The proposed bill would update current statutes regarding watercraft insurance requirements in Arizona by introducing new provisions for watercraft owners who rent or charter their vessels, as well as for boat livery owners and peer-to-peer watercraft sharing programs. Specifically, it mandates that these entities maintain a liability insurance policy with minimum coverage amounts of $25,000 for bodily injury or death of one person, $50,000 for two or more persons, and $20,000 for property damage in any one accident. Non-compliance with these insurance requirements would be classified as a class 3 misdemeanor, escalating to a class 1 misdemeanor if the watercraft is involved in an accident.

Additionally, the bill would insert definitions for terms such as "boat livery" and "peer-to-peer watercraft sharing," and it would require sharing programs to maintain a primary commercial boat liability insurance policy, providing proof of insurance to operators before the sharing period begins. The Arizona Game and Fish Commission would be empowered to require certification of insurance from watercraft and boat livery owners and verify this information with insurers. The bill also makes technical and conforming changes to existing statutes, ensuring that while insurers are not obligated to offer commercial boat liability policies, they may do so voluntarily.

Statutes affected:
Introduced Version: 5-342, 5-371
House Engrossed Version: 5-342, 5-371
Senate Engrossed Version: 5-301, 5-342, 5-342.01, 5-350, 5-371, 20-255