A.R.S. § 20-224 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 224
20-224 Premium tax; reports
Status: in_force

20-224. Premium tax; reports

A. On or before March 1 of each year, each authorized domestic insurer, each other insurer and each formerly authorized insurer referred to in section 20-206, subsection B shall file with the director a report in a form prescribed by the director showing total direct premium income including policy membership and other fees and all other considerations for insurance from all classes of business whether designated as a premium or otherwise received by it during the preceding calendar year on account of policies and contracts covering property, subjects or risks located, resident or to be performed in this state, after deducting from such total direct premium income applicable cancellations, returned premiums, the amount of reduction in or refund of premiums allowed to industrial life policyholders for payment of premiums direct to an office of the insurer and all policy dividends, refunds, savings coupons and other similar returns paid or credited to policyholders within this state and not reapplied as premiums for new, additional or extended insurance. No deduction shall be made of the cash surrender values of policies or contracts.  Considerations received on annuity contracts, as well as the unabsorbed portion of any premium deposit, shall not be included in total direct premium income, and neither shall be subject to tax. The report shall separately indicate the total direct fire insurance premium income received from property located in the incorporated cities and towns certified by the office of the state fire marshal pursuant to section 9-951, subsection B, as procuring the services of a private fire company.

B. Coincident with the filing of the tax report, each insurer shall pay to the director for deposit, pursuant to sections 35-146 and 35-147, a tax on such net premiums at the following rates:

1. For fire insurance:

(a) On property located in a city or town certified by the office of the state fire marshal pursuant to section 9-951, subsection B, as procuring the services of a private fire company, .66 percent.

(b) On all other property, 2.2 percent.

2. For disability insurance, 2.0 percent.

3. For health care service plans, the rates prescribed under sections 20-837, 20-1010 and 20-1060.

4. For other insurance:

(a) For premiums received in calendar year 2016, 1.95 percent.

(b) For premiums received in calendar year 2017, 1.90 percent.

(c) For premiums received in calendar year 2018, 1.85 percent.

(d) For premiums received in calendar year 2019, 1.80 percent.

(e) For premiums received in calendar year 2020, 1.75 percent.

(f) For premiums received in calendar year 2021 and for each subsequent calendar year, 1.70 percent.

C. Any payments of tax pursuant to subsection F of this section shall be deducted from the tax payable pursuant to subsection B of this section. Each insurer shall reflect the cost savings attributable to the lower tax in fire insurance premiums charged on property located in an incorporated city or town certified by the office of the state fire marshal pursuant to section 9-951, subsection B, as procuring the services of a private fire company.  No insurer shall be liable to the state or to any other person, or shall be subject to regulatory action, relating to the calculation or submittal of fire insurance premium taxes based in good faith on the office of the state fire marshal's certification.

D. Eighty-five percent of the tax paid under this section by an insurer on account of premiums received for fire insurance shall be separately specified in the report and shall be apportioned in the manner provided by sections 9-951, 9-952 and 9-972, except that all of the tax so allocated to a fund of a municipality or fire district that has no volunteer firefighters or pension obligations to volunteer firefighters shall be appropriated to the account of the municipality or fire district in the public safety personnel retirement system and all of the tax so allocated to a fund of a municipality or fire district that has both full-time paid firefighters and volunteer firefighters or pension obligations to full-time paid firefighters or volunteer firefighters shall be appropriated to the account of the municipality or fire district in the public safety personnel retirement system where it shall be reallocated by actuarial procedures proportionately to the municipality or fire district for the account of the full-time paid firefighters and to the municipality or fire district for the account of the volunteer firefighters. A municipality or fire district shall provide to the public safety personnel retirement system all information that the system deems necessary to perform the reallocation prescribed by this section.  A full accounting of the reallocation shall be forwarded to the municipality or fire district and its local boards.

E. This section does not apply to title insurance. Title insurers shall be taxed as provided in section 20-1566.

F. Any insurer that paid or is required to pay a tax of $50,000 or more on net premiums received during the preceding calendar year, pursuant to subsection B of this section and sections 20-224.01, 20-837, 20-1010, 20-1060 and 20-1097.07, shall file on or before the fifteenth day of each month from March through August a report for that month, on a form prescribed by the director, accompanied by a payment in an amount equal to fifteen percent of the amount paid or required to be paid during the preceding calendar year pursuant to subsection B of this section and sections 20-224.01, 20-837, 20-1010, 20-1060 and 20-1097.07. The payments are due and payable on or before the fifteenth day of each month and shall be made to the director for deposit, pursuant to sections 35-146 and 35-147.

G. Except for the tax paid on fire insurance premiums pursuant to subsections B and D of this section, an insurer may claim a premium tax credit if the insurer qualifies for a credit pursuant to section 20-224.03, 20-224.04, 20-224.06 or 20-224.07.

H. On receipt of a properly documented claim, a refund shall be provided to an insurer from available funds for the excess amount of any fire insurance premium improperly paid by the insurer. The insurer shall reflect the refund in the fire insurance premiums charged on the property that was charged the excessive amount.

I. On or before September 30 of each year, the director of the department of insurance and financial institutions shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on the amount of insurance premium tax credits established by sections 20-224.03, 20-224.04, 20-224.05, 20-224.06 and 20-224.07 that were used during the previous fiscal year.

J. For the purposes of:

1. Subsection B of this section, fire insurance is one hundred percent of fire lines, forty percent of commercial multiple peril nonliability lines, thirty-five percent of homeowners' multiple peril lines, twenty-five percent of farm owners' multiple peril lines and twenty percent of allied lines.

2. Section 20-416, fire insurance is eighty-five percent of fire and allied lines.

K. From and after December 31, 2017, the director may require that reports and payments under this section be submitted electronically.  If the director requires electronic submission, the director shall include on the department's official website a list of one or more acceptable third-party services through which an insurer must submit reports and payments.
A.R.S. § 20-1343 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1343
20-1343 Policies issued for delivery in another state
Status: in_force

20-1343. Policies issued for delivery in another state

If any policy is issued by a domestic insurer for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of such other state has advised the director that any such policy is not subject to approval or disapproval by such official, the director may by ruling require that such policy meet applicable standards set forth in this article and in article 1 of chapter 5 of this title.
A.R.S. § 20-361 — Arizona Code / Title 20 / Chapter 2 / Article 4 / Section 361
20-361 Licensing of rating organizations
Status: in_force

20-361. Licensing of rating organizations

A. A corporation, an unincorporated association, a partnership or an individual, whether located within or outside this state, may apply to the director for a license as a rating organization for insurance subject to this article and shall file all of the following with the director:

1. A copy of its constitution, its articles of agreement or association or its certificate of incorporation and a copy of its bylaws, rules and regulations governing the conduct of its business.

2. A list of its members.

3. The name and address of a resident of this state for service of process, notices and orders.

4. A statement of its qualifications as a rating organization.

5. A financial statement that is certified by an officer of the applicant, that is on a form acceptable to the director and that includes financial information that is current as of not more than ninety days before the date the application is filed with the director.  The financial statement shall include an income statement and a balance sheet that is prepared according to generally accepted accounting principles and that is for the two years immediately preceding the date of the financial statement.  The applicant shall not submit consolidated income statements or balance sheets.

6. A plan for the orderly and timely transfer to the designated statistical agent or the director of all data collected in accordance with the statistical plan in effect in this state from its member insurers in this state if the rating organization ceases to do business in this state.

B. If the director finds that the applicant is competent and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association or certificate of incorporation and its bylaws, rules and regulations governing the conduct of its business conform to the requirements of law, the director shall issue a license specifying the kinds of insurance, or subdivisions or classes of risks or parts or combinations thereof, for which the applicant is authorized to act as a rating organization.  The director shall either grant or deny an application in whole or in part within sixty days after its filing.

C. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the director or the director has accepted the surrender of the license. The director may suspend or revoke a license after notice and a hearing if the rating organization ceases to meet the requirements of this section.
A.R.S. § 20-683 — Arizona Code / Title 20 / Chapter 3 / Article 7 / Section 683
20-683 Life and disability insurance guaranty fund
Status: in_force

20-683. Life and disability insurance guaranty fund

A. The life and disability insurance guaranty fund is established in the department. The fund shall be deposited in a depository designated by the director. All member insurers shall be members of the fund as a condition of their authority to transact insurance or a health care services organization business in this state.  For the purposes of administration and assessment, the fund shall maintain three accounts:

1. The disability account.

2. The life insurance account.

3. The annuity account.

B. The fund is under the immediate supervision of the director and is subject to the applicable provisions of the insurance laws of this state.

C. All costs, expenses and liabilities of the fund shall be paid by the fund and shall not be a general obligation of the state.

D. All monies placed in the accounts of the fund may be expended for the purposes of this article.
A.R.S. § 20-841.06 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 841.06
20-841.06 Continuity of care; definition
Status: in_force

20-841.06. Continuity of care; definition

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

1. The subscriber has either:

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

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

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

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

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

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

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

1. The subscriber has either:

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

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

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

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

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

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

C. This section does not require a corporation to provide coverage for benefits that are not covered by the subscriber's contract and does not diminish or impair any preexisting condition limitation in the contract.

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

E. This section does not apply to any corporation that holds a certificate of authority to operate either as a dental service corporation or an optometric service corporation.

F. For the purposes of this section, "health care provider" means any physician who is licensed in this state pursuant to title 32, chapter 13 or 17.
A.R.S. § 20-1555 — Arizona Code / Title 20 / Chapter 6 / Article 8.1 / Section 1555
20-1555 Loss reserve
Status: in_force

20-1555. Loss reserve

A mortgage guaranty insurance company shall compute and maintain adequate case basis and other loss reserves which accurately reflect loss frequency and loss severity and shall include components for claims reported and unpaid, and for claims incurred but not reported, including estimated losses on:

1. Insured loans which have resulted in the conveyance of property which remains unsold.

2. Insured loans in the process of foreclosure.

3. Insured loans in default for four months or for any lesser period which is defined as default for such purposes in the policy provisions.

4. Insured leases in default for four months or for any lesser period which is defined as default for such purposes in policy provisions.
A.R.S. § 20-110 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 110
20-110 Secondary sources
Status: in_force

20-110. Secondary sources

A secondary source on insurance, including any legal treatise, scholarly publication, textbook or other explanatory text, does not constitute the law or public policy of this state and is not authoritative if the secondary source purports to create, eliminate, expand or restrict a cause of action, right or remedy or if it conflicts with any of the following:

1. The United States Constitution or the Arizona Constitution.

2. State law.

3. This state's case law precedent.

4. Other common law that may have been adopted by this state.
A.R.S. § 20-1621.03 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.03
20-1621.03 Disclosure to debtors; provisions of policies; certificates of insurance
Status: in_force

20-1621.03. Disclosure to debtors; provisions of policies; certificates of insurance

A. Before a debtor elects to purchase credit property insurance, the following information shall be disclosed to the debtor in writing:

1. Purchase of credit property insurance through the creditor is optional and not a condition of obtaining credit approval.

2. If more than one kind of credit insurance is being made available to the debtor, the debtor can purchase credit property insurance separately.

3. If the debtor has other insurance that covers the property, the debtor may not want or need credit property insurance.

4. Within the first thirty days of insurance coverage, the debtor may cancel the coverage and receive a refund or credit of all premium the debtor has paid.

5. The premium or premium rate for each type of coverage.

6. If the premium or insurance charge is financed, that it will be subject to finance charges at the rate applicable to the credit transaction.

B. A person may combine the disclosures required by subsection A with other disclosures required by the laws of this state or by federal law.

C. The disclosures required by subsection A shall be provided in the following manner:

1. For credit property insurance offered contemporaneously with the extension of credit or offered through direct mail advertisements, the disclosures shall be made in writing and presented to the consumer in a clear and conspicuous manner.

2. For credit property insurance offered after the extension of credit by other than direct mail advertisements, the disclosures required by subsection A, paragraphs 1, 5 and 6 may be provided orally or electronically if both of the following occur:

(a) The following oral disclosure is also made to a debtor who elects to purchase any consumer credit insurance:

You will be receiving important written information about the insurance you have chosen to purchase and your rights.  We recommend that you read and carefully review this information as soon as you receive it.

(b) Written disclosure of all information required by subsection A of this section is provided to the debtor no later than the earlier of:

(i) Ten days after the debtor elects coverage.

(ii) The date any other written material is provided to the debtor.

D. An offer to extend credit property insurance coverage for an open-end consumer transaction shall include, at the time of the invitation to contract, the written disclosure prescribed below in at least ten point type.  If the solicitation is made by telephone, the written disclosure shall be mailed within ten days of enrollment.

This coverage may duplicate existing coverage if you have a residential property insurance policy.  It applies to any item of covered property on which you owe a debt.  This coverage is primary, so it is the first source to be used in the event of a loss on property it covers.  You may cancel this coverage at any time by calling the insurer at the telephone number provided to you or by writing to the insurer.  We are charging you a premium that may be based on things for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.

E. All credit property insurance shall be evidenced by an individual policy or a certificate of insurance that shall be delivered to the debtor.

F. In addition to other requirements of law, the individual policy or certificate of insurance shall contain all of the following information:

1. The name and home office address of the insurer.

2. The name of each debtor, or, in the case of a certificate of insurance, the identity by name or otherwise of each debtor.

3. The premium or amount of payment by the debtor, except that, for open-end loans, the premium rate and balance to which the rate applies shall be specified.

4. A full description of the coverage or coverages, including the amount and term and any exceptions, limitations and exclusions.

5. A statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid debt or, for credit personal property insurance coverage, to repair or replace the property and, whenever the amount of loss payment exceeds the unpaid debt, that any excess payment is payable to the debtor.

6. If the scheduled term of the insurance is less than the scheduled term of the credit transaction, a statement to that effect on the face of the individual policy or certificate of insurance in not less than twelve point bold face type.

G. Policies issued to cover open-end consumer transactions shall provide that the policyholder or certificate holder will be furnished the following disclosure notice with the account statement at least annually in no smaller than ten point type:

You are paying credit property insurance premiums based on the outstanding balance of this account.  You may cancel this coverage at any time by calling the insurer at the telephone number the insurer has provided to you or by writing to the insurer.  Your premium may be based on things for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.

H. The policy shall be delivered to the debtor when the insurer accepts the insurance, except that a policy issued in conjunction with an open-end credit agreement or requested after the date the indebtedness is incurred may be delivered within thirty days of the date the debtor requests insurance.
A.R.S. § 20-485.01 — Arizona Code / Title 20 / Chapter 2 / Article 9 / Section 485.01
20-485.01 Written agreement; provisions; maintenance of records
Status: in_force

20-485.01. Written agreement; provisions; maintenance of records

A. No person may act as an administrator and no administrator may collect a premium without a written agreement between the person as administrator and the insurer for whom the services are rendered. Such written agreement shall be retained as part of the official records of both the insurer and the administrator for the duration of the agreement and for five years thereafter.

B. The written agreement shall contain provisions which include the requirements of sections 20-485.03 through 20-485.10 except as those requirements do not apply to the functions performed by the administrator. The agreement shall include a provision that the insurer shall provide thirty days' written notice to the administrator of termination or cancellation of the agreement. The agreement shall also include a provision that the insurer shall provide fifteen days' written notice to the director of termination or cancellation or any other change in the agreement.

C. If a policy is issued to a trustee or trustees, a copy of the trust agreement and any amendments to such agreement shall be furnished to the insurer by the administrator and shall be retained as part of the official records of both the insurer and the administrator for the duration of the policy and for five years thereafter.
A.R.S. § 20-2408 — Arizona Code / Title 20 / Chapter 14 / Article 1 / Section 2408
20-2408 Restrictions on insurance purchased by purchasing groups
Status: in_force

20-2408. Restrictions on insurance purchased by purchasing groups

A. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer which is not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed insurance producer.

B. No purchasing group may offer insurance policy coverage prohibited by this title or declared unlawful by the supreme court of this state.

C. A purchasing group which obtains liability insurance from an insurer that is not admitted in this state or a risk retention group shall inform each of the members of the group which have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state and that the risk retention group or the insurer may not be subject to all insurance laws and rules of this state.
A.R.S. § 20-669 — Arizona Code / Title 20 / Chapter 3 / Article 6 / Section 669
20-669 Examination of member insurer; costs; release of report
Status: in_force

20-669. Examination of member insurer; costs; release of report

A. Within thirty days of receipt by the director of a request from the board to examine any member insurer, the director shall begin such examination. The director may conduct the examination in any manner deemed appropriate.

