House approves bill that bans auto insurance companies from canceling policies if vehicle is housed at of state - Ahwatukee Foothills News: Valley And State

House approves bill that bans auto insurance companies from canceling policies if vehicle is housed at of state

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Posted: Tuesday, April 22, 2014 12:00 am

The House on Monday refused to allow insurance companies to cancel someone's auto insurance if the vehicle is housed primarily out of state.

Rep. David Livingston, R-Peoria, said HB 2327 is designed to ensure that Arizona insurers can stop providing coverage when residents move to another state. And Rep. Justin Olson, R-Mesa, said insurers must notify the policyholder.

But Rep. Debbie McCune Davis, D-Phoenix, said the wording of HB 2327 is so vague it would allow an insurance company to cancel a policy just because an Arizona resident temporarily relocates to another state to find work. She said it also could endanger coverage for Arizona students who are attending college in other states and bring the family car with them.

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