Conference Engrossed

State of Arizona
Senate
Forty-third Legislature
First Regular Session
1997

SENATE BILL 1445

AN ACT
Amending sections 20-259.01, 20-1631, 20-1632, 20-1633, 28-4079 and 28-4148,
Arizona Revised Statutes; relating to motor vehicle insurance; providing for
conditional enactment.
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Be it enacted by the Legislature of the State of Arizona:
Section 1.  Section 20-259.01, Arizona Revised Statutes, is amended to
read:
20-259.01.  Motor vehicle liability policy; uninsured optional;
underinsured optional; subrogation; definitions
A.  The department shall prescribe a consumer information and coverage
selection form in English and in Spanish to be signed by the purchaser and
to be used by all insurers offering automobile coverage or related coverages.
The form shall describe the nature and availability of bodily injury
coverage, property damage coverage, collision coverage, comprehensive
coverage, medical payment coverage, uninsured motorist coverage and
underinsured motorist coverage and shall provide for the selection by the
insured of limits of the listed types of coverage or for the rejection of
coverages. The form shall state the reasons a consumer should consider when
purchasing or rejecting these coverages.
An insurer offering automobile
liability coverage or a related coverage shall provide the purchaser a copy
of the form at the time of the initial purchase of coverage. The form shall
include a description of all coverages described by this section, regardless
of the availability of a coverage from the insurer. The form shall provide
a space for the purchaser to separately initial the purchase or rejection of
each coverage option to be included or excluded from the policy. The form
need not be used in the event of reinstatement of a lapsed policy or the

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transfer, substitution, modification or renewal of an existing policy.
Selection of limits of coverage or rejection of coverage by a named insured
on the form is valid for all insureds under the motor vehicle policy. Use
of the form by an insurer, agent or broker shall satisfy any duty of an
insurer, agent or broker to explain the nature and applicability of
automobile liability coverage and related coverages.
A.  B.  Every insurer writing automobile liability or motor vehicle
liability policies shall make available to the named insured thereunder and
by written notice offer the insured and at the request of the insured shall
include within the policy uninsured motorist coverage which extends to and
covers all persons insured under the policy, in limits not less than the
liability limits for bodily injury or death contained within the policy. The
selection of limits of coverage for uninsured and underinsured motorist
coverage or rejection of failure to select coverage for uninsured or
underinsured motorist coverage by a named insured or applicant on a form
approved by the director shall be is valid for all insureds under the motor
vehicle liability policy. The offer need not be made in the event of the
reinstatement of a lapsed policy or the transfer, substitution, modification
or renewal of an existing policy. At the request of the insured, the insured
may purchase and the insurer shall then include within the policy uninsured
motorist coverage which extends to and covers all persons insured under the
policy in any amount up to the liability limits for bodily injury or death
contained within the policy but not less than the limits prescribed in
section 28-1170.
B.  Every insurer writing automobile liability or motor vehicle
liability policies shall also make available to the named insured thereunder
and shall by written notice offer the insured and at the request of the
insured shall include within the policy underinsured motorist coverage which
extends to and covers all persons insured under the policy, in limits not
less than the liability limits for bodily injury or death contained within
the policy. The selection of limits or rejection of coverage by a named
insured or applicant on a form approved by the director shall be valid for
all insureds under the policy. The offer need not be made in the event of
the reinstatement of a lapsed policy or the transfer, substitution,
modification or renewal of an existing policy. At the request of the insured
the insured may purchase and the insurer shall then include within the policy
underinsured motorist coverage which extends to and covers all persons
insured under the policy in any amount authorized by the insured up to the
liability limits for bodily injury or death contained within the policy.
C.  Every insurer writing automobile liability or motor vehicle
liability policies may make available the coverages required by subsections
A and B of this section to owners and operators of motor vehicles which are
used as public or livery conveyances or rented to others or which are used

