Ariz. Admin. Code § 18-12-319

Current through Register Vol. 30, No. 45, November 8, 2024

Section R18-12-319 - Cancellation or Nonrenewal by a Provider of Financial Assurance

A. Except as otherwise provided, a provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination by certified mail to the owner or operator in accordance with one of the following:

1. Termination of a local government guarantee, guarantee, surety bond, or letter of credit shall not occur until 120 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt;

2. Termination of insurance or risk retention group coverage, or state-funded assurance, except for non-payment of premium or misrepresentation by the insured, shall not occur until 60 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt. Termination for non-payment of premium or misrepresentation by the insured shall not occur until a minimum of 10 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.

B. If a provider of financial responsibility cancels or fails to renew for reasons other than incapacity of the provider as specified in R18-12-324, the owner or operator shall obtain alternate coverage as specified in this Article within 60 days after receipt of the notice of termination. If the owner or operator fails to obtain alternate coverage within 60 days after receipt of the notice of termination, the owner or operator shall notify the Director of such failure and submit all of the following:

1. The name and address of the provider of financial assurance,

2. The effective date of termination,

3. The evidence of the financial assurance mechanism subject to the termination submitted in accordance with R18-12-301.

Ariz. Admin. Code § R18-12-319

Adopted effective September 21, 1992 (Supp. 92-3). Amended by final rulemaking at 25 A.A.R. 3123, effective 10/1/2020.