A.R.S. § 20-252 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 252
20-252 "Casualty insurance" defined
Status: in_force

20-252. "Casualty insurance" defined

"Casualty insurance" includes vehicle insurance as defined in section 20-259, and in addition includes:

1. Liability insurance, which is insurance against legal liability for the death, injury or disability of any human being, or for damage to property, and provision of medical, hospital, surgical or disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance.

2. Workers' compensation and employer's liability insurance, which is insurance of the obligations accepted by, imposed upon or assumed by employers under law for death, disablement or injury of employees.

3. Burglary and theft insurance, which is insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing, including supplemental coverages for medical, hospital, surgical and funeral benefits sustained by the named insured or other person as a result of bodily injury during the commission of a burglary, robbery or theft by another, and also insurance against loss of or damage to money, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents, resulting from any cause.

4. Personal property floater insurance, which is insurance upon personal effects against loss or damage from any cause.

5. Glass insurance, which is insurance against loss or damage to glass, including its lettering, ornamentation and fittings.

6. Boiler and machinery insurance, which is insurance against any liability and loss or damage to property or interest resulting from accidents to or explosion of boilers, pipes, pressure containers, machinery or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery and apparatus of any kind, whether or not insured.

7. Leakage and fire extinguishing equipment insurance, which is insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps and other fire extinguishing equipment or apparatus, water pipes and containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps and other fire extinguishing equipment or apparatus.

8. Credit insurance, which is insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.

9. Malpractice insurance, which is insurance against legal liability of the insured, and against loss, damage or expense incidental to a claim of such liability, and including medical, hospital, surgical and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury or disablement of any person, or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary or professional service.

10. Entertainments insurance, which is insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment or similar production, event or exhibition against loss from interruption, postponement or cancellation thereof due to death, accidental injury or sickness of performers, participants, directors or other principals.

11. Miscellaneous insurance, which is insurance against any other kind of loss, damage or liability properly a subject of insurance and not within any other kind of insurance as defined in this title, if such insurance is not disapproved by the director as being contrary to law or public policy.
A.R.S. § 20-1378 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1378
20-1378 Eligibility; prohibiting cancellation because of eligibility for certain benefits
Status: in_force

20-1378. Eligibility; prohibiting cancellation because of eligibility for certain benefits

A. Except as specifically provided in sections 20-1379 and 20-1380, with respect to the determination of whether a person is an eligible individual, an insurer issuing disability insurance contracts shall not consider the availability of or a person's eligibility for medical assistance pursuant to title XIX of the social security act (P.L. 89-97; 79 Stat. 344; 42 United States Code section 1396a (1980)) when considering eligibility for coverage or calculating payments under its plans for eligible policyholders.

B. To the extent that payment for covered expenses has been made under the state program pursuant to title XIX of the social security act for health care items or services furnished to an individual, the state is considered to have acquired the rights of the individual to payment by any other party for those health care items or services. On presentation of proof that the state program pursuant to title XIX of the social security act has paid for covered items or services, the insurer shall make payments to the state program pursuant to title XIX of the social security act according to the coverage provided in the disability insurance policy.

C. An insurer issuing disability insurance contracts may not impose on a state agency that has been assigned the rights of an individual who is eligible for medical assistance and who is covered for health benefits from the insurer any requirements that are different from the requirements applicable to an agent or assignee of any other covered individual.

D. An insurer issuing disability insurance contracts shall not cancel or fail to renew the contract of any person based on that person's eligibility for or enrollment in a program funded under title XIX of the social security act or title 36, chapter 29 or 34. Nothing in this section prohibits cancellation or failure to renew for nonpayment of monies due under the contract.
A.R.S. § 20-1071 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1071
20-1071 Prohibition against excluding coverage because of previous tests for a condition
Status: in_force

20-1071. Prohibition against excluding coverage because of previous tests for a condition

A. An insurance contract offered by a health care services organization shall not exclude coverage of a condition if the insured person has previously had tests for the condition and the condition was not found to exist. There must be evidence that a condition actually existed before the insurance contract was entered into in order to exclude coverage of the condition.

B. Unless preempted under federal law or unless federal law imposes greater requirements than this section, this section applies to a provider sponsored health care services organization.
A.R.S. § 20-544 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 544
20-544 Corporate obligations
Status: in_force

20-544. Corporate obligations

An insurer may invest in bonds, debentures, notes, commercial paper and other evidences of indebtedness issued, assumed or guaranteed by any solvent institution created or existing under the laws of the United States or of any state, district or territory of the United States, which are not in default as to principal or interest and which have received an investment grade rating approved by the director. The director shall by order after a hearing prescribe the investment grade rating and the recognized rating agencies for the purposes of this section. Private placement obligations which have not received an investment grade rating may be eligible for investment if the issuer has comparable outstanding obligations which have received an investment grade rating approved by the director. The director shall prescribe standards by order after a hearing by which obligations of issuers which have not received an investment grade rating may be eligible for investment.
A.R.S. § 20-340.04 — Arizona Code / Title 20 / Chapter 2 / Article 3.5 / Section 340.04
20-340.04 Bail recovery agent prohibitions; criminal records checks
Status: in_force

20-340.04. Bail recovery agent prohibitions; criminal records checks

A.  A person who has been convicted in any jurisdiction of theft, any felony or any crime involving the carrying or illegal use or possession of a deadly weapon or dangerous instrument may not act as a bail recovery agent.

B. A person shall submit a full set of fingerprints to the department before acting as a bail recovery agent and shall submit a new set of fingerprints on or before September 1 of every third year after initial identification by the bail bond agent in the report that is filed with the director pursuant to section 13-3885, subsection C. The department of insurance and financial institutions shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The fingerprint processing fee collected by the department shall be an amount that does not exceed the cost to the department that is charged by the federal bureau of investigation for the fingerprint processing to obtain federal criminal history record information. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. The department of public safety shall provide the criminal history record information to the director pursuant to section 41-1750.

C. Any person who acts as a bail recovery agent on behalf of any bail bond agent and any person who conducts any action relating to a bail recovery or apprehension must be identified by the bail bond agent in the report that is filed with the director pursuant to section 13-3885, subsections C and D.

D. A bail bond agent may not employ a bail recovery agent who does not comply with this section and who has not been identified by the bail bond agent in the report that is filed with the director pursuant to section 13-3885, subsection C.  A bail bond agent who is not licensed in this state shall contract with a bail bond agent in this state to retain the services of a bail recovery agent in this state.
A.R.S. § 20-260 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 260
20-260 Limit of risk
Status: in_force

20-260. Limit of risk

A. No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten per cent of its surplus to policyholders, except that a domestic mutual insurer holding a certificate of authority may retain up to such ten per cent or up to the maximum applicable as set forth in section 20-711, whichever is the larger, and a domestic limited stock insurer may retain up to the maximum applicable as set forth in section 20-708.

B. Reinsurance authorized by section 20-261 shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged or held subject to the surety's consent and for the surety's protection.

C. As to alien insurers, other than life insurers domiciled in Canada, this section shall relate only to risks and surplus to policyholders of the insurer's United States branch.

D. This section shall not apply to group life or group or blanket disability insurance, title insurance, insurance of ocean marine risks or marine protection and indemnity risks, workers' compensation insurance, employers' liability coverages, nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.

E. A "subject of insurance" for the purposes of this section, as to insurance against fire and hazards other than windstorm or earthquake, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or other such hazard insured against.

F. "Surplus to policyholders" for the purpose of this section shall be deemed to include any voluntary reserves which are not required pursuant to law, and shall be determined from the last sworn statement of the insurer on file with the director or by the last report of examination by the director, whichever is the more recent at time of assumption of such risk.
A.R.S. § 20-331.01 — Arizona Code / Title 20 / Chapter 2 / Article 3.3 / Section 331.01
20-331.01 Political subdivision employees; risk management consultant licenses; application of other laws
Status: in_force

20-331.01. Political subdivision employees; risk management consultant licenses; application of other laws

A. An employee of a political subdivision may be licensed as a risk management consultant for the purposes of title 11, chapter 7, article 5 to carry out the provisions of title 11, chapter 7, article 5. The director shall license these employees in the same manner as insurance producers.  The director may waive the examination requirement for a license issued pursuant to this section. The license automatically expires when the employee terminates employment with the political subdivision.

B. To the extent not inconsistent with this article, sections 20-281, 20-284 and 20-285, section 20-286, subsections B, C and D, section 20-288, subsection B and sections 20-289, 20-289.01, 20-290, 20-291, 20-292, 20-295, 20-296, 20-297, 20-298, 20-299, 20-301 and 20-302 apply to risk management consultants.
A.R.S. § 20-834 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 834
20-834 Dissolution; unfair practices
Status: in_force

20-834. Dissolution; unfair practices

Such a corporation shall be subject to the provisions of article 4 of chapter 3 of this title (rehabilitation and liquidation) and article 6 of chapter 2 of this title (unfair practices).
A.R.S. § 20-218 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 218
20-218 Name of insurer
Status: in_force

20-218. Name of insurer

A. No insurer shall be authorized to transact insurance in this state which has or uses a name so similar to that of any insurer already so authorized as to cause uncertainty or confusion. In case of conflict of names between two insurers the director may permit or require the newly authorized insurer to use in this state such supplementation or modification of its name as may reasonably be necessary to avoid such conflict.

B. No insurer shall be authorized to transact insurance in this state which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer.
A.R.S. § 20-1205 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1205
20-1205 Application and policy as entire contract; statements in application as representations; information
Status: in_force

20-1205. Application and policy as entire contract; statements in application as representations; information

A. There shall be a provision that the policy, or the policy and the application therefor if a copy of the application is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and that all statements contained in the application shall, in the absence of fraud, be deemed representations and not warranties.

B. On written request of an applicant or annuity holder, an insurer shall provide within a reasonable time reasonable factual information regarding the benefits and provisions of his annuity contract.
A.R.S. § 20-2539 — Arizona Code / Title 20 / Chapter 15 / Article 2 / Section 2539
20-2539 Rules
Status: in_force

20-2539. Rules

The director may adopt rules pursuant to title 41, chapter 6 to carry out this article.
A.R.S. § 20-1610 — Arizona Code / Title 20 / Chapter 6 / Article 10 / Section 1610
20-1610 Premiums for consumer credit insurance; approval or disapproval of rates
Status: in_force

20-1610. Premiums for consumer credit insurance; approval or disapproval of rates

A. The consumer credit insurance charge to the debtor shall not exceed the premium for the particular coverage that is specified in the insurer's rate schedule on file with the director.  If the premium is less than that specified in the rate schedule, the insurer shall charge the lesser amount.

B. A person shall not use in this state a schedule of premium rates or any revision of the schedule for consumer credit insurance unless the person has first filed the schedule or revision with the director and the director has approved the schedule or revision.  A person shall file each schedule or revision with the director at least thirty days before using the schedule or revision.  Unless the director issues an order affirmatively approving or disapproving the schedule or revision within thirty days after filing the schedule or revision, the schedule or revision is deemed approved. On written notice given within the thirty day period to the person making the filing, the director may extend the period for review up to fifteen additional days to enable the director to complete the review of the schedule or revision.  The director shall disapprove the schedule or revision if in the director's opinion the premium rates charged or to be charged are excessive in relation to benefits that may be awarded. In determining whether to disapprove the schedule or revision the director shall accord due consideration to past and prospective loss experience within and outside this state, to underwriting practice and judgment and to all other factors relevant to the relationship between premium rates and benefits.

C. Rates for credit unemployment insurance are subject to section 20-1621.05.

D. If the director disapproves any schedule of premium rates or determines that approval once given should be withdrawn, the director shall so notify the insurer and thereafter the schedule shall not be used. The notice issued by the director shall specify the reason for the decision and advise the insurer of the hearing procedure prescribed by title 41, chapter 6, article 10.

E. Premiums in accordance with a schedule of rates filed with and approved by the director for consumer credit insurance shall be deemed not interest or as an amount in excess of permitted charges in connection with a loan or credit transaction, and any gain or advantage to a creditor arising from a premium or commission in the sale or provision of this insurance shall be deemed not interest or charges.
A.R.S. § 20-1021 — Arizona Code / Title 20 / Chapter 4 / Article 8 / Section 1021
20-1021 Lloyd's association defined
Status: in_force

20-1021. Lloyd's association defined

As used in this article, unless the context otherwise requires, "Lloyd's association" means any aggregation of individuals, called "underwriters," who under a common name engage in the business of insurance for profit through an attorney-in-fact having authority to obligate the underwriters severally, within such limits as may be lawfully specified in the power of attorney, on contracts of insurance made or issued by such attorney-in-fact, in the name of such aggregation of individuals, to and with any person or persons insured.
A.R.S. § 20-518 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 518
20-518 Acquisitions and dispositions of assets
Status: in_force

20-518. Acquisitions and dispositions of assets

A. An acquisition or disposition of assets that is not material does not have to be reported pursuant to section 20-517.

B. Asset acquisitions that are subject to section 20-517 and this section include every purchase, lease, exchange, merger, consolidation, succession or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for these purposes.

C. Asset dispositions that are subject to section 20-517 and this section include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, abandonment, destruction or other disposition.

D. A report of a material acquisition or disposition of assets pursuant to section 20-517 shall disclose the following information:

1. The date of the transaction.

2. The manner of acquisition or disposition.

3. A description of the assets involved.

4. The nature and amount of the consideration given or received.

5. The purpose of or reason for the transaction.

6. The manner by which the amount of consideration was determined.

7. The gain or loss that is recognized or realized as a result of the transaction.

8. The names of the persons from whom the assets were acquired or to whom the assets were disposed.

E. An insurer shall report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilized a pooling arrangement or one hundred per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five per cent of the insurer's capital and surplus.

F. For the purposes of this section and section 20-517, a material acquisition, including the aggregate of any series of acquisitions during any thirty day period, or a material disposition, including the aggregate of any series of related dispositions during any thirty day period, is one that is nonrecurring, that is not in the ordinary course of business and that involves more than five per cent of the reporting insurer's total admitted assets as reported in its most recent statutory statement that is filed with the director.
A.R.S. § 20-3452 — Arizona Code / Title 20 / Chapter 27 / Article 1 / Section 3452
20-3452 Requirements for electronic application submission
Status: in_force

20-3452. Requirements for electronic application submission

A. A health insurer shall establish a process for the electronic submission of a credentialing application. On or before December 31, 2019, the health insurers shall adopt and implement a standard application.

B. On or before December 31, 2019, to the greatest extent possible, a health insurer shall establish an electronic process to submit supporting documentation for a credentialing application.
A.R.S. § 20-485.03 — Arizona Code / Title 20 / Chapter 2 / Article 9 / Section 485.03
20-485.03 Maintenance of records; access; confidentiality; information sharing; examination
Status: in_force

20-485.03. Maintenance of records; access; confidentiality; information sharing; examination

A. Every administrator shall maintain at the administrator's principal administrative office for the duration of the written agreement required by section 20-485.01 and for five years thereafter adequate books and records of all transactions among the administrator, insurers and insured persons. The books and records shall be maintained in accordance with prudent standards of insurance record keeping.

B. The director shall have access to books and records maintained by the administrator for the purpose of examination, audit and inspection.  Any trade secrets contained in the books and records, including the identity and addresses of policyholders and certificate holders, shall be confidential, except the director may use the information in any proceedings instituted against the administrator.

C. The director may:

1. Share nonpublic documents, materials or other information with other state, federal and international regulatory agencies, with the national association of insurance commissioners and its affiliates and subsidiaries and with state, federal and international law enforcement authorities if the recipient agrees and warrants that it has the authority to maintain the confidentiality and privileged status of the documents, materials or other information.

2. Receive documents, materials and other information from the national association of insurance commissioners and its affiliates and subsidiaries and from regulatory and law enforcement officials of other jurisdictions and shall maintain as confidential or privileged any document, material or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or other information.

3. Enter into agreements that govern the sharing and use of documents, materials and other information and that are consistent with this section.

D. A disclosure to or by the director pursuant to this section or as a result of sharing information pursuant to subsection C of this section is not a waiver of any applicable privilege or claim of confidentiality in the documents, materials or other information disclosed or shared.

E. The insurer retains the right of continuing access to books and records maintained by the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator on the proprietary rights of the parties in such books and records.

F. The director may require an administrator to provide, on a quarterly basis in a form acceptable to the director, additional information that is necessary for the protection of the public.

G. The director may examine the business practices, books and records of any administrator as often as the director deems appropriate. The administrator shall pay the cost of only one examination each year.
A.R.S. § 20-838 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 838
20-838 Subscribers and employees exempt from corporate indebtedness
Status: in_force

20-838. Subscribers and employees exempt from corporate indebtedness

The private property of the subscribers, agents, officers, directors, members and employees of any corporation holding a certificate of authority under this article shall be wholly exempt from any of the debts, obligations and liabilities of the corporation.
A.R.S. § 20-1095.01 — Arizona Code / Title 20 / Chapter 4 / Article 11 / Section 1095.01
20-1095.01 Service companies; permits; rules; application of laws
Status: in_force

20-1095.01. Service companies; permits; rules; application of laws

A. A service company may not offer or issue a service contract unless the service company has qualified for and been issued a permit by the director.