B. The cost of such examination shall be paid by the board and the examination report shall be treated as are other examination reports.

C. Such examination report may be released to the board prior to its release to the public. The director shall notify the board when the examination is completed. The request for an examination shall be kept on file by the director but it shall not be open to public inspection prior to the release of the examination report to the public.
A.R.S. § 20-635 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 635
20-635 Rights and liabilities fixed as of date liquidation order filed
Status: in_force

20-635. Rights and liabilities fixed as of date liquidation order filed

The rights and liabilities of the insurer and of its creditors, policyholders, stockholders, members, subscribers and all other persons interested in its estate shall, unless otherwise directed by the court, be fixed as of the date on which the order directing the liquidation of the insurer is filed in the office of the clerk of the court which made the order, subject to the provisions of this article with respect to the rights of claimants holding contingent claims.
A.R.S. § 20-481 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481
20-481 Definitions
Status: in_force

20-481. Definitions

In this article, unless the context otherwise requires:

1. "Affiliate" or person "affiliated" with a specific person means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person specified.

2. "Continuing proxies" means proxies that are valid for more than one annual or special meeting of security holders and any adjournments thereof.

3. "Control" and "controlling" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by section 20-481.18 that control does not exist in fact. The director may determine, after furnishing all persons in interest notice and an opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.

4. "Enterprise risk" means any activity, circumstance, event or series of events involving one or more affiliates of an insurer that if not remedied promptly is likely to have a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including causing the insurer's risk-based capital to decrease to or below a company action level under section 20-488.02, or would cause an insurer to be in hazardous financial condition pursuant to section 20-220.01.

5. "Group capital calculation instructions" means the national association of insurance commissioners group capital calculation instructions as adopted and amended in accordance with the national association of insurance commissioners' procedures.

6. "Group-wide supervisor" means the regulatory official who is authorized to engage in conducting and coordinating group-wide supervision activities and who is determined or acknowledged by the director pursuant to section 20-481.33 to have sufficient significant contacts with the internationally active insurance group.

7. "Insurance holding company system" means two or more affiliated persons, one or more of whom is an insurer.

8. "Insurer" means every person engaged in the business of making contracts of insurance except:

(a) Agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia or a state or political subdivision of a state.

(b) Nonprofit medical and hospital service associations.

(c) Credit life and disability reinsurers as defined in section 20-1082 that are not affiliated with another insurer as defined in section 20-104.

9. "Internationally active insurance group" means an insurance holding company system that includes an insurer registered pursuant to section 20-481.09 and that meets the following criteria:

(a) Has premiums written in at least three countries.

(b) The percentage of gross premiums written outside the United States is at least ten percent of the insurance holding company system's total gross written premiums.

(c) Based on a three-year rolling average, the total assets of the insurance holding company system are at least $50,000,000,000, or the total gross written premiums of the insurance holding company system are at least $10,000,000,000.

10. "Liquidity stress test framework" means a separate publication by the national association of insurance commissioners that may include any amendment adopted in accordance with national association of insurance commissioners' procedures and instructions and reporting templates for a specific data year and that may contain the following information:

(a) A history of the regulatory liquidity stress testing.

(b) The scope criteria applicable for a specific data year.

11. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization and any similar entity or any combination of the foregoing acting in concert but does not include any joint venture partnership exclusively engaged in owning, managing, leasing or developing real or tangible personal property.

12. "Scope criteria" means the designated exposure bases and minimum magnitudes that may be used to establish a preliminary list of insurers that are selected into the liquidity stress test framework for a specific year and that are detailed in the liquidity stress test framework.

13. "Security holder of a specified person" means a person who owns any security of such person, including common stock, preferred stock, debt obligations and any other security that is convertible into or that evidences the right to acquire any of the foregoing.

14. "Subsidiary of a specified person" means an affiliate controlled by such person directly or indirectly through one or more intermediaries.

15. "Supervisory college" means a temporary or permanent forum for communication and cooperation between regulators charged with the supervision of entities that belong to an insurance holding company system that has international operations.

16. "Voting security" means a security that carries with it a right to vote in decisions and also includes securities that are convertible into or evidence a right to acquire a security that includes such right to vote.
A.R.S. § 20-1621.01 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.01
20-1621.01 Definitions
Status: in_force

20-1621.01. Definitions

In this article, unless the context otherwise requires:

1. "Closed-end credit" means a credit transaction that does not meet the definition of open-end credit.

2. "Collateral" means personal property in which a purchase money security interest is retained or that is pledged as security for the satisfaction of a debt.

3. "Compensation" means commission, service fee, brokerage or any other valuable consideration that is paid to a person as a result of the sale of credit insurance.

4. "Consumer credit insurance" has the same meaning prescribed in section 20-1603.

5. "Credit agreement" means a written document that sets forth the terms of a credit transaction and includes the security agreement.

6. "Credit property insurance" means a policy of insurance that covers perils to goods purchased through a credit transaction or used as collateral for a credit transaction and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part.

7. "Credit transaction" means a transaction in which the repayment of money loaned or credit commitment made or payment of goods, services or properties sold or leased is to be made at a future date.

8. "Creditor" means the lender of money or the vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, or any successor to the right, title or interest of a lender, vendor or lessor and an affiliate, associate or subsidiary of any of them, any director, officer or employee of any of them or any person in any way associated with any of them.

9. "Creditor-placed insurance" means insurance that:

(a) A creditor unilaterally purchases after the date of a credit transaction.

(b) Names the creditor as the insured.

(c) Provides coverage against loss, expense or damage to collateralized personal property as a result of fire, theft, collision or other risks of loss that would either impair the creditor's interest or adversely affect the value of collateral covered by dual interest insurance.

(d) Is purchased according to the terms of the credit agreement because of the debtor's failure to provide required insurance and the cost of which coverage is charged to the debtor.

(e) Is either single interest insurance or dual interest insurance.

10. "Debtor" means the borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.

11. "Dual interest insurance" means a credit personal property insurance covering a seller's or creditor's interest and at least partially the borrower's interest in the goods purchased through the credit transaction or pledged as collateral for the credit transaction.

12. "Experience" means earned premiums and incurred losses during the experience period.

13. "Experience period" means the most recent period of time for which earned premiums and incurred losses are reported, not to exceed a period of three years.

14. "Finance charge" means any charge payable directly or indirectly to a lender as an incident to or as a condition of the extension of credit, including interest, time price differentials, amounts payable under a discount system of additional charges, service, transaction or carrying charges, loan fees, points or similar charges, appraisal fees, or charges incurred for investigating the credit worthiness of a consumer, but does not include charges as a result of default, taxes, license fees, delinquency charges or filing fees.

15. "Gross debt" means the sum of the remaining payments owed to a creditor by a debtor, including compensation, finance charges, interest or any other charges.

16. "Incurred losses" means total claims paid during the experience period plus any change in claim and claim adjustment expense reserves and claim adjustment experiences.

17. "Loss ratio" means incurred losses divided by the sum of earned premiums.

18. "Net debt" means the amount necessary to liquidate the remaining debt in a single lump sum payment, excluding all unearned interest and other unearned finance charges.

19. "Nonrecording insurance" means insurance that protects a creditor if the creditor suffers a loss as a result of its failure to perfect its security interest in collateral by failure to file a lien or record a security interest in the collateral as required by law for perfection of a security interest.

20. "Open-end credit" means credit extended by a creditor under an agreement in which:

(a) The creditor reasonably contemplates repeated transactions.

(b) The creditor imposes a finance charge from time to time on an outstanding unpaid balance.

(c) The amount of credit that may be extended to the debtor during the term of the agreement, up to any limit set by the creditor, is generally made available to the extent that any outstanding balance is repaid.

21. "Personal property" means all tangible property not classified as real property.

22. "Policy" means a policy, contract, endorsement, binder, certificate or evidence of credit property insurance, by whatever name called, and includes all attached or incorporated clauses, endorsements and papers.

23. "Producer" means a person or entity that receives a commission for insurance written or that, on behalf of an insurer or creditor, solicits, negotiates, effects, procures, delivers, renews, continues or binds credit insurance to which this article applies.

24. "Single interest insurance" means credit property insurance covering only a seller's or creditor's interest in the goods purchased through the credit transaction or pledged as collateral in the credit transaction.
A.R.S. § 20-2535 — Arizona Code / Title 20 / Chapter 15 / Article 2 / Section 2535
20-2535 Initial appeal
Status: in_force

20-2535. Initial appeal

A. Any member who receives an adverse determination and who does not qualify for an expedited medical review pursuant to section 20-2534 may request, either orally or in writing, an initial appeal of that denial by notifying the person described in section 20-2533, subsection H, paragraph 3.  After the denial, the member has up to two years to request an initial appeal.

B. The utilization review agent may request any pertinent medical records pursuant to title 12, chapter 13, article 7.1 that are necessary for the initial appeal.

C. If the member's appeal involves an issue of medical necessity or appropriateness, including health care setting, level of care or effectiveness of a covered benefit, or is experimental or investigational under the coverage document and not whether the service is covered, the utilization review agent shall select a provider to review the appeal and render a determination based on the utilization review plan.  For the purposes of this subsection:

1. "Advanced practice registered nurse" means any of the following as defined in section 32-1601:

(a) A certified nurse midwife.

(b) A certified registered nurse anesthetist.

(c) A clinical nurse specialist.

(d) A registered nurse practitioner.

2. "Provider" means either of the following:

(a) A physician or other health care professional who is licensed pursuant to title 32, chapter 7, 8, 11, 13, 14, 16, 17, 19, 19.1 or 29 or an advanced practice registered nurse who is licensed pursuant to title 32, chapter 15, who is qualified in a similar scope of practice as a physician or other health care professional licensed pursuant to title 32, chapter 7, 8, 11, 13, 14, 16, 17, 19, 19.1 or 29 or an advanced practice registered nurse who is licensed pursuant to title 32, chapter 15 and who is employed or under contract with the utilization review agent.

(b) An out-of-state physician or other health care professional who is licensed in another state and who is not licensed in this state, who is employed or under contract with the utilization review agent and who either is qualified in a similar scope of practice as a physician or other health care professional licensed pursuant to title 32, chapter 7, 8, 11, 13, 14, 16, 17, 19, 19.1 or 29 or an advanced practice registered nurse who is licensed pursuant to title 32, chapter 15 or who typically manages the medical condition under appeal.

D. Within the time frames prescribed in section 20-2533, subsections C and D, the utilization review agent shall send to the member and the member's treating provider a notice of the utilization review agent's determination and the basis, criteria used, clinical reasons and rationale for that determination.

E. At any time during the initial appeal process, the utilization review agent may submit a request to the director to initiate an external independent review process pursuant to section 20-2537. At the same time that the utilization review agent submits the request to the director, the utilization review agent shall also render a written determination and shall send the written determination, including the basis, criteria used, clinical reasons and rationale for that determination and any references to supporting documentation, to the member, the member's treating provider and the director.

F. If the utilization review agent does not submit a request to the director pursuant to subsection E of this section and at the conclusion of the initial appeal process the utilization review agent denies the covered service or the claim for the covered service, the utilization review agent shall provide the member and the treating provider with a written statement of the agent's decision and the basis, criteria used, clinical reasons and rationale for that determination, including any references to any supporting documentation.  The determination shall include a notice of the option to proceed to the voluntary internal appeal process pursuant to section 20-2536 for a group health plan or grandfathered individual plan for which the health care insurer elected to have a voluntary internal appeal level of review or to an external independent review pursuant to section 20-2537 if the health care insurer has only one internal level of review.

G. If the utilization review agent concludes that the covered service should be provided or the claim for a covered service should be paid, the health care insurer is bound by the utilization review agent's determination.
A.R.S. § 20-2411 — Arizona Code / Title 20 / Chapter 14 / Article 1 / Section 2411
20-2411 Duty of insurance producer to obtain license
Status: in_force

20-2411. Duty of insurance producer to obtain license

A. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state from a risk retention group unless the person, firm, association or corporation is licensed as an insurance producer in accordance with this title.

B. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state for a purchasing group or any of its members from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association or corporation is licensed as an insurance producer in accordance with this title.

C. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance from an insurer that is not authorized to do business in this state on behalf of a purchasing group which is located in this state unless the person, firm, association or corporation is licensed as a surplus lines broker or excess line broker in accordance with this title.

D. For purposes of acting as an insurance producer or surplus lines broker for a risk retention group or purchasing group pursuant to subsections A, B and C of this section, the requirement of residence in this state does not apply.

E. Every person, firm, association or corporation that is licensed pursuant to this title, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by section 20-2403, subsection G in the case of a risk retention group and section 20-2408, subsection C in the case of a purchasing group.
A.R.S. § 20-1404.01 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1404.01
20-1404.01 Blanket disability insurance; clinical trials; cancer; definitions
Status: in_force

20-1404.01. Blanket disability insurance; clinical trials; cancer; definitions

A. A blanket disability insurer is not obligated to pay any costs, other than patient costs, that are directly associated with a cancer clinical trial that is offered in this state and in which the insured 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 insurer at the rates that are established by the insurer and that are not more than the level of reimbursement applicable to other similar services provided by health care providers with the insurer'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 contract delivered or issued for delivery in this state shall provide benefits under the contract, 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 insurer.  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 insurer 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 insured or the insured'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 contract.

(f) Of treatment or services provided outside this state.
A.R.S. § 20-1804 — Arizona Code / Title 20 / Chapter 8 / Article 1 / Section 1804
20-1804 Entrance fee escrow; refundable fee
Status: in_force

20-1804. Entrance fee escrow; refundable fee

A. As a condition for the issuance of a permit pursuant to section 20-1803, the director shall require that the provider establish an escrow account with a licensed agent which provides that all of any entrance fee received by the provider before the date the resident is allowed to occupy his or her living unit in the facility or the date the contract holder is to begin receiving services in his or her private residence be placed in escrow with a bank, trust company or other escrow agent approved by the director, subject to the condition that such funds may be released only as follows:

1. If the entrance fee applies to a contract holder who will be receiving services in his or her private residence, the entrance fee shall be released to the provider at such time as the life care contract commences.

2. If the entrance fee applies to a living unit that has been previously occupied in the facility, the entrance fee shall be released to the provider at such time as the living unit becomes available for occupancy by the new resident.

3. If the entrance fee applies to a living unit that has not previously been occupied by any resident, the entrance fee, or that portion of the entrance fee not to be held in escrow pursuant to section 20-1806, shall be released to the provider at such time as the director is satisfied that all of the following conditions exist:

(a) Construction or purchase of the facility has been substantially completed and an occupancy permit covering the living unit has been issued by the local government having authority to issue such permits.

(b) A commitment has been received by the provider for any permanent mortgage loan or other long-term financing described in the statement of anticipated source and application of funds submitted by the provider as part of its permit application, and any conditions of the commitment before disbursement of funds thereunder have been substantially satisfied.

(c) Aggregate entrance fees received or receivable by the provider pursuant to binding life care contracts, plus the anticipated proceeds of any first mortgage loan or other long-term financing commitment are equal to not less than ninety percent of the aggregate cost of constructing or purchasing, equipping and furnishing the facility plus not less than ninety percent of the funds estimated in the statement of anticipated source and application of funds submitted by the provider as part of its permit application, to be necessary to fund start-up losses and assure full performance of the obligations of the provider pursuant to life care contracts.

B. If the funds in an escrow account required to be established under subsection A of this subsection are not released within such time as provided by rules and regulations issued by the director, such funds shall be returned by the escrow agent to the persons who had made payment to the provider.

C. An entrance fee held in escrow may be returned by the escrow agent to the person or persons who had made payment to the provider at any time on receipt by the escrow agent of notice from the provider that such person is entitled to a refund of the entrance fee.

D. Within sixty days after a facility receives a resident's notice to vacate, the facility shall assign the vacated unit a sequential refund number among all the available units with refundable entrance fees and provide refunds in order based on the sequential refund number, subject to subsections E and F of this section.

E. Subsection D of this section does not apply to a life care contract if either of the following applies:

1. The life care contract is executed before January 1, 2026.

2. The life care contract provides for the payment of a refundable portion of the entrance fee, with a maximum waiting period which may not exceed three years from when the resident vacates the unit.

