012-03-20 - Governor Signed [SB1134 Detail]
Download: Arizona-2012-SB1134-Chaptered.html
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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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CHAPTER 56
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SENATE BILL 1134 |
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AN ACT
Amending section 20‑1632, Arizona Revised Statutes; relating to automobile insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-1632, Arizona Revised Statutes, is amended to read:
20-1632. Cancellation, nonrenewal and reduction of limits for reasons other than nonpayment of premium; notices to insured; refund of unearned premium
A. A notice by the insurer to the policyholder of nonrenewal, cancellation or reduction in the limits of liability or coverage for reasons other than nonpayment of premium shall be mailed to the named insured by certified mail or United States post office certificate of mailing at least ten days prior to before the effective date of such nonrenewal, cancellation or reduction in limits of liability or coverage, except that notice of nonrenewal under section 20‑1631, subsection E shall be mailed at least forty‑five days before the effective date of the nonrenewal. Such The notice shall include or be accompanied by all of the following:
1. A statement in writing of the specific facts which that constitute the reasons, consistent with section 20‑1631, for such action by the insurer and a notice indicating the named insured's right to complain to the director of the insurer's action within ten days after receipt of the notice by the insured.
2. Notice of the insured's possible eligibility for insurance through the automobile assigned risk plan, and the notice shall state that all information included in the notice is given pursuant to this article.
3. Except as provided in paragraph 4 of this subsection, a refund of unearned premium, except a premium that has been financed or remitted to the insurer by a company that is affiliated with the insurer and that bills and collects premiums on the insurer's behalf. For the purposes of this paragraph, the insurer shall either mail the notice and refund of unearned premium together at least ten days before the effective date or mail the notice before the refund of unearned premium if both the notice and the refund of unearned premium are mailed separately to the insured at least ten days before the effective date.
4. In the case of a notice of cancellation or nonrenewal of a policyholder whose premium payment is collected and remitted on the insurer's behalf by the insurer's affiliate, the insurer shall refund any unearned premium to the policyholder within ten days after the policy cancellation. For the purposes of this paragraph, "affiliate" and "affiliated" have has the same meaning prescribed in section 20‑481.
B. Failure of the insurer to comply with subsection A of this section shall invalidate any cancellation, nonrenewal or reduction in limits of liability or coverage.
C. If a premium has been financed, a refund of unearned premium shall be returned as provided in section 6‑1416.
APPROVED BY THE GOVERNOR MARCH 20, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 22, 2012.
