State Capitol News
9:14 am
Tue May 6, 2014

Governor Brewer Vetoes Auto Insurance Cancellation Bill

Governor Jan Brewer has vetoed a bill sought by auto insurers that would have allowed them to cancel some policies. Arizona Public Radio's Howard Fischer reports.

Arizona has one of the toughest laws in the country limiting when insurers can cancel or not renew a policy. This measure would have created an exemption when a vehicle is "principally garaged outside Arizona."

State Representative David Livingston said this is to keep people from moving out of state and keeping their Arizona policies. But, Representative Debbie McCune Davis said it's not that simple. "There are people who take short-term job assignments outside the boundaries of the state, particularly in hard economic times," Davis says. "And there are students who are outside the state for periods of time while they are studying."

Governor Brewer agreed, saying the lack of definitions gave insurers too much leeway in deciding which policies to no longer write. The action brings Brewer's final veto total for the session to 25. But, she did sign legislation yesterday to say that students with special needs and those in foster care do not need to first have attended public schools to be eligible for scholarships, funded by income tax credits, to attend private and parochial schools. All totaled, the governor signed 280 bills this year.