B. Except for the registration requirements in this article applicable to service companies, service companies and related service contract sellers, administrators and other persons that market, sell or offer to sell service contracts are exempt from any licensing requirements of this title as a result of activities related to the marketing, selling or offering of service contracts.

C. The director shall adopt rules that provide for the application for permit, renewal procedures, fees, refund of the unearned portion of the contract price and approval of forms.  Service companies are subject to chapter 1 of this title, except section 20-116, and this article.

D. A provider shall provide a consumer with a specimen copy of the service contract terms and conditions prior to the time of sale upon a request by the consumer.  A provider may comply with this provision by providing the consumer with a complete sample copy of the terms and conditions or by directing the consumer to a website containing a complete sample of the terms and conditions of the service contract.
A.R.S. § 20-638 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 638
20-638 Offsets
Status: in_force

20-638. Offsets

A. In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this article, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection B of this section.

B. No offset shall be allowed in favor of any such person where the obligation of the insurer to such person would not at the date of the entry of any liquidation order or otherwise as provided in section 20-635, entitle him to share as a claimant in the assets of the insurer, or the obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset, or the obligation of such person is to pay an assessment levied against the members of a mutual insurer or against the subscribers of a reciprocal insurer or is to pay a balance upon the subscription to the capital stock of a stock insurer.
A.R.S. § 20-3203 — Arizona Code / Title 20 / Chapter 22 / Article 1 / Section 3203
20-3203 Contract requirements
Status: in_force

20-3203. Contract requirements

A. A person may not use any form of life settlement contract in this state unless it is filed with and, if required, approved by the director in a manner that conforms with the filing procedures and any time restrictions or deeming provisions for life insurance forms, policies or contracts.

B. As a condition of responding to a request for verification of coverage or in connection with the transfer of a policy pursuant to a life settlement contract, an insurer may not require that the owner, insured, provider or broker sign any form, disclosure, consent, waiver or acknowledgment that has not been expressly approved by the director for use in connection with life settlement contracts in this state.

C. A person may not use a life settlement contract form or provide to an owner a disclosure statement form in this state unless the form is first filed with and approved by the director. The director may not approve a life settlement contract form or disclosure statement form if, in the director's opinion, the contract or provisions of the contract fail to meet the requirements of this chapter or are unreasonable, contrary to the public interest or otherwise misleading or unfair to the owner.
A.R.S. § 20-1263 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1263
20-1263 Misstatement of age
Status: in_force

20-1263. Misstatement of age

In group life policies there shall be a provision specifying an equitable adjustment of premiums or of benefits or of both to be made in the event the age of a person insured has been misstated, and such provision shall contain a clear statement of the method of adjustment to be used.
A.R.S. § 20-1098.07 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.07
20-1098.07 Annual report
Status: in_force

20-1098.07. Annual report

A. Not later than ninety days after the end of the captive insurer's fiscal year, the captive insurer shall submit to the director a report of its financial condition that is verified by oath of two of its executive officers and that is supplemented by additional information as required by the director.  Except as provided in section 20-1098.03, a captive insurer may submit a report that uses generally accepted accounting principles unless the director requires the captive insurer to use statutory accounting principles with any useful or necessary modifications or adaptations of those principles required by the director for the type of insurance and kinds of insurers to be reported on.

B. The captive insurer's financial statements shall be audited by an independent certified public accountant and be in compliance with chapter 3, article 10 of this title, unless the director determines that an audit is not necessary.  The audit shall include a reconciliation of differences, if any, between the audited financial report and the statement or form filed with the department.  The audit opinion shall be filed with the director not later than six months after the end of the captive insurer's fiscal year.

C. Unless exempted by the director, the annual report shall be based on the type of risks insured by the insurer and shall meet the applicable requirements of one or more of the following:

1. Chapter 3, article 8 of this title.

2. Chapter 3, article 9 of this title.

3. The actuarial provisions of the national association of insurance commissioners health annual statement instructions.
A.R.S. § 20-2601 — Arizona Code / Title 20 / Chapter 16 / Article 1 / Section 2601
20-2601 Definitions
Status: in_force

20-2601. Definitions

In this chapter, unless the context otherwise requires:

1. "Affiliate" means a person who directly or indirectly controls, is controlled by or is under common control with an insurer, a person who for a specific fee or commission regularly furnishes investment advice to an insurer with respect to the insurer's separate accounts or a director, officer, partner or employee or a member of the immediate family of a director, officer, partner or employee of an insurer, controlling or controlled person or person providing investment advice.

2. "Assumed investment rate" means the rate of investment return that is required to be credited to a variable life insurance policy, after the deduction of charges for taxes, investment expenses and mortality and expense guarantees, to maintain the variable death benefit in an amount that is equal at all times to the amount of the death benefit, other than incidental insurance benefits, that would be payable under the plan of insurance if the death benefit did not vary according to the investment experience of the separate account.

3. "Benefit base" means the amount to which the net investment return is applied.

4. "Control" or "controlling" has the same meaning prescribed in section 20-481 and includes the terms "controlled by" and "under common control with".

5. "Flexible premium policy" means a variable life insurance policy other than a scheduled premium policy.

6. "General account" means all of the assets of an insurer other than assets in separate accounts established pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.

7. "Incidental insurance benefit" means all of the insurance benefits in a variable life insurance policy except the variable death benefit and the minimum death benefit. Incidental insurance benefit includes accidental death and dismemberment benefits, disability benefits, guaranteed insurability options, family income or term riders.

8. "Insurance producer" means any person, corporation, partnership, or other legal entity that is licensed by this state as a life insurance producer.

9. "Minimum death benefit" means the amount of the guaranteed death benefit, except incidental insurance benefits, that is payable under a variable life insurance policy regardless of the investment performance of the separate account.

10. "Net investment return" means the rate of investment return in a separate account that is applied to the benefit base.

11. "Policy processing day" means the day on which the charges that are authorized in a policy are deducted from the policy's cash value.

12. "Scheduled premium policy" means a variable life insurance policy under which both the amount and timing of premium payments are fixed by the insurer.

13. "Separate account" means a separate account established pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.

14. "Variable death benefit" means the amount of the death benefit, except incidental insurance benefits, that is payable under a variable life insurance policy, that is dependent on the investment performance of the separate account and that the insurer must pay in the absence of any minimum death benefit.

15. "Variable life insurance policy" means an individual policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts that are established and maintained by the insurer pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.
A.R.S. § 20-1678 — Arizona Code / Title 20 / Chapter 6 / Article 14 / Section 1678
20-1678 Proof of notice
Status: in_force

20-1678. Proof of notice

A. Proof of sending a notice of cancellation, or of nonrenewal or of premium or coverage changes, by mail to the named insured at the address shown in the policy is sufficient proof of notice.

B. Any method of proof retained by the insurer for sending a notice of cancellation, or of nonrenewal or of premium or coverage changes, by any method other than by mail is sufficient proof of notice.
A.R.S. § 20-1126 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1126
20-1126 Health care insurers; pharmacy benefits managers; cost sharing; calculation; definitions
Status: in_force

20-1126. Health care insurers; pharmacy benefits managers; cost sharing; calculation; definitions

A. When calculating an enrollee's contribution to any out-of-pocket maximum, deductible, copayment, coinsurance or other applicable cost sharing requirement, the health care insurer that provides pharmacy benefits or a pharmacy benefits manager that administers pharmacy benefits for a health care insurer shall include any cost sharing amount paid by either the enrollee or another person on behalf of the enrollee for a prescription drug that is either:

1. Without a generic equivalent.

2. With a generic equivalent where the enrollee has obtained access to the prescription drug through any of the following:

(a) Prior authorization.

(b) A step therapy protocol.

(c) The health care insurer's exceptions and appeals process.

B. For the purposes of this section:

1. "Generic equivalent":

(a) Means a drug that has an identical amount of the same active chemical ingredients in the same dosage form, that meets applicable standards of strength, quality and purity according to the United States pharmacopeia or other nationally recognized compendium and that, if administered in the same amounts, will provide comparable therapeutic effects.

(b) Does not include a drug that is listed by the United States food and drug administration as having unresolved bioequivalence concerns according to the administration's most recent publication of approved drug products with therapeutic equivalence evaluations.

2. "Health care insurer" has the same meaning prescribed in section 20-1379.
A.R.S. § 20-3205 — Arizona Code / Title 20 / Chapter 22 / Article 1 / Section 3205
20-3205 Privacy
Status: in_force

20-3205. Privacy

Except as otherwise provided by law, a provider, broker, insurance company, insurance producer or any other person with actual knowledge of an insured's identity shall not disclose the identity of an insured or any information that there is a reasonable basis to believe could be used to identify the insured or the insured's financial or medical information to any other person unless the disclosure is one of the following:

1. Necessary to effect a life settlement contract between the owner and a provider and the owner and insured have provided prior written consent to the disclosure.

2. Necessary to effect the sale of life settlement contracts or interests in life settlement contracts as investments if the sale is conducted pursuant to applicable state and federal securities law and the owner and the insured have both provided prior written consent to the disclosure.

3. Provided in response to an investigation or examination by the director or any other state or federal agency.

4. A term or condition to the transfer of a policy by one provider to another provider, in which case the receiving provider shall be required to comply with all applicable laws regarding the confidentiality of medical information.

5. Necessary to allow the provider or broker or the provider's or broker's authorized representatives to make contacts for the purpose of determining health status.  For the purposes of this paragraph, authorized representative does not include any person who has or may have any financial interest in the settlement contract other than a provider or licensed broker. Authorized representatives shall agree in writing to adhere to all applicable confidentiality and privacy laws.

6. Required to purchase stop loss coverage.
A.R.S. § 20-1217 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1217
20-1217 Excluded or restricted coverage
Status: in_force

20-1217. Excluded or restricted coverage

A clause in any policy of life insurance providing that the policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such restrictions or exclusions are excepted in the clause.
A.R.S. § 20-2409 — Arizona Code / Title 20 / Chapter 14 / Article 1 / Section 2409
20-2409 Administrative and procedural authority regarding risk retention groups and purchasing groups
Status: in_force

20-2409. Administrative and procedural authority regarding risk retention groups and purchasing groups

The director may make use of any of the powers established under this title to enforce the laws of this state so long as those powers are not specifically preempted by the product liability risk retention act of 1981, as amended by the risk retention amendments of 1986. This includes the director's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders and impose penalties. With regard to any investigation, administrative proceedings or litigation, the director may rely on the procedural law and rules of this state. The injunctive authority of the director in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
A.R.S. § 20-224.07 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 224.07
20-224.07 Premium tax credit for contributions to school tuition organization; displaced students and students with disabilities
Status: in_force

20-224.07. Premium tax credit for contributions to school tuition organization; displaced students and students with disabilities

A. A credit is allowed against the premium tax liability incurred by an insurer pursuant to section 20-224, 20-837, 20-1010, 20-1060 or 20-1097.07 for the amount of voluntary cash contributions made by the insurer during the tax year to a school tuition organization.

B. The amount of the credit is the total amount of the insurer's contributions for the tax year under subsection A of this section that is preapproved by the department of revenue pursuant to section 43-1184, subsection D.

C. The procedures, conditions, limitations, definitions and other requirements prescribed by section 43-1184 and title 43, chapter 15 apply to:

1. Insurers that claim a credit under this section.

2. Claims for credit under this section.

3. School tuition organizations that receive contributions from insurers for the purposes of this section.

4. Qualified schools that participate under this section.

5. Students who receive scholarships from monies contributed by insurers for the purposes of this section.

D. If the allowable amount of a credit under this section exceeds the insurer's state premium tax liability, the amount of the claim not used to offset the premium tax liability may be carried forward as a credit against the insurer's subsequent years' premium tax liability for a period not to exceed five taxable years.

E. A credit is not allowed if the insurer designates the contribution for the direct benefit of any specific student.

F. An insurer that claims a tax credit against state premium tax liability is not required to pay any additional retaliatory tax imposed pursuant to section 20-230 as a result of claiming that tax credit.

G. The department of insurance and financial institutions, with the cooperation of the department of revenue, shall adopt rules necessary for the administration of this section.
A.R.S. § 20-1255 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1255
20-1255 Trustee groups
Status: in_force

20-1255. Trustee groups

The lives of a group of individuals may be insured under a policy issued to the trustees of a fund established in this state by two or more employers in the same industry, if a majority of the employees to be insured of each employer are located within this state, or to the trustees of a fund established by one or more labor unions, or by one or more employers in the same industry and one or more labor unions, or by one or more employers and one or more labor unions whose members are in the same or related occupations or trades, which trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions for the benefit of persons other than the employers or the unions, subject to the following requirements:

1. The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the unions, or to both.  The policy may provide that the term "employees" shall include retired employees, and the individual proprietor or partners if an employer is an individual proprietor or a partnership. No director of a corporate employer shall be eligible for insurance under the policy unless such person is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director. No individual proprietor or partner shall be eligible for insurance under the policy unless he is actively engaged in and devotes a substantial part of his time to the conduct of the business of the proprietor or partnership. The policy may provide that the term "employees" shall include the trustees or their employees, or both, if their duties are principally connected with such trusteeship.

2. The premium for the policy shall be paid by the trustees, either from funds contributed by the employer or employers of the insured persons or by the union or unions, or from the insured persons specifically for their insurance, or from both, or, except in the case of a policy issued to the trustees of a fund established wholly by two or more employers, from such funds, or from funds contributed by the insured persons, or from both.  A policy on which no part of the premium is to be derived from funds contributed by insured persons specifically for their insurance shall insure all eligible persons, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

3. The policy shall cover at date of issue at least one hundred persons and not less than an average of five persons, other than individual proprietors or partners, per employer unit.  If the fund is established by the members of an association of employers the policy may be issued only if either the participating employers constitute at date of issue at least sixty per cent of those employer members whose employees are not already covered for group life insurance, or the total number of persons covered at date of issue exceeds six hundred, and if the policy does not require that, if a participating employer discontinues membership in the association, the insurance of his employees shall cease solely by reason of such discontinuance.

4. The amounts of insurance under the policy shall be based upon some plan precluding individual selection either by the insured persons or by the policyholder, employers or unions.
A.R.S. § 20-462 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 462
20-462 Timely payment of claims
Status: in_force

20-462. Timely payment of claims

A. From and after July 15, 1986 any first party claim not paid within thirty days after the receipt of an acceptable proof of loss by the insurer which contains all information necessary for claim adjudication shall be required to pay interest at the legal rate from the date the claim is received by the insurer. The interest shall be calculated on the amount the insurer is legally obligated to pay according to the terms of the insurance contract under which the claim is being submitted.

B. For purposes of determining whether the claim has been paid within thirty days, the date of payment shall be deemed to have been received by the addressee on the date shown by the postmark or other official mark of the United States mail stamped on the payment envelope. If the receipt disputes the date where there is no mark or the mark is not legible, the sender may establish the mailing or transfer date by competent evidence.

C. This section shall not apply to:

1. Claims submitted for payment under medicare, title XVIII of the social security act (42 United States Code section 1301).

2. Claims submitted under a medicare supplement contract where, according to the terms of the supplement contract, claims will be based upon the amount paid by medicare.

3. The payment of a claim shall not be overdue during any period in which the insurer is unable to pay such claim because there is no recipient who is legally able to give a valid release for such payment, or in which the insurer is unable to determine who is entitled to receive such payment, if the insurer has promptly notified the claimant of such inability and has offered in good faith to promptly pay said claim upon determination of who is entitled to receive such payment.

4. Claims submitted to a person who is the processing agent for a foreign insurer or other person providing an insurance program for retirees residing in Arizona.

5. Claims denied in good faith within thirty days after receipt of acceptable proofs of loss.

D. This section shall apply only to claims that are to be paid by the insurer directly to the insured, to a beneficiary named in the contract, or to a provider who has been assigned the right to receive benefits under the contract by the insured.
A.R.S. § 20-107 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 107
20-107 Limitation on transaction of insurance; exception
Status: in_force

20-107. Limitation on transaction of insurance; exception

A. No person shall transact a business of insurance in this state, or relative to a subject of insurance resident, located or to be performed in this state, without complying with the applicable provisions of this title.

B. No provision of this title shall be deemed to require any license or other authority, or impose any penalty or requirement except as provided by section 20-421, of or upon any person for negotiation or procurement of insurance by him upon his own insurable interests, with or from an insurer not authorized to transact insurance in this state.
A.R.S. § 20-1219 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1219
20-1219 Grace period in annuities
Status: in_force

20-1219. Grace period in annuities

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a period of grace of one month, but not less than thirty days, within which any stipulated payment to the insurer falling due after the first may be made, subject at the option of the insurer to an interest charge thereon at a rate to be specified in the contract but not exceeding six per cent per annum for the number of days of grace elapsing before payment, during which period of grace the contract shall continue in full force, but in case a claim arises under the contract on account of death prior to expiration of the period of grace before the overdue payment to the insurer or the deferred payments of the current contract year, if any, are made, the amount of the payments, with interest on any overdue payments, may be deducted from any amount payable under the contract in settlement.
A.R.S. § 20-1057.12 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1057.12
20-1057.12 Contracts; dentists; covered services; definition
Status: in_force

20-1057.12. Contracts; dentists; covered services; definition

A. A contract, entered into or renewed on or after January 1, 2011, between a health care services organization and a dentist who is licensed to practice in this state shall not require the dentist to provide services to an individual covered under an evidence of coverage based on a fee set by the health care services organization unless the services for which the fee applies is a covered service under the individual's evidence of coverage.

