A.R.S. § 20-1098.23 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.23
20-1098.23 Confidentiality of information; exceptions
Status: in_force

20-1098.23. Confidentiality of information; exceptions

A. Notwithstanding title 39, chapter 1, information submitted pursuant to this article is confidential and the director and the director's employees and agents shall not provide the information to any other person without the permission of the captive insurer, except that:

1. This section does not apply to the department's use of information submitted by a captive insurer for any regulatory purpose, disciplinary action or hearing.  The director shall provide the captive insurer with a copy of any document that the director believes supports a violation of this title or that justifies any regulatory or other action against the captive insurer.  A disclosure pursuant to this paragraph is not a waiver of any applicable privilege or claim of confidentiality in the disclosed document.

2. The director shall provide information submitted by a captive insurer that is required by subpoena issued in connection with an administrative, civil or criminal investigation by a government agency.

3. The information may be discoverable by a party in a civil action or contested case to which the captive insurer that submitted the information is a party, if the party seeking to discover the information demonstrates all of the following:

(a) The information sought is relevant to and necessary for the furtherance of the action or case.

(b) The information sought is unavailable from other nonconfidential sources.

(c) A subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the director.

4. The director may disclose the information to a public official that has jurisdiction over the regulation of insurance in another state if the public official agrees in writing to maintain the confidentiality of the information and the laws of the state in which the public official serves allow or require the information to be and remain confidential.

5. The director may provide the information to the industrial commission of Arizona. The industrial commission shall maintain the confidentiality of the information pursuant to this section.

6. For the purpose of administering this article and promoting this state's captive insurance industry, the director may disclose only the following information about licensed captive insurers:

(a) The name of the captive insurer.

(b) The date licensed.

(c) The type of captive insurer.

(d) The business or industry of the owners or members.

(e) The captive insurer's license status.

B. This section does not apply to risk retention groups.
A.R.S. § 20-1012 — Arizona Code / Title 20 / Chapter 4 / Article 7 / Section 1012
20-1012 Prohibited practices
Status: in_force

20-1012. Prohibited practices

Chapter 2, article 6 of this title, relating to unfair trade practices and frauds, shall apply to prepaid dental plan organizations, except to the extent the director determines that the nature of prepaid dental plan organizations render particular provisions inappropriate.
A.R.S. § 20-1257 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1257
20-1257 Coverage of dependents; definition
Status: in_force

20-1257. Coverage of dependents; definition

A. Insurance under any group life insurance policy that is issued pursuant to section 20-1252, 20-1254 or 20-1255 may be extended to insure the dependents, or any class or classes of dependents, of each insured person who so elects, in amounts in accordance with a plan that precludes individual selection by the insured persons or by the policyholder and that on the life of any one dependent or the spouse of an insured person shall not be more than one hundred per cent of the insurance on the life of the insured person.

B. Premiums for any dependent coverage issued pursuant to this section shall be paid by the policyholder, from the policyholder's monies, from monies contributed by the policyholder or from monies contributed by the persons insured under the group policy or from any or all of those sources.

C. A dependent insured pursuant to this section has the same conversion right as to the insurance on the dependent insured's life as is vested by the terms of the group policy in the persons insured under the group policy.

D. For the purposes of this section, "dependent" means the spouse of an insured person, the minor children of an insured person and any other children of an insured person as provided in the group life insurance policy.
A.R.S. § 20-259 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 259
20-259 "Vehicle insurance" defined
Status: in_force

20-259. "Vehicle insurance" defined

"Vehicle insurance" is insurance against loss of or damage to any land vehicle or aircraft or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incident to ownership, maintenance or use of any such vehicle or aircraft, together with insurance against accidental death or accidental injury to individuals, including the named insured, while in, entering, alighting from, adjusting, repairing, cranking or caused by being struck by a vehicle or aircraft, if such insurance is issued as a part of insurance on the vehicle or aircraft.
A.R.S. § 20-2530 — Arizona Code / Title 20 / Chapter 15 / Article 2 / Section 2530
20-2530 Definitions
Status: in_force

20-2530. Definitions

For the purposes of this article:

1. "Member" means a person who is covered under a health care plan provided by a health care insurer or that person's treating provider, parent, legal guardian, surrogate who is authorized to make health care decisions for that person by a power of attorney, a court order or the provisions of section 36-3231, or agent who is an adult and who has the authority to make health care treatment decisions for that person pursuant to a health care power of attorney.

2. "Utilization review agent" means those persons and entities that perform utilization review as defined in section 20-2501 and includes any health care insurer whose utilization review plan includes the direct or indirect denial of requested medical or health care services or the denial of claims.
A.R.S. § 20-782 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 782
20-782 Subscriber's liability
Status: in_force

20-782. Subscriber's liability

A. The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint.

B. Except as to a nonassessable policy each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one nor more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in section 20-786.

C. Each assessable policy issued by the insurer shall contain a statement of the contingent liability, set in type of the same prominence as the insuring clause.
A.R.S. § 20-481.33 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.33
20-481.33 Director's authorization; group-wide supervision; internationally active insurance groups
Status: in_force

20-481.33. Director's authorization; group-wide supervision; internationally active insurance groups

A. The director may act as the group-wide supervisor for any internationally active insurance group in accordance with this section. However, the director may otherwise acknowledge another regulatory official as the group-wide supervisor where the internationally active insurance group:

1. Does not have substantial insurance operations in the United States.

2. Has substantial insurance operations in the United States but not in this state.

3. Has substantial insurance operations in the United States and this state, but the director has determined pursuant to the factors set forth in subsections C and H of this section that the other regulatory official is the appropriate group-wide supervisor.

B. An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the director make a determination or acknowledgment as to a group-wide supervisor pursuant to this section.

C. In cooperation with any other state, federal and international regulatory agency, the director shall identify a single group-wide supervisor for an internationally active insurance group. The director may determine that the director is the appropriate group-wide supervisor for an internationally active insurance group that conducts substantial insurance operations concentrated in this state. However, the director may acknowledge that a regulatory official from another jurisdiction is the appropriate group-wide supervisor for the internationally active insurance group. The director shall consider the following factors when making a determination or acknowledgment under this subsection:

1. The domicile of the insurers within the internationally active insurance group that hold the largest share of the group's written premiums, assets or liabilities.

2. The domicile of the top-tiered insurers in the insurance holding company system of the internationally active insurance group.

3. The location of the executive offices or largest operational offices of the internationally active insurance group.

4. Whether another regulatory official is acting or is seeking to act as the group-wide supervisor under a regulatory system that the director determines to be either:

(a) Substantially similar to the system of regulation provided under the laws of this state.

(b) Otherwise sufficient in terms of providing for group-wide supervision, enterprise risk analysis and cooperation with other regulatory officials.

5. Whether another regulatory official acting or seeking to act as the group-wide supervisor provides the director with reasonably reciprocal recognition and cooperation.

D. A chief regulatory official identified under this section as the group-wide supervisor may determine that it is appropriate to acknowledge another supervisor to serve as the group-wide supervisor. The acknowledgment of the group-wide supervisor shall be made after consideration of the factors listed in subsection C of this section, in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group and in consultation with the internationally active insurance group.

E. Notwithstanding any other law, if another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the director shall acknowledge that regulatory official as the group-wide supervisor.  If a material change in the internationally active insurance group results in either of the following, the director shall make a determination or acknowledgment as to the appropriate group-wide supervisor for such an internationally active insurance group pursuant to subsection C of this section:

1. The internationally active insurance group's insurers domiciled in this state holding the largest share of the group's premiums, assets or liabilities.

2. This state being the domicile of the top-tiered insurers in the insurance holding company system of the internationally active insurance group.

F. Pursuant to section 20-481.20, the director may collect from any insurer registered pursuant to section 20-481.09 all information necessary to determine whether the director may act as the group-wide supervisor of an internationally active insurance group or whether the director may acknowledge another regulatory official to act as the group-wide supervisor. Before issuing a determination that an internationally active insurance group is subject to group-wide supervision by the director, the director shall notify the insurer registered pursuant to section 20-481.09 and the ultimate controlling person within the internationally active insurance group.  The internationally active insurance group has at least thirty days to provide the director with additional information pertinent to the pending determination. The director shall publish on the department's official website the identity of internationally active insurance groups that the director has determined are subject to group-wide supervision by the director.

G. If the director is the group-wide supervisor for an internationally active insurance group, the director may engage in any of the following group-wide supervision activities:

1. Assessing the enterprise risks within the internationally active insurance group to ensure that:

(a) The material financial condition and liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance are identified by management.

(b) Reasonable and effective mitigation measures are in place.

2. Requesting from any member of an internationally active insurance group subject to the director's supervision information necessary and appropriate to assess enterprise risk, including information about the members of the internationally active insurance group regarding:

(a) Governance, risk assessment and management.

(b) Capital adequacy.

(c) Material intercompany transactions.

3. Coordinating and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compelling development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance.

4. Communicating with any other state, federal and international regulatory agency for members within the internationally active insurance group and share relevant information subject to the confidentiality provisions of section 20-481.21, through supervisory colleges as set forth in section 20-481.31 or otherwise.

5. Entering into agreements with or obtaining documentation from any insurer registered under section 20-481.09, any member of the internationally active insurance group and any other state, federal and international regulatory agency for members of the internationally active insurance group that provide the basis for or that otherwise clarify the director's role as group-wide supervisor, including provisions for resolving disputes with other regulatory officials. The agreements or documentation may not serve as evidence in any proceeding that any insurer or person within an insurance holding company system that is not domiciled or incorporated in this state is doing business in this state or is otherwise subject to jurisdiction in this state.

6. Other group-wide supervision activities, consistent with the authorities and purposes enumerated in this subsection, as considered necessary by the director.

H. If the director acknowledges that another regulatory official from a jurisdiction that is not accredited by the national association of insurance commissioners is the group-wide supervisor, the director may reasonably cooperate, through supervisory colleges or otherwise, with group-wide supervision undertaken by the group-wide supervisor, if both:

1. The director's cooperation complies with the laws of this state.

2. The regulatory official acknowledged as the group-wide supervisor also recognizes and cooperates with the director's activities as a group-wide supervisor for other internationally active insurance groups where applicable. If such recognition and cooperation is not reasonably reciprocal, the director may refuse recognition and cooperation.

I. The director may enter into agreements with or obtain documentation from any insurer registered under section 20-481.09, any affiliate of the insurer and any other state, federal and international regulatory agency for members of the internationally active insurance group that provide the basis for or otherwise clarify a regulatory official's role as group-wide supervisor.

J. The director may adopt rules necessary for the administration of this section.
A.R.S. § 20-765 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 765
20-765 Powers of reciprocal insurers
Status: in_force

20-765. Powers of reciprocal insurers

A. A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kind or kinds of insurance defined by this title, other than life or title insurances.

B. Such an insurer may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to any kind of insurance it is authorized to transact directly.
A.R.S. § 20-2210 — Arizona Code / Title 20 / Chapter 12 / Article 1 / Section 2210
20-2210 Occurrence riders; premiums; assessments
Status: in_force

20-2210. Occurrence riders; premiums; assessments

A. All policies written by the association shall contain a provision that guarantees the insured that the association shall issue, on the written demand of any insured to whom it has issued a claims-made policy, an occurrence rider comparable to that provided in the voluntary market.

B. The premium for the occurrence rider shall not exceed the total amount that the insured would have paid for occurrence policies, if the occurrence policies had been issued to the insured by the association, less the total amount that the insured paid for claims-made policies issued to him by the association. However, if a majority of the directors of the association concludes that the occurrence rider premium would be inadequate, the directors may request the actuary provided for in section 20-2211 to determine whether a premium surcharge based on the experience of the policyholder should be required. Based on his actuarial opinion, the actuary may recommend to the director a premium surcharge of no more than ten per cent of the initial net occurrence rider premium. If the director approves a recommended surcharge, the surcharge shall be imposed no earlier than the end of the policy term. Individual policyholders may pay for an occurrence rider on a quarterly basis for a period of not to exceed two years. If the policyholder fails to make payment, the occurrence rider is void. A policyholder electing to pay for the occurrence rider on a deferred payment basis may be assessed a finance charge of not to exceed six per cent per year on the unpaid balance. A private insurer issuing a liability insurance policy on an occurrence or claims-made basis which replaces or begins coverage on the expiration of a policy issued by the association may provide liability coverage for acts or omissions by the insured which occurred during the period the association's policy was in effect, excluding liability for any claim of injury or loss made to the association during the period.
A.R.S. § 20-2542 — Arizona Code / Title 20 / Chapter 15 / Article 2 / Section 2542
20-2542 Recordkeeping
Status: in_force

20-2542. Recordkeeping

A health care insurer and an independent review organization shall maintain all records related to internal and external appeals and exception requests for at least three years after the completion of the appeals process or exception request process.
A.R.S. § 20-712 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 712
20-712 Additional kinds of insurance authorized to be issued by mutual insurer
Status: in_force

20-712. Additional kinds of insurance authorized to be issued by mutual insurer

A domestic mutual insurer after being authorized to transact one kind of insurance shall be authorized by the director to transact such additional kinds of insurance as are authorized under section 20-209 and upon otherwise qualifying therefor and depositing and thereafter maintaining on deposit as required through the director unimpaired surplus funds in an amount not less than the amount of minimum required capital stock required of a domestic stock insurer transacting like kinds of insurance, and subject further to the additional surplus requirements of section 20-211.
A.R.S. § 20-1346 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1346
20-1346 Time limit on defenses
Status: in_force

20-1346. Time limit on defenses

A. There shall be a provision as follows: "Time limit on certain defenses:  (a) After two years from the date of issue of this policy no misstatements, except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void the policy or to deny a claim for loss incurred or disability (as defined in the policy) commencing after the expiration of such two year period."

"(b) No claim for loss incurred or disability (as defined in the policy) commencing after two years from the date of issue of this policy shall be reduced or denied on the ground that a disease or physical condition not excluded from coverage by name or specific description effective on the date of loss had existed prior to the effective date of coverage of this policy."

B. The policy provision set forth in (a) of subsection A of this section shall not be so construed as to affect any legal requirement for avoidance of a policy or denial of a claim during such initial two year period, nor to limit the application of sections 20-1358, 20-1359, 20-1360, 20-1361 and 20-1362 in the event of misstatement with respect to age or occupation or other insurance.

C. A policy which the insured has the right to continue in force subject to its terms by the timely payment of premium until at least age fifty or, in the case of a policy issued after age forty-four, for at least five years from its date of issue, may contain in lieu of (a) of subsection A of this section the following provision, from which the clause in parentheses may be omitted at the insurer's option, under the caption "Incontestable:" "After this policy has been in force for a period of two years during the lifetime of the insured (excluding any period during which the insured is a person with a disability), it shall become incontestable as to the statements contained in the application."
A.R.S. § 20-1310 — Arizona Code / Title 20 / Chapter 6 / Article 3 / Section 1310
20-1310 Settlement
Status: in_force

20-1310. Settlement

There shall be a provision that when the policy becomes a claim by the death of the insured, settlement shall be made upon surrender of the policy and receipt of due proof of death.
A.R.S. § 20-841.03 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 841.03
20-841.03 Prohibiting denial of contract benefits; nurses; reimbursement
Status: in_force

20-841.03. Prohibiting denial of contract benefits; nurses; reimbursement

If a subscription contract of a hospital and medical service corporation provides or offers reimbursement for any service which is within the scope of the practice of a registered nurse practitioner or a certified registered nurse qualified under the rules adopted by the state board of nursing regarding extended nursing practice and licensed pursuant to title 32, chapter 15, the hospital and medical service corporation shall not deny benefits to a subscriber who receives the services of the certified registered nurse or registered nurse practitioner. The cost of the service may be reimbursed directly to the certified registered nurse or registered nurse practitioner if the certified registered nurse or registered nurse practitioner has a participation contract with the hospital and medical service corporation or to the subscriber if another provider or health care institution was not reimbursed for the cost of the service.
A.R.S. § 20-3324 — Arizona Code / Title 20 / Chapter 25 / Article 1 / Section 3324
20-3324 Applicability
Status: in_force

20-3324. Applicability

A. Notwithstanding any other law, this article applies only to audits conducted of pharmacies located in this state.

B. This article does not apply to claims reviews that are initiated within three business days after transmission of a claim in which no chargeback or recoupment is demanded.

