Lead Opinion
¶ 1 Plaintiff/Appellant Martina Ramos Melendez (“Melendez”) appeals the superior court’s grant of summary judgment in favor of Defendant/Appellee Hallmark Insurance Company (“Hallmark”). The court held that the form Hallmark used to offer Melendez uninsured and underinsured motorists coverage (“UM” and “UIM”) complied with Arizona Revised Statutes (“AR.S.”) section 20-259.01 (Supp. 2012).
FACTUAL AND PROCEDURAL HISTORY
¶ 2 The material facts are not in dispute. Melendez owned a vehicle insured by Hallmark when she and two passengers (C.G. and L.C.) were involved in a collision. As a result of the collision, Melendez sustained injuries resulting in nearly $36,000 in medical expenses. L.C.’s medical bills totaled about $5500, and C.G.’s medical bills were more than $95,000. The motorist at fault for the collision carried insurance liability with limits of $50,000/$100,000, and compensation was allocated as follows: Melendez ($50,000); L.C. ($10,000); and C.G. ($40,000).
¶ 3 Melendez filed a UIM claim with Hallmark. Hallmark denied compensation on the basis that Melendez had executed a form rejecting UM/UIM coverage. Melendez then
¶4 In support of her motion, Melendez attached the declarations page of her Hallmark insurance policy reflecting her premium and coverages including the rejection of UM/UIM coverage, as well as the UM/UIM seleetion/rejection form she signed in 2009. That form generally described UM/UIM coverage, but did not include any coverage amounts or premiums, and expressly provided that “no coverage is provided by this document.” It then suggests the insured contact Hallmark “or your agent” if the insured has any questions about UM/UIM coverage and/or the amount of coverage available. Hallmark’s form specifies that Hallmark “will provide Uninsured/Underin-sured Motorist coverage in the same amount as the policy’s Bodily Injury Liability Limit” unless the insured rejects coverage or selects a lower amount of coverage. Melendez also attached a 2010 letter from the Arizona Department of Insurance (“ADOI”) informing Hallmark that the UM/UIM selection/rejection form submitted to ADOI failed to conform to the sample forms in ADOI’s Regulatory Bulletin 2003-03. The letter informed Hallmark that ADOI was giving it an opportunity to cure deficiencies or withdraw the filing. Citing A.R.S. §§ 20-398(A) and -1111, ADOI warned that if Hallmark did not comply, it would “disapprove the filing as ambiguous, misleading or deceptive or otherwise failing to comply with Arizona law.” According to ADOI, the UM/UIM form was deficient, in part, because:
The submitted forms do not comply with Arizona statutes ... The UNINSURED AND UNDERINSURED MOTORIST COVERAGE SELECTION FORM fails to conform to the forms included in our Regulatory Bulletin 2003-03. The form must include the company name and essentially the same information as the form included with the [Regulatory Bulletin 2003-3] (including Bodily Injury Limit on the policy and a place to show the premium for [UM and UIM] Coverages).
¶ 5 Hallmark simultaneously responded to Melendez’s motion for partial summary judgment and filed a cross-motion for partial summary judgment. Although Hallmark expressly agreed with Melendez’s statement of material facts, it maintained that A.R.S. § 20-259.01(B) does not specify anything other than that a “written offer” must be made to the insured and noted that the statute does not define what constitutes an “offer.” Relying primarily on Tallent,
¶ 6 The superior court determined that under Garcia, Hallmark’s seleetion/rejection form was sufficient enough for an offer because it stated that Melendez had the right to get UM/UIM coverage in an amount equal to her liability limits, permitted the selection of lower limits, and permitted rejection of the coverage. The court did not think that the determination in Garcia was inconsistent with the statute and stated that “if I were writing [on] a blank page, I am not sure that that is how I would do it, but I think I am bound by Garcia." Accordingly, the court granted Hallmark’s motion and denied Melendez’s motion. Melendez filed a notice of appeal. Thereafter, the superior court entered a final signed judgment. Melendez filed an amended notice of appeal from the final signed judgment. We have jurisdiction pursuant to A.R.S. § 12-2101(A)(1) (Supp. 2012).