B. This section does not restrict the ability of a health care services organization to establish dental benefits for services offered by plans that are administered but not insured by the health care services organization.

C. For the purposes of this section, "covered service" means a service for which any reimbursement is available under an evidence of coverage without regard to contractual limitations by a deductible, copayment, coinsurance, waiting period, annual or lifetime maximum, frequency limitation, alternative benefit payment, exclusion or other limitation.
A.R.S. § 20-2506 — Arizona Code / Title 20 / Chapter 15 / Article 1 / Section 2506
20-2506 Certification; responsibilities of department; cost recovery
Status: in_force

20-2506. Certification; responsibilities of department; cost recovery

A. The director shall examine the affairs, transactions, accounts and records of each utilization review agent before issuing an initial certificate and as often as the director deems it necessary in order to determine if a utilization review agent is in compliance with this chapter. The department shall not make any determination of quality of care, appropriateness of utilization review recommendations or medical necessity relating to any plan of care or treatment.

B. All examination and examination related expenses shall be charged to the utilization review agent and shall be paid by the director out of the insurance examiners' revolving fund in accordance with section 20-159.

C. The director may use independent contract examiners pursuant to sections 20-148 and 20-149 to perform the examinations under this section.

D. Any expenses of examinations not paid by the utilization review agent within thirty days of the billing of the examination expenses shall be paid by the health care insurer that used the services or that contracted with the utilization review agent. If more than one health care insurer used the services of or contracted with a utilization review agent each health care insurer shall pay an equal share of the uncollected expenses.
A.R.S. § 20-1410 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1410
20-1410 Mail order prescription drugs; prohibition
Status: in_force

20-1410. Mail order prescription drugs; prohibition

From and after September 30, 1990, no medical benefits contract on a group basis delivered or issued for delivery in this state, whether issued by an insurance company, a hospital service corporation, a medical service corporation or a health care services organization, may require any person covered under the policy to purchase prescription drugs exclusively from a mail order pharmacy as a condition of obtaining benefits for the drugs. Under this section the receipt of a discount for a prescription drug off of a mail order pharmacy's regular list price is not construed as a requirement to purchase prescription drugs.
A.R.S. § 20-763 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 763
20-763 Scope of article
Status: in_force

20-763. Scope of article

All authorized reciprocal insurers shall be governed by those sections of this article not expressly made applicable to domestic reciprocals.
A.R.S. § 20-1621.11 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.11
20-1621.11 Penalties
Status: in_force

20-1621.11. Penalties

In addition to any other penalties authorized by this title, after notice and a hearing, the director may impose on an insurer that violates an order of the director that is issued pursuant to this article or any rule adopted pursuant to this article a civil penalty of not more than one thousand dollars for each violation but not to exceed an aggregate penalty of one hundred thousand dollars, except that, if the violation was committed flagrantly in a conscious disregard of this article, the civil penalty shall not be more than twenty-five thousand dollars for each violation but not to exceed an aggregate penalty of two hundred fifty thousand dollars.
A.R.S. § 20-1052 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1052
20-1052 Establishment of health care services organizations
Status: in_force

20-1052. Establishment of health care services organizations

A. A person shall not establish or operate a health care services organization in this state, or sell or offer to sell, or solicit offers to purchase, or receive advance or periodic consideration in conjunction with a health care plan without obtaining and maintaining a certificate of authority pursuant to this article.

B. A health care services organization shall be incorporated under the laws of this or any other state.

C. A health care services organization shall possess and maintain unimpaired capital or surplus, or both, in the amount of one million five hundred thousand dollars at the time of obtaining a certificate of authority. Thereafter, a health care services organization that is subject to the unimpaired capital or surplus requirements of this section shall maintain unimpaired capital or surplus, or both, in the amount of one million dollars or in the amount prescribed in chapter 2, article 12 of this title, whichever is greater.

D. Unless preempted under federal law or unless federal law imposes greater requirements than this section, this section applies to a provider sponsored health care services organization.
A.R.S. § 20-1509 — Arizona Code / Title 20 / Chapter 6 / Article 7 / Section 1509
20-1509 Loss or damage caused by nuclear reaction, or nuclear radiation or radio-active contamination not covered by Arizona standard fire policy
Status: in_force

20-1509. Loss or damage caused by nuclear reaction, or nuclear radiation or radio-active contamination not covered by Arizona standard fire policy

Insurers issuing the standard policy pursuant to section 20-1503, are authorized to affix thereto a written statement that the policy does not cover loss or damage caused by nuclear reaction, nuclear radiation or radio-active contamination, all whether directly or indirectly resulting from an insured peril under said policy, provided, that nothing here contained shall be construed to prohibit the attachment to any such policy of an endorsement or endorsements specifically assuming coverage for loss or damage caused by nuclear reaction, nuclear radiation or radio-active contamination; however, subject to the foregoing and all provisions of the said policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radio-active contamination is insured against by such policy.
A.R.S. § 20-1614 — Arizona Code / Title 20 / Chapter 6 / Article 10 / Section 1614
20-1614 Debtor's option in satisfying security
Status: in_force

20-1614. Debtor's option in satisfying security

When consumer credit insurance is required as a condition to a loan or credit transaction or as security for a debt, if so permitted by law, the debtor, upon request to the creditor, shall have the option of satisfying the requirements by furnishing existing policies of insurance in sufficient amount owned or controlled by the debtor or by procuring the necessary coverage from any insurer authorized by the director.
A.R.S. § 20-476 — Arizona Code / Title 20 / Chapter 2 / Article 7 / Section 476
20-476 Violation; classification
Status: in_force

20-476. Violation; classification

Intentional violation of this article is a petty offense.
A.R.S. § 20-1057.04 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1057.04
20-1057.04 Continuity of care; definition
Status: in_force

20-1057.04. Continuity of care; definition

A. A health care services organization shall allow any new enrollee whose health care provider is not a member of the provider network, on written request of the enrollee to the health care services organization, to continue an active course of treatment with that health care provider during a transitional period after the effective date of the enrollment if both of the following apply:

1. The enrollee has either:

(a) A life threatening disease or condition, in which case the transitional period is not more than thirty days after the effective date of the enrollment.

(b) Entered the third trimester of pregnancy on the effective date of the enrollment, in which case the transitional period includes the delivery and any care up to six weeks after the delivery that is related to the delivery.

2. The enrollee's health care provider agrees in writing to do all of the following:

(a) Except for copayment, coinsurance or deductible amounts, accept as payment in full reimbursement from the health care services organization at the rates that are established by the health care services organization and that are not more than the level of reimbursement applicable to similar services by health care providers within the provider network.

(b) Comply with the health care services organization's quality assurance and utilization review requirements and provide to the health care services organization any necessary medical information related to the care.

(c) Comply with the health care services organization's policies and procedures pursuant to this article including procedures relating to referrals and obtaining preauthorization, claims handling and treatment plan approval by the health care services organization.

B. A health care services organization shall allow any enrollee whose health care provider is terminated from the provider network by the health care services organization except for reasons of medical incompetence or unprofessional conduct, on written request of the enrollee to the health care services organization, to continue an active course of treatment with that health care provider during a transitional period after the date of the provider's disaffiliation from the provider network, if both of the following apply:

1. The enrollee has either:

(a) A life threatening disease or condition, in which case the transitional period is not more than thirty days after the date of the provider's disaffiliation from the provider network.

(b) Entered the third trimester of pregnancy on the date of the provider's disaffiliation, in which case the transition period includes the delivery and any care up to six weeks after the delivery that is related to the delivery.

2. The enrollee's health care provider agrees in writing to do all of the following:

(a) Except for copayment, coinsurance or deductible amounts, continue to accept as payment in full reimbursement from the health care services organization at the rates applicable before the beginning of the transitional period.

(b) Comply with the health care services organization's quality assurance and utilization review requirements and provide to the health care services organization any necessary medical information related to the care.

(c) Comply with the health care services organization's policies and procedures pursuant to this article including procedures relating to referrals and obtaining preauthorization, claims handling and treatment plan approval by the health care services organization.

C. This section does not require a health care services organization to provide coverage for benefits that are not covered by the enrollee's evidence of coverage and does not diminish or impair any preexisting condition limitation in the evidence of coverage.

D. This section does not extend to a health care provider who is not a member of the provider network any contractual rights or remedies beyond those rights or remedies related to and necessary for the provision of covered services to the specific enrollee during the required transitional period.

E. For the purposes of this section, "health care provider" means any physician who is licensed in this state pursuant to title 32, chapter 13 or 17.
A.R.S. § 20-1097.04 — Arizona Code / Title 20 / Chapter 4 / Article 13 / Section 1097.04
20-1097.04 Prepaid legal insurance contract provisions
Status: in_force

20-1097.04. Prepaid legal insurance contract provisions

A. A corporation may not issue a contract or certificate of prepaid legal insurance in this state unless a copy of the form has been filed with and approved by the department.

B. A corporation may write prepaid legal insurance contracts as individual, group, payroll deduction, blanket or franchise contracts. Each contractual obligation for prepaid legal insurance shall be evidenced by a contract. The corporation shall issue a certificate of the contract's coverage to each person protected under a group policy.

C. The department shall approve a contract form which contains all of the following:

1. A list and description of the legal service payments promised or the legal matters for which expenses are to be reimbursed and any limits on the amounts to be paid or reimbursed.

2. A clear statement of the name of the corporation issuing the contract and the full address of its principal place of business.

3. A statement that the individual beneficiary may retain at his own expense, except if the policy provides otherwise, any attorney authorized to practice law in this state.

D. Contracts with certificates issued under group policies must contain a full statement of the benefits provided and exceptions to the benefits but may summarize the other terms of the master contract.

E. No contract, except a policy issued by a mutual or reciprocal insurance company, may provide for assessments on contract beneficiaries or policyholders or for reduction of benefits for the purpose of maintaining a corporation's solvency.
A.R.S. § 20-422 — Arizona Code / Title 20 / Chapter 2 / Article 5 / Section 422
20-422 Alien insurance for coverage in Mexico
Status: in_force

20-422. Alien insurance for coverage in Mexico

A. A person shall not solicit or accept applications in this state for insurance or collect a commission on a policy that is to be effective in Mexico and only outside the geographical limits of this state and that is to be issued by an alien insurer or insurers not authorized to transact insurance in this state, unless that person is licensed pursuant to section 20-411, 20-411.01 or 20-411.02 or any agent or employee of that licensed person or any other authorized insurance producer in this state provided that the insurance producer obtains the coverage through that licensed person.

B. Except for sections 20-411, 20-411.01, 20-411.02, 20-414 and 20-418, the insurance prescribed in this section is not subject to this article.

C. Any policy and any evidence of coverage that are issued by an alien insurer and that are issued pursuant to this section for delivery to the insured in this state shall contain a conspicuously stamped or written notice in bold-faced type that states:

This policy is issued by an insurance company that is not regulated by the Arizona department of insurance and financial institutions. The insurance company may not provide claims service and may not be subject to service of process in Arizona.  If the insurance company becomes insolvent, insureds or claimants will not be eligible for protection under Arizona law.
A.R.S. § 20-401.02 — Arizona Code / Title 20 / Chapter 2 / Article 5 / Section 401.02
20-401.02 Violation; cease and desist orders; injunctive relief
Status: in_force

20-401.02. Violation; cease and desist orders; injunctive relief

A. If the director has cause to believe that any insurer is violating or about to violate section 20-401.01, the director may order the insurer to cease and desist and, through the attorney general, may cause a complaint to be filed in the superior court in Maricopa county to enjoin and restrain the insurer from continuing the violation, engaging in the violation or doing any act in furtherance of the violation.

B. If the director orders the insurer to cease and desist, the insurer may request a hearing pursuant to title 41, chapter 6, article 10.  Except as provided in section 41-1092.08, subsection H, a final decision of the director is subject to judicial review pursuant to title 12, chapter 7, article 6.

C. If the director, through the attorney general, causes a complaint to be filed, the superior court in Maricopa county shall have jurisdiction of the proceeding and may make and enter an order or judgment awarding the preliminary or final relief as in its judgment is proper.
A.R.S. § 20-535 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 535
20-535 Limitation on percentage of assets invested with single person; exception
Status: in_force

20-535. Limitation on percentage of assets invested with single person; exception

An insurer shall not, except with the consent of the director, have at any one time any combination of investments in or loans upon the security of the obligations, property or securities of any one person, institution, corporation or municipal corporation, aggregating any amount exceeding ten per cent of the insurer's assets. This restriction shall not apply to investments in or loans upon the security of general obligations of the United States or any state of the United States or include policy loans made under section 20-550.
A.R.S. § 20-1112 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1112
20-1112 Standard provisions
Status: in_force

20-1112. Standard provisions

A. Insurance contracts shall contain such standard provisions as are required by the applicable provisions of this title pertaining to contracts of particular kinds of insurance. The director may waive the required use of a particular standard provision in a particular insurance policy form if he finds such provision unnecessary for the protection of the insured and inconsistent with the purposes of the policy and the policy is otherwise approved by him.

B. No policy shall contain any provision inconsistent with or contradictory to any standard provision used or required to be used, but the director may approve any substitute policy or provision which, when viewed in its entirety, is substantially equivalent to or more favorable to the insured or beneficiary than the standard provisions or optional standard provisions otherwise required.

C. In lieu of the standard provisions required by the provisions of this title for contracts for particular kinds of insurance, substantially similar standard provisions required by the law of the domicile of a foreign or alien insurer may be used when approved by the director.
A.R.S. § 20-694 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 694
20-694 Stay of proceedings; reopening default judgments
Status: in_force

20-694. Stay of proceedings; reopening default judgments

A. All proceedings in which the impaired insurer or insolvent insurer or the impaired insurer's or insolvent insurer's insured is a party in any court in this state shall be stayed sixty days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by the board on any matters germane to its powers or duties.  At the request of the board and on a showing of good cause, the court may lengthen the stay prescribed in this section. As to a judgment under any decision, order, verdict or finding based on default, the board may apply to have such judgment set aside by the same court that made such judgment and shall be permitted to defend against such suit on the merits.

B. Notwithstanding subsection A of this section or any other provision of this chapter, a receiver, rehabilitator, liquidator or conservator may not void any transfer of, or any obligation to transfer, money or other property arising under or in connection with any federal home loan bank security agreement with an insurer member, or any pledge, security, collateral or guarantee agreement or any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement with an insurer member unless the transfer was made with actual intent to hinder, delay or defraud either existing or future creditors.
A.R.S. § 20-1621.10 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.10
20-1621.10 Rules
Status: in_force

20-1621.10. Rules

The director may adopt any rules reasonably necessary to carry out and effectuate this article.
A.R.S. § 20-336.01 — Arizona Code / Title 20 / Chapter 2 / Article 3.4 / Section 336.01
20-336.01 Scope and application of article
Status: in_force

20-336.01. Scope and application of article

A. Beginning October 1, 2014, this article applies to a person who acts or claims to be a navigator or certified application counselor.

B. A person who holds a license as an accident and health or sickness insurance producer pursuant to article 3 of this chapter is exempt from the requirements of this article.

C. A person who is working as a navigator or certified application counselor only on tribal lands in this state and who as a condition of employment was required to complete a security background investigation for federal service, including a criminal history records check and fingerprinting, is exempt from the requirements of this article.
A.R.S. § 20-378 — Arizona Code / Title 20 / Chapter 2 / Article 4 / Section 378
20-378 Disapproval of title insurance filings
Status: in_force

20-378. Disapproval of title insurance filings

A. Before issuing an order of disapproval of a title insurance filing, the director shall hold a hearing upon not less than ten days' written notice, specifying in reasonable detail the matters to be considered at such hearing. Such notice shall be sent to every title insurer, title insurance agent and title insurance rating organization which made such filing. If, after such hearing, the director finds that such filing or a part thereof does not meet the requirements of this article, he shall issue an order specifying in what respects he finds that it so fails, and stating when, within a reasonable period thereafter, such filing or a part thereof shall be deemed no longer effective if the filing or a part thereof has become effective under the provisions of section 20-376. A title insurer, title insurance agent or title insurance rating organization shall have the right at any time to withdraw a filing or a part thereof.  Copies of every such order shall be sent to every title insurer, title insurance agent and title insurance rating organization affected. Such an order shall not affect any contract or preliminary report, commitment, binder or title insurance policy made or issued prior to the expiration of the period set forth therein.

B. Any person or organization aggrieved with respect to any filing which is in effect may make written application to the director for a hearing thereon, but the title insurer, title insurance agent or title insurance rating organization which made the filing shall not be authorized to proceed under this subsection. Such an application shall specify in reasonable detail the grounds to be relied upon by the applicant. If the director finds that the application is made in good faith, that the applicant would be so aggrieved if his grounds are established, and that such grounds otherwise justify holding such a hearing, he shall, within thirty days after receipt of such application, hold a hearing upon not less than ten days' written notice to the applicant and to every title insurer, title insurance agent and title insurance rating organization which made such a filing. If, after such hearing, the director finds that the filing or a part thereof does not meet the requirements of this article, he shall issue an order specifying in what respects he finds that such filing or a part thereof fails to meet the requirements of this article and stating when within a reasonable period thereafter such filing or a part thereof shall be deemed no longer effective. Copies of such an order shall be sent to the applicant and to every such title insurer, title insurance agent and title insurance rating organization that made the filing. Such an order shall not affect any contract or policy made or issued prior to the expiration of the period set forth therein.