F. A facility that is required to pay a refundable entrance fee pursuant to subsection D of this section shall pay a refund to the resident, the resident's estate, other institutional or personal payees designated by the resident or other payees as per applicable law in connection with the resident vacating the residential unit if all of the following are satisfied:

1. The refund is owed pursuant to the contract between the facility and the resident.

2. The resident's residential unit is next in line based on the sequential numbering system to receive a refund.

3. Sufficient monies are available from new resident entrance fees to provide the full amount of the refund.

G. This section does not require the escrow of any nonrefundable application fee, designated as such in the permit application required by section 20-1802, received by the provider from a prospective resident or contract holder.
A.R.S. § 20-455 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 455
20-455 Interlocking ownership or management; multiple directorship
Status: in_force

20-455. Interlocking ownership or management; multiple directorship

A. Any insurer may retain, invest in or acquire the whole or any part of the capital stock of any other insurer or insurers, or have a common management with any other insurer or insurers, unless such retention, investment, acquisition or common management is inconsistent with any other provision of this title, or unless by reason thereof the business of such insurers with the public is conducted in a manner which substantially lessens competition generally in the insurance business or tends to create a monopoly therein.

B. Any person otherwise qualified may be a director of two or more insurers which are competitors, unless the effect thereof is to substantially lessen competition between insurers generally or tend to create a monopoly.
A.R.S. § 20-1129 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1129
20-1129 Furnishing of proof of loss forms by insurer
Status: in_force

20-1129. Furnishing of proof of loss forms by insurer

An insurer shall furnish, upon written request of any person claiming to have a loss under an insurance contract issued by the insurer, forms of proof of loss for completion by the person, but the insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.
A.R.S. § 20-1105 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1105
20-1105 Insurable interest with respect to property insurance
Status: in_force

20-1105. Insurable interest with respect to property insurance

A. No insurance contract on property or of any interest therein or arising therefrom shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured.

B. "Insurable interest" as used in this section means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.

C. The measure of an insurable interest in property is the extent to which the insured might be damaged by loss, injury or impairment thereof.
A.R.S. § 20-1581 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1581
20-1581 Title insurance agents; books; records; revocation of license
Status: in_force

20-1581. Title insurance agents; books; records; revocation of license

A. Every title insurance agent shall keep books of account, records and vouchers pertaining to the business of title insurance in such a manner that the director may readily ascertain from time to time whether the agent has complied with all applicable provisions of law.

B. A title insurance agent may engage in the business of handling escrows of real property transactions so long as it maintains a separate record of all receipts and disbursements of escrow funds and does not commingle any such funds with its own funds or with funds held by it in any other capacity.

C. If at any time the director determines that a title insurance agent has failed to comply with any applicable provision of law other than any provision of title 6, chapter 7, has been guilty of fraudulent conduct toward the public or any title insurer, or has violated any applicable insurance law, he may, after notice and hearing, revoke the license of such agent.
A.R.S. § 20-2216 — Arizona Code / Title 20 / Chapter 12 / Article 1 / Section 2216
20-2216 Annual filing; contents
Status: in_force

20-2216. Annual filing; contents

Annually on or before January 1, the association shall file in the office of the director a statement which contains information with respect to its transactions, condition, operations and affairs during the preceding year. Such statement shall contain such matters and information as are prescribed and shall be in such form as is approved by the director. The director, at any time, may require the association to furnish additional information with respect to its transactions, condition or any matter connected with its transactions and condition considered to be material and of assistance in evaluating the scope, operation and experience of the association.
A.R.S. § 20-1212 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1212
20-1212 Table of installments
Status: in_force

20-1212. Table of installments

In case the policy provides that the proceeds may be payable in installments which are determinable at issue of the policy, there shall be a table showing the amounts of the guaranteed installments.
A.R.S. § 20-1549 — Arizona Code / Title 20 / Chapter 6 / Article 8.1 / Section 1549
20-1549 Policy forms and premium rates filed
Status: in_force

20-1549. Policy forms and premium rates filed

A. A mortgage guaranty insurer shall file all policy forms, endorsements and rates a mortgage guaranty insurer proposes to use with the director pursuant to chapter 2, article 4.1.  With respect to owner-occupied, single-family dwellings, the mortgage guaranty insurance policy shall provide that the borrower shall not be liable to the insurance company for any deficiency arising from a foreclosure sale.

B. Each mortgage guaranty insurance company shall adopt, print and make available a schedule of premium charges for mortgage guaranty insurance policies.  Premium charges made pursuant to the provisions of this article shall not be deemed to be interest or other charges under any other provision of law limiting interest or other charges in connection with mortgage loans. The schedule shall show the entire amount of premium charge for each type of mortgage guaranty insurance policy issued by the insurance company.
A.R.S. § 20-481.23 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.23
20-481.23 Violations
Status: in_force

20-481.23. Violations

The following acts or omissions shall be deemed to be violations of this article:

1. The intentional failure to file or make any statement, amendment or other material required to be filed pursuant to sections 20-481.02, 20-481.03, 20-481.04 and 20-481.05.

2. The effectuation or any attempt to effectuate an acquisition of control of, divestiture of or merger with a domestic insurer that is subject to section 20-481.02 without the required approval of the director pursuant to section 20-481.07.

3. The intentional failure to file a registration statement or any amendment thereto required by this article within the time specified for such filing.

4. The payment of a dividend in violation of section 20-481.19.
A.R.S. § 20-1358 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1358
20-1358 Change of occupation
Status: in_force

20-1358. Change of occupation

There may be a provision as follows: "Change of occupation: If the insured be injured or contract sickness after having changed his occupation to one classified by the insurer as more hazardous than that stated in this policy or while doing for compensation anything pertaining to an occupation so classified, the insurer will pay only such portion of the indemnities provided in this policy as the premium paid would have purchased at the rates and within the limits fixed by the insurer for such more hazardous occupation. If the insured changes his occupation to one classified by the insurer as less hazardous than that stated in this policy, the insurer, upon receipt of proof of such change of occupation, will reduce the premium rate accordingly, and will return the excess pro rata unearned premium from the date of change of occupation or from the policy anniversary date immediately preceding receipt of such proof, whichever is the more recent.  In applying this provision, the classification of occupational risk and the premium rates shall be such as have been last filed by the insurer prior to the occurrence of the loss for which the insurer is liable or prior to date of proof of change in occupation with the state official having supervision of insurance in the state where the insured resided at the time this policy was issued; but if such filing was not required, then the classification of occupational risk and the premium rates shall be those last made effective by the insurer in such state prior to the occurrence of the loss or prior to the date of proof of change in occupation."
A.R.S. § 20-1110.01 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1110.01
20-1110.01 Rules and regulations; form and readability of policies
Status: in_force

20-1110.01. Rules and regulations; form and readability of policies

A. The director shall adopt and promulgate rules and regulations governing the form and readability of various types of insurance policies including title insurance policies. Such rules and regulations may provide that the readability requirements established pursuant to this subsection may be met by use of an outline of coverage or brochure which accompanies the policy and is provided to the policyholder.

B. The rules and regulations adopted and promulgated by the director pursuant to subsection A of this section shall neither require standardized forms of policies nor mandate or prohibit the inclusion of any coverage provisions in policies issued in this state.
A.R.S. § 20-341 — Arizona Code / Title 20 / Chapter 2 / Article 4 / Section 341
20-341 Purpose of insurance rate regulation
Status: in_force

20-341. Purpose of insurance rate regulation

A. The purpose of this article is to promote the public welfare by regulating insurance rates to the end that they shall not be excessive, inadequate or unfairly discriminatory, and to authorize and regulate cooperative action among insurers in rate making and in other matters within the scope of this article. Nothing in this article is intended to prohibit or discourage reasonable competition, or to prohibit or encourage, except to the extent necessary to accomplish the purpose stated in this section, uniformity in insurance rates, rating systems, rating plans or practices. This article shall be liberally interpreted to carry into effect the provisions of this section.

B. Where the rules and regulations of a rating bureau or advisory organization conflict with the law, the rules and regulations do not apply.
A.R.S. § 20-839 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 839
20-839 Exemption of certain hospital plans
Status: in_force

20-839. Exemption of certain hospital plans

A. This article shall not apply to any corporation operating or maintaining a hospital service plan, medical service plan, dental service plan or optometric service plan, participation in which is limited to its employees and the employees of other persons or corporations with which such corporation may have contracted to provide such services.

B. As used in this section, the term "employees" shall include members of the families of employees.
A.R.S. § 20-357 — Arizona Code / Title 20 / Chapter 2 / Article 4 / Section 357
20-357 Filing of rating system; definition
Status: in_force

20-357. Filing of rating system; definition

A. Every insurer shall file with the director the rating systems the insurer proposes to use.  As used in the rate regulatory provisions of this article, "rating systems" includes every manual of classifications, rules and rates, every rating plan and every modification of any of the foregoing. Every filing shall have a proposed effective date and shall indicate the character and extent of the coverage contemplated.  If a filing does not include the information on which the insurer supports the filing, and the director does not have sufficient information to determine whether the filing meets the rate regulatory requirements of this article, the director shall require the insurer to furnish information supporting the filing.  The supporting information may include the experience or judgment of the insurer or rating organization making the filing, its interpretation of any statistical data on which it relies, the experience of other insurers or rating organizations or any other relevant factors.  A filing and any supporting information shall be open to public inspection after the filing becomes effective.

B. A workers' compensation insurer shall satisfy its obligation to make filings by becoming a member of a licensed rating organization that makes filings and by authorizing the director to accept on its behalf filings made by the rating organization.  A rating organization shall annually file with the director rates to be effective on January 1. Nothing in this subsection requires an insurer to be a member of the designated rating organization.

C. Each filing shall be on file for a waiting period of at least thirty days before it becomes effective.  On written application by the insurer or rating organization making the filing, the director may authorize a filing to become effective before the waiting period expires.

D. On written application of the insured that states the insured's reasons and that is filed with and approved by the director, an insurer may use a rate in excess of the insurer's filed rate on the insured's risk.

E. An insurer shall not make or issue a contract or policy except in accordance with the filings in effect for that insurer as provided in the rate regulatory provisions of this article.
A.R.S. § 20-291 — Arizona Code / Title 20 / Chapter 2 / Article 3 / Section 291
20-291 Service of process on nonresident licensees
Status: in_force

20-291. Service of process on nonresident licensees

A. Application for and acceptance of any nonresident license pursuant to this article constitutes an irrevocable appointment of the director as the agent of the licensee for the acceptance of service of process issued in this state in any action or proceeding against the licensee arising out of the licensing or out of transactions under the license.

B. Duplicate copies of any process shall be served on the director. At the time of service the plaintiff shall pay the director the fee prescribed in section 20-167. On receiving service the director shall promptly forward a copy by certified mail, return receipt requested, to the licensee at the licensee's last address of record with the director.  Process served on the director pursuant to this section constitutes service on the licensee as though the licensee were personally served with process in this state.
A.R.S. § 20-783 — Arizona Code / Title 20 / Chapter 4 / Article 2 / Section 783
20-783 Liability of subscriber on judgment against insurer
Status: in_force

20-783. Liability of subscriber on judgment against insurer

A. No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.

B. Any such judgment shall be binding upon each subscriber only in such proportion as his interests may appear and in an amount not exceeding his contingent liability, if any.
A.R.S. § 20-2504 — Arizona Code / Title 20 / Chapter 15 / Article 1 / Section 2504
20-2504 Utilization review agents; certification; rules
Status: in_force

20-2504. Utilization review agents; certification; rules

A. The director shall issue a certificate to a utilization review agent that meets all of the requirements of this chapter and all applicable rules. A utilization review agent shall submit a signed and notarized application on a form prescribed by the director.

B. A certificate is not transferable.

C. The director may adopt rules consistent with the requirements of this chapter.

D. Except as provided in section 20-2532, information required by the department with respect to customers, patients or utilization review plans is confidential and is not open to public inspection.

E. The utilization review agent shall pay all certification expenses as provided in section 20-2506.
A.R.S. § 20-1015 — Arizona Code / Title 20 / Chapter 4 / Article 7 / Section 1015
20-1015 Suspension or revocation of certificate of authority; civil penalties
Status: in_force

20-1015. Suspension or revocation of certificate of authority; civil penalties

A. The director may suspend or revoke any certificate of authority issued to a prepaid dental plan organization pursuant to this article if the director finds that any of the following conditions exists:

1. The prepaid dental plan organization is operating significantly in contravention of its basic organizational documents or in a manner contrary to that described in, and reasonably inferred from, any other information submitted pursuant to section 20-1003.

2. The prepaid dental plan organization issued membership coverage that does not comply with the requirements of section 20-1007.

3. The prepaid dental plan does not provide or arrange for basic dental services appropriate to such plan as determined by the director.

4. The prepaid dental plan organization can no longer be expected to meet its obligations to members or prospective members.

5. The prepaid dental plan organization, or any authorized person on its behalf, has advertised or merchandised its services in a materially untrue, misleading, deceptive or unfair manner.

6. The prepaid dental plan organization has failed to substantially comply with this article or any rules adopted pursuant to this article.

7. The prepaid dental plan organization is in an unsound condition or in such a condition as to render its further transaction of business in this state hazardous to its members or to the residents of this state.

B. If the certificate of authority of a prepaid dental plan organization is suspended, the organization shall not accept, during the period of the suspension, any additional members except newborn children or other newly acquired dependents of existing members and shall not engage in any advertising or solicitation.

C. If the certificate of authority of a prepaid dental plan organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to conclude its affairs and shall conduct no further business except as may be essential to the orderly conclusion of solicitation.  The director, by written order, may permit such further operation of the organization as the director finds to be in the best interest of members to the end that members shall be afforded the greatest practical opportunity to obtain continuing prepaid dental plan coverage.

D. Notwithstanding subsections B and C of this section, a prepaid dental plan organization that has had its certificate of authority denied, suspended or revoked, or that is subject to an adverse action by the director, is entitled to a hearing pursuant to title 41, chapter 6, article 10 and, except as provided in section 41-1092.08, subsection H, is entitled to judicial review pursuant to title 12, chapter 7, article 6.

E. If, after a hearing, the director finds grounds pursuant to subsection A of this section to suspend or revoke an organization's certificate of authority, the director may impose, in lieu of or in addition to that suspension or revocation, the following civil penalties that shall be remitted to the state treasurer for deposit, pursuant to sections 35-146 and 35-147, in the state general fund:

1. For an unintentional violation, not more than one thousand dollars for each violation and not more than an aggregate of ten thousand dollars in any six month period.

2. For an intentional violation, not more than five thousand dollars for each violation and not more than an aggregate of fifty thousand dollars in any six month period.
A.R.S. § 20-586 — Arizona Code / Title 20 / Chapter 3 / Article 3 / Section 586
20-586 Rights of insurer during solvency
Status: in_force

20-586. Rights of insurer during solvency

As long as the insurer remains solvent and complies with this title it may:

1. Demand, receive, sue for and recover the income from the securities or cash deposited.

2. Exchange and substitute for the deposited cash or securities, or any part of the cash or securities, cash or eligible securities of equivalent or greater value.

3. Inspect, at reasonable times, any such deposit made in a form other than book entry.
A.R.S. § 20-826.02 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 826.02
20-826.02 Subscription contracts; varying copayments and deductibles allowed
Status: in_force

20-826.02. Subscription contracts; varying copayments and deductibles allowed

A. Except as provided in sections 20-1379 and 20-2304, a corporation may offer one or more subscription contracts 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 corporation that offers such a subscription contract 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. § 20-835 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 835
20-835 Judicial review of decisions of director
Status: in_force

20-835. Judicial review of decisions of director

All orders of the director made pursuant to this article are subject to chapter 1, article 2 of this title, including the right of hearing, rehearing and appeal.
A.R.S. § 20-1134 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1134
20-1134 Coordination of benefits
Status: in_force

20-1134. Coordination of benefits

The director shall adopt rules relating to coordination of benefits provisions in group disability insurance policies. This section shall apply to hospital and medical service corporations and health care services organizations.
A.R.S. § 20-1621.04 — Arizona Code / Title 20 / Chapter 6 / Article 10.1 / Section 1621.04
20-1621.04 Rates and forms; filing; approval; withdrawal of approval
Status: in_force

20-1621.04. Rates and forms; filing; approval; withdrawal of approval

A. A person shall not deliver, or issue for delivery in this state, any credit property insurance policy or rate unless the person has first filed the form or rate with the director and the director has approved the form or rate.  Unless the director issues an order affirmatively approving or disapproving the form or rate within thirty days after filing, the form or rate is deemed approved.  On written notice given to the insurer within the thirty day period, the director may extend the thirty day review period for up to fifteen additional days.