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in the business primarily to transport property or equipment. The provisions
of subsections A and
C.  Subsection B of this section shall not preclude an insurer writing
automobile liability or motor vehicle liability policies in this state from
requiring that all motor vehicles that are owned by or registered to the
named insured and that are insured by the same insurer or group of insurers
under a common management have the same limits of coverage for uninsured and
underinsured motorist coverage in amounts as selected or rejected by the
named insured.
D.  "Uninsured motor vehicles", subject to the terms and conditions of
that coverage, includes any insured motor vehicle if the liability insurer
of the vehicle is unable to make payment on the liability of its insured,
within the limits of the coverage, because of insolvency.
E.  "Uninsured motorist coverage", subject to the terms and conditions
of that coverage, provides means coverage for damages due to bodily injury
or death if the motor vehicle that caused the bodily injury or death is not
insured by a motor vehicle liability policy that contains at least the limits
prescribed in section 28-1170.
For the purposes of uninsured motorist
coverage, an uninsured motorist does not include a person who is insured
under a motor vehicle liability policy that complies with section 28-1170.
F.  Any payment made under the bodily injury liability portion of a
motor vehicle liability policy insuring the motor vehicle that caused the
bodily injury or death in an amount equal to or less than the per person or
per occurrence bodily injury limits of that policy, regardless of the number
of persons receiving payments, precludes any payment under the uninsured
motorist coverage based upon the fault of the person who is insured under the
motor vehicle liability policy.
G.  "Underinsured motorist coverage" includes coverage for a person if
the sum of the limits of liability under all bodily injury or death liability
bonds and liability insurance policies applicable at the time of the accident
is less than the total damages for bodily injury or death resulting from the
accident. To the extent that the total damages exceed the total applicable
liability limits, the underinsured motorist coverage provided in subsection
B of this section is applicable to the difference.
H.  Uninsured and underinsured motorist coverages are separate and
distinct and apply to different accident situations. Underinsured motorist
coverage shall not provide coverage for a claim against an uninsured motorist
in addition to any applicable uninsured motorist coverage.
If multiple
policies or coverages purchased by one insured on different vehicles apply
to an accident or claim, the insurer may limit the coverage so that only one
policy or coverage, selected by the insured, shall be applicable to any one
accident.
If the policy does not contain a statement that informs the
insured of the insured’s right to select one policy or coverage as required

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by this subsection, within thirty days after the insurer receives notice of
an accident, the insurer shall notify the insured in writing of the insured’s
right to select one policy or coverage. For the purposes of this section,
"insurer" includes every insurer within a group of insurers under a common
management.
I.  Insurers who make payments for damages to insureds for uninsured
motorist coverage may subrogate and sue for reimbursement of the total amount
of said payments in the name of the insured against any uninsured motorist
responsible for the damages to the insured.
J.  Any common law prohibition against assignments of causes of action
for personal injuries is abrogated to the extent provided in subsection I of
this section.
K.  An insurer is not required to offer, provide or make available
coverage conforming to this section in connection with any general commercial
liability policy, excess policy, umbrella policy or other policy that does
not provide primary motor vehicle insurance for liabilities arising out of
the ownership, maintenance, operation or use of a specifically insured motor
vehicle.
Sec. 2.  Section 20-1631, Arizona Revised Statutes, is amended to read:
20-1631.  Definition; cancellation of or failure to renew
coverage; limitations; limitation of liability;
exceptions; agents of record
A.  In this article, unless the context otherwise requires, "motor
vehicle" means a licensed land, motor-driven vehicle but does not mean:
1.  A private passenger or station wagon type vehicle used as a public
or livery conveyance or rented to others.
2.  Any other four-wheel motor vehicle of a load capacity of fifteen
hundred pounds or less which is used in the business of transporting
passengers for hire, used in business primarily to transport property or
equipment, used as a public or livery conveyance or rented to others.
3.  Any motor vehicle with a load capacity of more than fifteen hundred
pounds.
B.  A motor vehicle used as a public or livery conveyance or rented to
others does not include a motor vehicle used in the course of volunteer work
for a tax-exempt organization as described in section 43-1201, paragraph 4.
C.  An insurer shall not cancel or refuse to renew a motor vehicle
insurance policy solely because of the age, race, color, religion, sex,
national origin or ancestry of anyone who is an insured.
D.  An insurer shall not issue a motor vehicle insurance policy in this
state unless the cancellation and renewal conditions of the policy or the
endorsement on the policy include includes the limitations required by this
section. After a policy issued in this state has been in effect for sixty
days, or if the policy is a renewal, effective immediately, the company shall