C. No filing nor any modification thereof shall be disapproved if the rates in connection therewith meet the requirements of this article.
A.R.S. § 20-1274 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1274
20-1274 Nonforfeiture benefits in group annuity contract
Status: in_force

20-1274. Nonforfeiture benefits in group annuity contract

A. In group annuity contracts there shall be a provision or provisions, with an appropriate reference thereto in the certificate, specifying the nature and basis of ascertainment of the benefits which will be available to an annuitant who contributes to the cost of the annuity and the conditions of payment thereof in the event of either the termination of employment of the annuitant, except by death, or the discontinuance of stipulated payments under the contract. The provision or provisions shall, in either event, make available to an annuitant who contributes to the cost of the annuity a paid-up annuity payable commencing at a fixed date in an amount at least equal to that purchased by the contributions of the annuitant, determinable as of the respective dates of payment of the several contributions, as shown by a schedule in the contract for that purpose, based upon the same mortality table, rate of interest and loading formula used in computing the stipulated payments under the contract. The provision or provisions may, by way of exception to the foregoing, provide that if the amount of the annuity determined as aforesaid from the fixed commencement date would be less than one hundred twenty dollars annually, the insurer may at its option, in lieu of granting the paid-up annuity, pay a cash surrender value at least equal to that provided by this section.

B. If a cash surrender value, in lieu of the paid-up annuity, is allowed to the annuitant by the terms of the contract, it may be either in a single sum or in equal installments over a period of not more than twelve months, and it shall at least equal either paragraph 1 or 2 following, whichever is less:

1. The amount of reserve attributable to the annuitant's contributions less a surrender charge not exceeding thirty-five per cent of the average annual contribution made by the annuitant.

2. The amount which would be payable as a death benefit at the date of surrender.

C. The contract shall also provide that in case of the death of an annuitant before the commencement date of the annuity, the insurer shall pay a death benefit at least equal to the aggregate amount of the annuitant's contributions without interest. If any benefits are available to the holder in either event, the contract shall contain a provision or provisions specifying the nature and basis of ascertainment of the benefits.
A.R.S. § 20-836 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 836
20-836 Limitation on liability
Status: in_force

20-836. Limitation on liability

No liability shall attach to any corporation holding a certificate of authority under this article by reason of the failure on the part of any of its participating hospitals, physicians, dentists or optometrists to render service, except as provided by this article, to any of its subscribers, nor for the negligence, malpractice or other acts of its participating hospitals, physicians, dentists or optometrists.
A.R.S. § 20-1268 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1268
20-1268 Death pending conversion
Status: in_force

20-1268. Death pending conversion

In group life policies there shall be a provision that if a person insured under the group policy dies during the period within which he would have been entitled to have an individual policy issued to him in accordance with sections 20-1266 or 20-1267 and before such an individual policy becomes effective, the amount of life insurance which he would have been entitled to have issued to him under such individual policy shall be payable as a claim under the group policy, whether or not application for the individual policy or the payment of the first premium therefor has been made.
A.R.S. § 20-837 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 837
20-837 Tax exemption; exceptions
Status: in_force

20-837. Tax exemption; exceptions

A. Every corporation doing business pursuant to this article is declared to be a nonprofit and benevolent institution and to be exempt from state, county, district, municipal and school taxes, including the taxes prescribed by this title, and excepting only the fees prescribed by section 20-167 and taxes on real and tangible personal property located within this state. Each corporation is subject to a state tax of 2.0 percent on net premiums that are received to effect or maintain the corporation's subscription contracts, except that the tax shall not apply with respect to any coverage concerning which the corporation's relationship is as administrative or fiscal agent for national, state or municipal government or any political subdivision or body thereof, and such tax shall not apply with respect to any premiums received from funds of national, state or municipal government or any political subdivision or body thereof.  The tax shall be determined, filed and reported in the manner prescribed in section 20-224. The failure by a corporation to pay the tax on or before the prescribed payment dates results in a civil penalty determined pursuant to section 20-225.

B. A corporation may claim a premium tax credit if the corporation qualifies for a credit pursuant to section 20-224.03.
A.R.S. § 20-1314 — Arizona Code / Title 20 / Chapter 6 / Article 3 / Section 1314
20-1314 Conversion of weekly premium policies
Status: in_force

20-1314. Conversion of weekly premium policies

There shall be a provision in the case of weekly premium policies granting to the insured, upon proper written request and upon presentation of evidence of insurability satisfactory to the insurer, the privilege of converting a weekly premium industrial insurance policy to any form of life insurance with less frequent premium payments regularly issued by the insurer, in accordance with terms and conditions agreed upon with the insurer. The privilege of making the conversion need be granted only if the insurer's weekly premium industrial policies on the life insured, in force as premium paying insurance and on which conversion is requested, grant benefits in event of death, exclusive of additional accidental death benefits and exclusive of any dividend additions, in an amount not less than the minimum amount of such insurance with less frequent premium payments issued by the insurer at the age of the insured on the plan of industrial or ordinary insurance desired.
A.R.S. § 20-2219 — Arizona Code / Title 20 / Chapter 12 / Article 1 / Section 2219
20-2219 Liability of the association
Status: in_force

20-2219. Liability of the association

There is no liability on the part of nor does any cause of action accrue against the association or its members, the director or his authorized representatives or any other person or organization for any acts or omissions made in good faith by them during any proceeding or concerning any matters within the scope of this chapter. The association is a legal entity separate and distinct from its members.
A.R.S. § 20-1057.17 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1057.17
20-1057.17 Coverage of health care services
Status: in_force

20-1057.17. Coverage of health care services

Any evidence of coverage issued, delivered or renewed on or after July 1, 2017 by a health care services organization in this state must provide coverage for lawful health care services that are provided by a health care provider to an enrollee regardless of the familial relationship of the health care provider to the enrollee if the health care service would be covered were it provided to an enrollee who was not related to the health care provider.  The evidence of coverage may limit the coverage to those health care providers who are members of the health care services organization's provider network.
A.R.S. § 20-1127 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1127
20-1127 Simultaneous deaths
Status: in_force

20-1127. Simultaneous deaths

Where the individual insured or the annuitant and the beneficiary designated in a life insurance policy or policy insuring against accidental death or in an annuity contract have died and there is not sufficient evidence that they have died otherwise than simultaneously, the proceeds of the policy or contract shall be distributed as if the insured or annuitant had survived the beneficiary, unless otherwise specifically provided in the policy or contract.
A.R.S. § 20-1302 — Arizona Code / Title 20 / Chapter 6 / Article 3 / Section 1302
20-1302 Required provisions
Status: in_force

20-1302. Required provisions

No policy of industrial life insurance shall be delivered or be issued for delivery in this state unless it contains in substance the applicable provisions set forth in sections 20-1303 to 20-1316, inclusive.
A.R.S. § 20-1675 — Arizona Code / Title 20 / Chapter 6 / Article 14 / Section 1675
20-1675 Liability of insurer and representatives for statements in notice of cancellation, other communication or evidence given in court relating to cancellation
Status: in_force

20-1675. Liability of insurer and representatives for statements in notice of cancellation, other communication or evidence given in court relating to cancellation

There is no liability on the part of and no cause of action of any nature arises against any insurer or its authorized representatives, agents or employees, or any licensed insurance producer, for any statement made, unless shown to have been made in bad faith with malice, in any of the following:

1. A written notice of cancellation or in any other oral or written communication specifying the reasons for cancellation.

2. A communication providing information pertaining to such cancellation.

3. Evidence submitted at any court proceeding or informal inquiry in which such cancellation is an issue.
A.R.S. § 20-267 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 267
20-267 Motor vehicle liability policies; monthly basis; fee
Status: in_force

20-267. Motor vehicle liability policies; monthly basis; fee

A. An insurer writing or an insurance producer soliciting applications for motor vehicle liability policies shall make available a monthly premium payment plan on policies that insure six or fewer motor vehicles.

B. At the inception of a monthly premium payment plan, an insurer may not require an insured to pay more than an amount equal to one and one-half times the monthly premium in addition to the first month's premium. Premiums for each month of coverage collected thereafter under a monthly premium payment plan may be due and payable not more than thirty days before the month of coverage related to that premium. An insurer may cancel or fail to renew a policy for nonpayment of premium, except that a cancellation or nonrenewal is not effective until the requirements of section 20-1632.01 are met.

C. An insurer or insurance producer may charge a fee pursuant to section 20-465 that is reasonably related to the administrative expenses of the monthly premium payment plan.

D. An insurer or insurance producer may use a premium finance company to meet the requirements of this section. In financing the monthly premium payment plan, at the inception of a premium finance agreement, a premium finance company may not require an insured to pay more than an amount equal to one and one-half times the monthly premium and the first month's premium. Payments collected thereafter under the premium finance agreement may be due and payable not more than every thirty days until the premium finance agreement is satisfied. A premium finance company may cancel a premium finance agreement for nonpayment pursuant to section 6-1415.
A.R.S. § 20-482.01 — Arizona Code / Title 20 / Chapter 2 / Article 8.1 / Section 482.01
20-482.01 Effect of reorganization
Status: in_force

20-482.01. Effect of reorganization

A. On the effective date of a plan of reorganization, all of the following occur:

1. The converting mutual insurer becomes a converted stock insurer.  The amended or restated articles of incorporation and bylaws of the converting mutual insurer shall be filed with the director as part of the plan and shall become effective on the effective date of the conversion.  The director shall amend the certificate of authority of the converting mutual insurer on the effective date of the conversion.

2. All membership interests and rights in surplus of the converting mutual insurer are extinguished and the members of the converting mutual insurer become members of the mutual holding company in accordance with this article and the articles of incorporation and bylaws of the mutual holding company.

3. Any owner of one or more policies of insurance, other than a policy of reinsurance, issued by the converted stock insurer after the effective date of the conversion and, if permitted under  the articles of incorporation or bylaws of the mutual holding company, any holder of one or more policies of insurance, other than a policy of reinsurance, issued by any other insurer that is a direct or indirect subsidiary or affiliate of the mutual holding company after the effective date of the reorganization becomes a member of the mutual holding company.

4. The mutual holding company or, if created, an intermediate stock holding company acquires and shall retain all shares of the voting stock of the converted stock insurer.

5. The mutual holding company acquires and shall retain all shares of the voting stock of any intermediate stock holding company.

6. A converted stock insurer continues the corporate existence of the converting mutual insurer.  Except as provided in the plan, the conversion does not annul, modify or change any existing license or other authority or any of the existing civil actions, rights, contracts or liabilities of the converting mutual insurer. The converted stock insurer retains all property, debts and choses in action and every other interest belonging to the converting mutual insurer before the conversion without further action needed. On and after the effective date of the conversion, the converted stock insurer may exercise all rights and powers conferred and shall perform all duties imposed by law on insurers writing the classes of insurance written by the converted stock insurer, shall retain the rights and contracts of the converting mutual insurer existing immediately before the conversion and shall be subject to all obligations and liabilities of the converting mutual insurer existing immediately before the conversion, subject to the terms of the plan.

B. Any intermediate stock holding company created at the time of reorganization to hold the stock of the converting mutual insurer shall be incorporated under title 10 and may engage in any business or activity permitted by title 10.

C. The converted stock insurer and any intermediate stock holding company may issue to third parties debt securities, stock other than voting stock and voting stock if all of the following apply:

1. No shares of stock representing a majority of the voting power of all issued and outstanding voting stock of either the converted stock insurer or the intermediate stock holding company, if any, are issued to third parties.

2. A majority of the voting stock of the converted stock insurance company is at all times owned by the mutual holding company or by the intermediate stock holding company, a majority of whose voting stock is held by the mutual holding company, and such majority interest in the converted stock insurance company and any intermediate stock holding company is not conveyed, transferred, assigned, pledged, subjected to a security interest or lien, placed in a voting trust, encumbered or otherwise hypothecated or alienated by the mutual holding company or by the intermediate stock holding company. Any conveyance, transfer, assignment, pledge, security interest, lien, placement in a voting trust, encumbrance or hypothecation or alienation of, in or on a majority of the voting shares of the converted stock insurer or the intermediate stock holding company in violation of this paragraph is void in inverse chronological order as to the shares necessary to constitute a majority of such voting stock.

D. Unless otherwise specified in the plan, the directors and officers of the converting mutual insurer shall serve as directors and officers of the mutual holding company, any intermediate stock holding company and the converted stock insurer until new directors and officers are elected.
A.R.S. § 20-2609 — Arizona Code / Title 20 / Chapter 16 / Article 1 / Section 2609
20-2609 Policyholder reports
Status: in_force

20-2609. Policyholder reports

An insurer that delivers or issues for delivery in this state a variable life insurance policy shall send the following reports to each variable life insurance policyholder:

1. Within thirty days after each anniversary of the policy, a statement or statements of the cash surrender value, the death benefit, any partial withdrawal or policy loan, any interest charge and any optional payments that are allowed under the policy and that are computed as of the policy anniversary date. The statement may be furnished within thirty days after a specified date in each policy year if the information contained in the statement is computed not more than sixty days before the notice is sent. This statement shall state that the cash values and the variable death benefit may increase or decrease according to the investment experience of the separate account and shall prominently identify any value that the statement describes and that may be recomputed before the next statement required by this section. If the policy guarantees that the variable death benefit on the next policy anniversary date will not be less than the variable death benefit specified in the statement, the statement shall be modified to indicate this policy guarantee. In addition, the report must show the projected cash value and cash surrender value, if different, as of one year from the end of the period covered by the report. In determining the projected value, the insurer shall assume that the planned periodic premiums, if any, are paid as scheduled, that the guaranteed costs of insurance are deducted and that the net return is equal to the guaranteed rate, or if there is no guaranteed rate, is not greater than zero. If the projected value is less than zero, the statement shall include a warning message that the policy may be in danger of terminating without value in the next twelve months unless additional premium is paid. For flexible premium policies, the report shall contain a reconciliation of the change since the previous report in cash value and cash surrender value, if different, because of payments made, less deductions for expense charges, withdrawals, investment experience, insurance charges and any other charges made against the cash value.

2. An annual statement or statements, including:

(a) A summary of the financial statement of the separate account that is based on the annual statement last filed with the director.

(b) The net investment return of the separate account for the last year and, for each year after the first, a comparison of the investment rate of the separate account during the last year with the investment rate during prior years, up to a total of not less than five years if available.

(c) A list of investments that are held by the separate account as of a date not earlier than the end of the last year for which an annual statement was filed with the director.

(d) Any charges that were levied against the separate account during the previous year.

(e) A statement of any change in the investment objective and orientation of the separate account, in any investment restriction or material quantitative or qualitative investment requirement that applies to the separate account or in the investment advisor of the separate account.

3. For flexible premium policies, if the amounts that are available under the policy on any policy processing day to pay the charges that are authorized by the policy are less than the amount necessary to keep the policy in force until the next following policy processing day, a report that indicates the minimum payment that is required under the terms of the policy to keep the policy in force and the length of the grace period for the payment of that amount.
A.R.S. § 20-1098.24 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.24
20-1098.24 Dormant captive insurers; certificate of dormancy; report; fee; rules
Status: in_force

20-1098.24. Dormant captive insurers; certificate of dormancy; report; fee; rules

A. A captive insurer that is domiciled in this state and that meets the definition of dormant captive insurer may apply for a certificate of dormancy by submitting an application to the director on a form prescribed by the director. The certificate of dormancy is subject to renewal every five years and expires unless renewed.

B. A dormant captive insurer that is issued a certificate of dormancy shall:

1. Possess and thereafter maintain unimpaired, paid-in capital and surplus of at least $125,000.

2. Not later than ninety days after the end of the dormant captive insurer's fiscal year, submit to the director a report of its financial condition that is verified by oath of two of its executive officers.

3. Pay a certificate renewal fee as prescribed in section 20-167.

C. A dormant captive insurer may surrender its certificate of dormancy by submitting an application to surrender to the director.  The dormant captive insurer may not issue insurance policies or conduct the business of insurance until the director approves the application to surrender.

D. The director shall revoke a certificate of dormancy if a dormant captive insurer no longer meets the definition of dormant captive insurer.

E. The director may adopt guidelines, procedures and rules to implement this section.
A.R.S. § 20-116 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 116
20-116 Surety bonds; cash deposit as alternative
Status: in_force

20-116. Surety bonds; cash deposit as alternative

Any provision in this title that requires a person to post a surety bond to guarantee the performance of a legal obligation is subject to the provisions of section 35-155 pertaining to accepting a cash deposit as an alternative to a surety bond.
A.R.S. § 20-2632 — Arizona Code / Title 20 / Chapter 16 / Article 2 / Section 2632
20-2632 Qualifications to issue variable annuities
Status: in_force

20-2632. Qualifications to issue variable annuities

A. A company shall not issue or issue for delivery in this state variable annuities unless the director is satisfied that the company's condition or method of operation in connection with the issuance of variable annuity contracts will not be hazardous to the public or the company's policyholders in this state. The director shall consider the following:

1. The history and financial condition of the company.

2. The character, responsibility and fitness of the company's officers and directors.

3. If the company is a foreign company, the law under which the company is authorized in its domiciliary state to issue variable annuities.