B. The director shall disapprove a rate or form if either:

1. The rate is inadequate, unfairly discriminatory or excessive or not reasonable in relation to the coverage provided.

2. The form contains provisions that are unjust, unfair, inequitable, ambiguous, misleading or deceptive, that encourage misrepresentation of the coverage or that are contrary to this title or of any rule adopted pursuant to this title.

C. If the director disapproves a rate or form, the director shall send the insurer a written notice specifying the reason for disapproval.  The insurer may request a hearing pursuant to title 41, chapter 6, article 10 to contest the disapproval.  It is unlawful for the insurer to issue or use a rate or form that has been disapproved.

D. At any time after notice and for cause shown, the director may issue an order withdrawing approval of any form or rate for any reason listed in subsection B.  The insurer may request a hearing pursuant to title 41, chapter 6, article 10 to contest the director's order.

E. An insurer shall not issue or use a rate or form after the effective date of an order withdrawing approval.

F. An insurer shall not issue any credit property insurance policy for which the rates have not been filed with the director.
A.R.S. § 20-2904 — Arizona Code / Title 20 / Chapter 18 / Article 1 / Section 2904
20-2904 Continuing education; contractor requirements; automatic approval
Status: in_force

20-2904. Continuing education; contractor requirements; automatic approval

A. Pursuant to title 41, chapter 23, the director shall enter into a contract with a person for the approval of approved providers and courses and administration of the continuing education program.

B. The contractor shall:

1. Accept or reject provider organizations as approved providers.

2. Except as provided in subsection C of this section, review course content for approval or disapproval as an approved continuing education course.

3. Charge an applicant an application fee for acceptance as an approved provider and a fee for approval of a continuing education course.

C. A continuing education course is automatically approved if either:

1. Thirty days after the contractor receives an application, the contractor does not disapprove the course described in the application or does not request supplemental information from the applicant.

2. The course is approved by the insurance regulatory authority in at least five other states and the approved provider provides the contractor with a certificate or letter from the regulatory authority in the five other states that confirms the approval of the course.

D. The contractor's decision pursuant to subsection B, paragraph 2 of this section is an appealable agency action as defined in section 41-1092 and the approved provider is entitled to a hearing pursuant to title 41, chapter 6, article 10 and, except as provided in section 41-1092.08, subsection H, is entitled to judicial review pursuant to title 12, chapter 7, article 6.

E. Except as provided in section 20-2903, the acceptance of an approved provider is valid for five years.  At the end of the five years, the approved provider may submit an application for renewal to the contractor and the contractor shall charge the approved provider the fee prescribed in subsection B of this section.  The approval of a continuing education course is valid for two years or until the course content or outline changes.  At the end of the two years or when the course content or outline changes, the approved provider may submit an application for renewal to the contractor and the contractor shall charge the approved provider the fee prescribed in subsection B of this section.
A.R.S. § 20-1406.10 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1406.10
20-1406.10 Biomarker testing; coverage; definitions
Status: in_force

20-1406.10. Biomarker testing; coverage; definitions

A. A group or blanket disability insurer that issues, amends, delivers or renews a policy on or after January 1, 2023 shall provide coverage for biomarker testing.

B. A policy shall cover biomarker testing for the purposes of diagnosis, treatment, appropriate management or ongoing monitoring of an insured's disease or condition to guide treatment decisions when the test provides clinical utility as demonstrated by medical and scientific evidence, including any of the following:

1. Labeled indications for tests that are approved or cleared by the United States food and drug administration or indicated tests for a drug that is approved by the United States food and drug administration.

2. Centers for medicare and medicaid services national coverage determinations or medicare administrative contractor local coverage determinations.

3. Nationally recognized clinical practice guidelines and consensus statements.

C. A group or blanket disability insurer must ensure coverage is provided in a manner that limits disruptions in care, including the need for multiple biopsies or biospecimen samples.

D. The insured and prescribing practitioner must have access to a clear, readily accessible and convenient process to request an exception to a coverage policy of a group or blanket disability insurer. The process shall be readily accessible on the group or blanket disability insurer's website. This subsection does not require a separate process if the group or blanket disability insurer's existing process complies with this subsection.

E. A policy that is issued or renewed by a group or blanket disability insurer does not include a policy that provides a limited benefit coverage as defined in section 20-1137.

F. For the purposes of this section:

1. "Biomarker":

(a) Means a characteristic that is objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes or pharmacologic responses to a specific therapeutic intervention.

(b) Includes gene mutations or protein expression.

2. "Biomarker testing":

(a) Means the analysis of a patient's tissue, blood or other biospecimen for the presence of a biomarker.

(b) Includes single-analyte tests, multiplex panel tests and whole genome sequencing.

3. "Clinical utility" means the test result provides information that is used in the formulation of a treatment or monitoring strategy that informs a patient's outcome and impacts the clinical decision.  The most appropriate test may include both information that is actionable and some information that cannot be immediately used in the formulation of a clinical decision.

4. "Consensus statements" means statements that are all of the following:

(a) Developed by an independent, multidisciplinary panel of experts using a transparent methodology and reporting structure that includes a conflict of interest policy.

(b) Based on the best available evidence for the purpose of optimizing clinical care outcomes.

(c) Aimed at specific clinical circumstances.

5. "Nationally recognized clinical practice guidelines" means evidence-based clinical practice guidelines that both:

(a) Are developed by independent organizations or medical professional societies using a transparent methodology and reporting structure and a conflict of interest policy.

(b) Establish standards of care that are informed by a systematic review of evidence and an assessment of the benefits and costs of alternative care options that includes recommendations intended to optimize patient care.
A.R.S. § 20-870 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 870
20-870 Amendment to society laws
Status: in_force

20-870. Amendment to society laws

A. The supreme governing body of a domestic society may amend its laws in accordance with its laws at any regular or special meeting, or if the laws provide, by referendum. A referendum may be held in accordance with the society's laws by the vote of the voting members of the society, the vote of the delegates or representatives of voting members or the vote of local lodges. An amendment that is referred shall not be adopted unless within six months from the date of the submission of the referendum a majority of the members voting consent to the amendment.

B. A society may provide for voting by mail.

C. A society shall file a certified copy of any amendment to its laws within ninety days after the amendment is enacted.
A.R.S. § 20-3152 — Arizona Code / Title 20 / Chapter 21 / Article 1 / Section 3152
20-3152 Exemptions; waiver
Status: in_force

20-3152. Exemptions; waiver

A. This chapter does not create:

1. Any liability on the part of any employer or employer group purchasing organization that purchases coverage or assumes risk on behalf of its employees or on behalf of self-funded employee benefit plans.

2. Any new or additional liability on the part of a health care insurer for harm caused that is attributable to the medical negligence of a treating health care professional or health care institution as defined in section 36-401.

B. This chapter does not abrogate or limit any other theory of liability or defense otherwise available at law.

C. Any waiver by an enrollee of any provision of this chapter is contrary to public policy and is unenforceable and void.

D. An enrollee who files an action pursuant to section 20-3153 may not pursue a common law action for breach of the duty of good faith and fair dealing against the health care insurer.  An enrollee who files a common law action for breach of the duty of good faith and fair dealing against a health care insurer may not pursue an action pursuant to section 20-3153.
A.R.S. § 20-717 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 717
20-717 Contingent liability of mutual insurer members
Status: in_force

20-717. Contingent liability of mutual insurer members

A. Each member of a domestic mutual insurer shall, except as otherwise provided in this article with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be in such maximum amount as it stated in the insurer's articles of incorporation.

B. Each policy issued by the insurer shall contain a statement of the contingent liability, if any, of its members.

C. Termination of the policy of any such member shall not relieve the member of contingent liability for his proportion, if any, of the obligations of the insurer which accrued while the policy was in force.

D. Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
A.R.S. § 20-1054 — Arizona Code / Title 20 / Chapter 4 / Article 9 / Section 1054
20-1054 Issuance of certificate of authority
Status: in_force

20-1054. Issuance of certificate of authority

A. Issuance of a certificate of authority shall be granted within the time prescribed in section 20-216 by the director if the director is satisfied that the following conditions are met:

1. The persons responsible for conducting the affairs of the health care services organization are competent and are professionally capable of providing or arranging for the provision of health and medical services being offered.

2. The health care services organization constitutes an appropriate mechanism to achieve an effective health care plan pursuant to this title and any rule that is adopted by the director.

3. The health care services organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the director may consider:

(a) The financial soundness of the health care plan's arrangements for health care services and the schedule of charges used in connection therewith.

(b) Any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of health care services or the provision for automatic applicability of an alternative coverage in the event of discontinuance of the plan.

(c) Any agreement with providers for the provision of health care services.

4. Each officer responsible for conducting the affairs of the health care services organization has filed with the director, subject to the director's approval, a fidelity bond in the amount of $50,000.

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. § 20-491.04 — Arizona Code / Title 20 / Chapter 2 / Article 15 / Section 491.04
20-491.04 Exemptions from article requirements; reports
Status: in_force

20-491.04. Exemptions from article requirements; reports

A. An insurer is exempt from the requirements of this article if both of the following apply:

1. The insurer has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premium reinsured with the federal crop insurance corporation and federal flood program, less than five hundred million dollars.

2. The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premium reinsured with the federal crop insurance corporation and federal flood program, less than one billion dollars.

B. If an insurer qualifies for exemption pursuant to subsection A, paragraph 1 of this section but the insurance group of which the insurer is a member does not qualify for exemption pursuant to subsection A, paragraph 2 of this section, the ORSA summary report that may be required pursuant to section 20-491.03 shall include every insurer within the insurance group. This requirement is satisfied by the submission of more than one ORSA summary report for any combination of insurers, provided any combination of reports includes every insurer within the insurance group.

C. If an insurer does not qualify for exemption pursuant to subsection A, paragraph 1 of this section but the insurance group of which the insurer is a member does qualify for exemption pursuant to subsection A, paragraph 2 of this section, the only ORSA summary report that may be required pursuant to section 20-491.03 is the report applicable to that insurer.

D. If an insurer does not qualify for exemption pursuant to subsection A, paragraph 1 of this section, the insurer may apply to the director for a waiver from the requirements of this article based on unique circumstances. In deciding whether to grant the insurer's request for waiver, the director may consider the type and volume of business written, ownership and organizational structure and any other factor the director considers relevant to the insurer or insurance group of which the insurer is a member. If the insurer is part of an insurance group with insurers domiciled in more than one state, the director shall coordinate with the lead state director or commissioner of insurance and with the other domiciliary directors or commissioners in considering whether to grant the insurer's request for a waiver.

E. Notwithstanding the exemptions stated in this section, the director may require that an insurer maintain a risk management framework, conduct an ORSA and file an ORSA summary report:

1. Based on unique circumstances including the type and volume of business written, ownership and organizational structure, federal agency requests and international supervisor requests.

2. If the insurer has risk-based capital for a company action level event as defined in section 20-488, meets one or more of the standards of an insurer deemed to be in hazardous financial condition as prescribed in section 20-220.01 or otherwise exhibits qualities of a troubled insurer as determined by the director.

F. If an insurer that qualifies for exemption pursuant to subsection A, paragraph 1 of this section subsequently no longer qualifies for that exemption due to changes in premium reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer has one year after the year the threshold is exceeded to comply with the requirement of this article.
A.R.S. § 20-1132 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1132
20-1132 Exemption of group life insurance proceeds from creditors; exception
Status: in_force

20-1132. Exemption of group life insurance proceeds from creditors; exception

A. A policy of group life insurance or the proceeds thereof payable to the individual insured or to the beneficiary thereunder shall not be liable, either before or after payment, to be applied by any legal or equitable process to pay any liability of any person having a right under the policy. The proceeds thereof, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of his debts.

B. This section shall not apply to group life insurance issued pursuant to article 2 of chapter 6 of this title to a creditor covering his debtors, to the extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued.
A.R.S. § 20-1406 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1406
20-1406 Prohibiting denial of certain contract benefits
Status: in_force

20-1406. Prohibiting denial of certain contract benefits

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

B. If any group disability insurance contract or blanket disability insurance contract provides for or offers eye medical care services, whether by a network of health care providers or by the selection of a health care provider by the subscriber, the subscriber shall have freedom of choice to select either an optometrist or a physician and surgeon skilled in diseases of the eye to provide the examination, care or treatment for which the subscriber is eligible and which falls within the scope of practice of the optometrist or physician and surgeon.  This subsection does not require that any specific optometrist or physician, or number or percentage of optometrists or physicians, be included on an insurer's provider network. Unless a group disability insurance contract or blanket disability insurance contract otherwise provides, there shall be no reimbursement for ophthalmic materials, lenses, spectacles or eyeglasses or appurtenances thereto.

C. If any group disability insurance contract is written to provide coverage for psychiatric, drug abuse or alcoholism services, reimbursement for those services shall be made in accordance with the terms of the contract without regard to whether the covered services are rendered in a psychiatric special hospital or general hospital. Reimbursement for the cost of the service may be made directly to the person licensed or certified pursuant to title 32, chapter 13 or 19.1 or to the subscriber if the cost of the service has not been reimbursed to another provider or health care institution.
A.R.S. § 20-431.06 — Arizona Code / Title 20 / Chapter 2 / Article 5.1 / Section 431.06
20-431.06 Delivery of illustrations; record retention; requirements
Status: in_force

20-431.06. Delivery of illustrations; record retention; requirements

A. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this article, shall be submitted to the insurer at the time of policy application.  A copy shall also be provided to the applicant.

B. If the policy is issued other than as applied for, a revised basic illustration that conforms to the policy as issued shall be sent with the policy. The revised illustration shall conform to the requirements of this article, shall be labeled revised illustration and shall be signed and dated by the applicant or policyowner and producer or other authorized representative of the insurer not later than the time the policy is delivered.  A copy shall be provided to the insurer and the policyowner.

C. If an illustration is not used by an insurance producer or other authorized representative in the sale of a life insurance policy or if the policy is applied for other than as illustrated, the producer or authorized representative shall certify to that effect in writing on a form provided by the insurer.  On the same form, the applicant shall acknowledge that an illustration conforming to the policy applied for was not provided and shall further acknowledge an understanding that an illustration conforming to the policy as issued will be provided not later than at the time of policy delivery.  The applicant shall submit this form to the insurer at the time of policy application.

D. If the policy is issued, a basic illustration that conforms to the policy as issued shall be sent with the policy and signed in accordance with the requirements of this section not later than the time the policy is delivered.  A copy shall be provided to the insurer and the policyowner.

E. If the insurer mails the basic illustration or revised illustration to the applicant or policyowner, the basic illustration or revised illustration shall include instructions for the applicant or policyowner to sign the duplicate copy of the numeric summary page of the illustration for the policy issued and return the signed copy to the insurer. The insurer's obligation under this subsection is satisfied if the insurer can demonstrate that it has made a diligent effort to secure a signed copy of the numeric summary page.  The insurer's requirement to make a diligent effort is satisfied if the insurer includes in the mailing a self-addressed, postage prepaid envelope with instructions for returning the signed numeric summary page.  If the applicant or policyowner consents to transact insurance electronically, the insurer may send a copy with instructions for signing and returning the signed copy electronically.

F. The insurer shall retain a copy of the basic illustration and a revised basic illustration, if any, signed as applicable, along with any certification that either no illustration was used or that the policy was applied for other than as illustrated until three years after the policy is no longer in force.  The insurer does not need to retain a copy if a policy is not issued.
A.R.S. § 20-557 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 557
20-557 Second mortgages
Status: in_force

20-557. Second mortgages

A. An insurer may invest in bonds, notes or other evidences of indebtedness that are secured by second mortgages or deeds of trust on improved real property located in the United States. An insurer shall not make or acquire either:

1. A loan or investment if the total of the outstanding indebtedness of the first and second mortgages or deeds of trust exceeds eighty per cent of the value of the real property.

