First Regular Session S.B. 1013
SENATE AMENDMENTS TO S.B. 1013
(Reference to printed bill)
Strike everything after the enacting clause and insert:
"Section 1. Title 20, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 20-1122.01, to read:
20-1122.01. Valid assignment of claims; assignment for direct payment of property claims policies; definitions
A. After a loss has occurred, a valid assignment of a property claim is one that complies with the requirements of this section.
B. An assignment agreement is subject to the following requirements and limitations:
1. The assignment agreement must disclose the material provisions of the assignment agreement, including the following provisions which must be in no less than fourteen point font, and which must each be separately acknowledged by the insured:
(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.
Amend title to conform