B. If the company is a subsidiary of an authorized life insurance company or is affiliated with an authorized life insurance company by common management or ownership, the director may determine that the subsidiary has complied with subsection A, paragraph 2, if either:

1. The authorized life insurance company has satisfied the requirements under subsection A.

2. The authorized life insurance company or the company is authorized to and has a satisfactory record of doing business in this state for at least three years.

C. Before a company issues or issues for delivery variable annuities in this state, the company shall submit all of the following to the director:

1. A general description of the kinds of variable annuities the company intends to issue.

2. If requested by the director, a copy of the laws of the company's state of domicile under which the company is authorized to issue variable annuities.

3. If requested by the director, biographical data on the company's officers and directors. The biographical data shall be submitted on the national association of insurance commissioners' biographical data forms.
A.R.S. § 20-270 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 270
20-270 Residential property insurance; prohibited acts
Status: in_force

20-270. Residential property insurance; prohibited acts

A. An insurer shall not charge more premium for residential property insurance coverage on a property with a single below deductible claim, not exceeding five hundred dollars in the previous three years, than it would charge for like coverage on the same property if the property had no below deductible claims.  For the purposes of this subsection, "below deductible claim" means a claim for indemnification for a loss under a residential property insurance policy that provided coverage for the loss that was closed without any payment because the amount of the loss was less than the amount of the deductible provided by the policy.

B. For the purposes of this section, residential property insurance has the same meaning as the insurance covered under section 20-1651.
A.R.S. § 20-672 — Arizona Code / Title 20 / Chapter 3 / Article 6 / Section 672
20-672 Effect of paid claims
Status: in_force

20-672. Effect of paid claims

A. Any person recovering pursuant to this article shall be deemed to have assigned his or her rights under the policy to the fund to the extent of his or her recovery from the fund. Every insured or claimant seeking the protection of this article shall cooperate with the fund to the same extent as such person would have been required to cooperate with the insolvent insurer. The fund shall have no cause of action against the insured of the insolvent insurer for any sums it has paid.

B. The receiver, conservator, liquidator or statutory successor of an insolvent insurer shall be bound by settlement of covered claims by the fund or similar organization in another state.

C. The board shall periodically file with the receiver, conservator, liquidator or statutory successor of the insolvent insurer statements of the covered claims paid by the fund and estimates of anticipated claims on the fund which shall preserve the rights of the fund against the assets of the insolvent insurer.
A.R.S. § 20-1097.02 — Arizona Code / Title 20 / Chapter 4 / Article 13 / Section 1097.02
20-1097.02 Certificate of authority; requirements; issuance
Status: in_force

20-1097.02. Certificate of authority; requirements; issuance

A. No person may enter into any contract with any other person in which the contract purports to extend certain prepaid legal insurance without the person having first obtained a certificate of authority from the director.

B. An applicant shall file with the department an application for a certificate of authority on a form to be furnished by the department which shall include the following:

1. The names and, for the preceding five years, all addresses and all occupations of officers and directors of the corporation.

2. A certified copy of the corporate articles and bylaws and, for the three most recent years, the corporation's annual statement and report, if applicable.

3. A copy of any insurance or reinsurance contract executed by the corporation for insuring the payment of the cost for legal services or the provision for automatic applicability of an alternative coverage in the event the applicant is unable to perform its obligations.

4. The forms to be used for any proposed contract between the applicant and individual purchasers of the applicant's prepaid legal insurance contract, any contracts between the applicant and participating attorneys under the program, any contracts between the applicant and other persons who perform administration, marketing or management services and all forms relating to the provision of services to beneficiaries or purchasers of the prepaid legal insurance contracts.

5. A narrative plan detailing the proposed conduct of the prepaid legal insurance business within this state which must include all of the following:

(a) The geographical area in which business is intended to be conducted in the first five years of operation.

(b) The proposed marketing method to be used by the corporation.

(c) A current statement of the assets and liabilities of the applicant.

(d) Forms of all service contracts the applicant chooses to offer showing the rates to be charged for each form of contract.

(e) Such other documents and information as the director may reasonably require.

C. The director shall, within sixty days after the filing of the application, either issue a certificate pursuant to the application or provide the applicant with a written explanation as to why the application has been denied.

D. The director shall issue the certificate if he is satisfied that the applicant has:

1. Demonstrated that it is competent.

2. Provided the director with a business plan which is consistent with the interests of the potential insureds and of the public.

3. Met all other requirements of this article.
A.R.S. § 20-872 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 872
20-872 Reinsurance
Status: in_force

20-872. Reinsurance

A. Pursuant to a reinsurance agreement, a domestic fraternal benefit society may cede any part or all of its risks to an insurer other than another fraternal benefit society that has the power to take the reinsurance and that is authorized to transact business in this state, or if the reinsurer is not authorized to transact business in this state, that is approved by the director. A society may not reinsure substantially all of its insurance in force without the written permission of the director. A society may take credit for the reserves on the ceded risks to the extent that the risks are reinsured. Any credit taken by a ceding society is not allowed as an admitted asset or as a deduction from liability for reinsurance that is made, ceded, renewed or otherwise effective after January 1, 1995, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.

B. Notwithstanding subsection A of this section, a society may reinsure the risks of another society in a consolidation or merger that is approved by the director pursuant to section 20-873.
A.R.S. § 20-2122 — Arizona Code / Title 20 / Chapter 11 / Article 1 / Section 2122
20-2122 Partial exemption for health insurers subject to HIPAA
Status: in_force

20-2122. Partial exemption for health insurers subject to HIPAA

A. Except as provided in subsection B of this section, if an insurance institution is subject to and in compliance with 45 Code of Federal Regulations part 164, subparts A and E, the insurance institution is deemed to comply with this article.

B. An insurance institution is subject to sections 20-2103, 20-2107, 20-2110, 20-2111, 20-2112, 20-2114, 20-2115, 20-2116, 20-2117, 20-2118, 20-2119, 20-2120 and 20-2121.
A.R.S. § 20-1260 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1260
20-1260 Incontestability
Status: in_force

20-1260. Incontestability

In group life policies there shall be a provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two years from its date of issue, and that no statement made by any person insured under the policy relating to his insurability shall be used in contesting the validity of the insurance with respect to which the statement was made after the insurance has been in force prior to the contest for a period of two years during the person's lifetime nor unless it is contained in a written instrument signed by him.
A.R.S. § 20-1254 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1254
20-1254 Labor union groups
Status: in_force

20-1254. Labor union groups

The lives of a group of individuals may be insured under a policy issued to a labor union, which shall be deemed the policyholder, to insure members of the union for the benefit of persons other than the union or any of its officials, representatives or agents, subject to the following requirements:

1. The members eligible for insurance under the policy shall be all of the members of the union, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the union, or both.

2. The premium for the policy shall be paid by the policyholder, either from the union's funds, or from funds contributed by the insured members specifically for their insurance, or from both.  A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance shall insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

3. The policy shall cover at least two members at date of issue.

4. The amounts of insurance under the policy shall be based upon some plan precluding individual selection either by the members or by the union.
A.R.S. § 20-514 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 514
20-514 Valuation of purchase money mortgages
Status: in_force

20-514. Valuation of purchase money mortgages

Purchase money mortgages on real property referred to in subsection A of section 20-513 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or ninety per cent of the fair value of such real property, whichever is less.
A.R.S. § 20-718 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 718
20-718 Enforcement of contingent liability
Status: in_force

20-718. Enforcement of contingent liability

A. If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required of it by this title for authority to transact the kinds of insurance being transacted, and the deficiency is not cured from other sources, its directors shall levy an assessment only on its members who, at any time within the twelve months immediately preceding the date notice of such assessment was mailed to them, held policies providing for contingent liability, and such members shall be liable to the insurer for the amount so assessed.

B. The assessment shall be for such an amount as is required to cure such deficiency and to provide a reasonable amount of working funds above such minimum amount of surplus, but such working funds so provided shall not exceed five percent of the insurer's liabilities as of the date on which the amount of such deficiency was determined.

C. No one policy or member as to such policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by the insurer in any one calendar year, in excess of the number of times the premium as stated in the policy as computed solely on premium earned on such policy during that year.

D. No member shall have an offset against any assessment for which the member is liable, on account of any claim for unearned premium or loss payable.

E. As to life insurance, any part of such an assessment on a member that remains unpaid following notice of assessment, demand for payment and lapse of a reasonable waiting period as specified in such notice, if approved by the director of the department of insurance and financial institutions as being in the best interests of the insurer and its members, may be secured by placing a lien on the cash surrender values and accumulated dividends held by the insurer to the credit of such member.
A.R.S. § 20-486.03 — Arizona Code / Title 20 / Chapter 2 / Article 10 / Section 486.03
20-486.03 Books and records; reinsurance intermediary brokers
Status: in_force

20-486.03. Books and records; reinsurance intermediary brokers

A. For at least ten years after a contract of reinsurance transacted by the reinsurance intermediary broker expires, the reinsurance intermediary broker shall maintain a complete record for each transaction that shows:

1. The type of contract, limits, underwriting restrictions, classes or risks and territory.

2. The period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation.

3. The reporting and settlement requirements of balances.

4. The rate used to compute the reinsurance premium.

5. The names and addresses of assuming reinsurers.

6. The rates of all reinsurance commissions, including the commissions on any retrocessions that are handled by the reinsurance intermediary broker.

7. Related correspondence and memoranda.

8. Proof of placement.

9. Details regarding retrocessions that are handled by the reinsurance intermediary broker including the identity of persons who receive retrocessions and the percentage of each contract that is assumed or ceded.

10. The financial records, including premium and loss accounts.

11. If the reinsurance intermediary broker procures directly from any assuming reinsurer a reinsurance contract on behalf of a licensed ceding insurer, written evidence that the assuming reinsurer has agreed to assume the risk.

12. If the reinsurance intermediary broker procures through a representative of the assuming reinsurer, other than an employee, a reinsurance contract on behalf of a licensed ceding insurer, written evidence that the reinsurer has delegated binding authority to the representative.

B. The insurer shall have access to and the right to copy and audit all accounts and records related to its business that are maintained by the reinsurance intermediary broker in a form usable by the insurer.
A.R.S. § 20-202.03 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 202.03
20-202.03 Mutual insurer's initial free surplus defined
Status: in_force

20-202.03. Mutual insurer's initial free surplus defined

A mutual insurer's initial free surplus is defined as the minimum additional assets required of a mutual insurer over and above the minimum required basic surplus for the lines of insurance authorized to be written.
A.R.S. § 20-486.11 — Arizona Code / Title 20 / Chapter 2 / Article 10 / Section 486.11
20-486.11 Adoption of rules
Status: in_force

20-486.11. Adoption of rules

The director may adopt rules for the implementation and administration of the provisions of this article.
A.R.S. § 20-311.01 — Arizona Code / Title 20 / Chapter 2 / Article 3.1 / Section 311.01
20-311.01 Managing general agents; requirements
Status: in_force

20-311.01. Managing general agents; requirements

A. A person shall not act in the capacity of a managing general agent for an insurer licensed in this state with respect to the risks located in this state unless the person is licensed as an insurance producer by the director.

B. A person shall not act in the capacity of a managing general agent for an insurer domiciled in this state with respect to risks located outside of this state unless the person is licensed as an insurance producer by the director.
A.R.S. § 20-1677 — Arizona Code / Title 20 / Chapter 6 / Article 14 / Section 1677
20-1677 Notice of premium or coverage changes
Status: in_force

20-1677. Notice of premium or coverage changes

A. An insurer shall send to the named insured written notice of a premium increase, change in deductible or reduction in limits or substantial reduction in coverage at least thirty days before the expiration date of the policy. If the insurer fails to provide the thirty days' notice, the coverage provided to the named insured remains in effect until notice is given or until the effective date of replacement coverage obtained by the named insured, whichever occurs first.

B. Notice is considered given thirty days after the date the notice is sent. If the insured elects not to renew, any earned premium for the period of extension of the terminated policy shall be calculated pro rata at the lower of the current or previous year's rate.  If the insured accepts the renewal, the premium increase, if any, and other changes are effective the day following the prior policy's expiration or anniversary date.

C. For the purposes of this section, notice is considered given if an insurer delivers new policy terms and conditions thirty days before the expiration date of the policy.
A.R.S. § 20-448.02 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 448.02
20-448.02 Genetic testing; informed consent; definitions
Status: in_force

20-448.02. Genetic testing; informed consent; definitions

A. Except as otherwise specifically authorized or required by this state or by federal law, a person shall not order or require the performance of a genetic test without first receiving the specific written informed consent of the subject of the test who has the capacity to consent or, if the person subject to the test lacks the capacity to consent, of a person authorized pursuant to law to consent for that person.  Written consent shall be in a form prescribed by the director. Except as authorized in section 12-2802, the results of a genetic test performed are privileged and confidential and may not be released to any party without the express consent of the subject of the test or the person authorized pursuant to law to consent for that person.

B. For the purposes of this section:

1. "Gene products" means gene fragments, nucleic acids or proteins derived from deoxyribonucleic acids that would be a reflection of or indicate DNA sequence information.

2. "Genetic test" means an analysis of an individual's DNA, gene products or chromosomes that indicates a propensity for or susceptibility to illness, disease, impairment or other disorders, whether physical or mental, or that demonstrates genetic or chromosomal damage due to environmental factors, or carrier status for a disease or disorder.
A.R.S. § 20-1241 — Arizona Code / Title 20 / Chapter 6 / Article 1.1 / Section 1241
20-1241 Definitions
Status: in_force

20-1241. Definitions

In this article, unless the context otherwise requires:

1. "Contract" means a contract for the purchase of an annuity.

2. "Direct response solicitation" means a solicitation to purchase a policy or contract solely through mail, telephone, the internet or other mass communication media.

3. "Direct solicitation" means personal contact to solicit someone to purchase a policy or contract, but does not include any group meeting held by an insurance producer solely for the purpose of educating or enrolling individuals or when initiated by an individual member of a group assisting the individual with selection of investment options offered by a single insurer in connection with enrolling that individual.

4. "Existing insurer" means the insurer whose policy or contract is or will be replaced.

5. "Existing policy or contract" means a policy or contract that is in force and includes a policy under a binding or conditional receipt and a policy or contract that is within an unconditional refund period.

6. "Financed purchase" means the purchase of a new policy involving the actual or intended use of monies obtained by the withdrawal or surrender of, or by borrowing from values of, an existing policy to pay all or part of any premium due on the new policy.  For the purposes of a regulatory review of an individual transaction only, if a withdrawal, surrender or borrowing involving the policy values of an existing policy is used to pay premiums on a new policy owned by the same policyholder and issued by the same insurer within four months before or thirteen months after the effective date of the new policy, it is deemed prima facie evidence of the policyholder's intent to finance the purchase of the new policy with existing policy values.  This prima facie standard is not intended to increase or decrease the monitoring obligations of section 20-1241.04, subsection B, paragraph 5.

7. "Illustration" has the same meaning prescribed in section 20-431.

8. "Insurance producer" has the same meaning prescribed in section 20-281.

9. "Policy summary" means a description of a policy or contract that meets the requirements in section 20-1241.02 and prescribed by the director.

10. "Registered contract" means a variable annuity contract or variable life insurance policy subject to the prospectus delivery requirements of the securities act of 1933 (P.L. 107-377; 15 United States Code sections 77a through 77aa).

11. "Replaced" or "replacement" means a transaction in which a new policy or contract is to be purchased and it is known or should be known to the proposing insurance producer, or to the proposing insurer if there is no insurance producer, that by reason of the transaction an existing policy or contract has been or is to be:

(a) Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated.

(b) Converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other policy values.

(c) Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid.

(d) Reissued with any reduction in cash value.

(e) Used in a financed purchase.

12. "Replacing insurer" means the insurer that issues or proposes to issue a new policy or contract that replaces an existing policy or contract or is a financed purchase.

13. "Sales material" means a sales illustration and any other written, printed or electronically presented information that is created, completed or provided by an insurer or insurance producer, that is used in the presentation to the policy or contract owner and that is related to the policy or contract purchased.
A.R.S. § 20-3652 — Arizona Code / Title 20 / Chapter 31 / Article 1 / Section 3652
20-3652 Applicability
Status: in_force

20-3652. Applicability

This article applies to:

1. Any health care plan that is subject to state law regulating insurance, that provides prescription drug benefits and that includes coverage for a step therapy protocol regardless of how that coverage is described.

2. A contractor, agent or similar entity that implements coverage for a step therapy protocol on behalf of a health care plan, including a pharmacy benefit manager or utilization review agent.
A.R.S. § 20-492 — Arizona Code / Title 20 / Chapter 2 / Article 16 / Section 492
20-492 Definitions
Status: in_force

20-492. Definitions

In this article, unless the context otherwise requires:

1. "Corporate governance annual disclosure" or "CGAD" means a confidential report that is filed by the insurer or insurance group and that is made in accordance with the requirements of this article.

2. "Insurance group" means those insurers and affiliates included within an insurance holding company system as defined in section 20-481.

3. "Insurer":

(a) Means a domestic insurer as defined in section 20-203.

(b) Does not include:

(i) An agency, authority or instrumentality of the United States and its possessions and territories, the Commonwealth of Puerto Rico or the District of Columbia.

(ii) A state.