C. This article does not apply to an audit conducted in which a suspicion of fraudulent activity or other intentional and wilful misrepresentation is evidenced by physical review, review of claims data, statements or other investigative methods.  The reason for an audit specified in this subsection shall be documented and available on request.
A.R.S. § 20-492.03 — Arizona Code / Title 20 / Chapter 2 / Article 16 / Section 492.03
20-492.03 Contents of corporate governance annual disclosure
Status: in_force

20-492.03. Contents of corporate governance annual disclosure

A. The insurer or insurance group has discretion over the responses to the CGAD inquiries, if the CGAD contains the material information necessary to allow the director to gain an understanding of the insurer's or insurance group's corporate governance structure, policies and practices. The director may request additional information that the director deems material and necessary to provide the director with a clear understanding of the corporate governance policies, the reporting or information system or the controls implementing those policies.

B. Notwithstanding subsection A of this section, the insurer or insurance group shall prepare the CGAD consistent with rules adopted by the department. Documentation and supporting information shall be maintained and made available on examination or on the request of the director.
A.R.S. § 20-2631 — Arizona Code / Title 20 / Chapter 16 / Article 2 / Section 2631
20-2631 Definitions
Status: in_force

20-2631. Definitions

In this article, unless the context otherwise requires:

1. "Company" means an insurer licensed pursuant to this title to transact life insurance or annuities in this state.

2. "Variable annuity" means an individual policy or contract that provides for annuity benefits that vary according to the investment experience of a separate account or accounts that the insurer maintains pursuant to section 20-651 or the corresponding insurance laws of a foreign insurer's domiciliary state.
A.R.S. § 20-1318 — Arizona Code / Title 20 / Chapter 6 / Article 3 / Section 1318
20-1318 Prohibited provisions
Status: in_force

20-1318. Prohibited provisions

No policy of industrial insurance shall contain any of the following provisions:

1. A provision by which the insurer may deny liability under the policy for the reason that the insured has previously obtained other insurance from the same insurer.

2. A provision giving the insurer the right to declare the policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has received institutional, hospital, medical or surgical treatment or attention, except a provision which gives the insurer the right to declare the policy void if the insured has, within two years prior to the issuance of the policy, received institutional, hospital, medical or surgical treatment or attention and if the insured or claimant under the policy fails to show that the condition occasioning such treatment or attention was not of a serious nature or was not material to the risk.

3. A provision giving the insurer the right to declare the policy void because the insured has been rejected for insurance, unless such right is conditioned upon a showing by the insurer that knowledge of the rejection would have led to a refusal by the insured to make the contract.
A.R.S. § 20-2308 — Arizona Code / Title 20 / Chapter 13 / Article 1 / Section 2308
20-2308 Portability
Status: in_force

20-2308. Portability

A newborn child, adopted child or child placed for adoption is an eligible individual if the child was timely enrolled and otherwise would have met the definition of an eligible individual as prescribed in section 20-1379 other than the required period of creditable coverage and the child is-not subject to any preexisting condition exclusion or limitation if the child has been continuously covered under health insurance coverage or a health benefits plan offered by an accountable health plan since birth, adoption or placement for adoption.
A.R.S. § 20-865 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 865
20-865 Qualifications for membership
Status: in_force

20-865. Qualifications for membership

A. A society shall specify all of the following:

1. Eligibility standards for each membership class. If the society provides benefits on the lives of children, the minimum age for adult membership shall be not less than fifteen years of age or more than twenty-one years of age.

2. Admission procedures for each membership class.

3. The rights and privileges of each membership class, except that only benefit members may vote on the management of the insurance affairs of the society.

B. A society may admit social members who have no voice in or vote on the management of the insurance affairs of the society.

C. Membership rights in the society are not assignable.
A.R.S. § 20-2311 — Arizona Code / Title 20 / Chapter 13 / Article 1 / Section 2311
20-2311 Premium rates and rating practices
Status: in_force

20-2311. Premium rates and rating practices

A. The premium rate that an accountable health plan charges during a rating period for a health benefits plan issued to a small employer shall not vary by more than sixty percent from the index rate for health benefits plans involving the same or similar coverage, family size and composition, and geographic area.

B. In establishing premium rates for health benefits plans offered to small employers:

1. An accountable health plan making adjustments with respect to demographic characteristics shall apply those adjustments consistently across all small employers.

2. An accountable health plan may not use a geographic area that is smaller than a county or smaller than an area that includes all areas in which the first three digits of the zip code are identical, whichever is smaller.

C. The percentage increase in the premium rate that is charged to a small employer for a new rating period may not exceed the sum of the following:

1. The percentage change in the base premium rate.

2. Fifteen percentage points.

3. Any adjustment due to a change in coverage, family size or composition, geographic area or demographic characteristics.

D. At the time an accountable health plan offers a health benefits plan to a small employer, the accountable health plan shall fully disclose to the employer all of the following:

1. Rating practices for small employer health benefits plans, including rating practices for different populations and benefit designs.

2. The extent to which premium rates for the small employer are established or adjusted based on the actual or expected variation in claims costs or health condition of the employees of the small employer and their dependents.

3. The accountable health plan's right to change premium rates, the extent to which premiums can be modified and the factors that affect changes in premium rates.

E. Each accountable health plan shall file annually with the director a written statement by a member of the American academy of actuaries or another individual acceptable to the director certifying that based on an examination by the individual, including a review of the appropriate records and of the actuarial assumptions of the accountable health plan and methods used by the accountable health plan in establishing base premium rates, index rates and premium rates for small employer health benefits plans:

1. The accountable health plan is in compliance with the applicable provisions of this article.

2. The rating methods are actuarially sound.

F. Each accountable health plan shall retain a copy of the statement required by subsection E for examination at its principal place of business.

G. Each accountable health plan shall annually file with the director for informational purposes the accountable health plan's base premium rates and index rates.  On request, the director shall make the base premium rates or the index rates available to the public for inspection.

H. This section does not apply if a small employer obtains a health benefits plan that is subject to and complies with 42 United States Code section 300gg.
A.R.S. § 20-156 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 156
20-156 Examination of insurers; financial surveillance fund; definition
Status: in_force

20-156. Examination of insurers; financial surveillance fund; definition

A. The director shall examine the affairs, transactions, accounts, records and assets of each authorized insurer as often as the director deems advisable. The director shall so examine each domestic insurer at least once every five years. Examination of an alien insurer shall be limited to its insurance transactions in the United States.  The director may examine the business transactions and affairs of each domestic life and disability reinsurer as defined in section 20-1082, service company as defined in section 20-1095 and mechanical reimbursement reinsurer as defined in section 20-1096.

B. The director shall in like manner examine each insurer applying for an initial certificate of authority to do business in this state.

C. In lieu of making an examination, the director may accept a full report of the last recent examination of a foreign or alien insurer, certified to by the insurance supervisory official of another state, territory, commonwealth or district of the United States.

D. The expenses of the examinations conducted under this section shall be paid by the insurance examiners' revolving fund as provided in section 20-159. Such expenses shall be limited to preexamination selection and preparation costs, examination costs, postexamination costs and other such costs of evaluations of compliance required by law.

E. The financial surveillance fund is established consisting of monies collected pursuant to subsection F of this section.  The fund is a special state fund pursuant to section 35-142, subsection A, paragraph 8. The department shall administer the fund.  Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

F. The director shall annually assess and collect from each domestic insurer, other than a domestic life and disability reinsurer as defined in section 20-1082, a service company as defined in section 20-1095, and a mechanical reimbursement reinsurer as defined in section 20-1096, an amount within the ranges provided in this subsection and on a uniform percentage basis among all fee categories, to pay the costs of employing financial analysts who shall assist the department in conducting financial surveillance of domestic insurers.  The director shall deposit all collected monies in the financial surveillance fund.  The director shall base the amount of each insurer's assessment on the total admitted assets of the insurer as shown in its annual statement for the calendar year preceding the year in which the assessment is made, according to the following schedule:

Minimum           Maximum

Assessment Amount    Assessment Amount

Insurers with total admitted

assets of greater than

$1,000,000,000  $15,000           $22,500

Insurers with total admitted

assets of at least $200,000,000

but not more than $1,000,000,000  $ 5,000           $ 7,500

Insurers with total admitted

assets of at least $100,000,000

but not more than $199,999,999    $ 3,000           $ 4,500

Insurers with total admitted assets

of at least $50,000,000 but not

more than $99,999,999 $ 1,500           $ 2,250

Insurers with total admitted assets

of at least $25,000,000 but not

more than $49,999,999 $   500           $   750

Insurers with total admitted

assets of not more than

$24,999,999     $   250           $   375

G. For the purposes of this section, "insurer" includes health care services organizations, prepaid dental plan organizations, hospital service corporations, medical service corporations, dental service corporations and hospital, medical, dental and optometric service corporations incorporated in this state.
A.R.S. § 20-1097.13 — Arizona Code / Title 20 / Chapter 4 / Article 13 / Section 1097.13
20-1097.13 Suspension or revocation of authorization or registration; appeal; civil penalty; rules
Status: in_force

20-1097.13. Suspension or revocation of authorization or registration; appeal; civil penalty; rules

A. The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes:

1. Material misstatement, misrepresentation or fraud in registration.

2. Any wilful attempt to circumvent the requirements of this article.

3. Wilful misrepresentation or wilful deception with regard to any contract issued or sold under this article.

4. Any material misrepresentation to a contract holder or other interested party regarding the adjustment of the claim or the payment of a claim under the provisions of a contract issued or sold under the terms of this article, if the misrepresentation is made with the intent and for the purpose of affecting settlement of such claim on less favorable terms than those provided in and contemplated by the contract.

5. Fraudulent or dishonest practices in the conduct of its business.

6. Misappropriation, conversion or unlawful withholding of monies belonging to a legal services corporation or to others received in the conduct of business under this article.

7. Failure to comply with or wilful violation of any provision of this article, or order or rule of the department adopted pursuant to this article.

B. Any corporation or insurance producer of a corporation whose certificate or license has been suspended or revoked by the director for cause under this section may request a hearing pursuant to title 41, chapter 6, article 10.

C. The director may impose a civil penalty in an amount not to exceed two thousand five hundred dollars for an insurance producer or ten thousand dollars for a corporation in lieu of suspension or revocation of authorization or registration if under this article the director deems the civil penalty in lieu of suspension or revocation to be a satisfactory means of fulfilling the intent of this article.  A civil penalty imposed under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

D. The director shall adopt rules not inconsistent with the provisions of this article, as the director deems advisable for effectuating its orderly administration.
A.R.S. § 20-261 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 261
20-261 Authorized reinsurance
Status: in_force

20-261. Authorized reinsurance

A. An insurer shall reinsure its risks, or any part of its risks, only in solvent insurers having surplus to policyholders not less in amount than the minimum required capital stock required under this title of a domestic stock insurer, other than a limited stock insurer or a domestic life and disability reinsurer, authorized to transact like kinds of insurance. A domestic limited stock life insurer or domestic life and disability reinsurer may accept reinsurance of the risks of other limited stock insurers or domestic life and disability reinsurers.

B. An insurer may reinsure in alien insurers if the alien insurers are authorized to transact insurance in at least one state of the United States or have in the United States a duly authorized attorney-in-fact to accept service of legal process against the insurer as to any liability that might arise on account of such reinsurance.

C. A credit shall not be allowed, as an admitted asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the reinsurer on the basis of the liability of the ceding insurer under the contracts reinsured without diminution because of the insolvency of the ceding insurer nor unless under the reinsurance contract the reinsurer assumes the liability for the reinsurance as of the same effective date. The reinsurer shall make payment directly to the ceding insurer or to its statutory successor by whatever name called for the purpose of liquidating or rehabilitating the business of the insurer unless either the reinsurance contract or the policies reinsured required the reinsurer to make payment to the payees under the policies reinsured in the event the ceding insurer becomes insolvent, or the reinsurer with the consent of the direct insured assumes the policy obligations of the ceding insurer to the payees under the policies reinsured in substitution for the obligations of the ceding insurer to those payees.

D. A domestic insurer shall not be a party to any agreement of reinsurance with an unauthorized insurer until the agreement is filed with and approved in writing by the director. The director shall approve the agreement within a reasonable time after filing unless in the director's opinion the effect of the agreement would be to reduce protection or service substantially either to policyholders resident of this state or to policyholders anywhere of the domestic insurer.  If the director does not approve the agreement, the director shall notify the domestic insurer in writing specifying the reasons for not approving the agreement.

E. This section does not apply to insurance of ocean marine risks or marine protection and indemnity risks.

F. Unless the director requires the assuming insurer to file assumption reinsurance contracts, assumption reinsurance contracts are exempt from the filing requirements prescribed in subsection D if the assuming insurer has a surplus as to policyholders of at least fifty million dollars as shown in the most recent financial statement that is filed by the insurer with the department.
A.R.S. § 20-636 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 636
20-636 Voidable transfers
Status: in_force

20-636. Voidable transfers

A. Any transfer of, or lien on, the property of an insurer that is made or created within four months before the granting of an order to show cause under this article with the intent of giving to any creditor or of enabling such creditor to obtain a greater percentage of the creditor's debt than any other creditor of the same class, and that is accepted by such creditor having reasonable cause to believe that such preference will occur, shall be voidable.

B. Every director, officer, employee, stockholder, member and subscriber and any other person acting on behalf of the insurer who is concerned in any such act or deed and every person receiving thereby any property of the insurer or the benefit thereof shall be personally liable therefor and shall be bound to account to the receiver.

C. The receiver in any proceeding under this article may avoid any transfer of or lien on the property of an insurer that any creditor, stockholder, subscriber or member of the insurer might have avoided and may recover the property so transferred unless the person was a bona fide holder for value before the date of the granting of an order to show cause under this article. Such property or its value may be recovered from anyone who has received it except a bona fide holder for value as specified in this article.

D. Notwithstanding 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. § 20-1096 — Arizona Code / Title 20 / Chapter 4 / Article 12 / Section 1096
20-1096 Definitions
Status: in_force

20-1096. Definitions

In this article, unless the context otherwise requires:

1. "Consumer" means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or issuer of the service contract the obligations of the warranty or service contract. A consumer also means the buyer or seller of residential property.

2. "Consumer product" means any tangible personal property which is distributed in commerce and which is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed.

3. "Mechanical reimbursement insurance" means an insurance policy issued to a motor vehicle dealer or to insure the performance of a service contract to a consumer if the motor vehicle dealer or the issuer of a service contract becomes insolvent or ceases to do business or, if approved by the director, similar such insurance.

4. "Mechanical reimbursement reinsurer" or "reinsurer" means a domestic reinsurer reinsuring mechanical reimbursement insurance.

5. "Motor vehicle service contract program" means contractual documents, including service contract forms, claim forms and other forms, used in connection with the sale of service contracts by motor vehicle dealers.

6. "Residential property" means a house, townhouse, condominium or other habitable structure consisting of no more than four units which is used principally as a residence.

7. "Service contract" means a written contract for a prepaid separately stated consideration to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair, including replacement, of:

(a) A consumer product.

(b) All or any part of the structural components, the appliances or the electrical, plumbing, heating, cooling or air conditioning systems of residential property.

8. "Warranty" means:

(a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time.

(b) Any undertaking by a manufacturer or seller in writing in connection with the sale of a consumer product to refund, repair, replace or take other remedial action with respect to such a product if the product fails to meet the specifications set forth in the undertaking, which written affirmation, promise or undertaking becomes part of the basis of the bargain for purposes other than resale of such product and if there is no separate identifiable charge to the consumer.
A.R.S. § 20-381 — Arizona Code / Title 20 / Chapter 2 / Article 4.1 / Section 381
20-381 Definitions
Status: in_force

20-381. Definitions

In this article, unless the context otherwise requires:

1. "Advisory organization":

(a) Means any person other than a single insurer who assists two or more insurers or rate service organizations in the making of rates by compiling and furnishing loss or expense statistics or other statistical information and data, or by the submission of recommendations as to rates, forms or supplementary rate information.

(b) Does not include a joint underwriting association, any actuarial or legal consultant, any employee of an insurer or insurers under common control or management or their employees or manager.

2. "Loss cost adjustment":

(a) Means that portion of a rate filed by an insurer with the director that includes the insurer’s general expenses, total product expenses, taxes, licenses and fee expenses and underwriting profit and contingencies.

(b) Does not include loss adjustment expenses or prospective loss costs.

3. "Loss cost modification factor" means that rating factor filed by an insurer with the director for the purpose of modifying the rate service organization’s prospective loss cost filing.

4. "Prospective loss costs" means the historical aggregate losses and loss adjustment expenses filed by a rate service organization with the director on which a portion of a rate is based, adjusted through actuarial trending to a future point in time and developed to their ultimate values.

5. "Rate":

(a) Means that cost of insurance per exposure unit whether expressed as a single number or as a prospective loss cost with an adjustment to account for the treatment of expenses, profit and individual insurer variation in loss experience before any application of individual risk variations based on loss or expense considerations.

(b) Does not include the minimum premium.

6. "Rate service organization":

(a) Means any person other than a single insurer who assists insurers by compiling and furnishing loss or expense statistics and recommending, making or filing rates, forms or supplementary rate information.

