REGULATORY ACTIVITY:

• Published regulatory bulletin 2017-03 withdrawing circular letter 2006-08.

REGULATORY ACTIVITY:

• Issued regulatory bulletin 2020-01 regarding uninsured and underinsured motorist coverage offer form: SB 1087.

REGULATORY ACTIVITY:

• Published a summary of the insurance laws enacted during the 2018 session. Those laws include:
  • Laws 2018, Chapter 195 (HB 2181): Insurance Adjusters; Application of Laws Amends ARS § 20-321.02, to require an insurance adjuster to keep and make accessible to the Department usual and customary transaction records for at least three years.
  • Laws 2018, Chapter 133 (HB 2107): Pharmacy Benefit Managers; Pricing Creates ARS §§ 44-1751 and 44-1752, to prohibit a pharmacy or a contracted pharmacy benefits manager from:
    • Preventing a pharmacy or pharmacist from, or penalizing a pharmacy or pharmacist for, providing an insured’s individual information about the insured’s cost share or about the clinical efficacy of an available alternative drug.
    • Requiring a pharmacy or pharmacist to sell a more affordable alternative if one is available.
    • Requiring a pharmacy or pharmacist to charge or collect from an insured a copayment that is greater than the total charges submitted by the network pharmacy.

LEGISLATIVE ACTIONS:

House Bill 3402

Requires an insurance adjuster to keep usual and customary records pertaining to the transactions of the adjuster. Records must be maintained and made available for inspection for three years immediately after the date of completion of the transaction.  Effective Date to Be Determined.

House Bill 2306

The enacted legislation requires ADOT to develop and prescribe standard forms for requesting the release of a vehicle and releasing liability for the removal of property from a towed vehicle by January 1, 2019. The standard vehicle release form must be used beginning January 1, 2019.  Instructs owners, insurance companies, towing companies and other persons requesting the release of a vehicle to present proof of ownership in addition to the standard vehicle release form, beginning January 1, 2019. It directs a towing company to release a towed vehicle to the owner on the day the request for release is provided to the towing company, if conditions are met. The legislation allows the request for release to be emailed or delivered by other electronic means to the towing company. It requires a towing company to: Define a storage day from midnight of one day to midnight of the next day for billing purposes; Provide the detailed billing statement by close of business if the request was made before noon on a business day; Allow the payment of fees and charges to be made in the form of cash, credit card, debit card, insurance company-issued check or money order; Make all fees and charges pursuant to the terms of the applicable contract between the company and the governmental jurisdiction in which the accident occurs; and be open to the public, or available by appointment, to provide current billing statements and release vehicles between 9:00 am and 5:00 pm Monday through Friday, excluding holidays.  A towing company may not accrue storage fees and charges for any day when the lot is closed contrary to this requirement. The enacted statute prohibits a towing company from: Assessing storage fees until the day it provides the billing statement if it failed to provide the statement by the close of business on the day the statement was requested; Imposing additional fees or charges between receiving the request for the release and providing the detailed written statement; Charging more than the amount authorized by the contract or statute for a primary tow; Refusing to release a vehicle after the owner or insurance company presents a request for release and pays the authorized fees and charges; and requiring payment for the removal of personal property that is inside the vehicle if the inspection and removal occurs during normal business hours. It authorizes the registered owner, insurance company or a person designated in writing by the owner, during normal business hours to: Inspect the vehicle at the towing company's storage lot; Report damage to the vehicle, allegedly caused by the towing company, to the towing company at the time of inspection; and remove personal property from the vehicle. The statute permits the towing company to require the owner or insurance company to sign a release of liability for the removal of personal items from a vehicle. It instructs a towing company to tow a vehicle to the closest storage lot designated in the applicable contract after an accident, unless: the owner directs the company to a different location;      there is insufficient capacity in the closest storage lot; or an on-scene officer directs it to be taken to another site. The statute stipulates that all acts of employees or contractors of a towing company within the scope of employment are deemed to be acts of the towing company. It classifies an act or practice in violation of this section as an unlawful practice and authorizes the AG to investigate and take appropriate action against the towing company, including any civil or criminal action, remedy and penalty provided by law. The law classifies failure to release a vehicle on receipt of the request for release and payment of authorized fees and charges as a petty offense for the first violation and a Class 3 misdemeanor (30 days/$500 plus surcharges for individuals, $2,000 plus surcharges for enterprises) for a subsequent violation within 3 years. It stipulates that a lien does not exist in favor of a towing company or storage lot for unpaid towing or storage fees or charges that are incurred.  It asserts that this does not affect the applicability of statute relating to unclaimed vehicles and asserts that the provisions of a contract between a towing company and jurisdiction apply to towing and storage transactions, except as provided in this section. It defines contract and primary tow. It removes the definition of owner. It makes technical and conforming changes. Effective Date to Be Determined.

REGULATORY ACTIVITY:

• The Department of Insurance issued Regulatory Bulletin 2017-02 regarding Changes to Insurance Laws.