ISSUE ON APPEAL
¶ 7 Melendez contends that the selection/rejection form for UM/UIM insurance coverage did not constitute an “offer” for purposes of A.R.S. § 20-259.01 because it failed to quote a premium price for the coverage and therefore lacked a certain and definite term necessary for a valid “offer” as that term has been defined by the Arizona Supreme Court. Melendez argues that because a premium was not quoted in the selection/rejection form she did not have adequate information to accept or reject the offer of UM/UIM coverage.
¶ 8 Hallmark maintains that the seleetion/rejection form provided sufficient information to hold out UM/UIM coverage such that a reasonable person would have understood the coverage was being offered for purchase and to trigger Melendez to ask questions such as the premium amount.
DISCUSSION
¶ 9 We review de novo whether summary judgment is warranted including whether any genuine issues of material fact exist and whether the superior court properly applied the law. Eller Media Co. v. City of Tucson,
¶ 10 We review issues of statutory construction de novo. Blevins v. Gov’t Emps. Ins. Co.,
¶ 11 Section 20-259.01(B) requires that an insurer must “make available ... and shall by written notice offer the insured ... under-insured motorist coverage.” (Emphasis added.)
¶ 12 Melendez asserts that because Hallmark’s UM/UIM selection/rejeetion form did not quote a premium price, she was not offered UM/UIM coverage within the meaning of the statute.
¶ 13 Our supreme court in Tallent explained that the term “offer” in A.R.S. § 12-259.01 was not defined by statute, and applied general contract principles in construing the term.
to make an offer is simply “[t]o bring to or before; to present for acceptance or rejection; to hold out or proffer; to make a proposal to; to exhibit something that may be taken or received or not.” Black’s Law Dictionary 1081 (6th ed.1990); see Joseph M. Perillo, Corbin on Contracts § 1.11 (revised ed.1993) (“An offer is an expression by one party of assent to certain definite terms, provided that the other party involved in the bargaining transaction unll likewise express assent to the same terms.”)-, Restatement (Second) of Contracts § 24 (1981) (“An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.”).
Id. (emphasis added).
¶ 14 Recently, in Ballesteros, our supreme court approvingly cited Tallent and elaborated upon the definition of an “offer” stating that: “[In Tallent,] [w]e cited with approval the Second Restatement of Contracts’ [§ 24] definition of an offer as ‘the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.’ ”
Under contract principles ... the test is objective: [wjhether an offer was made turns only on whether a reasonable person would understand that a proposal of terms was made, not on [the insured’s] subjective understanding of the offer form. The of-feree need not understand the content of an offer in order to bind the offeror----[Section] 20-259.01 ... requires only that the insurer make an offer that, if accepted, would bind the insurer to provide the offered coverage.
Id. at 349, ¶ 14,
¶ 15 The form used here, attached as Appendix A to this decision, indicates that the UIM coverage is available for purchase at liability limits equal to or less than the insured’s policy liability limits. An insured who wants to select coverage at an amount less than the policy limits may specify an amount of desired coverage on a per person/oceurrence basis. The form also provides the option of entirely rejecting UIM coverage.
¶ 16 A UM/UIM selection/rejection form that lacks premium prices and optional coverage amounts, and which tells the insured that the form does not provide coverage, does not objectively communicate a “proposal of terms” and would not lead a reasonable person to understand that an offer is being made that, if accepted, would bind the offer- or. See id. at 348, ¶ 13,
¶ 17 Our determination is also supported by ADOI’s interpretation of A.R.S. § 20-259.01 as reflected in the ADOI Regulatory Bulletin 2003-03 and the 2010 letter of non compliance ADOI sent to Hallmark. The Director of Insurance administers ADOI and is responsible for enforcing Arizona insurance laws. A.R.S. §§ 20-101 (2002), -141 (Supp.2012), -142 (Supp.2012). As such, the Director has been given broad powers .to implement and enforce insurance laws. Id. As pertinent here, the legislature specifically invoked the Director’s authority to promulgate UM/UIM rejection/selection forms by providing that the “rejection of coverage by a named insured or applicant on a form approved by the director is valid for all insureds under the policy.” AR.S. § 20-259.01(A). Furthermore, the legislature has
¶ 18 “Judicial deference should be given to agencies charged with the responsibility of carrying out specific legislation____” U.S. Parking Sys. v. City of Phoenix,
¶ 19 Our interpretation of A.R.S. § 12-259.01 is consistent with the stated purpose of the statute, which we must read liberally and must be strictly complied with to effect the legislative intent to encourage potential insureds to obtain UM and UIM coverage to protect their loved ones. See supra ¶ 10. Hallmark’s interpretation of the statute conflicts with those standards. By Hallmark’s reading of the statute, a reasonable person who might want to buy UM/UIM insurance could conclude that he and the proposed insurer were bound simply by the insured inserting a number in the blank for the amount of UM/UIM coverage without any space for the insurer to inform the insured the amount of the premium and when the form says it does not provide coverage. By that reasoning, a lawyer attempting to buy malpractice insurance and the insurer would be bound by an application for insurance in which the premium was left blank and might be dependent on the amount of coverage and/or the purchaser’s risks. Moreover, unlike purchasing a can of soup or a car, for which a buyer can read the pricing labels and at least know what he or she is buying, when purchasing Hallmark’s UM/UIM insurance, the person desiring insurance would be left totally in the dark about the price to make a final decision. Instead, Hallmark requires the insured to ask about the price. But that does not constitute an offer as defined in Tallent and Ballesteros. By doing nothing more than indicating an amount of possible coverage, a reasonable buyer would not expect that he or she and the insurer would be bound by the contract until a price was offered and accepted.