(b) Does not include a joint underwriting association, any actuarial or legal consultant, any employee of an insurer or insurers under common control or management, or their employees or manager.

7. "Supplementary rate information":

(a) Means any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, schedule of fees, including membership fees charged by a reciprocal or mutual insurer, rating rule, rate related underwriting rule and other information used by an insurer in making rates.

(b) Does not include the final rate pages that combine the prospective loss costs with the loss cost adjustments.
A.R.S. § 20-1632.01 — Arizona Code / Title 20 / Chapter 6 / Article 11 / Section 1632.01
20-1632.01 Cancellation or nonrenewal for nonpayment of premium; grace period; notice of cancellation; discrimination; definition
Status: in_force

20-1632.01. Cancellation or nonrenewal for nonpayment of premium; grace period; notice of cancellation; discrimination; definition

A. Motor vehicle insurance policies shall contain a provision that the policyholder is entitled to a minimum grace period of seven days for the payment of any premium due except the first payment, during which grace period the policy shall continue in full force. For the purposes of this subsection, an initial payment on the renewal of a policy is not a first payment of premium.

B. For any motor vehicle insurance policy that is cancelled or nonrenewed for nonpayment of premium by the insurer after the grace period, the insurer must send a notice of cancellation or nonrenewal to the policyholder.  The cancellation or nonrenewal is effective on the date the notice is sent to the policyholder.  The notice shall include or be accompanied by a statement in writing of the reasons for such action by the insurer and a notice indicating the named insured's right to complain to the director of the insurer's action within ten days after receipt of the notice by the insured. An insurer shall not cancel or nonrenew a motor vehicle insurance policy pursuant to this section because of the named insured's location of residence, age, race, color, religion, sex, sexual orientation, marital status, national origin, ancestry or driving record.

C. This section does not apply to policies being cancelled pursuant to section 6-1415. The grace period provided in such policies shall be satisfied by the ten-day notice of intent of the premium finance company to cancel the insurance contract unless the default is cured within the ten-day period.

D. For the purposes of this section, "grace period" means the period of time after the premium due date during which the policy remains in force without penalty even though the premium due has not been paid.
A.R.S. § 20-151 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 151
20-151 Issuance of orders and notices by director
Status: in_force

20-151. Issuance of orders and notices by director

A. Orders and notices of the director are not effective unless the orders and notices are in writing and signed by the director or by the director's authority.

B. Every order of the director shall state its effective date and shall concisely state:

1. Its intent or purpose.

2. The grounds on which the order is based.

3. The provisions of this title pursuant to which action is so taken or proposed to be taken, but failure to so designate any provision shall not deprive the director of the right to rely on the provision.

C. The department may send orders and notices in accordance with section 20-117, paragraph 4.  If the department sends an order or notice by mail, the department shall send the order or notice, postage prepaid, to the recipient's principal place of business as last of record in the director's office.
A.R.S. § 20-296 — Arizona Code / Title 20 / Chapter 2 / Article 3 / Section 296
20-296 Effect of suspension or revocation of license
Status: in_force

20-296. Effect of suspension or revocation of license

A. The director shall not again issue any license under this title to any person whose license has been revoked until one year after the revocation and the person again qualifies in accordance with the applicable provisions of this title.

B. If the license of a business entity is suspended or revoked, a member, officer or director of or designated producer for the business entity shall not be issued a license or serve as the designated producer for any licensee during the period of the suspension or revocation unless the director determines that the member, officer, director or designated producer was not personally at fault and did not acquiesce in the matter that resulted in the suspension or revocation of the license.
A.R.S. § 20-1382 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1382
20-1382 Health care insurers; reporting requirements
Status: in_force

20-1382. Health care insurers; reporting requirements

A. On or before March 1 of each year, each health care insurer shall submit to the director a written report that contains the following information:

1. The number of eligible individuals covered by policies that were written by that health care insurer in the individual market during the previous calendar year.

2. The number of individuals covered by policies that were issued other than to eligible individuals during the previous calendar year.

3. The earned premium for each category of individual policy for the previous calendar year.

4. The total number of eligible individuals covered by policies that were issued by the health care insurer as of the end of the previous calendar year.

B. Each health care insurer shall submit the following information to the department, if applicable, to demonstrate compliance with sections 20-1379, 20-1380 and 20-1381:

1. The health care insurer's name and address.

2. The identification, form number and summary of all products that the health care insurer offers in the individual market.

3. If the health care insurer elects the option prescribed in section 20-1379, subsection C, paragraph 2, subdivision (a) the data on premium volumes of all policy forms that the health care insurer offers in the individual market and the number of individuals who are covered under each form during the preceding calendar year.

4. If the health care insurer elects the option prescribed in section 20-1379, subsection C, paragraph 2, subdivision (b) the data, assumptions and methods used to calculate the actuarial values of the two representative policy forms.

5. An explanation of how the health care insurer is complying with sections 20-1379, 20-1380 and 20-1381.

6. A list of all products, including all marketing material, that the health care insurer is making or will make available to eligible individuals and an explanation of how the health care insurer will inform individuals of these policy forms.

7. A description of the risk spreading and financial subsidization mechanism.

C. The health care insurer shall submit the information described in subsection B of this section to the department by March 1 of each year.

D. If all or part of the information required by subsection B, paragraph 5, 6 or 7 of this section has not changed since the health care insurer's last previous submission, instead of refiling the information the health care insurer may indicate the information that has not changed.

E. Notwithstanding any other law, an insurer is not required to comply with the reporting requirements of this section if the federal laws that require providing a certificate of creditable coverage are superseded by the prohibition on preexisting condition exclusions.
A.R.S. § 20-2602 — Arizona Code / Title 20 / Chapter 16 / Article 1 / Section 2602
20-2602 Requirements applicable to insurers issuing variable life insurance
Status: in_force

20-2602. Requirements applicable to insurers issuing variable life insurance

A. An insurer shall not deliver or issue for delivery in this state a variable life insurance policy unless all of the following apply:

1. The insurer is licensed to transact life insurance business in this state.

2. The director gives written approval to the insurer for the issuance of variable life insurance policies in this state. The director shall grant the written approval only after finding that:

(a) The plan of operation for the issuance of variable life insurance policies is not unsound.

(b) The general character, reputation and experience of the management and those persons or firms that the insurer proposes to supply consulting, investment, administrative or custodial services to the insurer will reasonably result in the competent operation of the variable life insurance business of the insurer in this state.

(c) The financial condition of the insurer and its method of operation in connection with the issuance of variable life policies is not likely to harm the public or its policyholders in this state. The director shall consider at least the following:

(i) The insurer's history of operation and financial condition.

(ii) The qualifications, fitness, character, responsibility, reputation and experience of the officers, directors and other management personnel of the insurer and of those persons or firms that the insurer proposes to supply consulting, investment, administrative or custodial services to the insurer.

(iii) The applicable law under which the insurer is authorized in its state of domicile to issue variable life insurance policies. The state of entry of an alien insurer is deemed to be its state of domicile.

(iv) If the insurer is a subsidiary of or is affiliated by common management or ownership with another company, the insurer's relationship to the other company and the degree to which the requesting insurer and the other company meet these standards.

B. Before delivering or issuing for delivery in this state a variable life insurance policy, an insurer shall file the following information with the director:

1. Copies and a general description of the variable life insurance policies the insurer intends to issue.

2. A general description of the insurer's methods of operation of the variable life insurance business, including the methods of policy distribution and the names of those persons or firms that the insurer proposes to supply consulting, investment, administrative, custodial or distribution services to the insurer.

3. With respect to a separate account that the insurer maintains for any variable life insurance policy, a statement of the investment policy that the issuer intends to follow for the investment of the assets that are held in the separate account and a statement of the procedures for changing the investment policy. The statement of investment policy shall include a description of the investment objectives that are intended for the separate account.

4. A description of any contemplated investment advisory services that satisfies section 20-2606, subsection L.

5. A copy of the statutes and rules of the insurer's state of domicile under which the insurer is authorized to issue variable life insurance policies, unless the insurer is domiciled in this state.

6. A completed national association of insurance commissioners' uniform biographical data form for the officers and directors of the insurer.

7. A statement that is completed by the insurer's actuary and that describes the mortality and expense risks that the insurer will bear under the policy.

8. A statement that describes the method of computation of cash values and other nonforfeiture benefits if not described in the policy.

C. Each insurer that seeks to enter into the variable life insurance business in this state shall establish and maintain a written statement and shall specify in the statement the standards of suitability the insurer will use. The standards of suitability shall specify the following:

1. That an insurer shall not make a recommendation to an applicant to purchase a variable life insurance policy.

2. That a variable life insurance policy shall not be issued if after the insurance producer making the recommendation or the insurer considers the applicant's insurance and investment objectives, financial situation and needs and any other information known to the insurer or the insurance producer, the insurer or insurance producer determines that the purchase of the policy is unsuitable for the applicant.

D. An insurer authorized to transact variable life insurance business in this state shall not use any sales material, advertising material, descriptive literature or other material of any kind in connection with its variable life insurance business in this state that is false, misleading, deceptive or inaccurate. Variable life insurance sales material, advertising material and descriptive literature are subject to section 20-1110, subsection E.

E. A material contract that is entered into between an insurer and a supplier of consulting, investment, administrative, sales, marketing, custodial or other services with respect to variable life insurance operations shall be in writing and shall state that on the director's request the supplier of the services shall furnish to the director any information or reports in connection with the services that would allow the director to determine if the variable life insurance operations of the insurer are being conducted in a manner that is consistent with this article.
A.R.S. § 20-1621.06 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.06
20-1621.06 Experience reports
Status: in_force

20-1621.06. Experience reports

An insurer transacting credit property insurance in this state shall annually file with the director and the national association of insurance commissioner's a report of credit property insurance written on a calendar year basis.  The report shall use the credit insurance supplement annual statement blank approved by the commissioners, and shall contain data separately for each state, rather than an allocation of the company's countrywide experience.  The filing shall be made in accordance with and no later than the due date in the instructions to the annual statement.
A.R.S. § 20-336.06 — Arizona Code / Title 20 / Chapter 2 / Article 3.4 / Section 336.06
20-336.06 Application of other laws
Status: in_force

20-336.06. Application of other laws

To the extent permitted by this article, section 20-281, section 20-286, subsections B, C and D, sections 20-289, 20-289.01, 20-292, 20-295, 20-296, 20-297, 20-299, 20-301, 20-302 and 20-452, article 6 of this chapter and chapter 11, article 1 of this title apply to navigators and certified application counselors.
A.R.S. § 20-2511 — Arizona Code / Title 20 / Chapter 15 / Article 1 / Section 2511
20-2511 Violation; injunctive relief
Status: in_force

20-2511. Violation; injunctive relief

If the director believes that a utilization review agent is violating or is about to violate section 20-2502, the director may order the agent to cease and desist.  The director through the attorney general may file a complaint in the superior court in the county in which the agent transacts utilization review business to enjoin and restrain the agent from committing or continuing the violation.  If the director orders the utilization review agent to cease and desist, the agent may request a hearing pursuant to title 41, chapter 6, article 10 and, except as provided in section 41-1092.08, subsection H, seek judicial review pursuant to title 12, chapter 7, article 6. If the director files a complaint through the attorney general the superior court has jurisdiction of the proceeding and may make and enter an order or judgment awarding preliminary or final relief as in its judgment is proper.
A.R.S. § 20-1341 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1341
20-1341 Scope of article
Status: in_force

20-1341. Scope of article

Nothing in this article shall apply to or affect:

1. Any policy of liability or workers' compensation insurance with or without supplementary expense coverage therein.

2. Any group or blanket policy.

3. Life insurance, endowment or annuity contracts, or contracts supplemental thereto which contain only such provisions relating to disability insurance as provide additional benefits in case of death or dismemberment or loss of sight by accident, or as operate to safeguard such contracts against lapse or to give a special surrender value or special benefit or an annuity in the event that the insured or annuitant develops a total and permanent disability, as defined by the contract or supplemental contract.

4. Reinsurance.
A.R.S. § 20-3601 — Arizona Code / Title 20 / Chapter 30 / Article 1 / Section 3601
20-3601 Definitions of qualified United States financial institution
Status: in_force

20-3601. Definitions of qualified United States financial institution

A. For the purposes of section 20-3603, subsection B, paragraph 3, "qualified United States financial institution" means an institution that both:

1. Is:

(a) Organized or, in the case of a United States office of a foreign banking organization, is licensed under the laws of the United States or any state of the United States.

(b) Regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks and trust companies.

2. Has been determined by either the director or the securities valuation office of the national association of insurance commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.

B. For the purposes of the provisions of this article that specify the institutions that are eligible to act as a fiduciary of a trust, "qualified United States financial institution" means an institution that is both:

1. Organized or, in the case of a United States branch or agency office of a foreign banking organization, is licensed under the laws of the United States or any state of the United States and that has been granted authority to operate with fiduciary powers.

2. Regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies.
A.R.S. § 20-2637 — Arizona Code / Title 20 / Chapter 16 / Article 2 / Section 2637
20-2637 Reports
Status: in_force

20-2637. Reports

A. At least once in each contract year after the first contract year, a company that issues individual variable annuities shall send to the contract holder at the contract holder's last known address a statement reporting the investments that are held in the separate account as of a date not more than four months before the sent date. The company shall submit annually to the director on a form prescribed by the national association of insurance commissioners a statement of the business of its separate account or accounts.

B. If payments under an annuity contract have not yet commenced the statement shall contain either:

1. The number of accumulation units that are credited to the contract and the dollar value of a unit.

2. The value of the contract holder's account.
A.R.S. § 20-481.29 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.29
20-481.29 Injunctions; prohibitions against voting securities; sequestration of voting securities
Status: in_force

20-481.29. Injunctions; prohibitions against voting securities; sequestration of voting securities

A. If it appears to the director that an insurer or a director, officer, employee or agent has committed or is about to commit a violation of this article or of a rule adopted or order issued by the director, the director may apply to the superior court in the county in which the principal office of the insurer is located for an injunction and for other equitable relief as the case and the interest of the insurer's policyholders, creditors and shareholders or the public may require. If the insurer has no office in this state, the director may apply to the superior court in Maricopa county.

B. No security that is the subject of any agreement or arrangement regarding acquisition or that is acquired or to be acquired, in contravention of the provisions of this article or of any rule adopted or order issued by the director may be voted at any shareholder's meeting or may be counted for quorum purposes. Any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though these securities were not issued and outstanding. No action taken at any meeting may be invalidated by the voting of these securities unless the action would materially affect control of the insurer or unless the courts of this state have so ordered. If an insurer or the director has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this article or of any rule adopted or order issued by the director, the insurer or the director may apply to the superior court in the county in which the insurer has its principal place of business to enjoin any offer, request, invitation, agreement or acquisition made in violation of this article or any rule adopted or order issued by the director to enjoin the voting of any security so acquired, to void any vote of the security already cast at any meeting of shareholders and for other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors and shareholders or the public requires.

C. In any case in which a person has acquired or is proposing to acquire any voting securities in violation of this article or any rule adopted or order issued by the director, the superior court in Maricopa county or the superior court in the county in which the insurer has its principal place of business, on notice as the court deems appropriate and on the application of the insurer or the director, may seize or sequester voting securities of the insurer owned directly or indirectly by that person and issue an order as is appropriate to effectuate the provisions of this article.

D. Notwithstanding any other provisions of law, for the purposes of this section the situs of the ownership of the securities of domestic insurers is deemed to be in this state.
A.R.S. § 20-202.02 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 202.02
20-202.02 Mutual insurer's minimum required basic surplus defined
Status: in_force

20-202.02. Mutual insurer's minimum required basic surplus defined

A mutual insurer's minimum required basic surplus is defined as the minimum requirement deposited with the state treasurer through the director's office to qualify for the lines of insurance authorized to be written.
A.R.S. § 20-431.01 — Arizona Code / Title 20 / Chapter 2 / Article 5.1 / Section 431.01
20-431.01 Applicability
Status: in_force

20-431.01. Applicability

A. This article applies to all group and individual life insurance policies and certificates except:

1. Variable life insurance.

2. Individual and group annuity contracts.

3. Credit life insurance.

4. Life insurance policies with no illustrated death benefits on any individual exceeding $10,000.

B. If an insurer markets a policy form with an illustration that is subject to the requirements of this article, the insurer is not required to provide a policy summary to the applicant or the policyowner as otherwise required pursuant to administrative rule.
A.R.S. § 20-299 — Arizona Code / Title 20 / Chapter 2 / Article 3 / Section 299
20-299 Sharing of information
Status: in_force

20-299. Sharing of information

A. The director may:

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

2. Receive any document, material or other information from the national association of insurance commissioners and its affiliates or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic 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 or other information and that are consistent with this subsection.

