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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: FIN DPA 5-1-1-0 |Third Read 29-0-1-0-0 |
SB1206: storm related insurance claims; adjusters
Sponsor: Senator Carroll, LD 28
Committee on Commerce
Overview
Establishes prohibitions on adjusters and contractors for storm related insurance claims.
History
An adjuster is any person who, for compensation, fee or commission, either adjusts, investigates or negotiates settlement of claims arising under property and casualty insurance contracts on behalf of either the insurer or the insured for holds oneself out to perform such services. Adjusters must be licensed by the Department of Insurance and Financial Institutions (A.R.S. §§ 20-321, 20-321.01).
Statute outlines specific regulations regarding contracts for residential repair or replacement of damage resulting directly from a catastrophic storm, including a property owner's right to cancel a contract within 72 hours of an insurance claim denial or within four business days of signing the contract. A contractor may not act on a property owner's behalf to negotiate settlement of claim or loss or make assurances of insurance policy coverage. Failing to comply with regulations regarding contracts for residential repair or replacement of damage resulting directly from a catastrophic storm subjects the contractor’s license to suspension or revocation (A.R.S. § 32-1158.02).
Provisions
1. Prohibits an adjuster from:
a. proposing to any insured that the adjuster represents the insured while a loss-producing occurrence is continuing or while public safety services are engaged in a public safety emergency response at the damaged premises;
b. participating in the restoration, reconstruction or repair of damaged premises or property that is the subject of a claim adjusted by the adjuster; and
c. endorsing payment instruments issued to an insured as a result of a claim arising under an insurance contract without the insured's direct endorsement and signature. (Sec. 2)
2. Stipulates a contractor, for an insured owner who submits a claim with the insurer for residential repair or replacement, cannot advertise to pay, issue payment for or promise to pay any deductible payable on the policy or issue any rebate deductible either directly or indirectly. (Sec. 3)
3. Prohibits a contractor providing post-storm repair or replacement contracting services from acting as an adjuster on behalf of the insured for the claim. (Sec. 3)
4. Prohibits a contractor from proposing to any person that the person sign an agreement for work on any damaged premises while a loss-producing occurrence is continuing or while public safety services are engaged in a public safety emergency response at the damaged premises. (Sec. 3)
5. Modifies the definition of adjuster to include a person who directly or indirectly solicits business from, investigates or advises an insured about claims arising pursuant to property and casualty insurance contracts for a person that performs adjustment services (Sec. 1)
6. Defines adjust. (Sec. 1)
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10. Initials PB/ZE SB 1206
11. 3/17/2026 Page 0 Commerce
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