(iii) A political subdivision of a state.
A.R.S. § 20-241 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 241
20-241 Contracts to provide health care services; form of payment; notice; explanation of benefits; definitions
Status: in_force

20-241. Contracts to provide health care services; form of payment; notice; explanation of benefits; definitions

A. A contract between a health insurer and a health care provider that is issued, amended or renewed on or after January 1, 2020 to provide health care services to the health insurer's enrollees may not restrict the method of payment from the health insurer to the health care provider in which the only acceptable payment method is a credit card payment. A health insurer shall accept tangible checks as a form of acceptable payment.

B. If a health insurer initiates or changes payments to a health care provider using electronic funds transfer payments, including virtual credit card payments, the health insurer shall do the following:

1. Notify the health care provider if any fee is associated with a particular payment method.

2. Advise the health care provider of the available methods of payment and provide clear instructions to the health care provider as to how to select an alternative payment method.

3. Remit or associate with each payment the explanation of benefits.

C. If a health care provider opts out of a method of payment, that decision remains in effect until the health care provider opts back in to the prior method of payment or a new contract is executed.

D. A health insurer that initiates or changes payment to a health care provider using the health care electronic funds transfers and remittance advice transaction pursuant to 45 Code of Federal Regulations sections 162.1601 and 162.1602 may not charge a fee solely to transmit the payment to a health care provider unless the health care provider has consented to the fee. A health care provider agent may charge reasonable fees when transmitting an electronic funds transfer or automatic clearing house related to transaction management, data management, portal services and other value-added services above and beyond the bank transmittal.

E. For the purposes of this section:

1. "Electronic funds transfer payment" means a payment by any method of electronic funds transfer other than a standard health care electronic funds transfers and remittance advice transaction pursuant to 45 Code of Federal Regulations sections 162.1601 and 162.1602.

2. "Health care provider" means a person who is licensed, registered or certified as a health care professional under title 32 or a laboratory or durable medical equipment provider that furnishes services to an enrollee and that separately bills the enrollee for the services.

3. "Health care provider agent" means a person or entity that contracts with a health care provider establishing an agency relationship to process bills for services provided by the health care provider under the terms and conditions of a contract between the agent and health care provider, which may allow the agent to submit bills, request reconsideration and receive reimbursement.

4. "Health insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or hospital, medical, dental and optometric service corporation and includes the health insurer's designee.
A.R.S. § 20-651 — Arizona Code / Title 20 / Chapter 3 / Article 5 / Section 651
20-651 Establishment of separate accounts; income, gains and losses; variable benefits; requirements; reserves
Status: in_force

20-651. Establishment of separate accounts; income, gains and losses; variable benefits; requirements; reserves

A. Any legal reserve life insurance company, except a limited capital stock company, may establish one or more separate accounts, and may allocate amounts thereto, including without limitation proceeds applied under optional modes of settlement or under dividend options, to provide for life insurance, guaranteed investment contracts or annuities, and benefits incidental thereto, payable in fixed or in variable dollar amounts or in both.

B. The income, gains and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains or losses of the company.

C. Except with the approval of the director and under such conditions as to investments and other matters as the director may prescribe, which shall recognize the guaranteed nature of the benefits provided, reserves for benefits guaranteed as to dollar amount and duration and funds guaranteed as to principal amount or stated rate of interest shall not be maintained in a separate account.

D. Amounts allocated to a separate account in the exercise of the power granted by this section shall be owned by the company and the company shall not be, nor hold itself out to be, a trustee with respect to such amounts. If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the company may conduct.

E. To the extent such company deems it necessary to comply with any applicable federal or state laws, such company, with respect to any separate account, including without limitation any separate account that is a management investment company or a unit investment trust, may provide for persons having an interest in the account appropriate voting and other rights and special procedures for the conduct of the business of such account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with such company, to manage the business of such account.

F. Any contract providing benefits payable in variable amounts that is delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the company in determining the dollar amount of such variable benefits. Any contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued under the contract, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits under the contract are on a variable basis.

G. Except for sections 20-1219, 20-1223, 20-1224, 20-1225, 20-1271 and 20-1274 in the case of a variable annuity contract and sections 20-1203, 20-1207, 20-1209, 20-1212, 20-1213, 20-1231, 20-1231.01 and 20-1259 in the case of a variable life insurance policy and except as otherwise provided in this section and in sections 20-515 and 20-536.01, all pertinent provisions of this title shall apply to separate accounts and contracts relating to separate accounts. Any individual variable life insurance contract or variable annuity contract delivered or issued for delivery in this state shall contain grace, reinstatement and nonforfeiture provisions appropriate to such a contract, and if participating, an appropriate dividend provision. Any group variable life insurance contract or variable annuity contract delivered or issued for delivery in this state shall contain grace and nonforfeiture provisions appropriate to such a contract. The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.

H. No company shall deliver or issue for delivery within this state variable contracts unless it is licensed or organized to do a life insurance or annuity business in this state, and the director is satisfied that its condition or methods of operation in connection with the issuance of such variable contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the director shall consider, among other things, all of the following:

1. The history and financial condition of the company.

2. The character, responsibility and fitness of the officers and directors of the company.

3. In the case of a company other than a domestic company, whether the statutes and regulations of the jurisdiction of its incorporation provide a degree of protection to policyholders and the public that is substantially equal to that provided by this section and the rules issued under this section. If the company is a subsidiary of an admitted life insurance company or affiliated with such company through common management or ownership, it may be deemed by the director to have met the provisions of this subsection if either it or the parent or the affiliated company meets the requirements of this section.

I. Notwithstanding any other law, the director shall have sole authority to regulate the issuance and sale of variable contracts and to issue such reasonable rules as may be appropriate to carry out the purposes and provisions of this section and sections 20-515 and 20-536.01.
A.R.S. § 20-224.05 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 224.05
20-224.05 Premium tax credit for health insurance certificates submitted by qualified persons; definitions
Status: in_force

20-224.05. Premium tax credit for health insurance certificates submitted by qualified persons; definitions

A. From and after December 31, 2006, an annual tax credit is allowed against the premium tax liability incurred by a health care insurer pursuant to section 20-224, 20-837 or 20-1060 for an individual or a small business that has received a certificate from the department of revenue pursuant to section 43-210 and obtained health insurance from a health care insurer within ninety days after the date the certificate was issued.

B. The maximum amount of tax credits allowed under this section shall not exceed the aggregate amount of certificates approved by the department of revenue pursuant to section 43-210.

C. For coverage issued to an individual, the amount of the credit is the lesser of:

1. One thousand dollars for coverage on a single person, five hundred dollars for coverage on a child or three thousand dollars for family coverage.

2. Fifty per cent of the health insurance premium.

D. For coverage issued to a small business, the amount of the credit is the lesser of:

1. One thousand dollars for coverage on a single person or three thousand dollars for each employee who elects family coverage.

2. Fifty per cent of the health insurance premium.

E. If the allowable tax credit exceeds the state premium tax liability, the amount of the claim not used as an offset against the state premium tax liability may be carried forward as a tax credit against subsequent years' state premium tax liability for a period not to exceed five taxable years or refunded as allowed under section 20-224.02.

F. The department may adopt rules necessary for the administration of this section.

G. A health care insurer allowed a credit against its premium tax liability under this section shall not be required to pay any additional retaliatory tax levied pursuant to section 20-230 as a result of claiming the credit.

H. For the purposes of this section:

1. "Family" means any of the following:

(a) An adult and the adult's spouse.

(b) An adult, the adult's spouse and all unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

(c) An adult and the adult's unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

2. "Health care insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or hospital, medical, dental and optometric service corporation that provides health insurance in this state.

3. "Health insurance" means a licensed health care plan or arrangement that pays for or furnishes medical or health care services and that is issued by a health care insurer.  Health insurance does not include limited benefit coverage as defined in section 20-1137.

4. "Small business" means a business that has been in existence for at least one calendar year in this state, that has not provided health insurance to its employees for at least six months and that had between two and twenty-five employees during the most recent calendar year.
A.R.S. § 20-387 — Arizona Code / Title 20 / Chapter 2 / Article 4.1 / Section 387
20-387 Delegation of rate making and rate filing obligations
Status: in_force

20-387. Delegation of rate making and rate filing obligations

A. An insurer may establish rates and supplementary rate information based on the factors in section 20-384 using, if desired, the recommendations of an advisory organization, or rates and supplementary rate information prepared by a rate service organization, with average expense factors determined by the rate service organization or with such modification for its own expense and loss experience as the credibility of that experience allows.

B. An insurer may discharge its obligations pursuant to section 20-385 by giving notice to the director that it uses rates and supplementary rate information prepared by a designated rate service organization, with such information about modifications of the rates as is necessary to inform the director. The insurer's rates and supplementary rate information are those filed by the rate service organization, including any amendments to the rate as filed, subject to the modifications filed by the insurer.

C. Licensed rate service organizations, advisory organizations and admitted insurers are authorized to exchange information and experience data with rate service organizations, advisory organizations and insurers in this and other states and may consult with them with respect to rate making.
A.R.S. § 20-847 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 847
20-847 Contracts; dentists; covered services; definition
Status: in_force

20-847. Contracts; dentists; covered services; definition

A. A contract, entered into or renewed on or after January 1, 2011, between a dental service corporation and a dentist who is licensed to practice in this state shall not require the dentist to provide services to an individual covered under a subscription contract based on a fee set by the dental service corporation unless the service for which the fee applies is a covered service under the individual's subscription contract.

B. This section does not restrict the ability of a dental service corporation to establish dental benefits for services offered by plans that are administered but not insured by the dental service corporation.

C. For the purposes of this section, "covered service" means a service for which any reimbursement is available under a subscription contract without regard to contractual limitations by a deductible, copayment, coinsurance, waiting period, annual or lifetime maximum, frequency limitation, alternative benefit payment, exclusion or other limitation.
A.R.S. § 20-863 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 863
20-863 Representative form of government
Status: in_force

20-863. Representative form of government

A society has a representative form of government if:

1. It has a supreme governing body constituted in one of the following ways:

(a) The supreme governing body is an assembly that is composed of delegates who are elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates that may be prescribed by the society's laws. A society may provide for the election of delegates by mail. The elected delegates shall constitute a majority in number and shall have not less than two-thirds of the votes and not less than the number of votes that is required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years. The assembly shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors that occur between elections may be filled in the manner prescribed by the society's laws.

(b) The supreme governing body is a board that is composed of persons who are elected directly by the members or their representatives in intermediate assemblies, together with any other person that may be prescribed by the society's laws. A society may provide for the election of board members by mail. Board members shall serve not more than one four year term. Vacancies that occur on the board between elections may be filled in the manner prescribed by the society's laws. Time served by a new board member while filling a vacancy for the first time shall not count toward the one term limitation. The persons elected to the board shall constitute a majority in number and shall have not less than the number of votes required to amend the society's laws.  A person who fills the unexpired term of an elected board member is considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society.

2. The officers of the society are elected either by the supreme governing body or the board of directors.

3. Only benefit members are eligible for election to the supreme governing body and the board of directors.

4. Each voting member has one vote, and no vote may be cast by proxy.
A.R.S. § 20-3117 — Arizona Code / Title 20 / Chapter 20 / Article 2 / Section 3117
20-3117 Dispute resolution; notice of rights
Status: in_force

20-3117. Dispute resolution; notice of rights

A. The department in conjunction with the appropriate health care boards shall prescribe the notice outlining an enrollee's rights to dispute surprise out-of-network bills under this article.

B. Health insurers shall include the notice prescribed pursuant to subsection A of this section in each explanation of benefits or other similar claim adjudication notice that is issued to enrollees and that involves covered services provided by a noncontracted health care provider.  This subsection applies only to claims that are not subject to an independent dispute resolution pursuant to the No Surprises Act (P.L. 116-120; 134 Stat. 2758; 42 United States Code section 201).

C. If an enrollee contacts a health care provider, a provider's representative or a billing company regarding a dispute involving a surprise out-of-network bill that is not subject to an independent dispute resolution pursuant to the no surprises act (P.L. 116-120; 134 Stat. 2758; 42 United States Code section 201), the health care provider, the provider's representative or the billing company shall provide written notice as prescribed in subsection A of this section to the enrollee of the dispute resolution process.

D. The department shall post on its website information for health care consumers regarding what constitutes a surprise out-of-network bill, how to try to avoid a surprise out-of-network bill and how the dispute resolution process may be used to resolve a surprise out-of-network bill.
A.R.S. § 20-1401 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1401
20-1401 Eligible groups
Status: in_force

20-1401. Eligible groups

A. Group disability insurance is that form of disability insurance covering groups of persons as defined below, with or without one or more members of their families or one or more of their dependents, or covering one or more members of the families or one or more dependents of persons in such groups, and issued on the following basis:

1. Under a policy issued to an employer or trustees of a fund established by an employer, who shall be deemed the policyholder, insuring at least two employees of the employer, for the benefit of persons other than the employer. For the purposes of this paragraph, "employees" includes:

(a) The officers, managers and employees of the employer, the individual proprietor or partners if the employer is an individual proprietor or partnership, the officers, managers and employees of subsidiary or affiliated corporations and the individual proprietors, partners and employees of individuals and firms, if the business of the employer and such individual or firm is under common control through stock ownership, contract or otherwise.

(b) Retired employees.

(c) If a policy issued to insure employees of a public body so provides, elected or appointed officials.

2. Under a policy issued to an association, including a labor union, which shall have a constitution and bylaws and which has been organized and is maintained in good faith for purposes other than that of obtaining insurance, insuring at least twenty-five members, employees or employees of members of the association for the benefit of persons other than the association or its officers or trustees. For the purposes of this paragraph, "employees" includes retired employees.

3. Under a policy issued to the trustees of a fund established by two or more employers in the same industry or by one or more labor unions or by one or more employers and one or more labor unions, which trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions for the benefit of persons other than the employers or the unions. For the purposes of this paragraph, "employees" includes:

(a) The officers, managers and employees of the employer and the individual proprietor or partners if the employer is an individual proprietor or partnership.

(b) Retired employees.

(c) If the policy so provides, the trustees or their employees, or both, if their duties are principally connected with such trusteeship.

4. Under a policy issued to any persons or organizations to which a policy of group life insurance may be delivered in this state, to insure any class or classes of individuals that could be insured under such group life policy.

5. Under a policy or contract issued to a qualified marketplace platform, which shall be deemed the policyholder, covering qualified marketplace contractors who have executed a written contract with the qualified marketplace platform. For the purposes of this paragraph, "qualified marketplace contractor" and "qualified marketplace platform" have the same meanings prescribed in section 20-485.

6. Under a policy issued to cover any other substantially similar group that, in the discretion of the director, may be subject to the issuance of a group disability policy or contract.

B. This article does not validate any charge or practice illegal under any rule of law or regulation governing usury, consumer lender loans, retail installment sales or the like, or extend the application of any such rule of law or regulation to any transaction not otherwise subject to it.
A.R.S. § 20-3154 — Arizona Code / Title 20 / Chapter 21 / Article 1 / Section 3154
20-3154 Health care appeals; admissibility
Status: in_force

20-3154. Health care appeals; admissibility

In an action under this chapter, any person, enrollee or health care insurer may introduce into evidence for any purpose any of the documents, findings, decisions or information concerning events that occurred in the health care appeals process pursuant to chapter 15, article 2 of this title. The fact that the enrollee did not participate in the health care appeals process may also be introduced into evidence.
A.R.S. § 20-1692.03 — Arizona Code / Title 20 / Chapter 6 / Article 16 / Section 1692.03
20-1692.03 Coverage of children
Status: in_force

20-1692.03. Coverage of children

A. Insurers, hospital and medical service corporations, health care services organizations, group health plans and prepaid dental plans shall not deny enrollment of a child under a policy, certificate, evidence of coverage or contract of a child's parent for any of the following reasons:

1. The child was born out of wedlock.

2. The child is not claimed as a dependent on the parent's federal or state tax return.

3. The child does not reside with the parent or in the insurer's, hospital and medical service corporation's, health care services organization's or prepaid dental plan's service area.

B. If the child has health coverage through an insurer of the noncustodial parent, the insurer shall:

1. Provide any information to the custodial parent that may be necessary for the child to obtain benefits through the custodial parent's insurer.

2. Permit the custodial parent or the provider with the custodial parent's approval to submit claims for covered services without the approval of the noncustodial parent.

3. Make payments on claims that are submitted pursuant to paragraph 2 of this subsection directly to the custodial parent, the provider or the Arizona health care cost containment system.

C. If a court or administrative order requires a parent to provide health coverage for a child and the parent is eligible for family coverage, the insurer, hospital and medical service corporation, health care services organization or prepaid dental plan shall:

1. Permit the parent to enroll the child under the family coverage if the child is otherwise eligible for the coverage without regard to any enrollment season restrictions.

2. If the parent is enrolled in family coverage but fails to enroll the child, enroll the child under the family coverage on the application of the child's other parent or pursuant to title 36, chapter 29, article 1.

3. Not refuse to enroll or terminate the coverage of a child unless the insurer receives satisfactory written evidence that one of the following applies:

(a) The court or administrative order is no longer in effect.

(b) The child will be enrolled in comparable health coverage through another insurer and the coverage will take effect not later than the effective date of the termination of coverage.

(c) The employer has eliminated family coverage for all of its employees.

(d) Nonpayment of premium.

4. Establish reasonable procedures for determining if a child is covered under a qualified medical support order. The procedures shall:

(a) Be in writing.