¶ 20 Our construction of the statute does not conflict with Ballesteros. In Ballesteros, the supreme court held that the statute did not require an insurer to submit the offer to the buyer in Spanish or another language when the buyer might not be fluent in English.
¶ 21 Garcia was decided two years after Tallent. In Garcia, the appellants asserted that the insurer’s offer of UM/UIM coverage was inadequate because the selection/rejection form did not specify the limits of coverage available, and unlike the offer of coverage in Tallent, the form did not provide a range of coverages and corresponding premium prices.
¶ 22 We disagree with the conclusion of Garcia and also find it distinguishable. First, fifteen years ago, when Garcia decided this issue, this Court did not have the benefit of the guidance afforded by Ballesteros or ADOI’s interpretation of the statutory requirements as reflected in Regulatory Bulletin 2003-03. Moreover, we cannot see how Garcia is consistent with a liberal reading of a remedial statute to encourage potential insureds to explore and purchase UM/UIM coverage. Second, there was no indication in Garcia that ADOI had affirmatively disapproved the form used by the insurer. When the administrative agency has construed a statute it enforces and determined that a proposed form is invalid, we will give deference to such determination, although we retain ultimate “authority on critical questions of statutory construction.” U.S. Parking Sys.,
¶ 23 Our dissenting colleague concludes that since A.R.S. § 20-259.01 does not expressly
¶24 The dissent contends that the Hallmark form even without any premium price and coverage options, can still bind the insured and the insurer because a price term is not always necessary to create an enforceable contract. See infra ¶ 46 (citing Goodman v. Physical Res. Eng’g, Inc.,
¶25 Moreover, the dissent’s reliance on cases that hold a court or a panel of experts could determine what the premium should be, id., is misplaced because this is not a case such as Schade, in which the parties agreed that a panel of experts would determine a reasonable fee for services.
¶ 26 Indeed, although the dissent relies on Tallent, the insurer’s form in that case included a copy of the premium schedule for UM/UIM coverage based on the amount of coverage sought. See Tallent,
¶ 27 The dissent also contends that regardless of the absence of a price for or amount of coverage, the selection form satisfied the statutory requirements “because it conveyed an offer that, if accepted by the insured, would have bound Hallmark to provide UM/ UIM coverage.” Infra ¶41. This ignores the express language in the form that regardless of whether Melendez had chosen UM/UIM coverage in any amount, “This document includes general descriptions of coverage. However no coverage is provided by this document____” Supra ¶4. We do not understand how a selection form that expressly tells the insured that it does not provide coverage somehow binds the insurer to provide coverage. Nor do we find the dissent’s explanation that such language when read in context really only requires the insured to refer to its policy to determine who and what is covered. Infra ¶¶ 49-51. Clearly, the form is advising the insured to check the policy for coverage and exclusions. But, it is also telling the insured that regardless of what the insured does on the form, the form does not provide coverage. Thus, it cannot amount to an offer which will bind the insurer to provide coverage.