B. Any disclosure to the director or sharing of documents, materials or other information in accordance with this section is not a waiver of any applicable privilege or claim of confidentiality in any document, material or other information.
A.R.S. § 20-693 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 693
20-693 Immunity
Status: in_force

20-693. Immunity

There shall be no liability on the part of and no cause of action of any nature shall arise against the fund or its agents or employees, members of the board of directors or the director or his or her representatives for any action taken by them in the performance of their powers and duties pursuant to this article.
A.R.S. § 20-1275 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1275
20-1275 Group annuity contract certificates
Status: in_force

20-1275. Group annuity contract certificates

In group annuity contracts there shall be a provision that the insurer will issue to the holder of the contract for delivery to each annuitant who contributes thereunder an individual certificate setting forth a statement in substance of the benefits to which he is entitled under the contract.
A.R.S. § 20-487.04 — Arizona Code / Title 20 / Chapter 2 / Article 11 / Section 487.04
20-487.04 Penalties
Status: in_force

20-487.04. Penalties

A. If the director believes that a controlling producer or other person has not materially complied with this article or any rule adopted under this article, after notice and an opportunity for a hearing, the director may order the controlling producer to cease placing business with the controlled insurer.

B. If the director finds that due to material noncompliance a controlled insurer or policyholder of the controlled insurer has suffered loss or damage, the director may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for the recovery of compensatory damages or other appropriate relief for the benefit of the insurer or policyholder.

C. If an order for the liquidation or rehabilitation of the controlled insurer is entered pursuant to chapter 3, article 4 of this title and a receiver who is appointed under that order believes that the controlling producer or other person has not materially complied with this article or rules adopted under this article and that the insurer suffered loss or damage, the receiver may maintain a civil action for the recovery of damages or other appropriate relief for the benefit of the insurer.

D. This section does not affect the right of the director to impose any other penalty provided for by law.

E. This section does not alter or affect the rights of policyholders, claimants, creditors or other third parties.
A.R.S. § 20-418 — Arizona Code / Title 20 / Chapter 2 / Article 5 / Section 418
20-418 Denial, revocation or suspension of license; civil penalty
Status: in_force

20-418. Denial, revocation or suspension of license; civil penalty

A. The director may deny or suspend for not more than twelve months, revoke or refuse to renew any surplus lines broker's license and, in addition or in lieu thereof, may levy a civil penalty and order restitution to any injured party:

1. If the broker fails to comply with any requirement of this article.

2. For any of the causes for which an insurance producer's license may be denied, revoked or suspended.

B. The procedures provided by this title for the denial, suspension or revocation of an insurance producer's license apply to denial, suspension or revocation of a surplus lines broker's license.
A.R.S. § 20-400.03 — Arizona Code / Title 20 / Chapter 2 / Article 4.2 / Section 400.03
20-400.03 Penalties
Status: in_force

20-400.03. Penalties

If the director finds after a hearing that the insurer has knowingly, or with such frequency as to indicate a general business practice, violated the provisions of section 20-400.01 with respect to a particular class or that an insurer examined under section 20-400.02 has not complied with sections 20-356 and 20-357 or 20-384 and 20-385, he may, in addition to or in lieu of the penalties provided in section 20-397, do the following:

1. Impose a civil penalty equal to the difference between the premium charged and that which would have been charged without the application of inadequately justified adjustments if a refund pursuant to paragraph 3 of this section has not been ordered.

2. Suspend the insurer's authority to do business in any given class.

3. Require applicable refunds to policyholders.
A.R.S. § 20-1123 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1123
20-1123 Annulment of liability policies
Status: in_force

20-1123. Annulment of liability policies

No insurance contract insuring against loss or damage through legal liability for the bodily injury or death by accident of any individual, or for damage to the property of any person, shall be retroactively annulled by any agreement between the insurer and the insured after the occurrence of any injury, death or damage for which the insured may be liable, and any attempted annulment shall be void.
A.R.S. § 20-232 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 232
20-232 Junior achievement program; exemption from licensure
Status: in_force

20-232. Junior achievement program; exemption from licensure

An authorized insurer may sponsor the formation of a junior achievement program approved by the director. A student participating in the program is not an insurance producer as defined in section 20-281 and is not subject to licensure under article 3 of this chapter if the student operates under the direct supervision of a licensed life and disability insurance producer.
A.R.S. § 20-1691.01 — Arizona Code / Title 20 / Chapter 6 / Article 15 / Section 1691.01
20-1691.01 Applicability and scope
Status: in_force

20-1691.01. Applicability and scope

A. Except as otherwise provided in this article, this article applies to all long-term care insurance policies delivered or issued for delivery in this state.  This article does not supersede the obligations of any person subject to this article to comply with other applicable insurance laws in this title that do not conflict with this article, except that laws applicable to medicare supplement insurance policies do not apply to long-term care insurance policies.

B. A long-term care insurance policy and any product that is advertised, marketed or offered as long-term care insurance must comply with the applicable requirements of this article.
A.R.S. § 20-3151 — Arizona Code / Title 20 / Chapter 21 / Article 1 / Section 3151
20-3151 Definitions
Status: in_force

20-3151. Definitions

For the purposes of this section:

1. "Enrollee" means an individual who is enrolled in a health care plan provided by a health care insurer.

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 and medical service corporation.

3. "Health care plan" means a policy, contract or evidence of coverage issued to an enrollee.  Health care plan does not include limited benefit coverage as defined in section 20-1137.

4. "Health care professional" means a professional who is regulated pursuant to title 32, chapter 7, 8, 11, 13, 14, 15, 15.1, 16, 17, 18, 19, 19.1, 25, 28, 29, 33, 34, 35, 39 or 41, title 36, chapter 6, article 7 or title 36, chapter 17.
A.R.S. § 20-678 — Arizona Code / Title 20 / Chapter 3 / Article 6 / Section 678
20-678 Examination of the fund; annual report
Status: in_force

20-678. Examination of the fund; annual report

The fund is subject to examination by the director. The fund shall annually report its financial condition for the preceding year to the legislature, member insurers and the director. At the conclusion of the fund's handling of each insolvency, an audit of the financial transactions relating to such insolvency shall be made by the director or an independent accounting firm.
A.R.S. § 20-691 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 691
20-691 Examination of the fund; annual report
Status: in_force

20-691. Examination of the fund; annual report

The fund shall be subject to examination and regulation by the director. The board of directors shall submit to the director, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the director and a report of its activities during the preceding calendar year.
A.R.S. § 20-201 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 201
20-201 "Alien" insurer defined
Status: in_force

20-201. "Alien" insurer defined

An "alien" insurer is one formed under the laws of a country other than the United States.
A.R.S. § 20-1691.05 — Arizona Code / Title 20 / Chapter 6 / Article 15 / Section 1691.05
20-1691.05 Prior institutionalization
Status: in_force

20-1691.05. Prior institutionalization

A. A long-term care insurance policy delivered or issued for delivery in this state on or after July 1, 1990 shall not condition availability of benefits on prior hospitalization.

B. A long-term care insurance policy delivered or issued for delivery in this state on or after the effective date of this amendment to this section shall not:

1. Condition eligibility for benefits provided in an institutional care setting on the receipt of a higher level of institutional care.

2. Condition eligibility for any benefits, other than waiver of premium, postconfinement, postacute care or recuperative benefits, on a prior institutionalization requirement.

C. A long-term care insurance policy containing postconfinement, postacute care or recuperative benefits shall clearly label, in a separate paragraph of the policy that is entitled "limitations on benefits", any limitations or conditions, including any required number of days of confinement.

D. A long-term care insurance policy or rider that conditions eligibility of noninstitutional benefits on the prior receipt of institutional care shall not require a prior institutional stay of more than thirty days.

E. A long-term care policy that provides benefits only following institutionalization shall not condition the benefits on admission to a facility for the same or related conditions within a period of less than thirty days after discharge from the institution.
A.R.S. § 20-147 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 147
20-147 Assistant director; chief examiner; appointment; qualifications
Status: in_force

20-147. Assistant director; chief examiner; appointment; qualifications

A. The director shall appoint an assistant director and a chief examiner.

B. The assistant director shall be experienced in the fields of life and disability and property and casualty insurance and the chief examiner shall have had at least five years' experience as a full-time examiner for a state insurance department or departments, or as a full-time staff member of a public accounting or actuarial firm regularly employed to conduct examinations for a state insurance department.
A.R.S. § 20-1270 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1270
20-1270 Standard provisions required in group annuity contracts
Status: in_force

20-1270. Standard provisions required in group annuity contracts

No group annuity contract shall be delivered or issued for delivery in this state and no certificate shall be used in connection therewith unless it contains in substance the provisions set forth in sections 20-1271 to 20-1275, inclusive, to the extent that such provisions are applicable to the contract or to the certificate, as the case may be, or provisions which in the opinion of the director are more favorable to annuitants, or not less favorable to annuitants and more favorable to the holders.
A.R.S. § 20-1272 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1272
20-1272 Documents constituting entire group annuity contract
Status: in_force

20-1272. Documents constituting entire group annuity contract

In group annuity contracts there shall be a provision specifying the document or documents which shall constitute the entire contract between the parties. The document or documents so specified shall be only:

1. The contract.

2. The contract together with the application of the holder of which a copy is attached thereto.

3. The contract together with the application of the holder of which a copy is attached thereto and the individual applications of annuitants on file with the insurer and referred to therein.
A.R.S. § 20-2109 — Arizona Code / Title 20 / Chapter 11 / Article 1 / Section 2109
20-2109 Correction, amendment or deletion of recorded personal information
Status: in_force

20-2109. Correction, amendment or deletion of recorded personal information

A. Within thirty business days from the date of receipt of a written request from an individual to correct, amend or delete any recorded personal information about the individual within its possession, an insurance institution, insurance producer or insurance support organization shall either:

1. Correct, amend or delete the portion of the recorded personal information in dispute.

2. Notify the individual of its refusal to make the correction, amendment or deletion, the reasons for the refusal and the individual's right to file a statement as provided in subsection C.

B. If the insurance institution, insurance producer or insurance support organization corrects, amends or deletes recorded personal information, the insurance institution, insurance producer or insurance support organization shall so notify the individual in writing and furnish the correction, amendment or fact of deletion to the following, as applicable:

1. Any person specifically designated by the individual who may have, within the preceding two years, received the recorded personal information.

2. Any insurance support organization whose primary source of personal information is insurance institutions if the insurance support organization has systematically received the recorded personal information from the insurance institution within the preceding seven years, except that the correction, amendment or fact of deletion need not be furnished if the insurance support organization no longer maintains recorded personal information about the individual.

3. Any insurance support organization that furnished the personal information that has been corrected, amended or deleted.

C. If an individual disagrees with an insurance institution's, insurance producer's or insurance support organization's refusal to correct, amend or delete recorded personal information, the individual may file with the insurance institution, insurance producer or insurance support organization a concise statement setting forth what the individual thinks is the correct, relevant or fair information and a concise statement of the reasons why the individual disagrees with the insurance institution's, insurance producer's or insurance support organization's refusal to correct, amend or delete recorded personal information.

D. If the individual files either statement as described in subsection C, the insurance institution, insurance producer or support organization shall:

1. File the statement with the disputed personal information and provide a means by which anyone reviewing the disputed personal information will be made aware of the individual's statement and have access to it.

2. In any subsequent disclosure by the insurance institution, insurance producer or insurance support organization of the recorded personal information that is the subject of disagreement, clearly identify the matter in dispute and provide the individual's statement along with the recorded personal information being disclosed.

3. Furnish the statement to the persons and in the manner prescribed in subsection B.

E. If the individual so requests, the insurance institution shall reconsider its underwriting decision based on any corrected information or the individual's statement provided under subsections C and D.

F. The rights granted to individuals in this section extend to all natural persons to the extent information about them is collected and maintained by an insurance institution, insurance producer or insurance support organization in connection with an insurance transaction. The rights granted to all natural persons by this section do not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.

G. For purposes of this section, "insurance support organization" does not include a consumer reporting agency.
A.R.S. § 20-1098.18 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.18
20-1098.18 Captive insurance regulatory and supervision fund; purpose
Status: in_force

20-1098.18. Captive insurance regulatory and supervision fund; purpose

A. The captive insurance regulatory and supervision fund is established within the department consisting of monies deposited pursuant to section 20-1098.01, subsection J.  The director shall administer the fund as prescribed in subsections B and C of this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations, except that, on the close of each fiscal year, all unencumbered monies in the fund exceeding two hundred thousand dollars revert to the state general fund.

B. In addition to the purposes specified in subsection C of this section, the director may use up to one hundred thousand dollars in the captive insurance regulatory and supervision fund each fiscal year to administer programs in accordance with the department's other statutory responsibilities.

C. The director shall use monies in the captive insurance regulatory and supervision fund to pay the costs of administering this article and for reasonable expenses incurred in promoting this state's captive insurance industry, pursuant to written guidelines adopted by the director.

D. The department shall not receive a general fund appropriation for operation of the captive insurance program and promotion of this state's captive insurance industry for any fiscal year in which the department had at least twenty-five captive insurers holding an active certificate of authority as of the immediately preceding calendar year end.
A.R.S. § 20-1074 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1074
20-1074 Contract termination; duty to report; provision for continued services during insolvency; definitions
Status: in_force

20-1074. Contract termination; duty to report; provision for continued services during insolvency; definitions

A. A health care services organization shall submit quarterly to the director a list of all provider contracts that have been terminated during the prior three months.  The list shall be in writing and shall include the name and address of each provider whose contract has been terminated but shall not include the reasons for termination.

B. A health care services organization shall include in its contracts with providers a statement that requires the provider to provide services to enrollees at the same rates and subject to the same terms and conditions established in the contract for the duration of the period after the health care services organization is declared insolvent, until the earliest of the following:

1. A determination by the court that the organization cannot provide adequate assurance it will be able to pay contract providers' claims for covered services that were rendered after the health care services organization is declared insolvent.

2. A determination by the court that the insolvent organization is unable to pay contract providers' claims for covered services that were rendered after the health care services organization is declared insolvent.

3. A determination by the court that continuation of the contract would constitute undue hardship to the provider.

4. A determination by the court that the health care services organization has satisfied its obligations to all enrollees under its health care plans.

C. 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.

D. For the purposes of this section:

1. "Court" has the same meaning prescribed in section 20-611.

2. "Delinquency proceeding" has the same meaning prescribed in section 20-611.
A.R.S. § 20-1693.01 — Arizona Code / Title 20 / Chapter 6 / Article 17 / Section 1693.01
20-1693.01 Licensure of vendors
Status: in_force

20-1693.01. Licensure of vendors

A. The director may issue, and a vendor who intends to sell or offer insurance coverage under a portable electronics insurance policy is required to obtain, a limited lines license that authorizes the vendor to offer or sell insurance coverage under a portable electronics insurance policy.

B. A limited lines license issued under this section authorizes an employee or authorized representative of the vendor to sell or offer coverage under a portable electronics insurance policy to a customer at each location at which the vendor engages in portable electronics transactions.

C. An applicant for a portable electronics insurance license shall file with the director a written application that is in a form prescribed by the director and that is signed by the designated representative of the vendor who is the person responsible for the vendor's compliance with the requirements of this article.  If the vendor derives more than fifty per cent of its revenue from the sale of portable electronics insurance the information in the written application shall be provided for all officers, directors and shareholders of record having beneficial ownership of ten per cent or more of any class of securities registered under the federal securities law.

D. A supervising entity shall maintain a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage in this state.  On the director's request, and with ten days' notice to the supervising entity, the registry shall be open to inspection and examination by the director during regular business hours of the supervising entity.

E. Notwithstanding any other law, a license issued pursuant to this section authorizes the licensee and its employees or authorized representatives to engage in those activities that are permitted in this article.
A.R.S. § 20-475.01 — Arizona Code / Title 20 / Chapter 2 / Article 7 / Section 475.01
20-475.01 Insurance on mortgaged property; disclosure of expiration date prohibited; exception
Status: in_force

20-475.01. Insurance on mortgaged property; disclosure of expiration date prohibited; exception

When a real property mortgage or a lending agreement in connection with a loan on real property provides that the mortgagor or borrower shall furnish insurance upon the mortgaged property, the mortgagee, assignee or creditor shall not disclose expiration dates or other policy information to other persons, directly or indirectly, for the purpose of permitting any person or persons to solicit the insurance or any renewal thereof without the consent of the policyholder in writing.
A.R.S. § 20-1580 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1580
20-1580 Title insurance agents to be licensed
Status: in_force

20-1580. Title insurance agents to be licensed

A. Title insurance agents shall be licensed by the director. Application for license shall be made on forms approved by the director, and the director shall issue a license upon completion and filing the application and payment of the license fee specified in section 20-167.