(b) Provide for the notification of each person who is specified in a medical child support order as eligible to receive benefits under the plan of the procedures. The insurer shall promptly send the notice to the address included in the medical child support order on receipt by the insurer of the medical child support order.

(c) Permit an alternate recipient to designate a representative for the receipt of copies of notices that are sent to the alternate recipient pursuant to a medical child support order.

D. Insurers, hospital and medical service corporations and health care services organizations may not reduce their coverage of pediatric vaccines below the level that was in effect on May 1, 1993.
A.R.S. § 20-1099.02 — Arizona Code / Title 20 / Chapter 4 / Article 15 / Section 1099.02
20-1099.02 Exemption from insurance code; requirements
Status: in_force

20-1099.02. Exemption from insurance code; requirements

A. To be exempted from this title, a vehicle protection product shall:

1. Identify the warrantor, the seller, the warranty holder and the terms of the sale.

2. Conspicuously state that the obligations of the warrantor to the warranty holder are guaranteed under a warranty reimbursement insurance policy.

3. Conspicuously state that if the payment due under the terms of the warranty is not provided by the warrantor within sixty days after proof of loss has been filed pursuant to the terms of the warranty by the warranty holder, the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement.

4. Conspicuously state the name and address of the warranty reimbursement insurance company.  This information is not required to be preprinted on the warranty form but may be stamped on the warranty.

5. Contain a disclosure that reads substantially as follows:

"This agreement is a product warranty and is not insurance."

B. A warranty reimbursement insurance policy shall have the following provisions:

1. The policy shall state that the warranty reimbursement insurance company will reimburse or pay on behalf of the vehicle protection product warrantor all covered sums that the warrantor is legally obligated to pay or will provide the service that the warrantor is legally obligated to perform according to the warrantor's contractual obligations under the vehicle protection product warranty.

2. The policy shall state that if the payment due under the terms of the warranty is not provided by the warrantor within sixty days after proof of loss has been filed according to the terms of the warranty by the warranty holder, the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement.
A.R.S. § 20-1694.02 — Arizona Code / Title 20 / Chapter 6 / Article 18 / Section 1694.02
20-1694.02 Identity theft group insurance policy; premiums; cancellation; requirements
Status: in_force

20-1694.02. Identity theft group insurance policy; premiums; cancellation; requirements

A. The group policyholder may pay the premium for an identity theft group insurance policy from monies contributed wholly by the group policyholder, wholly by the group members or jointly by the group policyholder and the group members.

B. The following requirements apply to the cancellation, nonrenewal or conditional renewal of coverage under an identity theft group insurance policy:

1. The policy shall be issued or renewed for a one-year policy period unless the policy provides for a longer policy period.

2. Except as provided in paragraph 3 of this subsection, an insurer may cancel the policy or any certificate issued under the policy only if the cancellation is based on one or more of the following:

(a) The nonpayment of premium if the notice of cancellation informs the group policyholder of the amount due.

(b) The conviction of a criminal offense arising out of acts increasing the hazard insured against.

(c) The discovery of fraud or material misrepresentation in obtaining the policy or in the presentation of a claim under the policy.

(d) After the policy is issued or after the last renewal date, the discovery of an act or omission or a violation of any policy condition that substantially and materially increases the hazard insured against and that occurred subsequent to the inception of the current policy period.

(e) A material change in the nature or extent of the risk that occurred after the issuance or last annual renewal anniversary date of the policy that causes the risk of loss to be substantially and materially increased beyond what was contemplated at the time the policy was issued or last renewed.

(f) A determination by the director that continuation of the present premium volume of the insurer would jeopardize that insurer's solvency or be hazardous to the interests of the policyholders of the insurer, its creditors or the public.

3. An individual group member's coverage under this article terminates on termination of the member's affiliation with the group policyholder that constitutes membership in the group.

4. An act or omission by a group member does not constitute the basis for cancellation of the group policy.

5. An insurer's cancellation, nonrenewal or conditional renewal of a group policy or any certificate issued under the policy shall set forth the specific reasons for cancellation, nonrenewal or conditional renewal and does not become effective until at least forty-five days, or twenty days if based on nonpayment of premium, after the insurer sends written notice of the cancellation, nonrenewal or conditional renewal to the group policyholder and to affected certificate holders. If authorized by the insurer, the group policyholder may send the notice to the certificate holder on behalf of the insurer.

C. A group policyholder may cancel the group policy for any reason on thirty days' written notice to the insurer and each affected group member.  A group policyholder is not required to give notice to a group member if substantially similar coverage has been obtained from another insurer without a lapse of coverage.

D. If a group member sustains a loss pursuant to a stolen identity event that occurs before the effective date of the cancellation, nonrenewal or conditional renewal of a group policy or the cancellation, nonrenewal, conditional renewal or termination of a certificate, whether initiated by the insurer, group policyholder or group member, the loss remains covered as provided under the policy notwithstanding the cancellation, nonrenewal, conditional renewal or termination.
A.R.S. § 20-1351 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1351
20-1351 Proofs of loss
Status: in_force

20-1351. Proofs of loss

There shall be a provision as follows: "Proofs of loss: Written proof of loss must be furnished to the insurer at its said office in case of claim for loss for which this policy provides any periodic payment contingent upon continuing loss within ninety days after the termination of the period for which the insurer is liable and in case of claim for any other loss within ninety days after the date of such loss. Failure to furnish such proof within the time required shall not invalidate nor reduce any claim if it was not reasonably possible to give proof within such time, provided such proof is furnished as soon as reasonably possible and in no event, except in the absence of legal capacity, later than one year from the time proof is otherwise required."
A.R.S. § 20-3605 — Arizona Code / Title 20 / Chapter 30 / Article 1 / Section 3605
20-3605 Reinsurance agreements affected
Status: in_force

20-3605. Reinsurance agreements affected

This article applies to all cessions after September 29, 2021 under reinsurance agreements that have an inception, anniversary or renewal date not less than six months after September 29, 2021.
A.R.S. § 20-3552 — Arizona Code / Title 20 / Chapter 29 / Article 1 / Section 3552
20-3552 Purpose; applicability
Status: in_force

20-3552. Purpose; applicability

A. The purpose of this chapter is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this state.

B. The requirements of this chapter apply to travel insurance that covers any resident of this state and that is sold, solicited, negotiated or offered in this state and to policies and certificates that are delivered or issued for delivery in this state.  This chapter does not apply to cancellation fee waivers or travel assistance services except as expressly provided in this chapter.

C. All other applicable provisions of this state's insurance laws continue to apply to travel insurance except that the specific provisions of this chapter supersede any general provisions of law that would otherwise be applicable to travel insurance.
A.R.S. § 20-1551 — Arizona Code / Title 20 / Chapter 6 / Article 8.1 / Section 1551
20-1551 Rebates, commissions and charges
Status: in_force

20-1551. Rebates, commissions and charges

A. A mortgage guaranty insurance company shall not pay or cause to be paid either directly or indirectly, to any owner, purchaser, lessor, lessee, mortgagee or prospective mortgagee of the real property which secures the authorized real estate security or which is the fee of an insured lease, or any interest in such lease, or any person who is acting as an agent, representative, attorney or employee of such owner, purchaser or mortgagee, any commission, or any part of its premium charges or any other consideration as an inducement for or as compensation on any mortgage guaranty insurance business.

B. In connection with the placement of any mortgage guaranty insurance, a mortgage guaranty insurance company shall not cause or permit any commission, fee, remuneration or other compensation to be paid to or received by any insured lender or lessor, any subsidiary or affiliate of any insured, any officer, director or employee of any insured or any member of such person's immediate family, any corporation, partnership, trust, trade association in which any insured is a member or other entity in which any insured or any such officer, director or employee or any member of such person's immediate family has a financial interest, or any designee, trustee, nominee or other agent or representative of any of the foregoing.

C. A mortgage guaranty insurance company shall not make any rebate of any portion of the premium charge shown by the schedule required by section 20-1549, subsection B. A mortgage guaranty insurance company shall not quote any rate or premium charge to any person which is different than that currently available to others for the same type of coverage. The amount by which any premium charge is less than that called for by the current schedule of premium charges is an unlawful rebate.

D. Notwithstanding section 20-451, section 20-452, section 20-1553, subsection B or any other provision of this section, a mortgage guaranty insurance company may enter into an agreement with a mortgage lender or an affiliate of a mortgage lender to provide financial incentives to the mortgage lender for the performance of the mortgage loans insured by the mortgage guaranty insurance company. The agreement to provide financial incentives to mortgage lenders shall not take effect unless it is filed with the director and either approved or not disapproved within thirty days after being filed. The director's disapproval shall be in writing and shall specify the reason for the disapproval. The director shall approve the agreement upon finding that:

1. The agreement is not contrary to other applicable law.

2. The agreement is supported by information that establishes that the mortgage guaranty insurer's rates are not inadequate when considered in conjunction with the financial incentives of the agreement.

E. The director may after notice and hearing suspend or revoke the certificate of authority of any mortgage guaranty insurance company, or in the director's discretion, issue a cease and desist order to any mortgage guaranty insurance company which pays any commission or makes any unlawful rebate in willful violation of the provisions of this article. In the event of the issuance of a cease and desist order, the director may, after notice and hearing, suspend or revoke the certificate of authority of any mortgage guaranty insurance company which does not comply with the terms of such certificate.
A.R.S. § 20-227 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 227
20-227 Disposition of tax proceeds
Status: in_force

20-227. Disposition of tax proceeds

The purpose of the taxes provided by this title is to assist in defraying the cost of state government and to lessen the tax burden upon tangible property. All taxes collected under this title shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund and shall be used, together with the revenue from other sources, to pay appropriations for the maintenance of state government, except as provided in subsection C of section 20-224 (firemen's relief and pension fund) and in section 20-224.01 (highway patrol account of the public safety personnel retirement system) and other applicable statutes.
A.R.S. § 20-207 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 207
20-207 General qualifications to transact insurance
Status: in_force

20-207. General qualifications to transact insurance

To qualify for and hold authority to transact insurance in this state an insurer shall be otherwise in compliance with the provisions of this title and with its charter powers, and shall be an incorporated stock insurer, an incorporated mutual insurer, a reciprocal insurer, or a Lloyd's association of the same general type as may be formed as a domestic insurer under this title. No foreign or alien insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by article 1 of chapter 3 of this title applicable to the kind or kinds of insurance transacted by such insurer.
A.R.S. § 20-217 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 217
20-217 Certificate of authority; term; termination; delivery upon termination or revocation
Status: in_force

20-217. Certificate of authority; term; termination; delivery upon termination or revocation

A. The certificate of authority issued by the director to an insurer is evidence of its authority to transact in this state the kind of insurance specified in the certificate.

B. A certificate of authority remains in effect until terminated at the request of the insurer or suspended or revoked by the director.

C. A certificate of authority remains the property of this state. Upon termination at the request of the insurer or revocation by the director, the insurer shall immediately deliver the certificate of authority to the director.

D. The director shall not grant the request of an insurer to terminate its certificate of authority if the insurer has any outstanding obligations under a policy of insurance to policyholders or claimants who are residents of this state. This subsection does not apply if the insurer has deposited with the state treasurer securities acceptable to the director in an amount equal to its liabilities, as computed by the director, including its reserves as required by this title in respect to its business in this state for the sole benefit of its policyholders and creditors who are residents of this state. The state treasurer shall hold and administer the deposits pursuant to chapter 3, article 3 of this title. This subsection does not apply if the insurer has fully reinsured such outstanding obligations with a reinsurer under an agreement filed with and approved in writing by the director pursuant to section 20-261. This subsection does not apply when the termination of the insurer's certificate of authority is the result of a merger or consolidation if the emerging or surviving insurer is or becomes authorized to transact business in this state and assumes such outstanding obligations of the terminating insurer.

E. The certificate of authority shall be suspended or revoked if the insurer fails to pay the annual certificate of authority fee denominated a renewal fee in section 20-167 at the time provided in section 20-223.
A.R.S. § 20-3504 — Arizona Code / Title 20 / Chapter 28 / Article 1 / Section 3504
20-3504 Access to behavioral health services for minors
Status: in_force

20-3504. Access to behavioral health services for minors

A. Notwithstanding any other provision of this title, any health care insurer that issues a health plan in this state that includes mental health or substance use disorder benefits may not deny any claim for mental health or substance use disorder benefits for a minor solely on grounds that the mental health or substance use disorder service was provided in a school or other educational setting or ordered by a court if the service was provided by an in-network provider or by an out-of-network provider only as allowed by the health plan that covers the subscriber, enrollee or insured.

B. This section does not require a health care insurer to approve a claim or provide reimbursement for a mental health or substance use disorder service provided by an out-of-network provider except as allowed by the health plan that covers the subscriber, enrollee or insured.

C. A health care insurer may require that any mental health or substance use disorder service offered by a mental health provider in an educational setting be provided in a facility or location that is appropriate for the type of service provided and in a manner that complies with applicable laws governing the provision of health care services, including privacy and parental consent laws.

D. Claims for covered mental health or substance use disorder services that are provided by an out-of-network provider and that are not covered by the subscriber's, enrollee's or insured's health plan solely because the provider is an out-of-network provider shall be paid from the children's behavioral health services fund established by section 36-3436.
A.R.S. § 20-692 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 692
20-692 Premium tax offset
Status: in_force

20-692. Premium tax offset

A. The board shall issue to each member insurer paying an assessment pursuant to this article a certificate of contribution, in a form prescribed by the director for the amount paid. All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue.

B. A certificate of contribution issued to a member insurer shall be offset against its premium tax liability to this state in the amount of twenty percent of the assessment for the year of assessment and twenty percent of the assessment per year for each of the succeeding four years.

C. Notwithstanding subsection B of this section, the total amount a member insurer may offset against its premium tax liability pursuant to a certificate of contribution that is issued from 1987 through 1994 shall not exceed the following percentage amounts for each certificate of contribution, except that in no event may the total amount of the offset exceed one hundred percent of each assessment:

1. For 1991, seven percent.

2. For 1992, nine percent.

3. For 1993, eleven percent.

4. For 1994, thirteen percent.

D. A member insurer may not offset its premium tax liability by any amount unless the assessment for which the first year credit is claimed was collected by the guaranty fund in the calendar year for which the insurer seeks to offset its taxes.

E. Beginning in 1995, the total amount that a member insurer may offset against its premium tax liability pursuant to a certificate of contribution shall be as provided in subsection B of this section, except that in no event shall the total amount of the offset exceed one hundred percent of the assessment.
A.R.S. § 20-1383 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1383
20-1383 Individual health insurance policies; mandatory coverage exemption; definitions
Status: in_force

20-1383. Individual health insurance policies; mandatory coverage exemption; definitions

A. A disability insurer may issue a policy to an uninsured individual that is not subject to the requirements of any of the following:

1. Section 20-461, subsection A, paragraph 17 and subsection B.

2. Section 20-1342, subsection A, paragraphs 11 and 12.

3. Section 20-1342, subsections H, I, J and K.

4. Section 20-1376, subsections A and C.

5. Sections 20-1342.01, 20-1376.01, 20-1376.02, 20-1376.03 and 20-1376.04.

B. For the purposes of this section:

1. "Health insurance coverage":

(a) Means a health care plan or arrangement that pays for or furnishes medical or health services and that is issued by a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or medical, hospital, dental and optometric service corporation or a similar entity in another state.

(b) Includes a self-insured or self-funded employee benefit plan or multiemployer employee benefit plan created pursuant to 29 United States Code section 186(c) if the regulation of that plan is preempted by section 514(b) of the employee retirement insurance security act of 1974 (29 United States Code section 1144(b)).

(c) Does not include limited benefit coverage as defined in section 20-1137.

2. "Uninsured individual" means a person who has either:

(a) Not had health insurance coverage for the ninety days immediately before the effective date of coverage issued pursuant to this section, except that this requirement does not apply at the renewal of coverage pursuant to this section.

(b) Lost health insurance coverage in one of the following ways within ninety days immediately before the effective date of coverage issued pursuant to this section:

(i) The individual left a job that provided health insurance coverage.

(ii) The individual's employer discontinued offering health insurance coverage.

(iii) The individual exhausted continuation coverage under a COBRA continuation provision as defined in section 20-2301.

(iv) The individual's family health insurance coverage was discontinued due to the death of a spouse or a divorce.

(v) The individual attained the maximum age for dependent coverage under a health insurance policy.

(vi) The individual's participation in a public health care program was discontinued.
A.R.S. § 20-1094.01 — Arizona Code / Title 20 / Chapter 4 / Article 10 / Section 1094.01
20-1094.01 Reserve requirements
Status: in_force

20-1094.01. Reserve requirements

A. An unaffiliated credit life and disability reinsurer shall secure liabilities that are assumed under a reinsurance agreement subject to approval pursuant to this article in any of the following:

1. With funds withheld.

2. With funds that are maintained in a trust fund that complies with section 20-3603 and in an amount that is not less than one hundred ten percent of the amount of the liabilities assumed.

3. With clean, irrevocable and unconditional letters of credit that comply with section 20-3603, subsection B.

B. For the purposes of this section, the director shall value securities in the manner prescribed in sections 20-511 and 20-512.
A.R.S. § 20-506 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 506
20-506 Unearned premium reserve
Status: in_force

20-506. Unearned premium reserve

A. With reference to insurance against loss or damage to property, except as provided in section 20-507, and with reference to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force.

