Arizona SB 1015: vehicle accidents; financial responsibility verification

Bill Text

SB1015 - 541R - I Ver 

PREFILED��� JAN 03 2019

 REFERENCE TITLE: vehicle accidents; 
 financial responsibility verification

 State of 
 Arizona

 Senate

 Fifty-fourth 
 Legislature

 First Regular 
 Session

 2019

 SB 1015

 Introduced by 

 Senator Livingston

AN ACT

amending section 
28‑4143, Arizona Revised Statutes; relating to vehicle insurance.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-4143, Arizona Revised 
Statutes, is amended to read:

START_STATUTE28-4143. Vehicle accident; financial responsibility verification; 
suspension

A. To ensure compliance with this article, the 
department may verify the financial responsibility of the owner of a motor 
vehicle involved in an accident in this state. If an accident 
involves an unregistered vehicle, the department may conduct a financial 
responsibility verification in the same manner as required for a registered 
vehicle.

B. If a motor vehicle is selected for financial 
responsibility verification under subsection A of this section, the department 
shall verify all insurance information on file for the requested vehicle by 
forwarding the information contained on the record to the insurer or the 
applicable party to determine if the insurance was in effect on the date of the 
accident.

C. On receipt of a denial from an insurer or any 
other applicable party or if no insurance information was on file, the 
department shall mail a notice to the owner requiring evidence from the owner 
that the motor vehicle met the financial responsibility requirement of section 
28‑4135 or section 28‑4033, subsection A, paragraph 2, subdivision 
(c) on the date of the accident. The notice shall require the owner 
to submit evidence of financial responsibility to the department within thirty 
days after the date the notice was mailed.

D. The department shall verify all evidence of 
financial responsibility submitted pursuant to subsection C of this section and 
shall take action as follows:

1. If the evidence of financial responsibility 
submitted by the owner indicates the existence of a motor vehicle or automobile 
liability policy covering the motor vehicle, the following steps shall be 
taken:

(a) The department shall forward the evidence 
document or the applicable information contained in the evidence document to 
the listed insurer or other appropriate party to determine whether the policy 
was valid on the date of the accident.

(b) The insurer or other appropriate party shall 
notify the department in writing within thirty days after the date the inquiry 
was mailed if the policy was not valid on the date indicated.

(c) On receipt of a letter of denial from an insurer 
or any other appropriate party, the department shall send to the owner a 
suspension notice that states:

(i) The insurer's denial of coverage on the date of 
the accident.

(ii) The owner's driver license and motor vehicle 
registration will be suspended fifteen days after the date the suspension 
notice was mailed unless the owner produces additional evidence to the 
department on or before the effective date of the suspension that the financial 
responsibility requirement of section 28‑4135 or section 28‑4033, 
subsection A, paragraph 2, subdivision (c) was met for the vehicle on the date 
of the accident or unless the owner requests a hearing.

2. If the evidence of financial responsibility 
submitted by the owner indicates either self‑insurance or a certificate 
of deposit, the department shall:

(a) Verify that the evidence is properly reflected 
in the department records.

(b) If it is determined that the evidence of 
financial responsibility is false or otherwise invalid, send a suspension 
notice to the owner that the person's driver license and motor vehicle 
registration will be suspended fifteen days after the date the suspension 
notice is mailed unless a hearing is requested.

3. If the person appearing as the registered owner 
of the vehicle according to department records is able to provide proof as 
prescribed by the director that the vehicle was sold before the 
date of the accident occurred, the department 
shall not suspend the driver license or registration privilege of the person.

E. Information that is being verified pursuant to 
this section is a public record. END_STATUTE