B. Licenses of title insurance agents shall expire quadrennially at midnight on the last day of the same month four years after the license was issued or renewed unless sooner terminated by the withdrawal by the insurer of authority in the agent, or unless revoked by the director.

C. Title insurance agents' licenses shall be renewed quadrennially on the filing of an application containing such information as the director deems necessary.

D. The director may grant a temporary license to a corporation or limited liability company that is qualified for licensing as a title insurance agent.  The license shall remain in force and effect for a period of six months.  If the applicant fails to qualify for a regular title insurance agent's license as provided in this section, no renewal or extension may be granted.
A.R.S. § 20-2541 — Arizona Code / Title 20 / Chapter 15 / Article 2 / Section 2541
20-2541 Health care insurer fee
Status: in_force

20-2541. Health care insurer fee

The director may assess each health care insurer that is authorized to transact insurance:

1. A single fee of not more than $200 per insurer.

2. Up to $200 each year for the costs of performing the responsibilities relating to the procurement of independent review organizations as prescribed in sections 20-2537 and 20-2538 and for implementing and maintaining the external independent review process, including processing and paying claims through the health care appeals fund established by section 20-2540. The department is authorized one full-time equivalent position to perform these responsibilities.
A.R.S. § 20-773 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 773
20-773 Bond of attorney
Status: in_force

20-773. Bond of attorney

A. Concurrently with the filing of the declaration provided for in section 20-769, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his bond as set forth in subsection B of this section. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director's approval.

B. The bond shall be in the penal sum of twenty-five thousand dollars, aggregate in form, conditioned that the attorney will faithfully account for all monies and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any monies or property to which he is not entitled under the power of attorney.

C. The bond shall provide that it is not subject to cancellation unless thirty days advance notice in writing of cancellation is given both the attorney and the director.
A.R.S. § 20-2328 — Arizona Code / Title 20 / Chapter 13 / Article 1 / Section 2328
20-2328 Accountable health plans; clinical trials; cancer; definitions
Status: in_force

20-2328. Accountable health plans; clinical trials; cancer; definitions

A. An accountable health plan is not obligated to pay any costs, other than covered patient costs, that are directly associated with a cancer clinical trial that is offered in this state and in which the enrollee participates voluntarily.  A cancer clinical trial is a course of treatment in which all of the following apply:

1. The treatment is part of a scientific study of a new therapy or intervention that is being conducted at an institution in this state, that is for the treatment, palliation or prevention of cancer in humans and in which the scientific study includes all of the following:

(a) Specific goals.

(b) A rationale and background for the study.

(c) Criteria for patient selection.

(d) Specific directions for administering the therapy and monitoring patients.

(e) A definition of quantitative measures for determining treatment response.

(f) Methods for documenting and treating adverse reactions.

2. The treatment is being provided as part of a study being conducted in a phase I, phase II, phase III or phase IV cancer clinical trial.

3. The treatment is being provided as part of a study being conducted in accordance with a clinical trial approved by at least one of the following:

(a) One of the national institutes of health.

(b) A national institutes of health cooperative group or center.

(c) The United States food and drug administration in the form of an investigational new drug application.

(d) The United States department of defense.

(e) The United States department of veterans affairs.

(f) A qualified research entity that meets the criteria established by the national institutes of health for grant eligibility.

(g) A panel of qualified recognized experts in clinical research within academic health institutions in this state.

4. The proposed treatment or study has been reviewed and approved by an institutional review board of an institution in this state.

5. The personnel providing the treatment or conducting the study:

(a) Are providing the treatment or conducting the study within their scope of practice, experience and training and are capable of providing the treatment because of their experience, training and volume of patients treated to maintain expertise.

(b) Agree to accept reimbursement as payment in full from the accountable health plan at the rates that are established by the plan and that are not more than the level of reimbursement applicable to other similar services provided by health care providers with the plan's provider network.

6. There is no clearly superior, noninvestigational treatment alternative.

7. The available clinical or preclinical data provide a reasonable expectation that the treatment will be at least as efficacious as any noninvestigational alternative.

B. Pursuant to the patient informed consent document, no party is liable for damages associated with the treatment provided during any phase of a cancer clinical trial.

C. Each health benefits plan delivered or issued for delivery in this state shall provide benefits under the plan, and those benefits shall not supplant any portion of the clinical trial that is customarily paid for by government, biotechnical, pharmaceutical or medical device industry sources.

D. This section does not create any private right or cause of action for or on behalf of any patient against the accountable health plan.  This section provides solely an administrative remedy to the director for any violation of this section or any related rule.

E. Nothing in this section prohibits the accountable health plan from imposing deductibles, coinsurance or other cost sharing measures in relation to benefits provided pursuant to this section.

F. For the purposes of this section:

1. "Cooperative group" means a formal network of facilities that collaborates on research projects and that has an established national institutes of health approved peer review program operating within the group, including the national cancer institute clinical cooperative group and the national cancer institute community clinical oncology program.

2. "Institutional review board" means any board, committee or other group that is both:

(a) Formally designated by an institution to approve the initiation of and to conduct periodic review of biomedical research involving human subjects and in which the primary purpose of such review is to assure the protection of the rights and welfare of the human subjects and not to review a clinical trial for scientific merit.

(b) Approved by the national institutes of health office for protection from research risks.

3. "Multiple project assurance contract" means a contract between an institution and the United States department of health and human services that defines the relationship of the institution to the United States department of health and human services and that sets out the responsibilities of the institution and the procedures that will be used by the institution to protect human subjects.

4. "Patient" means the enrollee or the enrollee's covered dependent.

5. "Patient cost" means any fee or expense that is covered under the contract and that is for a service or treatment that would be required if the patient were receiving usual and customary care.  Patient cost does not include the cost:

(a) Of any drug or device provided in a phase I cancer clinical trial.

(b) Of any investigational drug or device.

(c) Of nonhealth services that might be required for a person to receive treatment or intervention.

(d) Of managing the research of the clinical trial.

(e) That would not be covered under the patient's health benefits plan.

(f) Of treatment or services provided outside this state.
A.R.S. § 20-2509 — Arizona Code / Title 20 / Chapter 15 / Article 1 / Section 2509
20-2509 Confidentiality
Status: in_force

20-2509. Confidentiality

A. A utilization review agent shall file with the director written procedures for assuring that patient information it obtains during the process of utilization review is maintained as confidential in accordance with applicable federal and state laws, is used solely for the purposes of utilization review, quality assurance, discharge planning and catastrophic case management and is shared only with agencies authorized by the patient in writing and on a form prescribed by the director to receive the information. Summary data are not confidential if the data do not provide sufficient information to allow identification of individual patients. This subsection does not permit a person to obtain information without complying with other requirements of this title.

B. A utilization review agent shall comply with all applicable state and federal laws relating to the confidentiality of medical records.
A.R.S. § 20-1356 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1356
20-1356 Change of beneficiary
Status: reserved

20-1356. Change of beneficiary

A. There shall be a provision as follows: "Change of beneficiary: Unless the insured makes an irrevocable designation of beneficiary, the right to change a beneficiary is reserved to the insured and the consent of the beneficiary or beneficiaries shall not be requisite to surrender or assignment of this policy or to any change of beneficiary or beneficiaries, or to any other changes in this policy."

B. The first clause of the provision set forth in subsection A of this section relating to the irrevocable designation of beneficiary may be omitted at the insurer's option.
A.R.S. § 20-1584 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1584
20-1584 Commissions; right to pay
Status: in_force

20-1584. Commissions; right to pay

A title insurer may pay a commission to a licensed title insurance agent or other title insurer.
A.R.S. § 20-778 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 778
20-778 Contributions to insurer
Status: in_force

20-778. Contributions to insurer

The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Amounts so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the director.
A.R.S. § 20-321.02 — Arizona Code / Title 20 / Chapter 2 / Article 3.2 / Section 321.02
20-321.02 Application of other laws
Status: in_force

20-321.02. Application of other laws

To the extent permitted by this article, sections 20-281 and 20-284, section 20-286, subsections B, C and D, sections 20-287, 20-288, 20-289 and 20-289.01, section 20-290, subsection A and sections 20-291, 20-292, 20-295, 20-296, 20-297, 20-299, 20-301 and 20-302 apply to adjusters.
A.R.S. § 20-486.05 — Arizona Code / Title 20 / Chapter 2 / Article 10 / Section 486.05
20-486.05 Required contract provisions; reinsurance intermediary managers
Status: in_force

20-486.05. Required contract provisions; reinsurance intermediary managers

A reinsurance intermediary manager and the reinsurer it represents as a reinsurance intermediary shall enter into a written contract that specifies the responsibilities of each party. The reinsurer's board of directors shall approve the contract. At least thirty days before the reinsurer assumes or cedes business through the producer, a true copy of the approved contract shall be filed with the director for approval. The contract at a minimum shall provide that:

1. The reinsurer may terminate the contract for cause on written notice to the reinsurance intermediary manager. The reinsurer immediately may suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of a dispute regarding the cause for termination.

2. The reinsurance intermediary manager shall render accounts to the reinsurer that accurately detail all material transactions, including information necessary to support all commissions, charges and other fees received by or owed to the reinsurance intermediary manager, and shall remit all monies due under the contract to the reinsurer on not less than a monthly basis.

3. All monies collected for the reinsurer's account be held in a fiduciary capacity by the reinsurance intermediary manager in a bank that is a qualified United States financial institution as defined in section 20-486. The reinsurance intermediary manager may retain no more than three months' estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents.

4. The reinsurance intermediary manager comply with the provisions of section 20-481.06.

5. The contract cannot be assigned in whole or in part by the reinsurance intermediary manager.

6. The reinsurance intermediary manager comply with the written underwriting and rating standards that are established by the insurer for the acceptance, rejection or cession of all risks.

7. The rates, terms and purposes of commissions, charges and other fees that the reinsurance intermediary manager may levy against the reinsurer be set forth.

8. If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer, all claims be reported to the reinsurer in a timely manner and a copy of the claim file be sent to the reinsurer on request or as soon as it becomes known that the claim:

(a) May exceed the lesser of an amount determined by the director or the limit set by the reinsurer.

(b) Involves a coverage dispute.

(c) May exceed the reinsurance intermediary manager's claims settlement authority.

(d) Is open for more than six months.

(e) Is closed by payment of the lesser of an amount set by the director or an amount set by the reinsurer.

All claim files are the joint property of the reinsurer and the reinsurance intermediary manager. On an order of liquidation of the reinsurer the files shall become the sole property of the reinsurer or its estate. The reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis. Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause on the reinsurer's written notice to the reinsurance intermediary manager or on the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.

9. If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, the interim profits shall not be paid until one year after the end of each underwriting period for property business, five years after the end of each underwriting period for casualty business or a later period set by the director for specified lines of insurance and not until the adequacy of reserves on remaining claims is verified pursuant to section 20-486.08, subsection C.

10. The reinsurance intermediary manager annually shall provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant.

11. The reinsurer at least semiannually shall conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager.

12. The reinsurance intermediary manager shall disclose to the reinsurer a relationship it has with an insurer before ceding or assuming any business with the insurer pursuant to the contract.

13. Within the scope of its actual or apparent authority, the acts of the reinsurance intermediary manager be deemed to be the acts of the reinsurer on whose behalf it is acting.
A.R.S. § 20-588 — Arizona Code / Title 20 / Chapter 3 / Article 3 / Section 588
20-588 Release of deposits
Status: in_force

20-588. Release of deposits

A. Any deposit made in this state under this title shall be released and returned:

1. To the insurer upon extinguishment by reinsurance or otherwise of substantially all liability of the insurer for the security of which the deposit is held.

2. To the insurer to the extent such deposit is in excess of the amount required.

3. Upon proper order of a court of competent jurisdiction to the receiver, conservator, rehabilitator or liquidator of the insurer, or to any other properly designated official or officials who succeed to the management and control of the insurer's assets.

B. No release of deposited funds shall be made except upon application to and the written order of the director. The director shall have no personal liability for any such release of any such deposit or part thereof so made by him in good faith.
A.R.S. § 20-1590 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1590
20-1590 Permitted division of fees
Status: in_force

20-1590. Permitted division of fees

Nothing in this article shall be construed to prohibit the division of fees and charges between or among two or more title insurers or between or among one or more title insurers and one or more title insurance agents, or between or among two or more title insurance agents.
A.R.S. § 20-239 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 239
20-239 Electronic communications and records; applicability; definitions
Status: in_force

20-239. Electronic communications and records; applicability; definitions

A. Any notice to a party or any other document that is required under this title in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored and presented by electronic means if it meets the requirements of title 44, chapter 26, article 1. If an insurer uploads a document or notice to a portal or secure website, the insurer shall send a separate notice to the party that specifies that the document or notice has been uploaded and that includes a description of the document or notice that has been uploaded.

B. An insurer may deliver a notice or document by electronic means to a party pursuant to this section if the party electronically consents to that method of electronic delivery and has not withdrawn consent. A named insured that effectuates insurance transactions by electronic means shall be deemed to have consented to receive notices and documents by electronic means in accordance with this section unless the named insured opts out of electronic delivery and elects delivery by hard copy.

C. Either an oral communication with a contemporaneous written record made of the communication or an archived recording of an oral communication subject to the insurer's written record retention policy shall qualify as consent for the purposes of this section. The oral consent prescribed in this subsection applies only to an agreement to the use of electronic communication with the insurer and is not an agreement by the insured to any specific insurance policy or coverage or any other insurance matter.

D. Notwithstanding subsection A of this section, an insurer sending a notice pursuant to section 20-1632, subsection A, for a period of five years after the date of the notice, shall maintain in its files verification that the notice was sent by electronic means with a United States postal service electronic postmark or another email delivery service that provides electronic postmarks substantially similar to a United States postal service electronic postmark. The verification must contain sufficient information from which the department may determine that the notice was properly sent.

E. An insurer providing notice to an insured pursuant to section 20-1632 by electronic means shall also send that notice to the named insured by United States postal service certified mail, certificate of mailing or first class mail using intelligent mail barcode or another similar tracking method used or approved by the United States postal service pursuant to section 20-1632 if either of the following applies:

1. The notice being electronically delivered is rejected for delivery or returned to the insurer.

2. The insurer becomes aware that the email address provided by the party is no longer valid.

F. Delivery of a notice or document pursuant to this section is equivalent to any delivery method required or allowed under this title, including delivery by the United States postal service by first class mail, postage prepaid, certified mail, certificate of mailing or first class mail using intelligent mail barcode or another similar tracking method used or approved by the United States postal service.

G. After the party elects to receive notices and documents by electronic means, if a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies, the insurer must inform the party of:

1. The revised hardware and software requirements for access to and retention of a notice or document delivered by electronic means.

2. The party's right to withdraw consent without the imposition of any fee, condition or consequence.

H. This section does not affect the requirements related to content or timing of any notice or document required under this title.

I. If a provision of this title expressly requires verification or acknowledgment of receipt of a notice or document, the notice or document may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt.

J. The legal effectiveness, validity or enforceability of any insurance contract or policy executed by a party may not be denied solely because the insurer failed to obtain electronic consent or confirmation of consent.

K. A party's withdrawal of consent:

1. Does not affect the legal effectiveness, validity or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective.

2. Is effective within seven days after the insurer receives the withdrawal.

L. If an insurer fails to comply with subsection G of this section, the party may treat that failure as a withdrawal of consent for the purposes of this section.

M. This section does not apply to a notice or document delivered by an insurer in an electronic format before July 24, 2014 to a party who, before that date, has consented to receive a notice or document in an electronic format as otherwise provided by law.

N. If a party's consent to receive certain notices or documents in an electronic format is on file with an insurer before July 24, 2014 and the insurer intends to deliver additional notices or documents to that party in an electronic format pursuant to this section, before delivering the additional notices or documents electronically the insurer must notify the party of both of the following:

1. The notices or documents that may be delivered by electronic means under this section that were not previously delivered electronically.

2. The party's right to withdraw consent to have notices or documents delivered by electronic means.

O. An insurer may not charge a fee to a party who does not consent to receive notices or documents by electronic means and who chooses to receive the notices or documents in hard copy.

P. This section applies only to property, casualty, disability, marine and transportation, surety, prepaid legal, prepaid dental, title, identity theft, workers' compensation and life insurance policies and annuities that are subject to this title, including policies and contracts issued by health care services organizations and hospital, medical, dental and optometric service corporations.

Q. This section does not modify, limit or supersede the electronic signatures in global and national commerce act (P.L. 106-229; 15 United States Code sections 7001 through 7031).

R. For the purposes of this section:

1. "Delivered by electronic means" includes either:

(a) The delivery to an email address at which a party has consented to receive notices or documents.