B. The director may require that the reserves be equal to the unearned portions of the gross premiums in force after deducting reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue.  The portions of the gross premiums in force, less reinsurance in solvent insurers to be held as a premium reserve, shall be computed according to the accounting practices and procedures manual adopted by the national association of insurance commissioners.

C. This section does not apply to title insurance.
A.R.S. § 20-642 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 642
20-642 Levy of assessment
Status: in_force

20-642. Levy of assessment

A. Upon the basis of the report provided for in section 20-641, including any amendments thereof, the court, ex parte, may levy one or more assessments against all members of the insurer who, as shown by the records of the insurer, were members, if a mutual insurer, or subscribers, if a reciprocal insurer, at any time within one year prior to the date of issuance of the order to show cause under section 20-613.

B. The assessment or assessments shall cover the excess of the probable liabilities over the reasonable value of the assets, together with the estimated cost of collection and percentage of uncollectibility thereof. The total of all assessments against any member or subscriber with respect to any policy, whether levied pursuant to this article or pursuant to any other provision of this title, shall be for no greater amount than that specified in the policy or policies of the member or subscriber and as limited under this title, except that if the court finds that the policy was issued at a rate of premium below the minimum rate lawfully permitted for the risk insured, the court may determine the upper limit of the assessment upon the basis of the minimum rate.

C. No assessment shall be levied against any member or subscriber with respect to any nonassessable policy issued in accordance with this title.
A.R.S. § 20-1691.11 — Arizona Code / Title 20 / Chapter 6 / Article 15 / Section 1691.11
20-1691.11 Nonforfeiture benefits
Status: in_force

20-1691.11. Nonforfeiture benefits

A. Except as provided in subsection B of this section, a person shall not deliver or issue for delivery in this state a long-term care insurance policy unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate with a nonforfeiture benefit. The offer of the nonforfeiture benefit may be in the form of a rider that is attached to the policy.  If the policyholder or certificate holder declines the benefit, the insurer shall provide a contingent benefit on lapse that shall be available for a specified period of time following a substantial increase in premium rates.

B. If a group long-term care insurance policy is issued, a person shall make the offer of the nonforfeiture benefit to the group policyholder, except that if the policy is issued to a group as defined in section 20-1691, paragraph 4, subdivision (d), other than to a continuing care retirement community or other similar entity, a person shall make the offering to each proposed certificate holder.
A.R.S. § 20-877 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 877
20-877 Benefits not attachable
Status: in_force

20-877. Benefits not attachable

Any money or other benefit, charity, relief or aid that a society pays, provides or renders is not subject to attachment, garnishment or other process and shall not be seized, taken, appropriated or applied to pay any debt or liability of any member, beneficiary or other person who may have a right under a benefit contract, either before or after the society pays the benefit.
A.R.S. § 20-481.08 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.08
20-481.08 Appointment of director as agent for service of process; forwarding of process; consent to jurisdiction
Status: in_force

20-481.08. Appointment of director as agent for service of process; forwarding of process; consent to jurisdiction

Any person who is not a resident, domiciled in this state, or authorized to do business in this state and who files a statement as required by section 20-481.02 shall be deemed to have:

1. Consented to the jurisdiction of the courts of this state for all actions arising under this article.

2. Appointed the director as the person's lawful agent for the purpose of accepting service of process in any action, suit or proceeding that may arise under this article. Copies of all lawful process accepted by the director as an agent shall be transmitted by the director by registered or certified mail to the person at the person's last known address.
A.R.S. § 20-1227 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1227
20-1227 Incontestability after reinstatement
Status: in_force

20-1227. Incontestability after reinstatement

The reinstatement of any policy of life insurance or annuity contract delivered or issued for delivery in this state after January 1, 1955 may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement and with the same conditions and exceptions as the policy provides with respect to contestability after original issuance.
A.R.S. § 20-3119 — Arizona Code / Title 20 / Chapter 20 / Article 2 / Section 3119
20-3119 Right of civil action
Status: in_force

20-3119. Right of civil action

An enrollee who is aggrieved by an arbitration decision regarding a disputed surprise out-of-network bill may file a civil action in superior court not later than one year after the date of the disputed decision to obtain appropriate relief with respect to the same surprise out-of-network bill.
A.R.S. § 20-141 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 141
20-141 Director of the department of insurance and financial institutions; appointment; qualifications; compensation
Status: in_force

20-141. Director of the department of insurance and financial institutions; appointment; qualifications; compensation

A. The governor shall appoint a director of the department of insurance and financial institutions pursuant to section 38-211.

B. The director shall:

1. Serve at the pleasure of the governor.

2. Be a person with business experience, including being well versed in insurance and financial institution matters.

3. Receive compensation as determined pursuant to section 38-611.
A.R.S. § 20-108 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 108
20-108 Types of insurers excepted
Status: in_force

20-108. Types of insurers excepted

This title does not apply with respect to:

1. Hospital and medical service corporations, except as stated in chapter 4, article 3 of this title.

2. Fraternal benefit societies and associations or orders as defined in section 20-861, except as stated in chapter 4, article 4 of this title.

3. Extended warranty insurers who comply with the bond requirements of section 20-108.01. For the purposes of this paragraph "extended warranty insurer" means any insurer as otherwise defined by this title that does not manufacture, sell or service radio, television or sound reproduction equipment and that:

(a) For a premium charged, not greater than twenty dollars per annum, nor greater than a three-year term, provides a nonrenewable warranty, guaranty or service contract on radio, television or sound reproduction equipment in addition to, or as an extension of, any warranty, guaranty or service provided by the manufacturer of such equipment.

(b) Is not otherwise authorized to transact property or casualty insurance business in this state or any other governmental jurisdiction.

(c) Is not owned or controlled in any degree nor to any extent by a person, persons or business otherwise authorized to transact property or casualty insurance business in this state or any other state or jurisdiction.

(d) Has gross sales in this state not exceeding one hundred thousand dollars annually.

(e) Has maximum contractual contingent liability not exceeding three hundred thousand dollars in this state.
A.R.S. § 20-124 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 124
20-124 Adoption of rules
Status: in_force

20-124. Adoption of rules

The director may adopt rules for the administration of title 6, title 32, chapters 9 and 36, title 41, chapter 31 and title 44, chapter 2.1.
A.R.S. § 20-3213 — Arizona Code / Title 20 / Chapter 22 / Article 1 / Section 3213
20-3213 Applicability
Status: in_force

20-3213. Applicability

A. A provider lawfully transacting business in this state before the effective date of this chapter may continue to transact business in this state, pending approval or disapproval of that person's application for a license, if the provider files the application with the director not later than thirty days after publication by the director of an application form and instructions for licensure of providers. If the publication of the application form and instructions occurs before the effective date of this chapter, the provider shall file the application not later than thirty days after the effective date of this chapter. During the time that an application is pending with the director, the applicant may use any form of life settlement contract that has been filed with the director pending approval of the application if the form is otherwise in compliance with this chapter.

B. A person who has lawfully acted as a broker and negotiated life settlement contracts between any owner residing in this state and one or more providers for at least one year immediately before the effective date of this chapter may continue to do so pending approval or disapproval of that person's application for a license if the broker files the application with the director not later than thirty days after publication by the director of an application form and instructions for licensure of brokers. If the publication of the application form and instructions occurs before the effective date of this chapter, the broker shall file the application not later than thirty days after the effective date of this chapter.

C. Any person transacting business in this state under this section shall comply with all requirements of this chapter.
A.R.S. § 20-680 — Arizona Code / Title 20 / Chapter 3 / Article 6 / Section 680
20-680 Exempt types of insurance
Status: in_force

20-680. Exempt types of insurance

A. This article applies to all kinds of insurance except:

1. Life.

2. Title.

3. Surety.

4. Disability.

5. Credit.

6. Mortgage guarantee.

7. Ocean marine insurance.

8. Insurance of warranties or service contracts, including insurance that provides for the repair, replacement or service of goods or property, or indemnification for repair, replacement or service, for the operational or structural failure of the goods or property due to a defect in materials, workmanship or normal wear and tear, or reimbursement for the liability incurred by the issuer of agreements or service contracts that provide these benefits.

9. Any kind of surplus lines insurance.

10. Any policy of insurance issued to an industrial insured pursuant to section 20-400.10.

11. Any new types of coverages approved or permitted after August 27, 1977.

B. The exemptions prescribed in this section do not restrict any of the fund's rights or defenses permitted under this article, including the application of any credit or offset prescribed in section 20-673 for payments made under any policy of insurance, including any policy of insurance that is exempt from this article.
A.R.S. § 20-713.01 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 713.01
20-713.01 Directors; terms; staggered terms
Status: in_force

20-713.01. Directors; terms; staggered terms

The members of a domestic mutual insurer or mutual insurance holding company shall elect directors at the annual meeting of members. Directors may be elected for terms of not more than one year each and shall serve until their successors are elected and qualified unless, notwithstanding any law to the contrary, the insurer's articles of incorporation or bylaws provide for staggering the terms of directors by dividing the total number of directors into groups containing as equal a number of directors as is possible and providing an initial term of office for directors in each group that expires at succeeding annual meetings of members, with at least one director elected each year. Such staggered terms may not exceed five years each.
A.R.S. § 20-475 — Arizona Code / Title 20 / Chapter 2 / Article 7 / Section 475
20-475 Reasonable requirements of security holder are valid
Status: in_force

20-475. Reasonable requirements of security holder are valid

Nothing in this article shall prevent a mortgagee, lender, vendor, or holder from requiring insurance on the collateral security for a loan or exercising a reasonable privilege of approval or disapproval of the insurance provided for such purpose by the borrower, mortgagor or purchaser.
A.R.S. § 20-441 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 441
20-441 Purpose of article; definition
Status: in_force

20-441. Purpose of article; definition

A. Among the purposes of this article is the regulation of trade practices in the business of insurance in accordance with the intent of Congress as expressed in the act of Congress of March 9, 1945, 59 Stat. 33, by defining, or providing for the determination of, all such practices in this state that constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.

B. For the purposes of this article, "insurance company" or "insurer" means any:

1. Stock, mutual, reciprocal or title insurer.

2. Fraternal benefit society.

3. Health care services organization.

4. Hospital, medical, dental and optometric service corporation.

5. Prepaid dental plan organization.

6. Mechanical reimbursement reinsurer.

7. Prepaid legal plan.

8. Lloyd's association.

9. Service company as defined in this title.

10. Any other entity licensed under this title.
A.R.S. § 20-1376 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1376
20-1376 Prohibiting denial of certain contract benefits
Status: in_force

20-1376. Prohibiting denial of certain contract benefits

A. Notwithstanding any provision of any disability insurance contract, benefits shall not be denied under the contract for any medical or surgical service performed by a holder of a license issued pursuant to title 32, chapter 7 or 11, or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15, if the service performed is within the lawful scope of such person's license, and if the service is surgical, such person is a member of the staff of an accredited hospital, and if such contract would have provided benefits if such service had been performed by a holder of a license issued pursuant to title 32, chapter 13.

B. If any disability insurance contract provides for or offers eye care services, the subscriber shall have freedom of choice to select either an optometrist or a physician and surgeon skilled in diseases of the eye to provide the examination, care, or treatment for which the subscriber is eligible and that falls within the scope of practice of the optometrist or physician and surgeon. Unless such disability insurance contract otherwise provides, there shall be no reimbursement for ophthalmic materials, lenses, spectacles, eyeglasses or appurtenances to these materials or items.

C. If any individual disability insurance contract is written to provide coverage for psychiatric, drug abuse or alcoholism services, reimbursement for such services shall be made in accordance with the terms of the contract without regard to whether the covered services are rendered in a psychiatric special hospital or general hospital. Reimbursement for the cost of the service may be made directly to the person licensed or certified pursuant to title 32, chapter 13 or 19.1 or to the subscriber if the cost of the service has not been reimbursed to another provider or health care institution.
A.R.S. § 20-459 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 459
20-459 Deferred dividends; life
Status: in_force

20-459. Deferred dividends; life

On and after January 1, 1961, no person shall make or issue or offer to make or issue any contract of life insurance or of life annuity which provides that any premiums, dividends, excess interest, mortality savings, gains from lapses, loadings, or earnings and accumulations therefrom, be payable only to those of a group of policyholders who make premium payments to the end of any period of time in excess of one year.
A.R.S. § 20-620 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 620
20-620 Order of rehabilitation; termination
Status: in_force

20-620. Order of rehabilitation; termination

A. An order to rehabilitate a domestic insurer shall direct the receiver to take immediate possession of the property of the insurer, to conduct its business and to take such steps toward removal of the causes and conditions which have made rehabilitation necessary as the court may direct.

B. If at any time the receiver deems that further efforts to rehabilitate the insurer would be useless, he may apply to the court for an order of liquidation.

C. The receiver, or any interested person upon due notice to the receiver, at any time may apply to the court for an order terminating the rehabilitation proceedings and permitting the insurer to resume possession of its property and the conduct of its business, but no such order shall be granted except when, after a full hearing, the court has determined that the purposes of the proceeding have been fully accomplished.
A.R.S. § 20-191 — Arizona Code / Title 20 / Chapter 1 / Article 4 / Section 191
20-191 Payment of premiums by mail; date of payment
Status: in_force

20-191. Payment of premiums by mail; date of payment

A. Any payment of insurance premium that is deposited, properly addressed and postage prepaid, in an official depository of the United States mail on or before the date the premium is due is deemed timely payment of the premium on the date shown by the postmark or other official mark of the United States mail stamped on the payment envelope. An insurer may establish the postmark date by retaining the postmarked payment envelope. If the insurer does not retain the envelope or the postmark date on the envelope is illegible, the payment date is presumed to be five mail days before the date the insurer receives the payment. An insurer may establish the date of receipt by a record generated in the course of regularly conducted business. For the purposes of this subsection, "mail days" means days on which the United States postal service performs regular mail delivery.

B. If a payment described in subsection A is sent by United States certified or registered mail or certificate of mailing, the date of the registration, certification or certificate, as established by a record authenticated by proper officials of the United States mail, is deemed the date of payment.

C. If the due date of a payment described in subsection A falls on a Saturday, Sunday or legal holiday, the payment is considered timely if sent on the next business day.
A.R.S. § 20-1256 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1256
20-1256 Association groups
Status: in_force

20-1256. Association groups

The lives of a group of individuals may be insured under a policy issued to an association, or to a trust or to the trustee of a fund established, created or maintained for the benefit of one or more associations. The association, trust or trustee shall be deemed the policyholder, to insure members of the association or associations, employees of the association or associations and employees of members of the association or associations for the benefit of persons other than the association or associations or any of its officials, representatives or agents, subject to the following requirements:

1. The association or associations must have a constitution and bylaws and must be organized and maintained in good faith for a purpose other than obtaining insurance.

2. The policy must cover at least two persons at the date of issue.

3. The policy may provide that the term "employees" shall include retired employees.
A.R.S. § 20-1214 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1214
20-1214 Payment of premiums
Status: in_force

20-1214. Payment of premiums

There shall be a provision that all premiums after the first shall be payable in advance.
A.R.S. § 20-1653 — Arizona Code / Title 20 / Chapter 6 / Article 12 / Section 1653
20-1653 Sending notice of cancellation or nonrenewal to insured; statement of grounds and facts on which cancellation or nonrenewal is based
Status: in_force

20-1653. Sending notice of cancellation or nonrenewal to insured; statement of grounds and facts on which cancellation or nonrenewal is based

All notices of cancellation or nonrenewal shall be in writing, shall be sent to the named insured and shall state, with respect to cancellation of policies in effect after the time limits specified in section 20-1652 and, in the case of nonrenewal of policies as specified in section 20-1654:

1. In the case of cancellation the specific facts that constitute the grounds set forth in section 20-1652 relied on.

2. In the case of nonrenewal the specific facts that constitute the reason the policy is not being renewed, which may include the grounds set forth in section 20-1652.
A.R.S. § 20-485.09 — Arizona Code / Title 20 / Chapter 2 / Article 9 / Section 485.09
20-485.09 Adjustment or settlement of claims or charges; compensation
Status: in_force

20-485.09. Adjustment or settlement of claims or charges; compensation

A. Compensation to an administrator for any policies where such administrator adjusts or settles claims shall not be contingent on claim experience. This subsection does not prevent the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed.

B. An administrator may collect charges in accordance with the written agreement between the administrator and the insurer.  The written agreement must prescribe the applicable standards for the permissible collection of charges by the administrator.  Unless the administrator is licensed as a collection agency pursuant to title 32, chapter 9, the administrator may not collect charges that have remained unpaid on an account that has been inactive for more than twelve months.
A.R.S. § 20-1098.19 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.19
20-1098.19 Establishment of branch captive insurer
Status: in_force

20-1098.19. Establishment of branch captive insurer

A. An alien captive insurer or foreign captive insurer may establish a business unit in this state and become licensed as a branch captive insurer in this state pursuant to this chapter to write insurance or reinsurance in this state except as provided in section 20-1098.01, subsection B and other than workers' compensation or employers' liability insurance.

B. A branch captive insurer shall not conduct any branch business in this state unless it maintains the principal place of business for its branch operations in this state.

C. A branch captive insurer shall be a pure captive insurer with respect to operations and minimum capitalization in this state unless otherwise permitted by the director.