2. A loan secured by a second lien if the borrower, without the approval of the insurer, is entitled to increase the principal amount of the indebtedness secured by the prior first mortgage except to the extent the amount of the increase is applied in reduction of the investment held by the insurer.

B. An insurer may invest in construction loans pursuant to this section if the real property is improved or will be improved with the proceeds of the construction loan and if the insurer's total investment in construction loans is not more than the amount prescribed in section 20-553, subsection H.
A.R.S. § 20-1004 — Arizona Code / Title 20 / Chapter 4 / Article 7 / Section 1004
20-1004 Issuance of certificate of authority
Status: in_force

20-1004. Issuance of certificate of authority

Issuance of a certificate of authority shall be granted by the director if the director is satisfied that the following conditions are met:

1. The persons responsible for conducting the affairs of the prepaid dental plan organization are competent and are professionally capable of providing or arranging for the provision of services offered.

2. The prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan, in accordance with regulations issued by the director, that shall include at least the basic dental services appropriate to that plan as determined by the director.

3. The prepaid dental plan organization is financially responsible and may reasonably be expected to meet its obligations to members and prospective members. In making this determination, the director shall consider at least:

(a) The financial soundness of the prepaid dental plan's arrangements for services and the schedule of charges used.

(b) Any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of prepaid dental services or the provisions for automatic applicability of an alternative coverage in the event of discontinuance of the plan.

(c) The sufficiency of an agreement with providers for the provision of prepaid dental services.

4. Each officer responsible for conducting the affairs of the prepaid dental plan organization has filed with the director, subject to the director's approval, a fidelity bond in the amount of $50,000.
A.R.S. § 20-1241.07 — Arizona Code / Title 20 / Chapter 6 / Article 1.1 / Section 1241.07
20-1241.07 Duties of insurers with respect to direct response solicitations
Status: in_force

20-1241.07. Duties of insurers with respect to direct response solicitations

A. If a person applies for a policy or contract in response to a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue or change an existing policy or contract. If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the policy or contract, a notice that the director has approved or prescribed by rule.

B. If the insurer has proposed the replacement or if the applicant indicates a replacement is intended and the insurer continues with the replacement, the insurer shall:

1. Comply with the requirements of section 20-1241.05, subsections C and D if the applicant furnishes the names of the existing insurer, and the requirements of section 20-1241.05, subsections E and F.

2. With the policy or contract, provide the applicant or prospective applicant with a notice as required under section 20-1241.05.
A.R.S. § 20-675 — Arizona Code / Title 20 / Chapter 3 / Article 6 / Section 675
20-675 Immunity and indemnification
Status: in_force

20-675. Immunity and indemnification

A. There shall be no liability on the part of, and no cause of action shall rise against, the fund, any member insurer, the board or its agents or employees, the director or representatives of the director for any action taken in the performance of their powers and duties pursuant to this article.

B. The board and its agents or employees shall be indemnified by the fund against all expenses incurred in the defense of any action, suit or proceeding brought against such person on account of any action taken in the performance of the powers and duties of such person pursuant to this article, unless such person is finally adjudged to have committed a breach of duty involving gross negligence, bad faith, dishonesty, wilful malfeasance or reckless disregard of the responsibilities of his or her office. In the event of settlement before the final adjudication, such indemnity shall be provided only if the board is advised by independent counsel selected by the board that such person did not, in the counsel's opinion, commit such a breach of duty.

C. The fund's reimbursement of such expenses of indemnification shall be prorated and paid for by the member insurers in the proportion that the net direct written premiums of each member insurer for the calendar year preceding the commencement of such action, suit or proceeding bears to the net direct written premiums of all member insurers for the preceding calendar year.
A.R.S. § 20-101.01 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 101.01
20-101.01 Deputy director
Status: in_force

20-101.01. Deputy director

The director shall appoint a deputy director of the insurance division of the department to assist the director with the execution of the laws of this state relating to insurance.  The deputy director serves at the pleasure of the director and reports directly to the director.
A.R.S. § 20-263 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 263
20-263 Vehicle insurance; prohibited act by insurer; hearing; penalty
Status: in_force

20-263. Vehicle insurance; prohibited act by insurer; hearing; penalty

A. No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured. Any insurer which increases the premium as a result of accident involvement shall notify the insured of the reason for such increase.

B. The director, after a hearing, shall order an insurer that has raised the premium of an insured in violation of subsection A to refund the amount attributable to such premium increase and shall impose a civil penalty not to exceed three hundred dollars. In determining whether an insurer has violated subsection A, the director may conduct such investigation as he deems necessary and the costs shall be paid by the insurer pursuant to section 20-159.
A.R.S. § 20-1243.06 — Arizona Code / Title 20 / Chapter 6 / Article 1.3 / Section 1243.06
20-1243.06 Recordkeeping
Status: in_force

20-1243.06. Recordkeeping

A. Insurers, general agents, independent agencies, business entities and producers shall maintain, or be able to make available to the director, records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other information used in making the recommendations that were the basis for insurance transactions for at least five years after the insurance transaction is completed by the insurer. An insurer may but is not required to maintain documentation on behalf of a producer.

B. Records required to be maintained by this article may be maintained in paper, photographic, microprocess, magnetic, mechanical or electronic media or by any process that accurately reproduces the actual document.
A.R.S. § 20-634 — Arizona Code / Title 20 / Chapter 3 / Article 4 / Section 634
20-634 Borrowing on pledge of assets
Status: in_force

20-634. Borrowing on pledge of assets

For the purpose of facilitating the rehabilitation, liquidation, conservation or dissolution of an insurer pursuant to this article, the receiver may, subject to the approval of the court, borrow money and execute, acknowledge and deliver notes or other evidences of indebtedness therefor and secure its repayment by the mortgage, pledge, assignment, transfer in trust or hypothecation of any or all of the property, whether real, personal or mixed, of the insurer, and the receiver, subject to the approval of the court, may take any and all other action necessary and proper to consummate the loan and to provide for the repayment thereof. The receiver is under no obligation personally or in the receiver's official capacity to repay any loan made pursuant to this section.
A.R.S. § 20-1406.03 — Arizona Code / Title 20 / Chapter 6 / Article 5 / Section 1406.03
20-1406.03 Prohibiting denial of contract benefits; nursing; reimbursement
Status: in_force

20-1406.03. Prohibiting denial of contract benefits; nursing; reimbursement

If a group disability or blanket disability insurance contract 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 contract benefits shall not be denied to the 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 or to the subscriber if another provider or health care institution was not reimbursed for the cost of the service.
A.R.S. § 20-733 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 733
20-733 Merger or consolidation of mutual insurers
Status: in_force

20-733. Merger or consolidation of mutual insurers

A. A domestic mutual insurer shall not merge or consolidate with a stock insurer.

B. A domestic mutual insurer may merge or consolidate with another mutual insurer in accordance with procedures prescribed by general laws applying to corporations formed for profit, except as provided by this section.

C. The plan and agreement for merger or consolidation shall be submitted to and approved by at least two-thirds of the members of each mutual insurer involved voting thereon at meetings called for the purpose pursuant to such reasonable notice and procedure as has been approved by the director of the department of insurance and financial institutions. If a life insurer, the right to vote may be limited to members whose policies are in a face amount of not less than $1,000 and have been in force one year or more.

D. A merger or consolidation shall not be effectuated unless in advance thereof the plan and agreement therefor have been filed with and approved in writing by the director of the department of insurance and financial institutions. The director shall give approval within a reasonable time after filing unless the director finds the plan or agreement:

1. Inequitable to the policyholders of any domestic insurer involved.

2. Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state or elsewhere.

E. If the director does not approve the plan or agreement the director shall so notify the insurer in writing specifying the reasons for the disapproval.
A.R.S. § 20-1305 — Arizona Code / Title 20 / Chapter 6 / Article 3 / Section 1305
20-1305 Incontestability
Status: in_force

20-1305. Incontestability

There shall be a provision that the policy, exclusive of provisions relating to disability benefits or to additional benefits in the event of death by accident or accidental means, shall be incontestable, except for nonpayment of premiums, after it has been in force during the lifetime of the insured for a period of two years from its date of issue.
A.R.S. § 20-2105 — Arizona Code / Title 20 / Chapter 11 / Article 1 / Section 2105
20-2105 Marketing and research surveys; disclosure of questions
Status: in_force

20-2105. Marketing and research surveys; disclosure of questions

An insurance institution or insurance producer shall clearly specify those questions designed to obtain information solely for marketing or research purposes from an individual in connection with an insurance transaction.
A.R.S. § 20-397 — Arizona Code / Title 20 / Chapter 2 / Article 4.1 / Section 397
20-397 Penalties; exception
Status: in_force

20-397. Penalties; exception

A. If the director finds that a person or organization has violated this article or any order of the director issued pursuant to this article after the effective date of such order, the director may, after a hearing, impose a civil penalty of not more than fifty dollars for each violation. If the director finds that a person or organization knowingly violated this article or any order of the director issued pursuant to this article after the effective date of such order, the director may, after a hearing, impose a civil penalty of not more than five hundred dollars for each violation. Such civil penalties, which may not in the aggregate exceed fifty thousand dollars, may be in addition to any other penalty provided by law.

B. It is not a violation of this article if an insurer or rate service organization files a rate or rate change pursuant to section 20-385 which is later disapproved by the director.

C. The director may suspend the license of any rate service organization or insurer which fails to comply with an order of the director within the time prescribed by such order, or any extension of the order which the director may grant. The director shall not suspend the license of any rate service organization or insurer for failure to comply with an order until the time prescribed for an appeal from the order has expired, or if an appeal has been taken, until such order has been affirmed. The director may determine when a suspension of a license becomes effective and it shall remain in effect for the period fixed by the director, unless the director modifies or rescinds such suspension, or until the order upon which such suspension is based is modified, rescinded or reversed.

D. The director shall not impose a penalty or suspend or revoke a license except upon a written order stating the director's findings, made after a hearing held upon not less than ten days' written notice to such person or organization specifying the alleged violation.
A.R.S. § 20-1229 — Arizona Code / Title 20 / Chapter 6 / Article 1 / Section 1229
20-1229 Authorized deductions from insurance proceeds
Status: in_force

20-1229. Authorized deductions from insurance proceeds

In determining the amount due under any life insurance policy issued, deduction may be made of:

1. Any unpaid premiums or installments thereof for the current policy year due under the terms of the policy.

2. The amount of principal and accrued interest of any policy loan or other indebtedness against the policy then remaining unpaid.
A.R.S. § 20-106 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 106
20-106 Acts constituting the transaction of business; definition
Status: in_force

20-106. Acts constituting the transaction of business; definition

A. "Transact" with respect to insurance includes any of the following:

1. Solicitation and inducement.

2. Preliminary negotiations.

3. Effectuation of a contract of insurance.

4. Transaction of matters subsequent to effectuation of the contract and arising out of it.

B. Any of the following acts in this state effected by mail or otherwise, by or on behalf of an unauthorized insurer, is deemed to constitute the transaction of an insurance business in this state:

1. The making of or proposing to make, as an insurer, an insurance contract.

2. The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety.

3. The taking or receiving of any application for insurance.

4. The receiving or collection of any premium, commission, membership fees, assessments, dues or other consideration for any insurance or any part thereof.

5. The issuance or delivery of contracts of insurance to residents of this state or to persons authorized to do business in this state.

6. Directly or indirectly acting as an insurance producer or agent for or otherwise representing or aiding on behalf of another any person or insurer in the solicitation, negotiation, procurement or effectuation of insurance or renewals thereof or in the dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, a fixing of rates or investigation or adjustment of claims or losses or in the transaction of matters subsequent to effectuation of the contract and arising out of it, or in any other manner representing or assisting a person or insurer in the transaction of insurance with respect to subjects of insurance resident, located or to be performed in this state. The provisions of this paragraph shall not operate to prohibit full-time salaried employees of a corporate insured from acting in the capacity of an insurance manager or buyer in placing insurance in behalf of such employer.

7. The transaction of any kind of insurance business specifically recognized as transacting an insurance business within the meaning of the statutes relating to insurance.

8. The transacting or proposing to transact any insurance business in substance equivalent to any provisions as provided in paragraphs 1 through 7 of this subsection in a manner designed to evade the laws of this state.

C. In this section, unless the context otherwise requires, "insurer" includes all corporations, associations, partnerships and individuals engaged as principals in the business of insurance and also includes interinsurance exchanges and mutual benefit societies.
A.R.S. § 20-214 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 214
20-214 Financial requirements; escalator provisions
Status: in_force

20-214. Financial requirements; escalator provisions

If with respect to an insurer lawfully authorized to transact insurance in this state immediately prior to the effective date of this section, this title requires a greater amount of capital, surplus or deposit than required of such insurer immediately prior to such effective date, such insurer shall have a period of one year from and after such effective date within which to comply with any such increased requirement.  No such increase shall be required of any domestic stock insurer which as of such effective date, was lawfully authorized to transact in this state only automobile physical damage insurance, and for so long as such insurer does not transact any additional insurance.
A.R.S. § 20-399 — Arizona Code / Title 20 / Chapter 2 / Article 4.1 / Section 399
20-399 Payment of dividends
Status: in_force

20-399. Payment of dividends

This article does not prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. A plan for the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers is not considered a rating plan or system.
A.R.S. § 20-202.05 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 202.05
20-202.05 Reciprocal insurer's initial free surplus defined
Status: in_force

20-202.05. Reciprocal insurer's initial free surplus defined

A reciprocal insurer's initial free surplus is defined as the minimum additional assets required of a reciprocal insurer over and above the minimum required basic surplus for the lines of insurance authorized to be written.
A.R.S. § 20-554 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 554
20-554 Purchase money mortgages
Status: in_force

20-554. Purchase money mortgages

An insurer may invest in purchase money mortgages or like securities, received by it upon the sale or exchange of real property theretofore owned by it.
A.R.S. § 20-2507 — Arizona Code / Title 20 / Chapter 15 / Article 1 / Section 2507
20-2507 Certificates; renewal
Status: in_force

20-2507. Certificates; renewal

A. A certificate expires on the third anniversary of its effective date unless the certificate is renewed for a three year term as provided in this section.

B. A certificate holder may renew an unexpired certificate for an additional three year term if the certificate holder meets the requirements of this chapter.
A.R.S. § 20-503 — Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 503
20-503 Assets not allowed as deductions from liabilities
Status: in_force

20-503. Assets not allowed as deductions from liabilities

In addition to assets impliedly excluded by section 20-501, the department shall not allow the following as assets in any determination of the financial condition of an insurer:

1. Advances to officers, other than policy loans, whether secured or not, and advances to employees, agents and other persons on personal security only.

2. Stock of the insurer that is owned by the insurer or any equity in the stock, any loans secured by the stock or any proportionate interest in the stock acquired or held through the insurer's ownership of an interest in another firm, corporation or business unit.

3. Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature and supplies, except in the case of title insurers materials and plants as the insurer is expressly authorized to invest in under chapter 6, article 9 of this title and except, in the case of any insurer, personal property as the insurer is permitted to hold pursuant to chapter 3, article 2 of this title, or that is acquired through foreclosure of chattel mortgages acquired pursuant to section 20-555, or that is reasonably necessary for the maintenance and operation of real estate lawfully acquired and held by the insurer other than real estate the insurer uses for home office, branch office and similar purposes.

4. The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value as determined under this title.
A.R.S. § 20-168 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 168
20-168 Preparation and sale of publications
Status: in_force

20-168. Preparation and sale of publications

To the extent he reasonably shall deem desirable and in the public interest, the director may prepare or have prepared books, pamphlets and other publications relating to insurance and sell or resell same in such manner and at such prices not less than cost as he shall determine. All monies received by the director from any such sale or resale shall revert to the general fund.
A.R.S. § 20-3116 — Arizona Code / Title 20 / Chapter 20 / Article 2 / Section 3116
20-3116 Arbitrator qualifications
Status: in_force

20-3116. Arbitrator qualifications

To qualify as an arbitrator, a person shall have at least three years' experience in health care services claims and shall comply with any other qualifications established by the department.
A.R.S. § 20-1585 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1585
20-1585 Commissions; other considerations prohibited
Status: in_force

20-1585. Commissions; other considerations prohibited

No title insurer and no title insurance agent shall pay or give to any applicant for insurance, or to any person who is acting as agent, representative, attorney or employee of the owner, lessee, or mortgagee or of the prospective owner, lessee or mortgagee of the real property or any interest therein, either directly or indirectly, any commission or any part of its fees or charges including, but not limited to, fees for escrow services performed by a title insurer or title insurance agent, or any other consideration or valuable thing, as an inducement for, or as compensation for, any title insurance business.
A.R.S. § 20-1508 — Arizona Code / Title 20 / Chapter 6 / Article 7 / Section 1508
20-1508 Designation as standard policy; producer's name
Status: in_force

20-1508. Designation as standard policy; producer's name

A. There may be printed upon the standard fire policy the words, "standard fire insurance policy for Arizona", and there may be inserted before and after the word "Arizona" a designation of any state or states in which such form of policy is standard.