(b) The posting on an electronic network or site accessible via the internet or a mobile application, computer, mobile device, tablet or other electronic device, together with a separate notice of the posting that includes a description of the document or notice that has been posted and that is provided by email to the email address at which the party has consented to receive notice or by any other delivery method that has been consented to by the party.

2. "Party" means a recipient of any notice or document as part of an insurance transaction, including an applicant, an insured or a policyholder.
A.R.S. § 20-336 — Arizona Code / Title 20 / Chapter 2 / Article 3.4 / Section 336
20-336 Definitions
Status: in_force

20-336. Definitions

In this article, unless the context otherwise requires:

1. "Certified application counselor" means an individual who is licensed pursuant to this article and who is authorized by the United States department of health and human services to perform the activities and duties of a certified application counselor as described by 45 Code of Federal Regulations section 155.225.

2. "Exchange" means a health benefit exchange that is established or operated by the secretary of the United States department of health and human services pursuant to 42 United States Code section 18031.

3. "Health benefit plan":

(a) Means a hospital and medical service corporation policy or certificate, a health care services organization contract or certificate of coverage, an individual or group or blanket disability policy or certificate of coverage, a certificate of insurance of a group disability policy that is not issued in this state, a multiple employer welfare arrangement or any other arrangement under which health services or health benefits are provided to one or more individuals.

(b) Does not include:

(i) An insurance policy that is designed, advertised and marketed to supplement major medical insurance, which includes accident only, vision only, disability income only, fixed or hospital indemnity, specified disease insurance, credit insurance or Taft-Hartley trusts.

(ii) Coverage that is issued as a supplement to liability insurance.

(iii) Medicare supplemental insurance.

(iv) Workers' compensation insurance.

(v) Automobile medical payment insurance.

(vi) Long-term care insurance.

4. "Issuer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation, dental service corporation, prepaid dental plan organization or hospital, medical, dental and optometric service corporation.

5. "Navigator" means a person who is licensed pursuant to this article and who is certified or compensated by the United States department of health and human services to perform the activities and duties described by 42 United States Code section 18031 and 45 Code of Federal Regulations section 155.215.
A.R.S. § 20-1057.16 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1057.16
20-1057.16 Prescription eyedrops; refills
Status: in_force

20-1057.16. Prescription eyedrops; refills

A. Beginning January 1, 2018, any evidence of coverage that is issued, delivered or renewed by a health care services organization and that provides coverage for prescription eyedrops to treat glaucoma or ocular hypertension may not deny coverage for a refill of a prescription for eyedrops to treat glaucoma or ocular hypertension if all of the following apply:

1. The enrollee requests the refill:

(a) For a thirty-day supply, at least twenty-three days and less than thirty days from the later of:

(i) The original date that the prescription was distributed to the enrollee.

(ii) The date of the most recent refill that was distributed to the enrollee.

(b) For a sixty-day supply, at least forty-five days and less than sixty days from the later of:

(i) The original date that the prescription was distributed to the enrollee.

(ii) The date of the most recent refill that was distributed to the enrollee.

(c) For a ninety-day supply, at least sixty-eight days and less than ninety days from the later of:

(i) The original date that the prescription was distributed to the enrollee.

(ii) The date of the most recent refill that was distributed to the enrollee.

2. The prescription eyedrops to treat glaucoma or ocular hypertension prescribed by the health care provider are a covered benefit under the enrollee's evidence of coverage.

3. The prescribing health care provider indicates on the original prescription that additional quantities of the prescription eyedrops to treat glaucoma or ocular hypertension are needed.

4. The refill requested by the enrollee does not exceed the number of additional quantities prescribed.

B. To the extent practicable, the requirements of this section are limited in quantity to the remaining dosage initially approved for coverage, except that any limited refilling may not limit or restrict coverage to any previously or subsequently approved prescription eyedrops to treat glaucoma or ocular hypertension and is subject to the terms and conditions of the evidence of coverage that are applicable to this coverage.
A.R.S. § 20-1069.01 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1069.01
20-1069.01 Right to open enrollment period; enrollees; definitions
Status: in_force

20-1069.01. Right to open enrollment period; enrollees; definitions

A. With respect to enrollees who are members of a group with more than one carrier, if there is an insolvency of a health care services organization, each open enrollment carrier shall offer enrollees of the insolvent health care services organization who are members of that group a thirty day open enrollment period beginning on the date the insolvency is declared unless the director determines that an open enrollment carrier lacks sufficient health care delivery resources to assure that health care services will be available and accessible to all of the group enrollees of the insolvent health care services organization. Each open enrollment carrier shall offer these enrollees the same coverages and rates that it offered to the enrollees at the last regular open enrollment period without any waiting periods or preexisting conditions, exclusions, limitations or restrictions. On declaration of insolvency, the health care services organization shall notify each group contract holder of the insolvency. Each group contract holder shall notify its remaining open enrollment carrier or carriers of the insolvency and notify its members of their right to open enrollment as provided in this section.

B. In addition to or instead of the procedure prescribed in subsection A of this section, the court may approve an alternative plan by the receiver to offer successor coverages to some or all of the enrollees of an insolvent health care services organization if the court finds that the alternative plan is fair and in the best interests of the estate.

C. The court may order that an offer of successor coverage pursuant to subsection B of this section terminates the obligations of an insolvent health care services organization to an enrollee as of the effective date of the coverage that would be effective under that offer if accepted, regardless of whether the enrollee accepts the offer.

D. For purposes of this section:

1. "Carrier" means an insurer, a health care services organization, a hospital service corporation, a medical service corporation, a dental service corporation, an optometric service corporation or a hospital, medical, dental and optometric service corporation or any combination.

2. "Court" has the same meaning prescribed in section 20-611.

3. "Health care services organization" means an organization that is licensed under this article and a service corporation that is regulated under article 3 of this chapter, but only as to managed care products that the service corporation offers pursuant to this article.

4. "Open enrollment carrier" means any carrier that participated in an open enrollment with the insolvent health care services organization at a group's last regular open enrollment period.

5. "Receiver" has the same meaning prescribed in section 20-611.

6. "Successor", if used in reference to a health care services organization or carrier, means a carrier to whom the director has allocated a group or nongroup enrollee that was covered by the insolvent health care services organization.
A.R.S. § 20-271 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 271
20-271 Lienholders; proof; accidents; notice; applicability
Status: in_force

20-271. Lienholders; proof; accidents; notice; applicability

A. An insured or claimant shall provide information as part of the proof of loss concerning the existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss.  A claim shall not be an acceptable proof of loss until satisfactory evidence of the existence of any lien or encumbrance has been provided to the insurer.  This section shall not apply if the amount of damages or loss does not exceed two thousand five hundred dollars.

B. An insurer shall be entitled to rely upon information provided by the insured or claimant pursuant to subsection A concerning the existence of any lien or encumbrance against the vehicle.  An insurer that acts in good faith upon the information provided by the claimant or insured shall not be liable for any damages arising from the insured's or claimant's failure to provide accurate information to the insurer concerning existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss.

C. An insured or claimant shall be liable for any damages arising from the failure of the insured or claimant to provide accurate information pursuant to subsection A regarding the existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss.

D. This section shall not apply if an insurer does either of the following with respect to the repair of damages or loss to a vehicle:

1. Issues a release of claims in the names or makes the proceeds payable to both the insured or claimant and all lienholders or vehicle lessors.

2. Makes the proceeds payable to the motor vehicle repair facility after verification by the insurer that the damage or loss has been repaired.
A.R.S. § 20-1064 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1064
20-1064 Examination
Status: in_force

20-1064. Examination

A. The director may conduct an examination of the affairs of any health care services organization as often as the director deems it necessary for the protection of the interests of the people of this state and for this purpose shall have the powers set forth in this title with respect to examinations of insurers.

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. § 20-1220 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1220
20-1220 Incontestability in annuities
Status: in_force

20-1220. Incontestability in annuities

If any statements, other than those relating to age, sex and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, and subject to section 20-1222, there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons as to whom such statements are required, for a period of two years from its date of issue, except for nonpayment of stipulated payments to the insurer. At the option of the insurer the contract may also except any provisions relative to benefits in the event of disability and any provisions which grant insurance specifically against death by accident or accidental means.
A.R.S. § 20-840 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 840
20-840 Continuation of existing certificates, licenses and rights
Status: in_force

20-840. Continuation of existing certificates, licenses and rights

This article shall not be construed in any manner to abrogate, amend or annul any certificate, license or right acquired prior to January 1, 1955 by any corporation, insurer, hospital, physician, dentist, optometrist, individual or subscriber under or pursuant to Laws 1945, 1st special session, chapter 13, and all of such certificates, licenses and rights shall be and they are continued in full force and effect.
A.R.S. § 20-2304 — Arizona Code / Title 20 / Chapter 13 / Article 1 / Section 2304
20-2304 Availability of insurance; premium tax exemption
Status: in_force

20-2304. Availability of insurance; premium tax exemption

A. As a condition of doing business in this state, each accountable health plan shall offer at least one health benefits plan on a guaranteed issuance basis to small employers as required by this section.  All small employers qualify for this guaranteed offer of coverage. The accountable health plan shall provide a health benefits plan to each small employer without regard to health status-related factors if the small employer agrees to make the premium payments and to satisfy any other reasonable provisions of the plan that are not inconsistent with this chapter.

B. If an accountable health plan offers more than one health benefits plan to small employers, the accountable health plan shall offer a choice of all health benefits plans that the accountable health plan offers to small employers and shall accept any small employer that applies for any of those plans.

C. For any offering of any health benefits plan to a small employer, as part of the accountable health plan's solicitation and sales materials, an accountable health plan shall make a reasonable disclosure to the employer of the availability of the information described in this subsection and, on request of the employer, shall provide that information to the employer.  The accountable health plan shall provide information concerning the following:

1. Provisions of coverage relating to the following, if applicable:

(a) The accountable health plan's right to change premium rates and the factors that may affect changes in premium rates.

(b) Renewability of coverage.

(c) Any preexisting condition exclusion.

(d) Any affiliation period applied by a health care services organization.

(e) The geographic areas served by health care services organizations.

2. The benefits and premiums available under all health benefits plans for which the employer is qualified.

D. The accountable health plan shall describe the information required by subsection C of this section in language that is understandable by the average small employer and with a level of detail that is sufficient to reasonably inform a small employer of the employer's rights and obligations under the health benefits plan. This requirement is satisfied if the accountable health plan provides each of the following for each product the accountable health plan offers:

1. An outline of coverage that describes the benefits in summary form.

2. The rate or rating schedule that applies to the product, preexisting condition exclusion or affiliation period.

3. The minimum employer contribution and group participation rules that apply to any particular type of coverage.

4. In the case of a network plan, a map or listing of the areas served.

E. An accountable health plan is not required to disclose any information that is proprietary and protected trade secret information under applicable law.

F. An accountable health plan that issues a health benefits plan through a network plan may limit the employers that may apply for any health benefits plan offered by the accountable health plan to those eligible individuals who live, work or reside in the service area for the network plan of the accountable health plan.

G. On approval of the director, an accountable health plan may refuse to enroll a qualified small employer in a health benefits plan or in a geographic area served by the plan if the accountable health plan demonstrates that its financial or administrative capacity to serve previously enrolled groups and individuals would be impaired.  An accountable health plan that refuses to enroll a qualified small employer may not enroll an employer of the same or larger size until the earlier of:

1. The date on which the director determines that the accountable health plan has the capacity to enroll a qualified small employer.

2. The date on which the accountable health plan enrolls a qualified small employer.

H. An accountable health plan that offers coverage to a qualified small employer shall offer coverage to all of the eligible employees of the qualified small employer and their eligible dependents.

I. An accountable health plan may request health screening and underwriting information on prospective enrollees to evaluate the risks associated with a qualified small employer who applies for coverage.  The accountable health plan may use this information for the purposes of setting premiums, evaluating plan offerings and making reinsurance decisions.  An accountable health plan shall not use this information to deny coverage to a qualified small employer or to an eligible employee or to an eligible dependent, except a late enrollee who attempts to enroll outside an open enrollment period.

J. Accountable health plans are exempt from the premium taxes that are required by section 20-224, subsection B and sections 20-837, 20-1010 and 20-1060 for the net premiums received for health benefits plans issued to small employers, including the net premiums collected from coverage issued pursuant to section 20-2313, subsection C.  Each accountable health plan shall notify the small employers to whom it provides coverage of the reductions in the premium tax as specified in this subsection.

K. The director may use independent contractor examiners pursuant to sections 20-148 and 20-159 to review the higher level of coverage and lower level of coverage health benefits plans offered by an accountable health plan insurer in compliance with this section. All examination and examination related expenses shall be borne by the insurer and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.
A.R.S. § 20-3102 — Arizona Code / Title 20 / Chapter 20 / Article 1 / Section 3102
20-3102 Timely payment of health care providers' claims; grievances
Status: in_force

20-3102. Timely payment of health care providers' claims; grievances

A. A health care insurer shall adjudicate any clean claim from a contracted or noncontracted health care provider relating to health care insurance coverage within thirty days after the health care insurer receives the clean claim or within the time period specified by contract. Unless there is an express written contract between the health care insurer and the health care provider that specifies the period in which approved claims shall be paid, the health care insurer shall pay the approved portion of any clean claim within thirty days after the claim is adjudicated.  If the claim is not paid within the thirty-day period or within the time period specified in the contract, the health care insurer shall pay interest on the claim at a rate that is equal to the legal rate.  Interest shall be calculated beginning on the date that the payment to the health care provider is due.

B. If the claim is not a clean claim and the health care insurer requires additional information to adjudicate the claim, the health care insurer shall send a written request for additional information to the contracted or noncontracted health care provider, enrollee or third party within thirty days after the health care insurer receives the claim.  The health care insurer shall notify the contracted or noncontracted health care provider of all of the specific reasons for the delay in adjudicating the claim. The health care insurer shall record the date it receives the additional information and shall adjudicate the claim within thirty days after receiving all the additional information.  The health care insurer shall also pay the approved portion of the adjudicated claim within the same thirty-day period allowed for adjudication or within the time period specified in the provider's contract. If the health care insurer fails to pay the claim as prescribed in this subsection, the health care insurer shall pay interest on the claim in the manner prescribed in subsection A of this section.

C. A health care insurer shall not delay the payment of clean claims to a contracted or noncontracted provider or pay less than the amount agreed to by contract to a contracted health care provider without reasonable justification.

D. A health care insurer shall not request information from a contracted or noncontracted health care provider that does not apply to the medical condition at issue for the purposes of adjudicating a clean claim.

E. A health care insurer shall not request a contracted or noncontracted health care provider to resubmit claim information that the contracted or noncontracted health care provider can document it has already provided to the health care insurer unless the health care insurer provides a reasonable justification for the request and the purpose of the request is not to delay the payment of the claim.

F. A health care insurer shall establish an internal system for resolving payment disputes and other contractual grievances with health care providers. The director may review the health care insurer's internal system for resolving payment disputes and other contractual grievances with health care providers. Each health care insurer shall maintain records of health care provider grievances. Semiannually each health care insurer shall provide the director with a summary of all records of health care provider grievances received during the prior six months.  The records shall include at least the following information:

1. The name and any identification number of the health care provider who filed a grievance.

2. The type of grievance.

3. The date the insurer received the grievance.

4. The date the grievance was resolved.

G. On review of the records, if the director finds a significant number of grievances that have not been resolved, the director may examine the health care insurer.

H. This section does not require or authorize the director to adjudicate the individual contracts or claims between health care insurers and health care providers.

I. On or before August 1 of each year, the director shall post a report on the department's publicly accessible website that includes the information prescribed in subsection F of this section for the prior fiscal year and that includes:

1. The total number of grievances received.

2. The average time to resolve a grievance.

3. The percentage of grievances where a health care insurer's decision was overturned.

J. Except in cases of fraud, a health care insurer or contracted or noncontracted health care provider shall not adjust or request adjustment of the payment or denial of a claim more than one year after the health care insurer has paid or denied that claim.  If the health care insurer and health care provider agree through contract on a length of time to adjust or request adjustment of the payment of a claim, the health care insurer and health care provider must have the same length of time to adjust or request adjustment of the payment of the claim.  If a claim is adjusted, neither the health care insurer nor the health care provider shall owe interest on the overpayment or underpayment resulting from the adjustment, as long as the adjusted payment is made or recoupment taken within thirty days of the date of the claim adjustment.

K. This article does not apply to licensed health care providers who are salaried employees of a health care insurer.

L. If a contracted or noncontracted health care provider files a claim or grievance with a health care insurer that has changed the location where providers were instructed to file claims or grievances, the health care insurer shall, for ninety days following the change:

1. Consider a claim or grievance delivered to the original location properly received.

2. Following receipt of a claim or grievance at the original location, promptly notify the health care provider of the change of address through mailed written notice or some other written communication.