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not exercise its right to cancel or fail to renew the insurance afforded
under the policy unless:
1.  The named insured fails to discharge when due any of the
obligations of the named insured in connection with the payment of premium
for this policy or any installment of the premium.
2.  The insurance was obtained through fraudulent misrepresentation.
3.  The named insured, any person who resides in the same household as
the named insured and customarily operates a motor vehicle insured under the
policy or any other person who regularly and frequently operates a motor
vehicle insured under the policy:
(a)  Has had his or her driver’s license suspended or revoked during
the policy period.
(b)  Becomes permanently disabled, either physically or mentally, and
such individual does not produce a certificate from a physician testifying
to such person’s ability to operate a motor vehicle.
(c)  Is or has been convicted during the thirty-six months immediately
preceding the effective date of the policy or during the policy period of:
(i)  Criminal negligence, resulting in death, homicide or assault,
arising out of the operation of a motor vehicle.
(ii)  Operating a motor vehicle while in an intoxicated condition or
while under the influence of drugs.
(iii)  Leaving the scene of an accident.
(iv)  Making false statements in an application for a driver’s license.
(v)  Reckless driving.
4.  The insurer is placed in rehabilitation or receivership by the
insurance supervisory official in its state of domicile or by a court of
competent jurisdiction or the director has suspended the insurer’s
certificate of authority based on its financially hazardous condition.
5.  The named insured, any person who resides in the same household as
the named insured and customarily operates a motor vehicle insured under the
policy or any other person who regularly and frequently operates a motor
vehicle insured under the policy uses a motor vehicle rated or insured under
the policy as a private passenger motor vehicle regularly and frequently for
commercial purposes.
6.  The director determines that the continuation of the policy would
place the insurer in violation of the laws of this state or would jeopardize
the solvency of the insurer.
E.  In addition to the authorization to fail to renew insurance
provided by subsection D of this section, an insurer may exercise its right
to fail to renew a motor vehicle insurance policy pursuant to this
subsection. An insurer shall provide notice of the nonrenewal to the named
insured as prescribed by section 20-1632 at least forty-five days before the
nonrenewal.
A named insured who disputes the nonrenewal of the named
insured’s policy may file an objection with the director pursuant to section
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20-1633. An insurer shall not fail to renew more than one-half of one per
cent of its policies annually pursuant to this subsection. An insurer may
fail to renew a motor vehicle insurance policy if the named insured, any
person who resides in the same household as the named insured and who
customarily operates a motor vehicle insured under the policy or any other
person who regularly and frequently operates a motor vehicle insured under
the policy has had at any time during the thirty-six months immediately
before the notice of nonrenewal three or more at-fault accidents in which the
property damage paid by the insurer for each accident which occurred prior
to January 1, 2000,  is more than one thousand eight hundred dollars. For
accidents occurring on or after January 1, 2000, the department of insurance
shall annually adjust and publish, to the nearest ten dollars, the threshold
amount of property damages in this subsection by the percentage change in the
all items component of the consumer price index for all urban consumers of
the United States department of labor, bureau of labor statistics.
The
insurer shall not exercise its right to fail to renew the insurance under
this subsection unless the same individual has had all the accidents that
make the policy subject to nonrenewal under this subsection. The insurer
shall not exercise its right to fail to renew a motor vehicle insurance
policy pursuant to this subsection due to the accident record of the named
insured if the named insured has been insured for standard automobile bodily
injury coverage for at least ten consecutive years with the same insurer
prior to the most recent accident that makes the policy subject to nonrenewal
under this subsection. For purposes of this subsection, "at-fault" means the
insured is at least fifty per cent responsible for the accident.
F.  The company shall not cancel or fail to renew the insurance when
a person other than the named insured has violated subsection D, paragraph
3 of this section, or fail to renew the insurance pursuant to subsection E
of this section due to the driving record of an individual other than the
named insured, if the named insured in writing agrees to exclude as insured
the person by name when operating a motor vehicle and further agrees to
exclude coverage to the named insured for any negligence which may be imputed
by law to the named insured arising out of the maintenance, operation or use
of a motor vehicle by the excluded person.
The written agreement that
excludes coverage under a policy for a named individual is effective for each
renewal of the policy by the insurer and remains in effect until the insurer
agrees in writing to provide coverage for the named individual who was
previously excluded from coverage.
G.  The provisions of subsection D of this section article do not apply
to any policy which has been in effect less than sixty days at the time
notice of cancellation is mailed or delivered by the insurer unless the
policy is a renewal policy, or to policies:

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1.  Insuring any motor vehicle other than a private passenger motor
vehicle as defined in section 20-117.
2.  Insuring the motor vehicle hazard of garages, motor vehicle sales
agencies, repair shops, service stations or public parking places.
3.  Providing insurance only on an excess basis.
H.  If a consumer purchases motor vehicle insurance coverage from an
agency or agent licensed in this state, the agency or agent, whichever owns
the policy expiration, shall remain the agent of record for that insured. In
the event the insurer terminates the agency’s contract, the agency shall
continue to provide customary services to the insured. The insurer shall
provide the agency with a minimum degree of authority necessary to provide
customary services to the insured and shall provide the same level of
compensation for these services which were in effect prior to the termination
of the agency contract.
I.  Subsection H of this section shall not apply if one or more of the
following conditions exist:
1.  The agent of record has had its license suspended or revoked by the
department.
2.  The agent of record is indebted to the insurer.
3.  The insured has supplied the insurer with a written request that
its agent of record be changed to another agent of the insurer.
4.  The agent of record has authorized transfer of this account to
another licensed agent of the insurer.
5.  The director has determined after a public hearing that
continuation of this relationship is not in the best interest of the public.
6.  The agent of record is under an exclusive contract or contract
requiring the agent to submit all eligible business to an insurer or group
of insurers under a common management.
J.  Subsection H of this section shall not apply to any transaction in
which the expiration of the policies is owned by the insurer.
K.  Notwithstanding any law to the contrary, the issuance at renewal
of revised policy provisions to modify an existing policy by adding coverages
or policy provisions, modifying coverages or policy provisions, or
eliminating coverages or policy provisions is not a nonrenewal or
cancellation of the policy if the modification of a basic coverage does not
eliminate the essential benefit of that basic coverage. If the modification
of the basic coverage eliminates the essential benefit of the basic coverage,
the director shall order the insurer to remove the modification from the
policy. This subsection does not allow the insurer, without the written
consent of the insured, to eliminate the basic coverages of the policy or to
reduce the monetary limits of any of the basic coverages of the policy that
were selected and agreed on. This subsection does not limit a policyholder
from continuing to renew uninsured or underinsured motorist coverage pursuant

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to section 20-259.01. For the purposes of this subsection, "basic coverage"
means any of the following:
1.  Bodily injury coverage.
2.  Property damage coverage.
3.  Uninsured motorist coverage.
4.  Underinsured motorist coverage.
5.  Medical payments coverage.
6.  Comprehensive coverage.
7.  Collision coverage.
L.  Each insurer authorized to transact insurance subject to this
section shall submit information in a form, which may include electronic
media, approved by the director to the department on or before March 31 of
each year for the preceding two calendar years that shall contain the
following information, and that may be included by the director in the report
prepared pursuant to section 20-154.01:
1.  A list of the coverage limits offered or available for issuance in
this state for uninsured motorist coverage and underinsured motorist
coverage.
2.  For each limit of liability or coverage limit for uninsured
motorist coverage and underinsured motorist coverage, the total number of:
(a)  Policies in force and vehicles insured during the preceding
calendar years.
(b)  Policies in force and vehicles insured as of December 31 of each
year.
(c)  New policies written and in force and vehicles insured during the
preceding calendar years.
(d)  New policies in force and vehicles insured as of December 31 of
each year.
L.  M.  For purposes of this section "fail to renew" or "nonrenewal"
does not include the issuance and delivery of a new policy within the same
insurer or an insurer under the same ownership or management as the original
insurer as provided in this subsection. An insurer may transfer one per cent
of its policies to an affiliated insurer within one calendar year if one or
more of the policyholders that are insured under the policies that are to be
transferred have within the past thirty-six months each had two or more
at-fault accidents in which the property damage paid by the insurer for each
accident exceeded one thousand five hundred dollars or have had five or more
moving violations, provided that no accidents or moving violations which
occurred before August 1, 1994 shall be counted in making such determination.
A company shall not transfer a policy if the named insured agrees in writing
to exclude as an insured a person or persons other than the named insured who
meets the criteria for transfer pursuant to this subsection and further
agrees to exclude coverage for any negligence which may be imputed by law to

