Ariz. Rev. Stat. § 28-4072 – Nonpayment of judgments; suspension; exceptions

A. On receipt of a certified copy of a judgment, the director shall immediately suspend the license and registration and nonresident operating privilege of a person against whom the judgment was rendered, except as otherwise provided in this section and section 28-4075.
B. If the judgment creditor consents in writing on a form prescribed by the director that the judgment debtor be allowed the license and registration or the nonresident operating privilege and if the judgment debtor furnishes proof of financial responsibility, the director may allow the privileges from the date of the consent and thereafter until the consent is revoked in writing, notwithstanding default in the payment of the judgment or of any installments prescribed in section 28-4075.
C. A person whose license, registration or nonresident operating privilege has been or is about to be suspended or shall become subject to suspension under this article may be relieved from the effect of the judgment as prescribed in this article by filing with the director all of the following:
1. 1. An affidavit stating that at the time of the accident on which the judgment was rendered the affiant was insured, that the insurer is liable to pay the judgment and the reason, if known, why the insurance company has not paid the judgment.
2. 2. The original or a certified copy of the policy of insurance, if available.
3. 3. Other documents required by the director to show that the loss, injury or damage for which the judgment was rendered was covered by the policy of insurance.
D. If the director is satisfied from the papers filed pursuant to subsection C of this section that the insurer was authorized to issue the policy of insurance at the time and place of issuing the policy and that the insurer is liable to pay the judgment, at least to the extent and for the amounts required in this chapter, the director:
1. 1. Shall not suspend the license, registration or nonresident operating privilege.
2. 2. If the license, registration or nonresident operating privilege is already suspended, shall reinstate the license, registration or nonresident operating privilege.