B. There may be endorsed on the outside of any such policy the name, with the word "producer" or "producers" and place of business, of any insurance producer, either by writing, printing, stamping or otherwise.
A.R.S. § 20-736 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 736
20-736 Transfer of direct obligations; assignment; notice; findings; approval; applicability
Status: in_force

20-736. Transfer of direct obligations; assignment; notice; findings; approval; applicability

A. An authorized insurer shall not transfer or assign the insurer's direct obligations under any insurance contract or policy, including annuities and any guaranteed investment contract, on subjects located, resident or to be performed in this state, that were incurred or assumed under the insurer's authority to transact business as an insurer in this state or under a certificate of exemption pursuant to section 20-401.05 to any other insurer or other party by operation of law, including any law that permits the division of a corporation into two or more resulting corporations, unless the affected contract holder or policyholder consents to or fails to reject the transfer or assignment within one hundred eighty days after receiving a fair, adequate and nonmisleading notice of the transfer or assignment or unless the director approves the transfer or assignment pursuant to this section.

B. The director shall not approve any transfer or assignment described in subsection A of this section unless the director makes all of the following findings:

1. The transaction is fair, reasonable and not contrary to law.

2. The transaction will not substantially reduce the security of and service to be rendered to contract holders and policyholders in this state.

3. The transaction will not be hazardous to or prejudicial against insureds in this state.

4. The nature and details of the transaction have been adequately disclosed.

5. The transaction will not have an adverse effect on the financial condition of any insurer.

6. The persons who will control the operation of the insurer or other party to which the obligations to contract holders and policyholders in this state are transferred or assigned possess sufficient competence, experience and integrity.

7. The plans or proposals for administration of the contracts and policies subject to the transfer or assignment are fair and reasonable.

8. The insurer or other party to which or through which the obligations to contract holders and policyholders in this state are transferred or assigned are at all material times authorized or exempted pursuant to section 20-401.05 to transact that kind or kinds of insurance in this state and are in compliance with all applicable legal requirements.

9. The transfer or assignment will not impair any rights to recovery from any insurance guaranty fund or similar association.

C. Nothing in this section limits or otherwise affects:

1. The lawful administration of a delinquency proceeding or other similar proceeding initiated against an insurer for the purpose of liquidating, rehabilitating, reorganizing or conserving the insurer.

2. The powers of the receiver or other similar entity in the delinquency proceeding or other similar proceeding.

3. The jurisdiction of a court presiding over the delinquency proceeding or other similar proceeding.

4. The exercise of powers and duties as prescribed by the Arizona property and casualty insurance guaranty fund, the Arizona life and disability insurance guaranty fund or any similar organization in any other state.

D. In order to carry out the requirements of this section, the director may use independent contractor examiners, analysts and other technical and professional services in accordance with sections 20-148 and 20-159. All examination and examination related expenses related to the implementation of this section shall be borne by the insurer from which the obligations would be transferred or assigned by virtue of the transaction, and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.

E. This section does not apply to:

1. The transfer of private passenger automobile insurance policies from one insurer to an affiliated insurer pursuant to section 20-1631, subsection L.

2. The transfer or assignment of the direct obligations of an authorized insurer pursuant to a contract of assumption reinsurance.

3. The transfer or assignment of the direct obligations of an authorized insurer pursuant to a provision of a bona fide indemnity reinsurance contract by which the reinsurer becomes directly liable under the policies or contracts to which the reinsurance contract relates.

4. A transfer or assignment resulting from a division or merger of a corporation that was filed for regulatory approval in the corporation's state of domicile on or before December 31, 1996.
A.R.S. § 20-336.03 — Arizona Code / Title 20 / Chapter 2 / Article 3.4 / Section 336.03
20-336.03 Navigators; licensing
Status: in_force

20-336.03. Navigators; licensing

A. A person who applies for a navigator license shall apply to the director on a form prescribed by the director and shall declare under penalty of license denial, suspension or revocation that the statements made in the application are true, correct and complete to the best of the knowledge and belief of the applicant or the applicant's duly authorized representative. The applicant shall provide information concerning the applicant's identity, personal history, business record and experience in insurance and any other pertinent fact the director requires.

B. Before the director approves an individual's navigator application, the director shall find that the individual:

1. Is at least eighteen years of age.

2. Has not committed any act that is a ground for license denial, suspension or revocation as prescribed in section 20-295 and has not been convicted of a misdemeanor involving fraud or dishonesty.

3. Has provided evidence of navigator certification from the United States department of health and human services.

4. Has submitted a full set of fingerprints to the director and successfully completed a criminal history records check in a manner prescribed by the director.

5. Has identified the entity with which it is affiliated and supervised.

C. A business entity that acts as a navigator, supervises the activities of individual navigators or receives funding to perform navigator activities shall obtain a navigator entity license.  Before the director approves a business entity's navigator application, the director shall find that the business entity:

1. Has not committed any act that is a ground for license denial, suspension or revocation as prescribed in section 20-295 and has not been convicted of a misdemeanor involving fraud or dishonesty.

2. Has designated an individually licensed navigator who is responsible for the business entity's compliance with the insurance laws of this state.

D. A business entity's navigator application shall also include the names of all members, officers and directors of the business entity.  For any individual who is identified pursuant to this subsection, the director may require the applicant to provide the information required for a license as an individual.

E. The department of insurance and financial institutions shall submit the fingerprints received pursuant to subsection B of this section to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544.  The department of public safety may exchange the fingerprint data it receives pursuant to this subsection with the federal bureau of investigation.

F. Unless the person is licensed for that line of authority pursuant to this title, a navigator may not:

1. Sell, solicit or negotiate insurance in this state for any class or classes of insurance.

2. Recommend, endorse or offer opinions about the benefits, terms and features of a particular health benefit plan or offer an opinion about which health benefit plan is better or worse for a particular individual or employer.

3. Provide any information or services related to a health benefit plan or another product not offered in the exchange.

4. Engage in any unfair method of competition or any fraudulent, deceptive or dishonest act or practice.

G. The expiration date for a navigator license issued to a person who also holds a license pursuant to this title is the same as the expiration date for the insurance producer license.
A.R.S. § 20-2209 — Arizona Code / Title 20 / Chapter 12 / Article 1 / Section 2209
20-2209 Claims-made policy; cancellation
Status: in_force

20-2209. Claims-made policy; cancellation

A policy issued pursuant to this chapter may provide that the association may cancel any of its policies for the reasons specified in section 20-1673 or in the event of nonpayment of any premium assessment or other charge by sending to the insured written notice at least ten days before the effective date of the cancellation.
A.R.S. § 20-1098.11 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.11
20-1098.11 Reinsurance
Status: in_force

20-1098.11. Reinsurance

A. Except as provided in subsection C of this section or otherwise with the approval of the director, a captive insurer may reinsure risks only pursuant to the limitations prescribed in section 20-1098.01, subsection A.

B. A captive insurer may take credit for reserves on risks or portions of risks ceded to a reinsurer that is in compliance with section 20-261 and chapter 30 of this title.  Prior approval of the director shall be required for ceding or taking credit for the reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with section 20-261 and  chapter 30 of this title.

C. A captive insurer may cede and assume risks that are not within the limitations prescribed in section 20-1098.01, subsection A, subject to the approval of the director.
A.R.S. § 20-696.01 — Arizona Code / Title 20 / Chapter 3 / Article 8 / Section 696.01
20-696.01 Definitions
Status: in_force

20-696.01. Definitions

In this article, unless the context otherwise requires:

1. "Actuarial opinion" means the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items that is based on an asset adequacy analysis conducted pursuant to section 20-696.03 and that is based on presently accepted actuarial standards of practice.

2. "Actuarial standards board" means the board that is established by the American academy of actuaries to develop and promulgate actuarial standards of practice.

3. "Annual statement" means the statement that an insurer annually files with the director pursuant to section 20-223.

4. "Appointed actuary" means an individual who is appointed or retained pursuant to section 20-696.02, subsection D to provide the actuarial opinion and supporting memorandum prescribed by section 20-510, subsection   E or F.

5. "Asset adequacy analysis" means an analysis that meets the standards and other requirements prescribed pursuant to section 20-696.02, subsection E.

6. "Company" means an insurer, fraternal benefit society or reinsurer that is subject to this article pursuant to section 20-696.

7. "Qualified actuary" means any individual who meets the requirements prescribed in section 20-696.02, subsection B.
A.R.S. § 20-1692.01 — Arizona Code / Title 20 / Chapter 6 / Article 16 / Section 1692.01
20-1692.01 Requirements for coverage
Status: in_force

20-1692.01. Requirements for coverage

A. If a group health plan provides coverage for the dependent children of participants or beneficiaries under the plan, the plan shall provide benefits to any dependent children who are placed with the participants or beneficiaries for adoption under the same terms and conditions that apply to the natural dependent children of the participants and beneficiaries, regardless of whether the adoption has become final.

B. Restrictions that are based on preexisting conditions at the time of placement for adoption are prohibited. A group health plan may not restrict the coverage under the plan of any dependent child who is adopted by a participant or beneficiary or who is placed with a participant or beneficiary for adoption solely on the basis of a preexisting condition of the child at the time that the child would otherwise become eligible for coverage under the plan if the adoption or placement for adoption occurs while the participant or beneficiary is eligible for coverage under the plan.
A.R.S. § 20-1373 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1373
20-1373 Age limit
Status: in_force

20-1373. Age limit

If any policy contains a provision establishing, as an age limit or otherwise, a date after which the coverage provided by the policy will not be effective, and if such date falls within a period for which premium is accepted by the insurer or if the insurer accepts a premium after such date, the coverage provided by the policy will continue in force subject to any right of cancellation until the end of the period for which premium has been accepted. In the event the age of the insured has been misstated and if, according to the correct age of the insured, the coverage provided by the policy would not have become effective, or would have ceased prior to the acceptance of such premium or premiums, then the liability of the insurer shall be limited to the refund, upon request, of all premiums paid for the period not covered by the policy.
A.R.S. § 20-1096.05 — Arizona Code / Title 20 / Chapter 4 / Article 12 / Section 1096.05
20-1096.05 Annual reports; renewal of certificate of authority
Status: in_force

20-1096.05. Annual reports; renewal of certificate of authority

A. No later than April 1 of each year, a mechanical reimbursement reinsurer shall submit to the director a report written in a form designated by the director and signed by the president and secretary of the reinsurer that clearly indicates the method being used to determine policy and loss reserves and the amount in the policy and loss reserves.

B. The reinsurer shall accompany the annual report with an application for renewal of the certificate of authority, together with the fee prescribed in section 20-167.
A.R.S. § 20-481.28 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.28
20-481.28 Insurer's license; revocation; suspension; nonrenewal
Status: in_force

20-481.28. Insurer's license; revocation; suspension; nonrenewal

If it appears to the director that a person has committed a violation of this article which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director, after giving notice and an opportunity to be heard, may suspend, revoke or refuse to renew the insurer's license or authority to do business in this state for a period he finds is required for the protection of policyholders or the public. The director shall accompany this determination by specific findings of fact and conclusions of law.
A.R.S. § 20-451 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 451
20-451 Rebates on other than life or disability insurance; definitions
Status: in_force

20-451. Rebates on other than life or disability insurance; definitions

A. Except as allowed in subsection B of this section, an insurer or employee, insurance producer or representative may not knowingly charge, demand or receive a premium for any policy of insurance, other than life or disability insurance, except in accordance with any applicable filing on file with the director. An insurer, employee, insurance producer or representative may not offer, pay, allow or give, directly or indirectly, as an inducement to insurance, or after insurance has been effected, any rebate, discount, abatement, credit or reduction of the premium named in a policy of insurance, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy of insurance, except to the extent provided for in an applicable filing. An insured named in a policy of insurance or any representative or employee of the insured may not knowingly receive or accept, directly or indirectly, any such rebate, discount, abatement, credit or reduction of premium, or any such special favor or advantage or valuable consideration or inducement. This section does not prohibit the payment of commissions or other compensation to duly licensed insurance producers or prohibit any insurer from allowing or returning to its participating policyholders, members or subscribers dividends, savings or unabsorbed premium deposits.

B. An insurer, its employees, insurance producers and representatives may offer or provide products or services that are ancillary or related to any policy of insurance, other than life or disability insurance, that are intended to minimize or prevent claims-related losses or expenses or harm to the public, including fire or smoke detectors, risk audits or assessments and products or services to deter injury, death or property theft or damage. The products and services that may be offered or provided in this subsection are exempt from the prohibitions set forth in subsection A of this section.

C. This section does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed $200. An insurer may not offer, reference or promote an incentive or feedback effort under this section in connection with an application for or renewal of insurance coverage.

D. For the purposes of this section:

1. "Feedback effort" means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services, including in-person, telephonic or online surveys, polls, focus groups, interviews, questionnaires and other recognized opinion-gathering mechanisms.

2. "Insurance" includes suretyship.

3. "Policy" includes bond.
A.R.S. § 20-1095.09 — Arizona Code / Title 20 / Chapter 4 / Article 11 / Section 1095.09
20-1095.09 Unfair trade practices; violation of article; cease and desist order
Status: in_force

20-1095.09. Unfair trade practices; violation of article; cease and desist order

A. The director may order any service company, its agents, officials and representatives, a motor vehicle dealer or an administrator to cease and desist from engaging in any unfair trade practices if upon notice and a hearing it is determined that the person has engaged in such practices. Unfair trade practices include:

1. The making of any false or misleading statements, either oral or written, in connection with the sale, offer to sell or advertisement of a service contract.

2. The omission of any material statement in connection with the sale, offer to sell or advertisement of a service contract, which under the circumstances should have been made in order to make the statements that were made not misleading.

3. The making of any false or misleading statements, either oral or written, about the benefits or services available under the service contract.

4. The failure to perform the services promised under the service contract within a reasonable time and in a competent or workmanlike manner.

B. If the director determines that the provisions of this article have been violated, the director, in addition to the authority to revoke or suspend a permit as provided in section 20-1095.08, may issue an order requiring the person violating the provisions of this article to cease and desist from such method, act or practice. The director shall make a written record of the director's findings.
A.R.S. § 20-181 — Arizona Code / Title 20 / Chapter 1 / Article 3 / Section 181
20-181 Mandated health coverage; report
Status: in_force

20-181. Mandated health coverage; report

An organization or individual advocating a legislative proposal that would mandate a health coverage or offering of a health coverage by an insurer, hospital, medical, dental or optometric service corporation, health care services organization or any other health care service contractor as a component of individual or group policies shall submit a report pursuant to section 20-183.  The report shall assess both the social and financial impacts of such coverage, including the effectiveness of the treatment or service proposed, according to the factors prescribed in section 20-182.
A.R.S. § 20-1030 — Arizona Code / Title 20 / Chapter 4 / Article 8 / Section 1030
20-1030 Actions on policies or insurance contracts; process; judgments; costs
Status: in_force

20-1030. Actions on policies or insurance contracts; process; judgments; costs

Action on any policy or contract of insurance issued by an attorney for the underwriters may be brought against the attorney. In such action, summons and process shall be served on either the director or on the attorney-in-fact, and when so served shall have the same effect as if served on the attorney and on each underwriter personally. A judgment in any such action against the attorney shall be binding upon and be judgment against each and all of the underwriters as their several liabilities may appear in the contract of insurance on which the action is brought. Any such summons or other process shall be served in accordance with the provisions of section 20-222, and the provisions of that section shall be in all respects applicable thereto.
A.R.S. § 20-3114 — Arizona Code / Title 20 / Chapter 20 / Article 2 / Section 3114
20-3114 Dispute resolution; settlement teleconference; arbitration; surprise out-of-network bills
Status: in_force

20-3114. Dispute resolution; settlement teleconference; arbitration; surprise out-of-network bills

A. An enrollee who has received a surprise out-of-network bill and who disputes the amount of the bill may seek dispute resolution of the bill by filing a request for arbitration with the department not later than one year after the date of service noted in the surprise out-of-network bill, except as otherwise provided in this section, if all of the following apply:

1. The enrollee has resolved any health care appeal pursuant to chapter 15, article 2 of this title that the enrollee may have had against the health insurer following the health insurer's initial adjudication of the claim.  The one-year time period for requesting arbitration is tolled from the date that the enrollee files a health care appeal until the date of final resolution of the appeal.