M. This section does not preclude a health care provider, with written informed consent of the patient, from collecting monies for a medical service that is either:

1. Not covered under the insurance policy.

2. Medically necessary and a payment on the claim was not made due to a denial on the basis of frequency or a disallowance on the basis of frequency.  For the purposes of this paragraph, a provider is limited to the rates prescribed by that provider's fee schedule.

N. Any claim that is subject to article 2 of this chapter is not subject to this article.
A.R.S. § 20-1242 — Arizona Code / Title 20 / Chapter 6 / Article 1.2 / Section 1242
20-1242 Definitions
Status: in_force

20-1242. Definitions

In this article, unless the context otherwise requires:

1. "Contract owner" means the owner named in the annuity contract or certificate holder in the case of a group annuity contract.

2. "Determinable elements" means elements that are derived from processes or methods that are guaranteed at issue and that are not subject to company discretion, but where the values or amounts cannot be determined until some point after issue.  These elements include the premiums, credited interest rates, including any bonus, benefits, values, noninterest based credits, charges or elements of formulas used to determine any of these. These elements may be described as guaranteed but not determined at issue. An element is considered determinable if it is calculated from underlying determinable elements only or from both determinable and guaranteed elements.

3. "Generic name" means a short title descriptive of the annuity contract being applied for or illustrated such as "single premium deferred annuity".

4. "Guaranteed elements" means the premiums, credited interest rates, including any bonus, benefits, values, noninterest based credits, charges, or elements of formulas used to determine any of these, that are guaranteed and determined at issue.  An element is considered guaranteed if all of the underlying elements that go into its calculation are guaranteed.

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

6. "Nonguaranteed elements" means the premiums, credited interest rates, including any bonus, benefits, values, noninterest based credits, charges, or elements of formulas used to determine any of these, that are subject to company discretion and that are not guaranteed at issue.  An element is considered nonguaranteed if any of the underlying nonguaranteed elements are used in its calculation.

7. "Structured settlement annuity" means a qualified funding asset as defined in section 130(d) of the internal revenue code or an annuity that would be a qualified funding asset under section 130(d) but for the fact that it is not owned by an assignee under a qualified assignment.
A.R.S. § 20-2603 — Arizona Code / Title 20 / Chapter 16 / Article 1 / Section 2603
20-2603 Reports
Status: in_force

20-2603. Reports

A. In addition to any other materials an insurer is required to submit to the director pursuant to this article, an insurer authorized to transact variable life insurance business in this state shall submit the following to the director:

1. An annual statement of the business of its separate account or accounts in a form that the national association of insurance commissioners prescribes.

2. Before its use in this state, any information that the insurer furnishes to applicants pursuant to section 20-2607.

3. Before its use in this state, the form of the reports to policyholders that are prescribed by section 20-2609.

4. Any additional information concerning the insurer's variable life insurance operations or separate accounts as the director deems necessary.

B. The director shall disapprove any material that is submitted under this section that the director finds to be false, misleading, deceptive or inaccurate in any material respect. If the material was previously distributed, the director shall require that the insurer distribute amended material.

C. The director may disapprove any material that is filed with the director if at any time the director finds that the material does not comply with the standards established pursuant to the laws of this state.
A.R.S. § 20-1376.09 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1376.09
20-1376.09 Coverage of health care services
Status: in_force

20-1376.09. Coverage of health care services

All policies issued, delivered or renewed on or after July 1, 2017 by a disability insurer in this state must provide coverage for lawful health care services that are provided by a health care provider to an insured regardless of the familial relationship of the health care provider to the insured if the health care service would be covered were it provided to an insured who was not related to the health care provider.  The policy may limit the coverage to those health care providers who are members of the disability insurer's provider network.  This section does not apply to disability income.
A.R.S. § 20-1124 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1124
20-1124 Discharge of insurer by payment under policy
Status: in_force

20-1124. Discharge of insurer by payment under policy

When the proceeds of or payments under a life or disability insurance policy or annuity contract become payable in accordance with the terms of the policy or contract, or the exercise of any right or privilege thereunder, and the insurer makes payment thereof in accordance with the terms of the policy or contract or in accordance with any written assignment thereof, the person then designated in the policy or contract or by the assignment as being entitled thereto shall be entitled to receive the proceeds or payments and to give full acquittance therefor, and the payments shall fully discharge the insurer from all claims under the policy or contract unless, before payment is made, the insurer has received at its home office written notice by or on behalf of some other person that such other person claims to be entitled to such payment or some interest in the policy or contract.
A.R.S. § 20-647 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 647
20-647 Giving guaranty fund or association immediate access to assets
Status: in_force

20-647. Giving guaranty fund or association immediate access to assets

A. As soon as practicable after a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the receiver may make application to the court for approval of a proposal to distribute assets out of such company's marshaled assets, from time to time as such assets become available, to the Arizona property and casualty insurance guaranty fund established in section 20-662 and the life and disability insurance guaranty fund established in section 20-683 or a similar organization in another state to the extent the organization provides substantially similar protection with respect to the same kinds of insurance.

B. Such proposal shall at least include provisions for:

1. Reserving amounts for the payment of claims of secured creditors and claims accorded a higher priority pursuant to section 20-629.

2. Distribution of assets marshaled to date and subsequent distribution of assets as such assets become available.

3. Equitable allocation of disbursements to each of the funds.

4. The securing by the receiver from each of the funds entitled to distribution pursuant to this section of an agreement to return to the receiver such assets previously distributed as may be required to pay claims of secured creditors and claims accorded a higher priority pursuant to section 20-629. No bond shall be required of any such fund.

5. A full report to be made by the funds to the receiver accounting for all assets distributed to the fund, all disbursements made, any interest earned by the funds from such assets and any other matter as the court may direct.

C. The receiver's proposal shall provide for distribution to the funds in amounts estimated to at least equal the claim payment made or to be made for which such funds could assert a claim against the receiver, and shall further provide that if the assets available for distribution do not equal or exceed the amount of such claim payments made or to be made by the funds, then distribution shall be in the amount of available assets.

D. Notice of such application shall be given to the funds and to the commissioners and directors of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States mail, first class postage prepaid, at least thirty days prior to submission of such application to the court. Action on the application may be taken by the court if required notice has been given and if the receiver's proposal complies with subsection B, paragraphs 1 and 2 of this section.
A.R.S. § 20-3604 — Arizona Code / Title 20 / Chapter 30 / Article 1 / Section 3604
20-3604 Rules
Status: in_force

20-3604. Rules

A. The director may adopt rules pursuant to title 41, chapter 6 to carry out this article.

B. The rules may include regulation of reinsurance arrangements relating to any of the following:

1. Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits.

2. Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period.

3. Variable annuities with guaranteed death or living benefits.

4. Long-term care insurance policies.

5. Any other life and health insurance and annuity products for which the national association of insurance commissioners adopts model regulatory requirements with respect to credit for reinsurance.

C. Any rule adopted pursuant to subsection B, paragraph 1 or 2 of this section may apply to any treaty that contains either or both:

1. Policies issued on or after January 1, 2015.

2. Policies issued before January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.

D. Any rule adopted pursuant to subsection B of this section:

1. May require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to rules adopted by the department, to use the valuation manual adopted by the national association of insurance commissioners under section 11B(1) of the national association of insurance commissioners standard valuation law, including all amendments adopted by the national association of insurance commissioners and in effect on the date as of which the calculation is made, to the extent applicable.

2. Does not apply to cessions to an assuming insurer that is licensed in at least twenty-six states or that is licensed in at least ten states and licensed or accredited in a total of at least thirty-five states and that either:

(a) Meets the conditions prescribed in section 20-3602, subsection H in this state.

(b) Is certified in this state.

(c) Maintains at least $250,000,000 in capital and surplus as determined in accordance with the accounting practices and procedures manual and amendments adopted by the national association of insurance commissioners, excluding the impact of any allowed or prescribed practices.

E. The authority to adopt rules pursuant to subsection B of this section does not limit the department's general authority to adopt rules pursuant to subsection A of this section.
A.R.S. § 20-1242.05 — Arizona Code / Title 20 / Chapter 6 / Article 1.2 / Section 1242.05
20-1242.05 Rules; exemption from rule making procedures
Status: in_force

20-1242.05. Rules; exemption from rule making procedures

A. The director may adopt rules that are necessary to implement the requirements of this article.

B. The department is exempt from title 41, chapter 6, articles 3 and 5 for the purposes of adopting rules that establish the form and content of any consumer notices, disclosure forms, buyer's guides and other forms required by this article.  The requirements adopted by rule for any such notices, forms and guides shall substantially conform to those adopted in model regulations adopted by the national association of insurance commissioners.
A.R.S. § 20-784 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 784
20-784 Assessments
Status: in_force

20-784. Assessments

A. Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers' advisory committee and the director, or by the director in liquidation of the insurer.

B. Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as computed in accordance with section 20-786, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.

C. In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.

D. No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
A.R.S. § 20-336.05 — Arizona Code / Title 20 / Chapter 2 / Article 3.4 / Section 336.05
20-336.05 Enforcement; rules
Status: in_force

20-336.05. Enforcement; rules

A. The director may examine and investigate the business affairs and records of any navigator or certified application counselor to determine whether the individual or entity has engaged or is engaging in any violation of this title.

B. The director may adopt rules pursuant to title 41, chapter 6 to carry out this article.
A.R.S. § 20-509 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 509
20-509 Increase of inadequate reserves
Status: in_force

20-509. Increase of inadequate reserves

A. If the director determines that an insurer's unearned premium reserve, however computed, is inadequate, the director may require the insurer to compute the reserve or any part of the reserve according to methods prescribed in this article.

B. If the loss experience of an insurer shows that its loss reserves, however estimated, are inadequate, the director shall require the insurer to maintain loss reserves in an increased amount as needed to make the loss reserves adequate.

C. If the insurer's anticipated losses, loss adjustment expenses, commissions and other acquisition costs and maintenance costs are more than the recorded unearned premium reserve and any future installment premiums on existing policies, the insurer shall establish a premium deficiency reserve by recording an additional liability for the deficiency according to the accounting practices and procedures manual adopted by the national association of insurance commissioners.
A.R.S. § 20-1029 — Arizona Code / Title 20 / Chapter 4 / Article 8 / Section 1029
20-1029 Division of profits
Status: in_force

20-1029. Division of profits

No profits shall accrue to an underwriter, except upon the basis of his actual investment in cash or securities, disregarding any obligation or subscription to pay in additional cash or securities at a later date.
A.R.S. § 20-511 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 511
20-511 Valuation of bonds; limitation
Status: in_force

20-511. Valuation of bonds; limitation

A. All bonds or other evidences of debt having a fixed term and rate of interest and held by any insurer may, if amply secured and not in default as to principal or interest, be valued as follows:

1. If purchased at par, at the par value.

2. If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at the earliest date callable at par or at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of such method, according to such accepted method of valuation as is approved by the director.

The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities.

B. Unless otherwise provided by valuation established or approved by the national association of insurance commissioners, no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called.

C. The director has full discretion in determining the method of calculating values of bonds as set forth in this section but shall not value bonds in a manner that is inconsistent with the standards promulgated by the securities valuation office of the national association of insurance commissioners.
A.R.S. § 20-2203 — Arizona Code / Title 20 / Chapter 12 / Article 1 / Section 2203
20-2203 Powers of the joint underwriting association
Status: in_force

20-2203. Powers of the joint underwriting association

The association may, on behalf of its members and with the approval of the director, do all of the following, which may be exercised directly or by contractual delegation:

1. Issue or cause to be issued policies of liability insurance on a claims-made basis to applicants, including incidental coverages, subject to limits as specified in the plan of operation. The policies shall be offered on one of the following bases:

(a) One hundred thousand dollars for each claimant under one policy and three hundred thousand dollars for all claimants under one policy in any one year.

(b) Two hundred fifty thousand dollars for each claimant under one policy and seven hundred fifty thousand dollars for all claimants under one policy in any one year.

(c) Five hundred thousand dollars for each claimant under one policy and one million five hundred thousand dollars for all claimants under one policy in any one year.

(d) One million dollars for each claimant under one policy and three million dollars for all claimants under one policy in any one year.

2. Underwrite the insurance and adjust and pay losses with respect to the insurance or retain service companies to perform those functions.

3. Assume reinsurance from its members.

4. Cede reinsurance.

5. Receive, invest and disburse monies.

6. Open bank accounts and delegate authority for deposit, withdrawal and disbursement of monies.

7. Borrow monies for the association's necessary administrative expenses.

8. Provide for such fidelity and surety bonds as are deemed necessary to transact the business of the association.

9. Review, consider and act on any matters deemed by it to be necessary and proper for the administration of the association.

10. Develop, promulgate and effectuate loss prevention programs.

11. Sue and be sued, except that no judgment against the association shall create any liability in the individual member companies, and the association may provide for the indemnification of its member companies, members of the board of directors and officers and employees and other persons acting on behalf of the association.

12. Employ attorneys and other persons necessary to perform the functions of the association.
A.R.S. § 20-553 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 553
20-553 Mortgages on real estate; definitions
Status: reserved

20-553. Mortgages on real estate; definitions

A. An insurer may invest any of its funds in bonds, notes or other evidences of indebtedness that are secured by first mortgages or deeds of trust on improved, unencumbered real property located in the United States, or that are secured by first mortgages or deeds of trust on leasehold estates having an unexpired term of not less than twenty-one years, inclusive of the term that may be provided by an enforceable option of renewal, in improved, unencumbered real property located in the United States.

B. Real property shall not be deemed to be encumbered within the meaning of this section by reason of the existence of instruments reserving mineral, oil or timber rights, rights-of-way, sewer rights, rights in walls, nor by reason of any liens for taxes or assessments not delinquent, nor by reason of building restrictions or other restrictive covenants, nor when such real property is subject to lease under which rents or profits are reserved to the owner, if in any event the security for the loan is a first lien on the real property and if there is no condition or right of reentry or forfeiture under which, in the case of real property other than leaseholds, the lien can be cut off, subordinated or otherwise disturbed, or under which, in the case of leaseholds, the insurer is unable to continue the lease in force for the duration of the loan.

C. No mortgage loan or loans made or acquired by an insurer on any one property shall, at the time of investment by the insurer, exceed eighty per cent of the value of the real property or leasehold securing the loan, except that the loan or loans may equal the amount of any guaranty by the United States or any agency or instrumentality of the United States.

D. An insurer shall not make or acquire a mortgage loan or loans except after an appraisal made by a qualified appraiser for the purpose of the investment.

E. An insurer may invest any of its funds in an undivided interest or participation in any bond, note or other evidence of indebtedness secured by a first mortgage or deed of trust that would be eligible as an investment by the insurer pursuant to subsection A if the following requirements are met:

1. The mortgagee or beneficiary of the deed of trust is a trustee specifically designated by a participation agreement or otherwise who is required to act as trustee for all persons or institutions owning an interest in or participating in the bonds, notes or other evidences of indebtedness that are secured by the mortgage or deed of trust.  The trustee may be one of the participants in the bonds, notes or other evidences of indebtedness secured by the mortgage or deed of trust.

2. The participant in or co-owner of any of the bonds, notes or other evidences of indebtedness does not have any interest in the mortgage or deed of trust superior to that of the insurer.

3. The trustee is under an obligation to distribute all payments, proceeds and recoveries from the notes, bonds, evidences of indebtedness, mortgages and deeds of trust ratably without preference among all participants.

F. No mortgage loan on a leasehold shall be made or acquired pursuant to this section unless the terms of the loan provide for amortization payments to be made by the borrower on the principal of the loan at least once in each year in amounts sufficient completely to amortize the loan within a period of four-fifths of the term of the leasehold, inclusive of the term which may be provided by an enforceable option of renewal, that is unexpired at the time the loan is made, but in no event exceeding thirty-five years.

G. An insurer may invest in construction loans pursuant to this section and the accounting practices and procedures manual adopted by the national association of insurance commissioners, if the real property is improved or will be improved with the proceeds of the construction loan.  The insurer shall not report the construction loan in an amount that is more than eighty per cent of the fair value of the property.  The appraisal prescribed in subsection D may take into consideration the improvements to be constructed. However, the appraisal shall take into consideration the percentage of completion of the property in determining the fair value of the property securing the amount advanced under the construction loan.

H. At any one time, an insurer shall not invest more than two per cent of its assets in construction loans allowed pursuant to this article.

I. For the purposes of this section:

1. "Construction loan" means a mortgage loan that is less than three years in term, that is made for financing the cost of construction of any building or other improvement to real estate and that is secured by the real estate.

