Arizona Revised Statutes Title 12. Courts and Civil Proceedings § 12-1362. Dwelling action;  notice of intent to repair or replace;  jurisdictional prerequisite;  insurance

A. Except with respect to claims for alleged construction defects involving an immediate threat to the life or safety of persons occupying or visiting the dwelling, a purchaser must first comply with this article before filing a dwelling action.

B. A seller who receives a written notice of claim pursuant to § 12-1363 has a right pursuant to § 12-1363 to repair or replace any alleged construction defects after sending or delivering to the purchaser a written notice of intent to repair or replace the alleged construction defects.  The seller does not need to repair or replace all of the alleged construction defects.  A purchaser may not file a dwelling action until the seller has completed all intended repairs and replacements of the alleged construction defects.

C. If a seller presents a notice received pursuant to § 12-1363 to an insurer that has issued an insurance policy to the seller that covers the seller's liability arising out of a construction defect or the design, construction or sale of the property that is the subject of the notice, the insurer must treat the notice as a notice of a claim subject to the terms and conditions of the policy of insurance.  An insurer is obliged to work cooperatively and in good faith with the insured seller within the time frames specified in this article to effectuate the purpose of this article.  Nothing in this subsection otherwise affects the coverage available under the policy of insurance or creates a cause of action against an insurer whose actions were reasonable under the circumstances, notwithstanding its inability to comply with the time frames specified in § 12-1363 .

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