Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1118
insurance; fees; consent; limits
Purpose
Decreases the minimum amount of the nonrefundable fee for the certificate of the Director
of the Department of Insurance and Financial Institutions (DIFI), under seal. Requires an insurance
producer to disclose fees and service charges in writing. Allows an oral communication to qualify
as consent for an insurer to deliver documents electronically.
Background
Fees and Communications
DIFI collects nonrefundable fees from financial institutions and enterprises with the filing
of certain documents and applications (A.R.S. § 6-126).
Any notice to a party or other document required in an insurance transaction may be
delivered, stored and presented electronically if certain requirements are met. An oral
communication or a recording of an oral communication does not qualify as consent to deliver a
notice or document by electronic means (A.R.S. § 20-239).
Title Insurance Agencies
An agent for a title insurer may not adopt a corporate or business name that contains the
words title insurance, title guaranty or title guarantee or other words indicating that the agent is
in the business of title insurance, unless followed by agent or agency. The words agent or agency
must be the same size and type as the words preceding them in any print or advertisement. A title
insurer is not responsible for an agent's violation of corporate or business name and is not liable
for a civil penalty imposed on an agent (A.R.S. § 20-1583).
Motor Vehicle Liability Policy
A motor vehicle liability policy is an owner's or operator's policy of liability insurance
issued by an authorized insurance carrier to the benefit of the named insured (A.R.S. § 28-4001).
A motor vehicle liability policy is not required to insure liability outlined under any worker's
compensation law or for intentional damage or injury authorized or executed by the insured
(A.R.S. § 28-4009).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
FACT SHEET
S.B. 1118
Page 2
Provisions
Fees and Communications
1. Reduces, from $1.50 to $0.00, the minimum amount of the nonrefundable fee for the certificate
of the Director, under seal.
2. Specifies that an oral communication with a contemporaneous record made of the
communication qualifies as consent for an insurer to deliver a notice or document by electronic
means.
3. Replaces the requirement for an insured to agree to fees and service charges in writing with
the requirement that an insurance producer disclose fees and service charges in writing.
Title Insurance Agencies
4. Removes the restrictions on the corporate or business name of an agent for a title insurer.
Motor Vehicle Liability Policy
5. Specifies that a motor vehicle liability policy is not required to provide coverage for any
liability that is not required under state law.
6. Allows a motor vehicle liability policy to contain exclusions except miscellaneous as
specifically prohibited by law.
Miscellaneous
7. Makes conforming changes.
8. Becomes effective on the general effective date.
Prepared by Senate Research
January 24, 2022
MG/AN/slp