On the Arizona Property & Casualty exam, the Personal Automobile Policy appears both as a standard ISO-style contract and as a set of Arizona auto statutes you must apply. This standalone guide reviews the policy's coverage parts, then drills into the Arizona overlay: the 25/50/15 financial-responsibility minimums (raised in 2020), the at-fault tort system with pure comparative negligence, the UM/UIM offer rule, and cancellation/nonrenewal notice. The Arizona-specific material is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; defense is provided and defense costs are paid in addition to the limit.
• Part B — Medical Payments: pays medical/funeral costs for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists: pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 100/300/50) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives, and permissive users. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business. That framework is national; Arizona governs the limits and the liability environment around it.

Arizona uses a tort (at-fault) system with pure comparative negligence

Arizona is an at-fault / tort state: the negligent driver is financially responsible, and the injured party collects from that driver's liability coverage or by suing. Arizona applies pure comparative negligence, which is broader than the modified rules many states use:

• A claimant's recovery is reduced by their own percentage of fault.
• A claimant can still recover even if more than 50% at fault—a driver found 90% responsible may still collect 10% of their damages.

This "pure" rule is a classic Arizona contrast point versus modified (51%-bar) states.

Financial responsibility: 25/50/15 (raised in 2020)

Every Arizona driver must demonstrate financial responsibility, usually by carrying liability insurance at or above the minimum split limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Shorthand: "25/50/15." These limits were raised effective July 1, 2020, up from the older 15/30/10 minimums—a heavily tested change. They are statutory floors; producers routinely recommend higher. Financial responsibility can also be shown through approved alternatives (deposit or bond), but liability insurance is the standard method.

Uninsured/Underinsured Motorist offer rules

UM/UIM covers the insured when the at-fault driver lacks insurance (UM) or carries too little (UIM).

• Insurers must offer UM and UIM coverage; the insured may reject it in writing.
• UM/UIM is generally offered in amounts up to the policy's liability limits.
• The other driver must be legally at fault for the coverage to respond to bodily injury.

The pattern to remember: UM/UIM is offered and rejected in writing, not silently omitted.

Medical Payments

Arizona does not run a no-fault PIP system. Instead, drivers may buy optional Medical Payments (Med Pay) coverage, which pays medical and funeral expenses for the insured and passengers regardless of fault, up to the chosen limit. It is not mandatory; it simply supplements health coverage after a crash.

Cancellation and nonrenewal

Arizona controls how an insurer may end a personal auto policy, and the notice timelines are tested. Figures below are commonly cited—verify against current statute:

• Mid-term cancellation generally requires advance written notice (often about 10 days for nonpayment and somewhat longer for other reasons).
• Once a policy has been in force a set period, cancellation is limited to specific reasons—nonpayment, license suspension/revocation, or fraud/material misrepresentation.
• Nonrenewal at the end of the term generally requires advance written notice (commonly around 30 days) so the insured can find replacement coverage.

Keep the shorter cancellation notice and the longer nonrenewal notice distinct.

Required vs. optional coverages

Key Arizona numbers to memorize

Common exam traps

• Arizona is at-fault, not no-fault—there is no mandatory PIP.
• 25/50/15, not 15/30/10; the increase took effect July 1, 2020.
• The $15k figure is property damage—don't swap it into a BI slot.
• Arizona uses pure comparative negligence, so a claimant over 50% at fault can still recover something.
• UM/UIM is offered and rejected in writing, not automatically required.
• Hitting an animal is Other Than Collision (Comprehensive)—national rule that still applies in Arizona.
• Liability defense costs are paid on top of the limit.

Quick recap

• The PAP's Parts A–F structure is national; Arizona sets the limits and legal framework.
• Arizona is a tort/at-fault state using pure comparative negligence (recover even if mostly at fault).
• Minimum liability is 25/50/15, raised from 15/30/10 effective July 1, 2020.
• UM/UIM must be offered and applies unless rejected in writing; Med Pay is optional and there is no mandatory PIP.
• Cancellation and nonrenewal require advance written notice (commonly ~10 and ~30 days—verify), with mid-term cancellation limited to nonpayment, license suspension, or fraud.