2. The enrollee has not instituted a civil lawsuit or other legal action against the insurer or health care provider related to the same surprise out-of-network bill or the health care services provided.

3. The amount of the surprise out-of-network bill for which the enrollee is responsible for all related health care services provided by the health care provider whether contained in one or multiple bills, after deduction of the enrollee's cost sharing requirements and the insurer's allowable reimbursement, is at least one thousand dollars.

B. If an enrollee requests dispute resolution of a surprise out-of-network bill, the enrollee or the enrollee's authorized representative shall participate in an informal settlement teleconference and may participate in the arbitration of the bill. If the enrollee or enrollee's authorized representative fails to attend the informal settlement teleconference, the conference shall be terminated and the enrollee, within fourteen days after the first scheduled informal settlement teleconference, may request that the department reschedule the informal settlement teleconference. If the enrollee does not request that the department reschedule the informal settlement teleconference, the enrollee forfeits the right to arbitrate the surprise out-of-network bill. The health care provider or the provider's representative and the health insurer shall participate in the informal settlement teleconference and the arbitration.

C. An enrollee may not seek dispute resolution of a bill if the enrollee or the enrollee's authorized representative signed the disclosure prescribed in section 20-3113, subsection A, paragraph 2 and the amount actually billed to the enrollee is less than or equal to the estimated total cost provided in the disclosure.
A.R.S. § 20-532 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 532
20-532 Eligible investments
Status: in_force

20-532. Eligible investments

A. Insurers shall invest in or loan their funds on the security of, and shall hold as assets, only eligible investments as prescribed in this article.

B. Any particular investment that was held by an insurer on January 1, 1955, that was a legal investment at the time it was made and that the insurer was legally entitled to possess immediately before January 1, 1955 is an eligible investment.

C. The eligibility of an investment shall be determined as of the date of its making or acquisition.

D. Any investment limitation based on the amount of the insurer's assets or particular funds shall relate to assets or funds as shown by the insurer's annual statement as of the December 31 last preceding date of investment or on the insurer's most recently required statutory balance sheet filed with the director, unless the accounting practices and procedures manual adopted by the national association of insurance commissioners prescribes the use of a different financial statement.

E. Any investment shall not be disqualified solely because it is held in a security depository if the director has approved the depository.
A.R.S. § 20-1121 — Arizona Code / Title 20 / Chapter 5 / Article 1 / Section 1121
20-1121 Renewal of policy by certificate or endorsement
Status: in_force

20-1121. Renewal of policy by certificate or endorsement

Any insurance policy terminating by its terms at a specified expiration date and not otherwise renewable, may be renewed or extended at the option of the insurer upon a currently authorized policy form at the premium rate then required therefor for a specific additional period or periods by certificate or by endorsement of the policy, and without requiring the issuance of a new policy.
A.R.S. § 20-218.01 — Arizona Code / Title 20 / Chapter 2 / Article 1 / Section 218.01
20-218.01 Appointment of a statutory agent
Status: in_force

20-218.01. Appointment of a statutory agent

A. Each domestic insurer shall have and continuously maintain in this state:

1. A known place of business which may be the office of its statutory agent.

2. A statutory agent, which agent may be the director, an individual, who has been a resident of this state for three years, a domestic corporation or a foreign corporation authorized to transact business in this state.

B. Failure to appoint a statutory agent by a domestic insurer may result in the revocation or suspension of such insurer's certificate of authority.

C. The appointment required herein shall be filed with the director.
A.R.S. § 20-2111 — Arizona Code / Title 20 / Chapter 11 / Article 1 / Section 2111
20-2111 Information concerning previous adverse underwriting decisions
Status: in_force

20-2111. Information concerning previous adverse underwriting decisions

An insurance institution, insurance producer or insurance support organization shall not seek information in connection with an insurance transaction concerning any previous adverse underwriting decision experienced by an individual or any previous insurance coverage obtained by an individual through a residual market mechanism, unless the inquiry also requests the reasons for any previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism.
A.R.S. § 20-1571 — Arizona Code / Title 20 / Chapter 6 / Article 9 / Section 1571
20-1571 Use of the unearned premium reserve on liquidation, dissolution or insolvency
Status: in_force

20-1571. Use of the unearned premium reserve on liquidation, dissolution or insolvency

A. If an order of rehabilitation or of liquidation shall have been entered with respect to a title insurer in accordance with the provisions of article 4 of chapter 3 of this title, then, and notwithstanding the provisions of such article:

1. Such amount of the assets of such title insurer equal to the unearned premium reserve then remaining as is necessary may be used to pay for reinsurance of the liability of such title insurer upon all outstanding policies of title insurance, as to which claims for losses by the holders are not then pending, the balance, if any, of assets equal to the unearned premium reserve fund then remaining, then to be transferred to the general assets of the title insurer.

2. The assets other than the unearned premium reserve shall be available to pay claims for losses sustained by holders of policies then pending or arising up to the time reinsurance is effected. In the event that claims for losses are in excess of such other assets of the title insurer, such claims, when established, shall be paid pro rata out of the surplus assets attributable to the unearned premium reserve, to the extent of such surplus, if any.

B. In the event that reinsurance is not obtained, the unearned premium reserve and assets constituting minimum capital, or so much as remains thereof after outstanding claims have been paid, shall constitute a trust fund to be held by the director for twenty years, out of which claims of policyholders shall be paid as they arise. The balance, if any, of such fund shall, at the expiration of twenty years, revert to the general assets of the title insurer.
A.R.S. § 20-109 — Arizona Code / Title 20 / Chapter 1 / Article 1 / Section 109
20-109 Existing licenses
Status: repealed

20-109. Existing licenses

A. The expiration dates of certificates of authority and licenses in force immediately prior to January 1, 1955 and lawfully existing under any law repealed by Laws 1954, chapter 64, article 29, are extended as follows:

1. Licenses or certificates of authority of insurers shall expire on April 1, 1955.

2. Licenses or certificates of authority of agents, brokers and solicitors shall expire at midnight on June 30, 1955.

B. Any such expired license or certificate may be renewed, and shall be subject to suspension or revocation, as though originally issued under this title.
A.R.S. § 20-383 — Arizona Code / Title 20 / Chapter 2 / Article 4.1 / Section 383
20-383 Rate standards
Status: in_force

20-383. Rate standards

A. An insurer shall not charge rates that are excessive, inadequate or unfairly discriminatory. An insurer shall not charge any rate which if continued will have or tend to have the effect of destroying competition or establishing a monopoly.

B. Rates are excessive if they are likely to produce an underwriting profit that is unreasonably high for the class of business or if expenses are unreasonably high in relation to established services rendered. Rates are presumed not to be excessive if a reasonable degree of price competition exists at the consumer level with respect to a particular class of business. A competitive market is presumed to exist unless the director, after a hearing, determines that a reasonable degree of price competition does not exist in the market and issues an order pursuant to section 20-388 to that effect. The order expires no later than one year after its effective date unless the director finds, after a hearing, that there is a continuing lack of reasonable competition in the market. If the director finds, after a hearing, that a reasonable degree of price competition among insurers writing a particular line, subline or class of business does not exist, he may prescribe an allowable percentage of increase in a proposed rate level for such line, subline or class of business. Any insurer making a rate filing exceeding the allowable percentage of increase shall, prior to the effective date of such proposed rate increase, provide the director with sufficient actuarial data to support such increase. The director's order establishing allowable percentages of increase for a particular line, subline or class of business shall expire no later than one year after its effective date. In determining whether a reasonable degree of price competition exists, the director shall consider relevant tests of competition pertaining to market structure, market performance and market conduct, including:

1. The number of insurers actively engaged in the class of business.

2. The market share and changes in market share of insurers.

3. The existence of a degree of rate differentials in a particular class of business.

4. The ease of entry and latent competition of insurers capable of easy entry.

C. Rates are inadequate if they are clearly insufficient to sustain projected losses and expenses in the class of business to which they apply.

D. A rate is not unfairly discriminatory in relation to another in the same class if it reflects equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or like expense factors but different loss exposures, if the rates reflect the differences with reasonable accuracy. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, franchise or blanket policy.
A.R.S. § 20-1342.01 — Arizona Code / Title 20 / Chapter 6 / Article 4 / Section 1342.01
20-1342.01 Children with disabilities
Status: in_force

20-1342.01. Children with disabilities

An individual hospital or medical expense insurance policy delivered or issued for delivery in this state more than one hundred twenty days after August 27, 1977 that provides that coverage of a dependent child shall terminate on attainment of the limiting age for dependent children specified in the policy, shall also provide in substance that attainment of such limiting age shall not operate to terminate the coverage of that child while the child is and continues to be both incapable of self-sustaining employment by reason of intellectual disability or physical disability and chiefly dependent on the policyholder for support and maintenance. Proof of such incapacity and dependency shall be furnished to the insurer by the policyholder within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the insurer but not more frequently than annually after the two-year period following the child's attainment of the limiting age.
A.R.S. § 20-1243 — Arizona Code / Title 20 / Chapter 6 / Article 1.3 / Section 1243
20-1243 Definitions
Status: in_force

20-1243. Definitions

In this article, unless the context otherwise requires:

1. "Annuity" means an annuity that is individually solicited, whether the product is classified as an individual or group annuity.

2. "Business entity" has the same meaning prescribed in section 20-281.

3. "Cash compensation" means any discount, concession, fee, service fee, commission, sales charge, loan, override or cash benefit received by a producer in connection with the recommendation or sale of an annuity from an insurer or intermediary or directly from the consumer.

4. "Consumer profile information" means information that is reasonably appropriate to determine whether a recommendation addresses the consumer's financial situation, insurance needs and financial objectives, including at least the following:

(a) Age.

(b) Annual income.

(c) Financial situation and needs, including debts and other obligations.

(d) Financial experience.

(e) Insurance needs.

(f) Financial objectives.

(g) Intended use of the annuity.

(h) Financial time horizon.

(i) Existing assets or financial producers, including investment, annuity and insurance holdings.

(j) Liquidity needs.

(k) Liquid net worth.

(l) Risk tolerance, including willingness to accept nonguaranteed elements in the annuity.

(m) Financial resources used to fund the annuity.

(n) Tax status.

5. "Continuing education credit" means one continuing education credit hour as defined in section 20-2901.

6. "Continuing education provider" means an individual or entity that is approved to offer continuing education courses pursuant to chapter 18 of this title.

7. "FINRA" means the financial industry regulatory authority or a succeeding agency.

8. "Insurer" has the same meaning prescribed in section 20-104.

9. "Intermediary" means an entity that is contracted directly with an insurer or with another entity that is contracted with an insurer to facilitate the sale of the insurer's annuities by producers.

10. "Managing general agent" has the same meaning prescribed in section 20-311.

11. "Material conflict of interest":

(a) Means a producer's financial interest in the sale of an annuity that a reasonable person would expect to influence the impartiality of the producer's recommendation.

(b) Does not include cash compensation or noncash compensation.

12. "Noncash compensation" means any form of compensation that is not cash compensation, including health insurance, office rent, office support and retirement benefits.

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

14. "Producer":

(a) Means an insurance producer as defined in section 20-281.

(b) Includes an insurer where no producer is involved.

15. "Recommendation":

(a) Means advice provided by a producer to an individual consumer that was intended to result or does result in a purchase, exchange or replacement of an annuity pursuant to that advice.

(b) Does not include general communication to the public, generalized customer service assistance or administrative support, general education information and tools, prospectuses or other product and sales materials.

16. "Replacement" means a transaction in which a new annuity is to be purchased and it is known or should be known to the proposing producer or to the proposing insurer, whether or not a producer is involved, that by reason of the transaction, an existing annuity or other insurance policy has been or is to be any of the following:

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

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

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

(d) Reissued with any reduction in cash value.

(e) Used in a financed purchase.

17. "SEC" means the United States securities and exchange commission.
A.R.S. § 20-166 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 166
20-166 Judicial review
Status: in_force

20-166. Judicial review

Except as provided in section 41-1092.08, subsection H, an appeal to the superior court in Maricopa county may be taken from any final decision of the director pursuant to title 12, chapter 7, article 6.
A.R.S. § 20-559 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 559
20-559 Investments of foreign and alien insurers
Status: in_force

20-559. Investments of foreign and alien insurers

A. Foreign and alien insurers transacting insurance in this state shall have assets of the same general character and quality, and have invested in home office real property as permitted under paragraph 1 of section 20-556, all as specified in this article for domestic insurers, except that other investments authorized by the law of such an insurer's state or country of domicile may be recognized as assets in the discretion of the director.

B. A foreign insurer domiciled in a state that requires insurers domiciled in this state to invest in the securities of such state a stipulated percentage or amount of its reserves under its policies in force in such state, shall likewise be required to invest in similar securities of this state a like percentage or amount of its reserves under its policies in force in this state, and shall from time to time furnish proof of such investments as required by the director.
A.R.S. § 20-890 — Arizona Code / Title 20 / Chapter 4 / Article 4 / Section 890
20-890 Licensing of insurance producers
Status: in_force

20-890. Licensing of insurance producers

A. An insurance producer of a society or its subsidiary or affiliated organizations shall be licensed pursuant to chapter 2, article 3 of this title.  The director may waive the examination for licensure if the applicant was licensed after January 1, 1955 and has been an active soliciting representative of a society in this state for not less than six months immediately preceding the application.

B. A regular salaried officer, employee or member of a licensed society who devotes substantially all of that individual's services to activities other than the solicitation of fraternal insurance contracts and who receives for the solicitation of those contracts no commission or other compensation directly dependent on the amount of business solicited is not subject to examination and licensure pursuant to this section.

C. An insurance producer, representative or member of the society who devotes or intends to devote less than fifty per cent of that individual's time to the solicitation and procurement of insurance contracts is exempt from subsection A. This exemption does not apply to an insurance producer of a subsidiary corporation or affiliated organization. From time to time each society shall submit to the director the names and addresses of all persons who are actively engaged in its behalf as insurance producers.

D. A person who in the preceding calendar year has solicited and procured life insurance contracts on behalf of a fraternal benefit society in an amount of insurance of more than one hundred thousand dollars, or in the case of any other kind or kinds of insurance that the society may write, on the persons of more than one hundred individuals, is presumed to be devoting or intending to devote more than fifty per cent of that individual's time to the solicitation or procurement of insurance contracts for societies.

E. In this state a person shall not solicit, forward applications or assist in placing insurance of residents of this state in any fraternal benefit society that is not authorized to transact business in this state.
A.R.S. § 20-2605 — Arizona Code / Title 20 / Chapter 16 / Article 1 / Section 2605
20-2605 Reserve liabilities for variable life insurance
Status: in_force

20-2605. Reserve liabilities for variable life insurance

A. Reserve liabilities for variable life insurance policies shall be established under section 20-510 according to actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.

B. Reserve liabilities for the guaranteed minimum death benefit shall be the reserve amount that is needed to provide for the contingency of death occurring when the guaranteed minimum death benefit exceeds the death benefit that would otherwise be paid in the absence of the guarantee. The insurer shall maintain reserve liabilities in the general account. Reserve liabilities shall not be less than the greater of any of the following minimum reserves:

1. Assuming an immediate one-third depreciation in the current value of the assets in the separate account followed by a net investment return equal to the assumed investment rate, the aggregate total of the term costs on each variable life insurance contract, if any, covering either:

(a) A period of one full year from the valuation date.

(b) If less than the amount under subdivision (a) of this paragraph, the period that is provided for in the guarantee and that is not otherwise provided for by the reserves held in the separate account.