¶28 Finally, the dissent contends that ADOI’s rejection of Hallmark’s selection form is unclear and to the extent it may have required an explanation of UM/UIM coverage or use of different languages, it is erroneous given Tallent and Ballesteros. See infra ¶¶ 54-55. But that avoids the issue presented here — whether ADOI’s requirement that an insurer’s form specify either a premium price or a price range is consistent with Tallent and Ballesteros by requiring a sufficient offer to bind the parties.
II. Remedy
¶29 Since we conclude that Hallmark’s selection form did not comply with A.R.S. § 20-259.01 and there are no disputed facts, Melendez is entitled to summary judgment on her complaint. “When an insurer’s statutory obligation to provide or offer certain
CONCLUSION
¶ 30 As a matter of law, Hallmark did not sufficiently offer Melendez UM/UIM insurance coverage for purposes of A.R.S. § 20-259.01. The offer did not specify premium amounts such that a reasonable person would understand that choosing an amount of coverage and corresponding premium would bind the parties. It also expressly told Melendez that requesting coverage on the form would not provide coverage. Because Hallmark is not entitled to summary judgment, we reverse the superior court’s judgment in Hallmark’s favor and remand this case to the superior court with instructions to enter summary judgment in favor of Melendez.
Notes
. The statute was last amended in 2003, however, because the last bound volume of the Arizona Revised Statutes in which this statute appears is 2002, we cite to the 2012 pocket part.
. Melendez’s complaint also sought class action status. That issue is not a subject of this appeal.
. Section 20-259.01 (B) provides:
Every insurer ... shall also make available ... and shall by written notice offer the insured and at the request of the insured shall include within the policy underinsured motorist coverage which extends to and covers all persons insured under the policy, in limits not less than the liability limits for bodily injury or death contained within the policy. The selection of limits or rejection of coverage by a named insured or applicant on a form approved by the director shall be valid for all insureds under the policy.
(Emphasis added.) The current statutory language is substantially the same for uninsured motorist coverage. See A.R.S. § 20-259.01(A).
. Melendez also argues on appeal that the selection/rejection form "does not comport with the form mandated by the [ADOI] and hence voids” Melendez’s rejection of coverage. To the extent her argument is that a UM/UIM selection/rejection form must be approved by ADOI, we disagree. See Ballesteros v. Am. Standard Ins. Co. of Wis.,
. In Tallent the court determined that an insurer is not required to provide an explanation of the nature of UIM coverage, and that such a requirement was unwise because it might cause additional litigation regarding the adequacy of such explanations.
. In both Ballesteros and Tallent, the supreme court did not reach the issue of whether an insurer’s offer must list the premium to be charged for UIM or UM coverage. See Balleste-ros,
. The selection/rejection form includes the same options for UM coverage.
. The superior court took judicial notice of the ADOI Regulatory Bulletin 2003-03 and noted that “the [ADOI sample] form ... actually has blanks in it for the [premium] amounts.”
. Section 20-398 is entitled "Policy forms; approval or disapproval; exemption” and subsection A states in relevant part:
[N]o policy form applying to insurance on risks or operations covered by this article may be delivered or issued for delivery unless the form has been filed with the director and either the director has issued, within thirty days, an order affirmatively approving or disapproving the form or, the thirty day period has elapsed and the director has not disapproved the form as ambiguous, misleading or deceptive. Section 20-1111 is entitled "Grounds for disapproval of forms” and subsection A states in relevant part:
The director shall disapprove any form of policy, application, rider or endorsement or withdraw any previous approval thereof only:
1. If it is in any respect in violation of or does not comply with this title.
2. If it contains or incorporates by reference any inconsistent, ambiguous or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract.
3. If it has any title, heading or other indication of its provisions which is misleading.
4. If the purchase of such policy is being solicited by false, deceptive or misleading advertising matter, sales material or representations.
. We recognize that under certain circumstances, a court may enforce a contract when the price term is missing from the agreement. See Triangle Const. v. City of Phoenix,
This principle does not apply here, however, because Hallmark does not suggest that a court would determine the premium to be paid by a customer who selects a particular amount of UIM or UM coverage. Moreover, this is not a case of attempting to enforce a contract to which two parties agreed except for a court determining the price.
