3.3.3 A.R.S. Sec. 20-259.01(H)

• Jurisdiction: Arizona

A.R.S. Sec. 20-259.01(H) allows insurance companies issuing multiple policies to avoid stacking by requiring their insureds to select only one policy to provide benefits after a loss has occurred. The statute provides:

H. Uninsured and underinsured motorist coverages are separate and distinct and apply to different accident situations. Underinsured motorist coverage shall not provide coverage for a claim against an uninsured motorist in addition to any applicable uninsured motorist coverage. If multiple policies or coverages purchased by one insured on different vehicles apply to an accident or claim, the insurer may limit the coverage so that only one policy, selected by the insured, shall be applicable to any one accident.

The provisions of A.R.S. Sec. 20-259.01(H) are not self-executing because its wording is merely permissive.^[187] To be effective, "[a]dditional policy language is needed to incorporate the limitation into a policy."^[188]

There must be "one insured" who bought "multiple policies or coverages . . . on different vehicles."^[189] The policy must allow the insured to choose which policy is to be applied to an accident. It is insufficient to notify insureds of their selection rights after an accident.^[190] The policy prohibition against stacking should be expressed in clear and unambiguous terms.

When...