2. "Improved real property" includes all land that has been reclaimed and that is used for the purpose of husbandry, whether for tillage or pasture.
A.R.S. § 20-233 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 233
20-233 Additional information required of insurer; disclosure to director; violation; classification
Status: in_force

20-233. Additional information required of insurer; disclosure to director; violation; classification

A. At the time of filing its annual statement as required by section 20-223, an insurer shall also disclose to the director, in the form or manner prescribed by the director, information similar to that required of other corporations transacting business in this state pursuant to sections 10-1622 and 10-1623 which is not already filed with or available to the director.

B. The director may refuse to renew or may suspend or revoke the certificate of authority of any insurer failing to provide the disclosures provided by subsection A of this section. Any insurer failing to provide the information required by subsection A at the time of filing its annual statement shall be subject to payment of a late fee not to exceed twenty-five dollars for each day of delinquency.

C. A person executing or contributing information for such a disclosure who intentionally makes an untrue statement of a material fact or withholds any material fact with regard to the information required in subsection A of this section is guilty of a class 6 felony.
A.R.S. § 20-1574 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1574
20-1574 Power to reinsure
Status: in_force

20-1574. Power to reinsure

A. Any title insurer authorized to engage in the business of title insurance in this state may cede reinsurance of all or any part of its liability under one or more of its title insurance policies to any title insurer authorized to engage in the business of title insurance in this or any other state, provided, however, that no larger amount of reinsurance shall be ceded to any title insurer on a single policy of title insurance, or on any single title insurance risk, than such title insurer would be permitted to retain if authorized to engage in the business of title insurance in this state.

B. Any title insurer authorized to do business in this state may also reinsure policies of title insurance issued by other companies on risks whether located in this state or elsewhere.

C. Issuance of contracts of reinsurance by a title insurer not authorized to engage in the business of title insurance in this state, but authorized to engage in the business of title insurance in any of the United States, reinsuring a title insurer authorized to engage in the business of title insurance in this state on real property located in this state, shall not of itself constitute the doing of business in this state by such reinsurer.

D. No agreement by any domestic title insurer for the reinsurance of all or substantially all its business in force shall be effective unless it shall comply with the provisions of section 20-732.
A.R.S. § 20-1276 — Arizona Code / Title 20 / Chapter 6 / Article 2 / Section 1276
20-1276 "Employee life insurance" defined
Status: in_force

20-1276. "Employee life insurance" defined

A. "Employee life insurance" is that plan of life insurance, other than salary savings life insurance or pension trust insurance and annuities, under which individual policies are issued to the employees of any employer and where such policies are issued on the lives of not less than two nor more than forty-nine employees at date of issue.

B. Premiums for such policies shall be paid by the employer or the trustee of a fund established by the employer either from the employer's funds or funds contributed by him, or from funds contributed by the insured employees, or from both.
A.R.S. § 20-1057.09 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1057.09
20-1057.09 Health care services organizations; varying copayments and deductibles allowed
Status: in_force

20-1057.09. Health care services organizations; varying copayments and deductibles allowed

A. Except as provided in sections 20-1379 and 20-2304, a health care services organization may offer one or more health care plans that contain a choice of deductibles, coinsurance, copayments, out-of-pocket and any other cost sharing levels.  Plans offered under this section shall clearly disclose in marketing materials, certificates of coverage and contracts the insured’s financial responsibilities.  A health care services organization that offers such a health care plan shall continue to provide any mandated health coverage that is required by this state or by federal law.

B. This section does not prohibit a health benefits plan that is intended to qualify as a high deductible health plan as defined by 26 United States Code section 223(c)(2) from requiring the application of deductibles, copayments or coinsurance to benefits provided under the health benefits plan.
A.R.S. § 20-1661 — Arizona Code / Title 20 / Chapter 6 / Article 13 / Section 1661
20-1661 Definitions
Status: in_force

20-1661. Definitions

A. In this article, unless the context otherwise requires:

1. "Direct response solicitation" means any offer by an insurer to persons in this state, either directly or through a third party, to effect life or health insurance coverage which enables the individual to apply or enroll for the insurance on the basis of the offer.

2. "Mass marketed life or health insurance" means insurance under any franchise, group or blanket policy of life or health insurance which is offered by means of direct response solicitation through a sponsoring organization or through the mails or other mass communications media and under which the person who is insured pays all or substantially all of the cost of his insurance.

B. In this article, "direct response solicitation" does not include solicitations for insurance through an employee benefit plan or a solicitation through the individual's creditor with respect to credit life or credit health insurance.
A.R.S. § 20-224.02 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 224.02
20-224.02 Credit for overpayment of tax
Status: in_force

20-224.02. Credit for overpayment of tax

If an overpayment of the taxes imposed by sections 20-224, 20-224.01, 20-837, 20-1010, 20-1060 and 20-1097.07 results from payments made pursuant to the method prescribed in section 20-224, subsection F, the director shall within three months after the due date refund the overpayment without interest.
A.R.S. § 20-1652 — Arizona Code / Title 20 / Chapter 6 / Article 12 / Section 1652
20-1652 Grounds for valid notice of cancellation; inquiries; definitions
Status: in_force

20-1652. Grounds for valid notice of cancellation; inquiries; definitions

A. After a policy has been in effect for sixty days or, if the policy is a renewal, effective immediately, a notice of cancellation is not effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following:

1. Nonpayment of premium.

2. Conviction of the named insured of a crime arising out of acts increasing the hazard insured against.

3. Acts or omissions by the insured or the insured's representative constituting fraud or material misrepresentation in obtaining the policy, continuing the policy or presenting a claim under the policy.

4. Discovery of grossly negligent acts or omissions by the insured substantially increasing any of the hazards insured against.

5. Substantial change in the risk assumed by the insurer, since the policy was issued, except to the extent that the insurer should reasonably have foreseen the change or contemplated the risk in writing the contract.

6. A determination by the director that the continuation of the policy would place the insurer in violation of the insurance laws of this state.

7. Failure of the insured to take reasonable steps to eliminate or reduce any conditions in or on the insured premises that contributed to a loss in the past or will increase the probability of future losses.

B. If nonrenewal is based on the condition of the premises, the insured shall be given thirty days' notice to remedy the identified conditions.  If the identified conditions are remedied, coverage shall be renewed.  If the identified conditions are not satisfactorily remedied, the insured shall be given an additional thirty days, on payment of premium, to cure the defective condition. Any insured who believes nonrenewal under this subsection is arbitrary or capricious may use the appeal procedures set forth in section 20-1633.

C. If an insurer uses for underwriting purposes information from a report provided by, or database maintained by, an insurance support organization or consumer reporting agency related to the premises that is the subject of the application or to the person applying for insurance, the insurer shall obtain that information as soon as practicable on application by a person for insurance coverage and before the issuance of a binder of insurance coverage. Failure of the insurer to timely obtain the information required by this subsection precludes the insurer from declining insurance coverage or terminating a binder of insurance coverage based on the information. This subsection does not apply to a policy renewal.

D. This section does not affect the provisions of section 20-1120.

E. After thirty days from the application by an insured for insurance coverage, no declination of insurance coverage or termination of a binder shall be based on information from a consumer report, including a consumer report provided by, or database maintained by, an insurance support organization or consumer reporting agency related to the premises that is the subject of the application or to the person applying for insurance. Notwithstanding any other law, an insurer may decline or terminate insurance coverage based on the condition of the premises as determined through a physical inspection of the premises.

F. An insurer shall not consider as a claim any inquiry by an insured into whether a policy will cover a loss or about the type or level of coverage.  An insurer shall not use such an inquiry, regardless of the source of the information that an inquiry was made, as a basis for declining, nonrenewing or canceling insurance coverage or a binder of insurance coverage.  An insurer shall not submit to any insurance support organization or consumer reporting agency that a mere inquiry was made to the insurer as to the terms or coverage of a policy of insurance.  An inquiry into coverage on a property insurance policy is not a claim activity unless an actual claim is filed by the insured that results in an investigation of the claim by the insurer.

G. For the purposes of this section, nonrenewal does not include the issuance and delivery of a new policy within the same insurer or an insurer under the same ownership or management as the original insurer as provided in this subsection. An insurer may transfer any of its policies to an affiliated insurer. An insurer may not transfer a policyholder because of the policyholder's location of residence, age, race, color, religion, sex, national origin or ancestry. A transfer by an insurer pursuant to this subsection does not allow the insurer to apply a new unrestricted sixty-day period for cancellation or nonrenewal.

H. For the purposes of this section:

1. "Consumer reporting agency" has the same meaning prescribed in section 20-2102.

2. "Insurance support organization" has the same meaning prescribed in section 20-2102.
A.R.S. § 20-2803 — Arizona Code / Title 20 / Chapter 17 / Article 1 / Section 2803
20-2803 Emergency services access; prior authorization; requirements
Status: in_force

20-2803. Emergency services access; prior authorization; requirements

A. A health care services plan shall provide coverage for an initial medical screening examination and any immediately necessary stabilizing treatment required by the emergency medical treatment and active labor act (P.L. 99-272; 100 Stat. 164; 42 United States Code section 1395dd) without prior authorization by the plan, subject to applicable copayments, coinsurance and deductibles.

B. A health care services plan shall provide coverage for emergency ambulance services without prior authorization, subject to applicable copayment, coinsurance and deductibles.

C. A provider shall not deny, limit or otherwise restrict a patient's access to medically necessary emergency services based on the patient's enrollment in a health care services plan.

D. A health care services plan may require as a condition of coverage prior authorization for health care services arising after the initial medical screening examination and immediately necessary stabilizing treatment. Prior authorization is granted unless denied or direction of the enrollee's care is initiated by the plan within a reasonable period of time after the plan receives the prior authorization request. If direction of care instructions are received from the plan after more than a reasonable period of time has elapsed, the treating provider or providers shall comply with the late instructions to the extent feasible, except that a health care services plan remains responsible for coverage of medically necessary care given and substantially completed before the late instructions were received.

E. A health care services plan that requires prior authorization under subsection C shall provide twenty-four hour access by telephone or facsimile for enrollees and providers to request prior authorization for medically necessary care after the initial medical screening examination and any immediately necessary stabilizing treatment. Plan personnel shall have access to a physician when necessary to make determinations regarding prior authorization.

F. A health care services plan that gives prior authorization for specific care by a provider shall not rescind or modify the authorization after the provider renders the authorized care in good faith and pursuant to the authorization.

G. A hospital emergency department shall make reasonable efforts to promptly contact the health care services plan for prior authorization for continuing treatment, specialty consultations, transfer arrangements or other appropriate care for an enrollee. A health care services plan shall not deny coverage for emergency services provided to the plan's enrollee due to a provider's failure to obtain prior authorization from the plan if the provider could not determine the patient's enrollment in a particular plan due to the patient's physical condition, or if the patient's enrollment information was not available from the plan at the time of the provider's contact.

H. If the health care services plan and the provider disagree on the medical necessity of specific emergency services for an enrollee, except for emergency services provided outside the geographic service area of the plan, medical personnel representing the plan shall make necessary arrangements to assume the care of the enrollee within a reasonable period of time after the disagreement arises. If the health care services plan fails to assume the care of the enrollee as provided by this subsection, the plan shall not deny coverage for medically necessary emergency services provided to the enrollee due to lack of prior authorization.

I. If within a reasonable period of time after receiving a request from a hospital emergency department for a specialty consultation a health care services plan fails to identify an appropriate specialist who is available and willing to assume the care of the enrollee, the emergency department may arrange for medically necessary emergency services by any appropriate specialist, and the plan shall not deny coverage for these services due to lack of prior authorization. A health care services plan shall not require prior authorization for specialty care emergency services for treatment of any immediately life threatening medical condition.
A.R.S. § 20-1366 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1366
20-1366 Conformity with statutes
Status: in_force

20-1366. Conformity with statutes

There may be a provision as follows: "Conformity with statutes: Any provision of this policy which, on its effective date, is in conflict with the statutes of the state, District of Columbia or territory in which the insured resides on such date is hereby amended to conform to the minimum requirements of such statutes."
A.R.S. § 20-1223 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1223
20-1223 Dividends on annuities
Status: in_force

20-1223. Dividends on annuities

If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, is participating, there shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract.
A.R.S. § 20-443 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 443
20-443 Misrepresentations and false advertising of policies; false disclosure of compensation
Status: in_force

20-443. Misrepresentations and false advertising of policies; false disclosure of compensation

A. A person shall not make, issue or circulate, or cause to be made, issued or circulated, any estimate, illustration, circular, sales material or statement:

1. Misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised or the dividends or share of the surplus to be received.

2. Making any false or misleading statement as to the dividends or share of surplus previously paid on similar policies.

3. Making any misleading representation or any misrepresentation as to the financial condition of any insurer or as to the legal reserve system upon which any life insurer operates.

4. Using any name or title of any policy or class of policies misrepresenting the true nature of the policy.

5. Making any misrepresentation to any policyholder for the purpose of inducing or tending to induce the policyholder to lapse, forfeit, surrender, retain or convert any insurance policy.

6. Referring to the coverage or any of the provisions of chapter 3, article 6 or 7 of this title in connection with the sale or attempted sale of any policy of insurance, except in connection with the notice prescribed in section 20-400.10, subsection E, section 20-410, subsection B and section 20-422, subsection C.

B. An insurance producer, consultant or third party administrator shall not falsely disclose the method or amount of compensation associated with a health benefits plan as defined in section 20-2301.
A.R.S. § 20-688 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 688
20-688 Duties and powers of the director
Status: in_force

20-688. Duties and powers of the director

A. In addition to all other duties and powers enumerated in this article, the director shall:

1. Notify the board of directors of the existence of an impaired insurer or insolvent insurer not later than three days after a determination of impairment or insolvency or the director receives notice of impairment or insolvency.

2. On request of the board of directors, provide the board with a statement of the premiums in the appropriate states for each member insurer.

3. When an impairment is declared and the amount of the impairment is determined, serve a demand on the impaired insurer to make good the impairment within a reasonable time.  Notice to the impaired insurer shall constitute notice to its shareholders. The failure of the impaired insurer to promptly comply with such demand shall not excuse the board from the performance of its duties pursuant to this article.

B. The director may suspend or revoke, after notice and a hearing pursuant to title 41, chapter 6, article 10, the certificate of authority to transact business in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation.  As an alternative the director may levy a forfeiture on any member insurer that fails to pay an assessment when due.  Such forfeiture shall not exceed five percent of the unpaid assessment per month, but no forfeiture may be less than one hundred dollars per month.

C. Any action of the board of directors may be appealed to the director by any member insurer within thirty days.  Except as provided in section 41-1092.08, subsection H, any final action or order of the director is subject to judicial review pursuant to title 12, chapter 7, article 6.

D. The liquidator, rehabilitator or conservator of any impaired insurer or insolvent insurer may notify all interested persons of the effect of this article.
A.R.S. § 20-1342.07 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1342.07
20-1342.07 Contracts; optometrists; covered services; definition
Status: in_force

20-1342.07. Contracts; optometrists; covered services; definition

A. Except as provided in subsection C of this section, a contract, entered into or renewed on or after January 1, 2022, between a disability insurer and an optometrist who is licensed to practice in this state shall not:

1. Require the optometrist to provide a service to an individual covered under a disability insurance policy based on a fee set by the disability insurer unless the service for which the fee applies is a covered service under the individual's disability insurance policy.

2. Prohibit an optometrist from offering or providing a vision service that is not a covered service to a covered individual at a fee determined by the optometrist or by the optometrist and the covered individual.

3. Require an optometrist to use one or more specific vendors to replenish the optometrist's inventory of spectacle lenses after the optometrist dispenses the optometrist's inventory to eligible members of the vision plan as a covered vision service.

B. This section applies to an administrator providing third-party administration services or a provider network for a vision plan.

C. This section does not restrict the ability of a disability insurer to enter into a contract for an optometrist to participate in a discount program sponsored by the disability insurer for services that are not covered if:

1. Participation in the disability insurer network is not contingent on participation in the sponsored discount program.

2. The disability insurer offers equal treatment to an optometrist who does not participate in a sponsored discount program, regarding:

(a) Promotional treatment.

(b) Marketing benefits.

(c) Materials.

(d) Contract terms for providing a covered service.

D. Notwithstanding subsection C, paragraph 2, subdivision (d) of this section, a disability insurer, when providing a typically formatted list of optometrists in the disability insurer network, may identify whether an optometrist participates in a discount program for services not covered by the disability insurer, provided that all lists state that other discounts may be available with individual optometrists.

E. All contracts shall be in compliance with this section by the first renewal period on or after January 1, 2022, but not later than December 31, 2022.

F. For the purposes of this section, "covered service" means a service for which any reimbursement is available under a disability insurance policy 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.