. We also think Garcia is distinguishable because there is at least a hint that the insurer sent Garcia the amounts of coverage and corresponding premiums. Garcia chose UM/UIM insurance for reduced coverage "[i]n consideration of the reduction of the premium,”
. The dissent also contends that in Tallent and Ballesteros the supreme court refused to impose a requirement that the selection form include an explanation of the nature of UIM coverage or that the form be in Spanish, thus avoiding any requirement not expressly required by the statute. See infra ¶¶ 39-40, 44. However, as we explained earlier, the supreme court rejected those requirements because they would add confusion to the possibility of coverage, creating additional questions about the sufficiency of an explanation and the proper language to use based on a subjective understanding of the insured's English proficiency. See supra ¶ 20 and footnote 5. That is not the case with a premium price that simply needs to be inserted on a selection form or a separate chart of premium prices based on the amounts of coverage offered as was the case in Tallent.
The dissent also relies on Giley v. Liberty Mut. Fire Ins. Co.,
. The dissent also notes that there is no realistic danger that an insured would be unwittingly subjected to exorbitant or unfair premiums because ADOI regulates insurance rates and if the customer was dissatisfied once she received a bill for her premium, she could cancel the coverage. See infra footnote 17. Assuming without deciding that ADOI has the power to reject UM/UIM rates filed by insurers (A.R.S. §§ 20-342 (Supp. 2012) and 20-382 (Supp.2012)), ADOI may only reject such rates prospectively. See A.R.S. §§ 20-358 (2002) and 20-388 (2002). In any event, this does not answer the issue presented— whether Hallmark’s UM/UIM form constituted a binding offer if accepted by the insured at any level of coverage selected by the insured up to the amount of liability coverage. Nor does whether an insured has a right to cancel a policy later address whether Hallmark’s form constituted a binding offer of UM/UIM insurance. The right of an insured to cancel insurance, a fact not in the record or at issue here, is different than whether submitting a form which says selection of UM/UIM coverage does not provide coverage, actually binds the insurer.
. The fact that the ADOI form does not have a chart or listing of prices and amounts of coverage is of no matter. The form could not include such a chart or list because the form is generic for all insurers and each insurer might have different UM/UIM premiums. Implicit in the ADOI form which provides blanks for both coverage amounts and premiums is that the insurer will provide those options to the insured with the form.
Dissenting Opinion
dissenting.
¶ 311 respectfully dissent from the majority’s decision. I would affirm the trial court’s decision granting summary judgment in favor of Hallmark on the grounds that the plain language of A.R.S. § 20-259.01 does not require Hallmark to include a premium in its UM/UIM selection form.
¶ 32 In reaching my conclusion, I am guided by two well-established principles of statutory construction. First, “[o]ur goal in interpreting statutes is to fulfill the intent and purpose of the legislature.” Garden Lakes Cmty. Ass’n, Inc. v. Madigan,
¶ 33 When the legislature enacted the current version of A.R.S. § 20-259.01, it recognized that Arizona had “a very real problem” with uninsured and underinsured drivers. Ormsbee v. Allstate Ins. Co.,
¶34 To promote this legislative purpose, A.R.S. § 20-259.01 now places an affirmative duty on insurance companies to “make available” UM/UIM coverage to their insureds by offering to provide UM/UIM coverage. Bal-lesteros,
¶ 35 A.R.S. § 20-259.01 is very specific as to what the insurance company’s written offer must contain. The insurance company must offer to provide: (1) UM and UIM coverage, (2) in limits up to, and including, the limits for death/bodily injury under the insured’s liability policy, and (3) the coverage must extend to all persons covered under the insured’s liability policy. A.R.S. §§ 20-259.01(A), (B). If the insured requests UM/ UIM coverage after receiving the offer, the insurance company must provide the requested coverage. Id.
¶37 The efforts of my colleagues in the majority to distinguish Garcia lack merit. First, they assert that unlike the present case, “there is at least a hint” the insurer sent the insured some premium information. Supra, p. 21 at n. 11.1 am neither willing nor able to speculate about this fact. There is nothing in the majority or dissenting opinions in Garcia to support that they inferred or considered the existence of such a “fact”; rather, their analysis was based on the fact the insurer’s offer form contained no information about the cost of UM/UIM coverage. Garcia,
¶ 38 The majority also contends that Garcia is distinguishable because there is “no indication” that ADOI “affirmatively disapproved the form used by the insurer.” Supra, p. 20. I agree that Garcia makes no mention of the insurer receiving a non-compliance letter from ADOI. Even though the case is completely silent on this issue, I am willing to assume the insured received no such letter. However, assuming this fact does not mean ADOI approved of the form in Garcia, whereas it disapproved of Hallmark’s form.