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the named insured arising out of the maintenance, operation or use of a motor
vehicle by such excluded person or persons. The one per cent limit set forth
in this subsection shall not apply to transfers of policies from the original
insurer to another insurer under the same ownership or management as the
original insurer if the rates charged by the other insurer are lower than the
rates charged by the original insurer.
No insurer shall transfer
policyholders because of age, race, color, religion, sex, national origin or
ancestry. Transfers by an insurer pursuant to this subsection shall not be
construed to permit a new unrestricted sixty day period for cancellation or
nonrenewal.
Sec. 3.  Section 20-1632, Arizona Revised Statutes, is amended to read:
20-1632.  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 shall be
mailed to the named insured by certified mail or United States post office
certificate of mailing at least ten days prior to 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 D  E
shall be mailed at least forty-five days before the effective date of the
nonrenewal.
Such notice shall include or be accompanied by all of the
following:
1.  A statement in writing of the specific facts which 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.  A refund of unearned premium, except a premium that has been
financed.
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, except a cancellation or nonrenewal for nonpayment of
premium.
C.  If a premium has been financed, a refund of unearned premium shall
be returned as provided in section 6-1416.
Sec. 4.  Section 20-1633, Arizona Revised Statutes, is amended to read:
20-1633.  Objections; investigation; determination
A.  Any individual who believes cancellation or nonrenewal of the
individual’s policy is arbitrary, capricious or otherwise in violation of
this article or who believes notice of nonrenewal or cancellation, or the
reasons therefor, were not given as provided by this article may, within ten

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days after receipt of notice thereof, file in writing an objection to such
action with the director.
B.  Any insured who believes an insurer has made an incorrect
determination of fault in an accident contributing to nonrenewal of a policy
under section 20-1631, subsection D  E, may, within ten days after receipt
of notice of the nonrenewal under that section, file in writing an objection
to the nonrenewal with the director.
C.  Upon receipt of a written objection pursuant to the provisions of
this article, the director shall notify the insurer of receipt of such
objection and of the right of the insurer to file a written response thereto
within ten days of receipt of such notification.
The director in his
discretion may also order an examination of the objection or complaint, the
submission of additional information by the insured or the insurer about the
action by the insurer or the objections of the insured, or such other
procedure as he deems appropriate or necessary. The insurer shall pay the
cost of the examination pursuant to section 20-159.
Within fifteen days of
receipt of such written objection by an insured the director shall approve
or disapprove the insurer’s action and shall notify the insured and insurer
in writing of his final decision. The director shall order an insurer that
has failed to renew a policy in violation of section 20-1631 to reinstate the
policy retroactive to the effective date of the nonrenewal. Either party may
institute proceedings for judicial review of the director’s decision pursuant
to section 20-166. Notwithstanding any other law, if the director decides
in favor of the insured, the director may order that the decision not be
stayed pending judicial review.
Sec. 5.  Section 28-4079, Arizona Revised Statutes, is amended to read:
28-4079.  Motor vehicle liability policy requirements
A.  An owner’s motor vehicle liability policy shall comply with the
following:
1.  The policy shall designate by explicit description or by
appropriate reference all motor vehicles for which coverage is granted. If
coverage is provided for a fleet of seven or more motor vehicles, the maximum
payable for any one accident is the limit of liability stated in the policy.
There is no accumulation of coverage for each separate vehicle covered.
2.  The policy shall insure the person named in the policy as the
insured and any other person, as insured, using the motor vehicle or motor
vehicles with the express or implied permission of the named insured against
loss from the liability imposed by law for damages arising out of the
ownership, maintenance or use of the motor vehicle or motor vehicles within
the United States or the Dominion of Canada, subject to limits exclusive of
interest and costs, for each motor vehicle as follows:
(a)  Fifteen thousand dollars because of bodily injury to or death of
one person in any one accident.

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(b)  Subject to the limit for one person, thirty thousand dollars
because of bodily injury to or death of two or more persons in any one
accident.
(c)  Ten thousand dollars because of injury to or destruction of
property of others in any one accident.
3.  By agreement in writing between a named insured and the insurer the
policy may exclude as insured a person or persons designated by name when
operating a motor vehicle. The written agreement between the named insured
and insurer is effective for each renewal of the policy by the insurer and
remains in effect until the insurer agrees in writing to provide coverage for
the person or persons who were previously excluded from coverage.
B.  An operator’s motor vehicle liability policy shall insure the
person named as insured in the policy against loss from the liability imposed
on the person by law for damages arising out of the use by the person of a
motor vehicle not owned by the person, within the same territorial limits and
subject to the same limits of liability provided in subsection A of this
section for an owner’s motor vehicle liability policy.
C.  A motor vehicle liability policy:
1.  Shall state the name and address of the named insured, the coverage
afforded by the policy, the premium charged for the policy, the complete
vehicle identification number of all vehicles covered by the policy, the
policy period and the limits of liability.
2.  Shall contain an agreement or be endorsed that insurance is
provided under the policy in accordance with the coverage defined in this
chapter for bodily injury and death or property damage, or both.
3.  Is subject to all of the provisions of this chapter.
4.  Is not required to insure liability either:
(a)  Under any workers’ compensation law.
(b)  On account of bodily injury to or death of an employee of the
insured while engaged in the employment, other than domestic, of the insured
or while engaged in the operation, maintenance or repair of the motor
vehicle.
(c)  For damage to property owned by, rented to, in charge of or
transported by the insured.
(d)  For damage to property or bodily injury caused intentionally by
or at the direction of the insured.
5.  Is subject to the following provisions that are not required to be
in the policy:
(a)  The liability of the insurance carrier with respect to the
insurance required by this chapter becomes absolute when injury or damage
covered by the motor vehicle liability policy occurs. The policy may not be
cancelled or annulled as to that liability by an agreement between the
insurance carrier and the insured after the occurrence of the injury or

