SB 1013 — technical correction; insurance; existing actions

SB1013 - 541R - IS-Transportation Verand  Public Safety - Strike Everything-Proposed   PREFILED   Fifty-fourth DECLegislature                         27Transportation 2018and REFERENCEPublic TITLE:Safety First Regular Session                                                   S.B.

technical  correction;PROPOSED SENATE AMENDMENTS TO S.B.

insurance;1013 (Reference to printed bill)   Strike everything after the enacting clause and insert:

existing"Section 1.  Title actions20,  chapter  5,  article  1, State of Arizona SenateRevised Fifty-fourthStatutes, Legislatureis Firstamended Regular Session     SB 1013   Introduced by Senatoradding Livingston     AN ACT   amending section 20-112,20-1122.01, Arizonato Revisedread: Statutes;

relating20-1122.01.  Valid toassignment insurance.of claims;

 assignment  for (TEXTdirect OFpayment BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of theproperty Stateclaims ofpolicies; Arizona:

Section 1.  Sectiondefinitions 20-112,A.  After Arizonaa Revisedloss Statutes,has occurred, a valid assignment of a property claim is amendedone that complies with the requirements of this section.  B.  An assignment agreement is subject to read:the following requirements and limitations:

START_STATUTE20-112.  Existing1.  The actionsassignment oragreement violationsmust Repealdisclose bythe thismaterial titleprovisions of anythe lawassignment shallagreement, notincluding affectthe orfollowing abateprovisions anywhich rightmust accrued,be actionin orno proceedingless commenced,than orfourteen anypoint unlawfulfont, act committed under such law, prior to January 1, 1955, and punishmentwhich ormust deprivationeach ofbe licenseseparately oracknowledged authority as a consequence thereof as provided by such laws, but all proceedings taken on or after January 1, 1955 with respect thereto shall conform to the applicableinsured: provisions of this code title insofar as possible.  All such laws shall be deemed to continue in force to the extent made necessary by this provision.

END_STATUTE(a).  Whether the insured remains liable for any costs not covered by the insurance policy.

(b).  The interest rate, if any, that will be charged to the insured in the event of a delay in payment by the insured following receipt of payment by the insurer.

(c).  Whether the assignment agreement authorizes the assignee to sue the insurer.

2.  An assignment agreement may not:

(a).  Require the insured to indemnify the assignee for any damages or liabilities of the assignee arising out of assignment agreement.

(b).  Prevent or inhibit an insurer from communicating with the insured or any lienholder.

(c).  The insured and assignee must comply with the following requirements to notify the insurer of the assignment of the property claim and to effectuate the assignment agreement:

1.  The insured submits the property claim to the insurer.

2.  The assignee provides a form of assignment agreement to the insured that complies with the requirements of subsection b of this section.

3.  The assignee provides a copy of the assignment agreement  and an estimate or itemized statement of the costs or charges for the services or repairs to be provided to the insurer.  The assignee shall also provide a copy of the itemized statement to the insured.

d.  The insured and the insurer shall have the right to inspect the materials used and the workmanship of the services or repairs provided.

The insured and insurer shall have the right to resolve any materials or workmanship disputes or issues before the assignee is entitled to payment in full.

E.  If there is a good faith dispute involving payment, materials, workmanship issues or the reasonableness of the work performed by the assignee, the assignee must exhaust any dispute resolution procedures or requirements set forth in the insurance policy before the assignee can charge additional interest on the balance due, if such interest would not be covered by the policy.

F.  This section does not prohibit or limit the ability of an insured to direct the insurer to issue payment to a third party for services or repairs provided in connection with a property claim, if the insured notifies the insurer of the proposed direct payment.

G.  If an insurer has entered into a contract with a service provider to provide services or repairs arising out of property claims, the terms of the contract between the insurer and the service provider shall control in the event of conflict between the contract and the requirements of this section.

H.  Nothing in this section is intended to create any new private right or cause of action nor to extinguish or limit any existing common law causes of action."END_STATUTE Amend title to conform     DAVID LIVINGSTON   10130956.docx 02/18/2019 09:56 AM S:

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