AZ SB1342

Requires time-limited settlement offers to be in writing, labeled as such, and include specific material terms including claim number, loss details, claimant names, acceptance deadline (minimum 30 days), monetary amount or policy limits requested, complete release language, and payment date (minimum 14 days after acceptance).

Mandates time-limited offers include unredacted medical documentation, billing statements, provider invoices, and other relevant documentation supporting the monetary amount; requires wage loss claims to be supported by employer records or tax documentation.

Shields liability insurers from extracontractual damages (amounts exceeding policy limits) for injuries, damages, or losses not identified in the time-limited offer and supporting documentation.

Permits recipients to accept offers by providing written acceptance of material terms to the specified address, fax, or email; protects recipients from extracontractual damages if a tortfeasor fails to provide required sworn testimony about assets and other insurance.

Provides that time-limited offers not strictly complying with this section are not considered reasonable settlement offers within policy limits for purposes of extracontractual damages lawsuits against liability insurers.