¶ 39 I see no reason to depart from our decision in Garcia, particularly when our supreme court has consistently refused to add requirements to AR.S. § 20-259.01 that are not specifically listed in the statute. In Tal-lent v. National General Insurance Co.,
¶ 40 In Ballesteros, our supreme court addressed whether an offer of UM/UIM coverage to a Spanish-speaking insured must be in Spanish. The court held that AR.S. § 20-259.01, by its express terms, did not require a Spanish offer form. Ballesteros,
¶41 Hallmark’s UM/UIM selection form satisfied the offer requirements of AR.S. § 20-259.01 because it conveyed an offer that, if accepted by the insured, would have bound Hallmark to provide UM/UIM coverage. Ballesteros,
¶ 42 It is undisputed that when Melendez reviewed this form, she clearly and unambiguously rejected UM/UIM coverage. Melendez initialed the rejection boxes for both UM and UIM coverage, and signed the form at the bottom. Melendez has never alleged she did not understand the form, or that she did not have an opportunity to ask questions about the policy, including questions about the additional price of UM/UIM coverage.
¶ 43 The majority contends, however, that Hallmark’s UM/UIM selection form was too confusing and uncertain to constitute a valid offer because it did not include the cost for premiums. Supra, ¶¶ 16-17, 20, 27. Noting that both Tallent and Ballesteros applied general contract principles in interpreting the offer requirement of AR.S § 20-259.01, my colleagues argue that no reasonable person would expect to be bound by an offer that failed to include the cost of premiums. Supra, ¶ 17. My colleagues add that their position is “underscored” by the fact that Hallmark’s form expressly states “no coverage is provided by this document.” Id.
¶ 44 As a preliminary matter, while it is true both Tallent and Ballesteros applied general contract principles in interpreting AR.S § 20-259.01, the supreme court did not use these principles to re-write the statute or add requirements for an “offer” that were not specifically listed in A.R.S § 20-259.01. To the contrary, in both eases the supreme court refused to add any requirement that was not specifically included in the plain language of the statute. Ballesteros,
¶ 45 More importantly, the validity of Hallmark’s offer does not depend upon whether Melendez was confused or uncertain about the cost of premiums. As the supreme court noted in Ballesteros, “[T]he offeree need not understand the content of an offer to bind the offeror.” Ballesteros,
¶46 In my view, based on the language contained in Hallmark’s UM/UIM selection form, if Melendez had checked one of the boxes opting for UM and/or UIM coverage, there is no question Hallmark would have been bound to provide such coverage. See, supra, ¶41. This would be the ease even though Hallmark’s selection form did not contain premium costs. We have repeatedly held that “[a]n agreement can be implied and is enforceable where there is a valid offer
¶ 47 The majority expresses concern that an insured who accepts an insurer’s offer of UM/UIM coverage without knowing the price will be forced to buy a “pig in a poke,” e.g., will be at the mercy of whatever premium the insurer decides to charge.
¶ 48 When Melendez reviewed Hallmark’s UM/UIM selection form, the form provided Melendez with the opportunity to contact Hallmark about the premiums if she had any questions about the cost of premiums. It bears repeating that the purpose of A.R.S. § 20-259.01 is to bring to the insured’s attention the availability of UM/UIM coverage, and to provide the insured with an opportunity to purchase such coverage. A.R.S. § 20-259.01 does not mandate that an insurance company provide UM/UIM insurance unless the insured requests it. Ballesteros,
¶49 The majoi’ity also claims that Hallmark’s form fails to comply with A.R.S. § 20-259.01 because it expressly states, “no coverage is provided by this document.” Melendez never raised this argument — not in the trial court or on appeal — and for good reason: when read in context, the subject language simply provides that any UM/UIM coverage selected by Melendez is subject to
¶ 50 The language referenced by the majority is contained in one paragraph of the form. Apart from this paragraph, the entire form is dedicated to informing the insured of its right to select UM/UIM coverage. See supra, at ¶ 41. The sentence cited by the majority is contained in the paragraph immediately before the paragraph that describes the nature of UM/UIM coverage. The first sentence of the subject paragraph states, “[Tjhis document includes general descriptions of coverage.” The next sentence states, “[Hjowever, no coverage is provided by this document, nor is Underinsured coverage included with Uninsured Motorist coverage.” The paragraph concludes with the following, ‘You should read your policy and review your Declarations Page(s) and/or Sehedule(s) for complete information on the coverage you are provided.” (Emphasis added).
