3.5.7 Punitive Damage Coverage
| Jurisdiction | Arizona |
The Arizona courts have recognized that insurance carriers can provide coverage for punitive damage awards.[315]
Punitive damage awards are disallowed against a public entity under A.R.S. Sec. 12-820.04. Thus, the legislature has determined that punitive damage awards should not be assessed in a manner that would require the award to be paid by the public at large, defeating the deterrent effect of the award. With this in mind, should the definition of a "covered claim" include punitive damage coverage if...
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