Sharon Faulkner, executive director of the American Car Rental Association (ACRA), attended a stakeholders' meeting in Phoenix on Jan. 11 to discuss new legislation dealing with primary/secondary insurance (for a blog about the state’s law, click here).
The legislation is being sponsored by state Sen. John McComish (R, LD 20 - Phoenix/Chandler), chairman of the senate banking and insurance committee. The bill that Sen. McComish plans to introduce would change Arizona’s statutes to make car rental companies secondary to auto insurers for coverage of third-party damage and injury claims involving negligent renters.
Currently, Arizona is an outlier state that by statute makes car rental companies primary in all claims and prohibits recoveries through subrogation.
The stakeholders’ meeting, called by Sen. McComish and state Rep. Nancy McLain, who chairs the committee, was intended to allow interested parties to express their views on the draft legislation.