Insurance Laws, Auto Minimum Liability Insurance and Health Care Reform
Arizona is home to a wide range of regulations that are designed to govern the state’s insurance industry. Like those found in other states, Arizona insurance regulations are designed to be friendly to both consumers and Arizona insurance companies. Both consumers and insurers are required to comply with the state’s regulations or risk facing severe penalties. These regulations are in place to prevent and mitigate the impact of malicious activity and how this activity may affect the insurance market as a whole.
Drivers are required to purchase and maintain Arizona auto insurance coverage from an insurer licensed to do business in the state. According to Arizona regulations, there is a minimum level of coverage drivers can hold through their policies. This coverage accounts for $15,000 per person and $30,000 per accident for bodily injury and death as well as $10,000 per accident for damage to property. The state does not require drivers to hold personal injury protection (PIP) coverage.
Minimum Liability Limits for Arizona Auto Insurance: $15,000/$30,000 Bodily Injury and $10,000 Property Damage
There is a wide array of Arizona car insurance coverage that is offered to residents that go well beyond the minimum level of coverage offered by the state. Drivers are often advised by state regulators to ensure that their vehicles are protected by the most comprehensive policies they can obtain so as to protect from a wide range of possible incidents.
Arizona homeowners insurance is not required by the state. The Arizona Department of Insurance strongly advises that homeowners do obtain insurance coverage, however, to offset the risks associated with having an unprotected property. The state agency regulates the property insurance industry to ensure that consumers are treated fairly, while also allowing for insurers to conduct business freely. As in other states, homeowners are likely required to purchase insurance policies as a provision of their financing plans with a financial institution.
Arizona Health insurance is not required of any resident by state law, but will be required by federal mandate beginning in 2014. Before 2014, consumers will not be obligated to purchase and maintain health insurance policies. When the mandate goes into effect, however, failure to comply could result in fairly severe penalties from the federal government. The federal government has determined that states must build their own health insurance exchange systems in order to provide residents with access to affordable coverage that suits their needs.
Arizona is one of several states that has chosen to build and operate its own health insurance exchange system. The state government is currently in the early stages of developing this program and expects that it will be ready to sell policies beginning in 2014.
Arizona Insurance Resources:
Arizona Department of Insurance Website: http://www.id.state.az.us/index.html
Arizona Insurance Commissioner: Germaine L. Marks
File a complaint: http://www.id.state.az.us/consumerassistance.html
Arizona Insurance Agent Resources: http://www.id.state.az.us/producers/index.html