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damage, and a statement made by the insured or someone on the insured’s
behalf or a violation of the policy shall not defeat or void the policy.
(b)  The satisfaction by the insured of a judgment for the injury or
damage is not a condition precedent to the right or duty of the insurance
carrier to make payment on account of the injury or damage.
(c)  The insurance carrier may settle any claim covered by the policy,
and if the settlement is made in good faith, the amount of the claim is
deductible from the limits of liability specified in subsection A, paragraph
2 of this section.
(d)  The policy, the written application for the policy, if any, and
any rider or endorsement that does not conflict with this chapter constitute
the entire contract between the parties.
6.  May provide that the insured shall reimburse the insurance carrier
for any payment the insurance carrier would not have been obligated to make
under the terms of the policy except for this chapter.
7.  May provide for the prorating of the insurance under the policy
with other valid and collectible insurance.
D.  A policy that grants the coverage required for a motor vehicle
liability policy may also grant lawful coverage in excess of or in addition
to the coverage specified for a motor vehicle liability policy, and the
excess or additional coverage is not subject to this chapter. With respect
to a policy that grants the excess or additional coverage, the term "motor
vehicle liability policy" applies only to that part of the coverage that is
required by this section.
E.  The requirements for a motor vehicle liability policy may be
fulfilled by the policies of one or more insurance carriers that together
meet the requirements.
F.  A binder issued pending the issuance of a motor vehicle liability
policy fulfills the requirements for the policy.
Sec. 6.  Section 28-4148, Arizona Revised Statutes, is amended to read:
28-4148.  Notice of insurance cancellation or nonrenewal
A.  Effective from and after January 1, 1998 and through July 31, 1998,
each insurer who cancels or becomes aware of the cancellation or nonrenewal
of or failure to renew or of issuance of a motor vehicle liability insurance
policy issued on a vehicle in this state shall provide to the department all
cancellations, nonrenewals or new issues for any reason after thirty or fewer
days have elapsed from the time of processing the cancellation, nonrenewal
or new issue of a policy.
B.  Effective August 1, 1998, each insurer who cancels or becomes aware
of the cancellation or nonrenewal of or failure to renew or issuance of a
motor vehicle liability insurance policy issued on a vehicle in this state
shall provide to the department all cancellations, nonrenewals or new issues

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for any reason after seven or fewer days have elapsed from the time of
processing the cancellation, nonrenewal or new issue of a policy.
B.  C.  The insurer shall provide the information by electronic media
in a format pursuant to a schedule specified by and in a manner prescribed
by the director.
C.  D.  The department shall not require an insurer to specify the
vehicle identification number of a vehicle covered under a commercial vehicle
policy that provides automatic coverage for additional or newly acquired
vehicles until the policy’s expiration date.
D.  E.  The department shall provide the notice of cancellation or
nonrenewal information to all law enforcement agencies on an on-line
computerized call in basis from law enforcement vehicles.
E.  F.  On cancellation or nonrenewal of a policy, an insurer shall
notify the insured that the department has been notified of the cancellation
or nonrenewal and that the insured’s motor vehicle registration may be
suspended.
F.  G.  Information provided by an insurer to the department pursuant
to this section shall be made available only to law enforcement agencies for
law enforcement purposes.
Sec. 7.  Conditional enactment
Because this act amends sections of the Arizona Revised Statutes as
amended by Senate Bill 1009 (title 28 rewrite; conforming legislation),
sections 28-4079 and 28-4148, Arizona Revised Statutes, as amended by this
act, are effective from and after September 30, 1997 only if Senate Bill
1009, forty-third legislature, first regular session, relating to
transportation, is enacted into law.

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