¶ 51 Clearly, the subject sentence, when read together with the sentences that precede and follow it, serves to refer the insured to its policy for a full description of the UM/UIM coverage provided by the policy.
¶ 52 Finally, the majority asserts that ADOI has interpreted A.R.S. § 20-259.01 as requiring the inclusion of premiums, and therefore we should pay deference to ADOI’s interpretation. Supra, p. 14. The majority premises this argument on ADOI’s letter rejecting Hallmarks’ UM/UIM form, which states that Hallmark’s “forms do not comply with Arizona statutes” because the forms do not have “a place to show a premium.” Supra* Id. Accordingly, the majority states that because A.R.S. § 20-259.01 is an insurance statute that ADOI is charged with enforcing, we should afford great deference to ADOI’s interpretation of the statute. Supra, Id.
¶ 53 As a general matter, we should pay deference to ADOI’s interpretation of insurance regulatory statutes. However, ADOI’s letter does not interpret A.R.S. § 20-259.01. ADOI’s letter states, without any explanation, that Hallmark’s form does “not comply with Arizona statutes,” and that the form “fails to conform to the forms in our Regulatory Bulletin 2003-03.”
¶ 54 In truth, it is not even clear- what ADOI’s basis was for rejecting Hallmark’s form. In addition to a lack of space for a premium, ADOI’s letter notes that Hallmark’s form was rejected because the form, which was “to be used by more than one company,” did not list the names of all the companies that were offering coverage, nor did it provide “cheek boxes or lines ... to indicate which company has been selected to write the [UM/UIM] policy.”
¶ 55 I find it particularly confusing that ADOI rejected Hallmark’s form based on the recommended forms/guidelines set forth in Regulatory Bulletin 2003-03.
¶ 56 In conclusion, I would affirm the trial court’s judgment granting summary judgment in Hallmark’s favor based on the plain language of A.R.S. § 20-259.01. I therefore respectfully dissent from the majority’s decision to reverse the trial court’s judgment.
APPENDIX A
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. A.R.S. § 20-259.01 does not require insurers to use forms approved by ADOI, although use of an approved form is considered conclusive evidence the insurer complied with the statute. Ballesteros,
. Hallmark’s form also compares favorably with tire form approved by our supreme court in Tallent v. National General Insurance Co.,
. As a practical matter, I do not believe there is a realistic danger that insureds would be unwittingly subjected to exorbitant or unfair premiums. In fact, Melendez argues that one of the problems with Hallmark’s form is that it fails to disclose how relatively "affordable” UM/UIM coverage is, thereby depriving insureds of the opportunity to purchase this “relatively inexpensive” coverage. Moreover, insurance rates are regulated by the ADOI, and cannot be "excessive, inadequate or unfairly discriminatory.” See A.R.S. § 20-341, et seq.; A.R.S. § 20-381, et seq.
. Even if the insured fails to inquire about the premiums before accepting the insurance company’s offer, and later finds the cost of premiums to be too high, the insured can simply refuse to pay the premium, resulting in cancellation of the UM/UIM coverage. See, e.g., A.R.S. § 20-267(B) (discussing authority of insurance company to cancel policy for non-payment of premium); A.R.S. § 20-1631 (D)(l)(same).
. The majority states that "Hallmark’s form conflicts with ADOI’s requirements as to price of coverage as well as its statement that the forni will not provide coverage even if coverage is selected.” Supra, ¶ 28. However, the ADOI letter does not mention the subject coverage language, nor does it state this language violates Arizona law.
. As referenced in ADOI's letter. Regulatory Bulletin 2003-03 is available at the ADOI’s website: http://www.azinsurance.gov.
. In addition, the Bulletin clearly states it is "advisory only.” See Blevins v. Gov't Employees Ins. Co..