2. The aggregate total of the attained age level reserves on each variable life insurance contract. The attained age level reserve on each variable life insurance contract shall not be less than zero and shall equal the residue of the prior year's attained age level reserve on the contract. Any residue shall be increased or decreased by a payment that is computed on an attained age basis pursuant to subdivision (b) of this paragraph. For the purposes of this paragraph:

(a) The residue of the prior year's attained age level reserve on each variable life insurance contract shall not be less than zero and shall be determined by adding interest at the valuation interest rate to the prior year's reserve, by deducting the tabular claims based on any excess, if any, of the guaranteed minimum death benefit over the death benefit that would be payable in the absence of the guarantee and by dividing the net result by the tabular probability of survival. The excess shall be based on the actual level of death benefits that would have been in effect during the preceding year in the absence of the guarantee and shall take account of the reserve assumptions regarding the distribution of death claim payments over the year.

(b) The payment shall be computed so that the present value of a level payment of that amount each year over the future period for which charges for this risk will be collected under the contract or if no future charges for this risk will be collected under the contract, the payment shall equal (A) minus (B) minus (C). For the purposes of this subdivision:

(i) (A) means the present value of the future guaranteed minimum death benefits.

(ii) (B) means the present value of the future death benefits that would be payable in the absence of the guarantee and that is computed by assuming a net investment return of the separate account that may differ from the assumed investment rate or the valuation interest rate, or both, but that may not exceed the maximum interest rate that is permitted for the valuation of life contracts.

(iii) (C) means any residue as prescribed by subdivision (a) of this paragraph of the prior year's attained age level reserve on the variable life insurance contract.

3. The valuation interest rate and mortality table that are used to compute the guaranteed minimum death benefit and the future death benefit that would be payable in the absence of the guarantee shall conform to permissible standards for the valuation of life insurance contracts. In determining the minimum reserves, the insurer may employ suitable approximations and estimates, including groupings and averages.

C. According to the actuarial procedures appropriate to the benefit, the insurer shall maintain reserve liabilities for all fixed incidental insurance benefits and any guarantees that are associated with variable accidental insurance benefits in the general account and shall maintain reserve liabilities for all variable aspects of the variable incidental insurance benefits in a separate account.
A.R.S. § 20-720 — Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 720
20-720 Revocation of authority to issue nonassessable policies
Status: in_force

20-720. Revocation of authority to issue nonassessable policies

A. The director shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority, or if the insurer, by resolution of its board of directors approved by a majority of its members, requests that the authority be revoked.

B. Upon revocation of such authority for any cause the insurer shall not thereafter issue new policies without contingent liability, nor renew or accept further premiums on old policies without endorsing them to provide for such liability.
A.R.S. § 20-1098.05 — Arizona Code / Title 20 / Chapter 4 / Article 14 / Section 1098.05
20-1098.05 Protected cell captive insurers
Status: in_force

20-1098.05. Protected cell captive insurers

A. One or more sponsors may form a protected cell captive insurer as prescribed in this article.

B. A protected cell captive insurer may establish and maintain one or more protected cells to insure the risks of one or more participants, subject to the following conditions:

1. A protected cell captive insurer shall not have any stockholders other than its participants and sponsors.

2. A protected cell captive insurer shall separately account for each protected cell in its books and records to reflect the financial condition and results of operations of each protected cell, net income or loss of each protected cell, dividends or other distributions to participants of each protected cell and any other factors prescribed in the participant contract or required by the director.

3. The assets of a protected cell are not chargeable with liabilities arising out of any other insurance business the protected cell captive insurer may conduct.

4. A protected cell captive insurer shall not sell, exchange or transfer assets, issue a dividend or make a distribution between or among any of its protected cells without the written consent of all its protected cells.

5. A protected cell captive insurer shall not sell, exchange or transfer assets, issue a dividend or make a distribution to a sponsor or participant unless the director approves the transaction and determines that the transaction will not cause insolvency or impairment of any protected cell.

6. At the time of filing its annual report pursuant to section 20-1098.07 a protected cell captive insurer shall annually file with the department:

(a) An accounting statement, in the form the director requires, detailing the financial experience of each protected cell.

(b) Any other financial reports prescribed by the director.

7. A protected cell captive insurer shall notify the director in writing within ten days after learning of any protected cell that is insolvent or otherwise unable to meet its claim or expense obligations.

8. A protected cell captive insurer shall obtain the director's written approval of any participant contract before the contract becomes effective.

9. The addition of a new participant or the withdrawal of a participant from an existing protected cell is deemed a change in the captive insurer's business plan and requires the director's prior approval.

10. With respect to each protected cell, the insurance business written by a protected cell captive insurer shall be any of the following:

(a) Assumed from an insurance company licensed under the laws of any state.

(b) Reinsured by a reinsurer authorized or accredited by this state.

(c) Secured by a trust fund or an irrevocable letter of credit with an evergreen clause.
A.R.S. § 20-469 — Arizona Code / Title 20 / Chapter 2 / Article 6 / Section 469
20-469 Motor vehicle loss; choice of glass repair facility
Status: in_force

20-469. Motor vehicle loss; choice of glass repair facility

Unless otherwise prescribed by contract, a person in this state has the right to choose any glass repair facility for the repair of a loss relating to motor vehicle glass.  If an insurer recommends or provides information about a glass repair facility, the insurer shall inform the person of this right at the same time as making the recommendation or providing the information.  This section does not create a private right or cause of action to or on behalf of any person.  This section provides solely an administrative remedy to the director for any violation of this section.
A.R.S. § 20-262 — Arizona Code / Title 20 / Chapter 2 / Article 2 / Section 262
20-262 Motor vehicle insurance policy; reduction of rate for older person completing accident prevention course; course requirements
Status: in_force

20-262. Motor vehicle insurance policy; reduction of rate for older person completing accident prevention course; course requirements

A. An insurer issuing motor vehicle liability insurance policies in this state may provide additional reductions in rates for motor vehicle personal injury and property damage coverage to an insured who:

1. Is at least fifty-five years of age.

2. Within the last three years has successfully completed a driver improvement course:

(a) That is approved by the department of transportation, motor vehicle division.

(b) That includes classroom instruction or practice driving of at least the minimum number of hours that the director of the department of transportation requires.

(c) Which is not self-instructed and provides actual classroom or field driving instruction for the minimum number of hours required by the department of transportation.

(d) For which the insured has received a certificate that certifies the completion of the course.

B. Upon successfully completing an approved course, the agency sponsoring the course shall issue to each participant a certificate which is the basis of qualification for the premium reduction authorized by this section.
A.R.S. § 20-481.31 — Arizona Code / Title 20 / Chapter 2 / Article 8 / Section 481.31
20-481.31 Supervisory colleges
Status: in_force

20-481.31. Supervisory colleges

A. With respect to any insurer registered under section 20-481.09 and in accordance with subsection C of this section, in order to determine compliance by the insurer with this title, the director may participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations. The director, with respect to supervisory colleges, may:

1. Initiate the establishment of a supervisory college.

2. Clarify the membership and participation of other supervisors in the supervisory college.

3. Clarify the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor.

4. Coordinate the ongoing activities of the supervisory college, including planning meetings, supervisory activities and processes for information sharing.

5. Establish a crisis management plan.

B. Each registered insurer subject to this section shall be liable for and shall pay the reasonable expenses of the director's participation in a supervisory college in accordance with subsection C of this section, including reasonable travel expenses.  The director may establish a regular assessment to the insurer for the payment of these expenses. For the purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates.

C. The director may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal and international regulatory agencies. In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management and governance processes, and as part of the examination of individual insurers in accordance with section 20-481.20, the director may enter into agreements in compliance with section 20-481.21 providing the basis for cooperation between the director and the other regulatory agencies and the activities of the supervisory college. This section does not delegate to the supervisory college the authority of the director to regulate or supervise the insurer or its affiliates within its jurisdiction.
A.R.S. § 20-1094 — Arizona Code / Title 20 / Chapter 4 / Article 10 / Section 1094
20-1094 Approval of reinsurance agreements
Status: in_force

20-1094. Approval of reinsurance agreements

Notwithstanding section 20-732, an unaffiliated credit life and disability reinsurer shall file with the director all reinsurance agreements and amendments to which the reinsurer is a party. The agreement or amendment is not effective until the agreement or amendment is approved by the director. The agreement is deemed approved if the director does not disapprove the agreement within thirty days after the reinsurer files the agreement with the director.
A.R.S. § 20-164 — Arizona Code / Title 20 / Chapter 1 / Article 2 / Section 164
20-164 Procedure upon hearing
Status: in_force

20-164. Procedure upon hearing

A. Hearings may be closed to the public at the director's discretion, but the hearing shall be open to the public if so requested in writing by any principal party to the hearing.

B. The director shall allow any person affected by the hearing to appear in person and by counsel, to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary evidence, to examine witnesses, to present supporting evidence and to have subpoenas issued by the director to compel attendance of witnesses and production of evidence.
A.R.S. § 20-416.01 — Arizona Code / Title 20 / Chapter 2 / Article 5 / Section 416.01
20-416.01 Collection and payment of tax on surplus lines; multistate agreement
Status: in_force

20-416.01. Collection and payment of tax on surplus lines; multistate agreement

A. In accordance with the nonadmitted and reinsurance reform act of 2010, the director may enter into a compact or multistate agreement to provide for the reporting, payment, collection and allocation of taxes imposed pursuant to sections 20-401.07 and 20-416 on surplus lines insurance covering multistate risks if, after a hearing conducted pursuant to section 20-161, it is determined that entering into a compact or multistate agreement is in the best interests of this state.  In determining whether entering into a compact or multistate agreement is in the best interests of this state, the following factors shall be considered:

1. The impact on the state's gross receipt of premium taxes, if any.

2. The regulatory burden and costs placed on insurance companies, surplus lines brokers and insurance agents doing business in this state.

3. The cost impact on insureds resulting from any regulatory requirements attributable to a compact or multistate agreement, if any.

4. Other factors as may be raised by the director or any other interested party.

B. Taxes imposed pursuant to sections 20-401.07 and 20-416 on unauthorized insurance covering Arizona single-state risks shall not be covered by or payable through any compact or multistate agreement entered into by the director pursuant to subsection A of this section.

C. If a clearinghouse is not established or otherwise in operation or if the director does not enter into a multistate agreement or compact pursuant to subsection A of this section, any statements and taxes otherwise payable to a clearinghouse pursuant to this article shall be filed with the director or with a voluntary domestic organization of surplus lines brokers with which the director has contracted to accept reports pursuant to section 20-167.

D. The director may adopt reasonable rules to effectuate any provision of the nonadmitted and reinsurance reform act of 2010 (15 United States Code section 8201).
A.R.S. § 20-1654 — Arizona Code / Title 20 / Chapter 6 / Article 12 / Section 1654
20-1654 Sending notice of intention not to renew to insured; time; term of policy
Status: in_force

20-1654. Sending notice of intention not to renew to insured; time; term of policy

A. Unless the insurer, at least thirty days before the end of the policy period, sends to the named insured notice of its intention not to renew the policy or to condition its renewal on reduction of limits or elimination of coverages, the insurer shall not fail to renew the policy on payment of the premium due on the effective date of the renewal, in accordance with the then existing rating manual of the insurer.

B. For the purposes of this section:

1. Any policy written for a term of less than one year may be renewed for a term of one year if the notice is not given as required by subsection A of this section. For the purposes of subsection A of this section, a policy with no fixed expiration date is deemed written for successive policy periods of one year.

2. 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 paragraph. 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 paragraph does not allow the insurer to apply a new unrestricted sixty-day period for cancellation or nonrenewal.

C. This section does not apply if the insured has accepted replacement coverage or has agreed to nonrenewal.
A.R.S. § 20-1547 — Arizona Code / Title 20 / Chapter 6 / Article 8.1 / Section 1547
20-1547 Mortgage guaranty insurance as monoline
Status: in_force

20-1547. Mortgage guaranty insurance as monoline

A. A mortgage guaranty insurance company that anywhere transacts any class of insurance other than mortgage guaranty insurance is not eligible for the issuance or renewal of a certificate of authority to transact mortgage guaranty insurance in this state.

B. A mortgage guaranty insurance company that anywhere transacts the classes of insurance defined in section 20-1541, paragraph 4, subdivision (b) or (c) is not eligible for a certificate of authority to transact in this state the class of mortgage guaranty insurance defined in section 20-1541, paragraph 4, subdivision (a). A mortgage guaranty insurance company that transacts a class of insurance defined in section 20-1541, paragraph 4, subdivision (a) may write up to five per cent of its insurance in force on residential property designed for occupancy by five or more families.
A.R.S. § 20-1241.05 — Arizona Code / Title 20 / Chapter 6 / Article 1.1 / Section 1241.05
20-1241.05 Duties of replacing insurers that use insurance producers
Status: in_force

20-1241.05. Duties of replacing insurers that use insurance producers

A. A replacing insurer shall comply with the requirements of this section for each replacement transaction.

B. The insurer shall verify that it has received all required forms and that the forms comply with this article.

C. The insurer shall notify any existing insurer that may be affected by the proposed replacement within five business days after the receipt of a completed application indicating replacement or, if not indicated on the application, when the replacement is identified, and send a copy of the available illustration or policy summary for the proposed policy or available disclosure document for the proposed contract within five business days after a request from an existing insurer.

D. The insurer shall be able to produce copies of the notification regarding replacement required in section 20-1241.03, subsections C and D, indexed by the insurance producer, for at least five years or until the next regular examination by the insurance regulatory authority of its state of domicile, whichever is later.

E. The insurer shall provide the policy or contract owner notice of the right to return the policy or contract within thirty days of delivery and receive an unconditional full refund of all premiums or consideration paid, including any policy fees or charges or, in the case of a variable or market value adjustment policy or contract, a payment of the cash surrender value provided under the policy or contract plus all fees and other charges deducted from the gross premiums or considerations or imposed under the policy or contract.  The notice may be included in the notice required under section 20-1241.03, subsections C and D.

F. If the replacing insurer and the existing insurer are the same or subsidiaries or affiliates under common ownership or control, the replacing insurer shall allow credit for the period of time that has elapsed under the replacement policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract.  For financed purchases, the insurer may limit the credit to the amount that the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.

G. If an insurer prohibits the use of sales materials the insurer has not approved, the insurer, as an alternative to the requirements of section 20-1241.03, subsection G, may comply as follows:

1. The insurer shall require an insurance producer to submit a signed statement with each application stating that the insurance producer used only sales material that the insurer approved and that the insurance producer will provide copies to the applicant as required by section 20-1241.03, subsection F.

2. Within ten days after the issuance of the policy or contract, the insurer shall:

(a) Notify the applicant by letter or by verbal communication from a person whose duties are separate from the marketing area of the insurer that the insurance producer made the representation about leaving sales materials as described in paragraph 1 of this subsection.

(b) Provide the applicant with a toll-free number to contact insurer personnel responsible for regulatory compliance if the insurance producer did not leave sales materials.

(c) Advise the applicant that it is important to retain copies of the sales material for future reference.

3. The insurer shall be able to produce a copy of the letter or other verification required by paragraph 2, subdivision (a) of this subsection for at least five years after the termination or expiration of the policy or contract.
A.R.S. § 20-828 — Arizona Code / Title 20 / Chapter 4 / Article 3 / Section 828
20-828 Deposit for protection of members
Status: in_force

20-828. Deposit for protection of members

A. Corporations governed by this article shall at all times have on deposit with the state treasurer the following amounts:

1. If newly formed under this article, two hundred thousand dollars.

2. If formed under prior law, such amount as was so required under prior law.

B. Every such corporation each year shall deposit with the state treasurer, not later than February 1, an amount equal to two per cent of the gross subscriptions collected during the preceding calendar year, until the deposit of the corporation reaches a total of five hundred thousand dollars. All such deposits shall be held by the state treasurer in trust for the benefit and protection of the subscribers of the corporation making the deposit.

C. The deposit prescribed by this section shall be subject to withdrawal in whole or in part on the order of and as directed by the director, but may, with the approval of the director, be invested pursuant to section 35-313. Interest earned on the deposits shall be payable to the corporation making the deposit.

D. An unsettled final judgment, arising upon a certificate of participation against such a corporation, shall be a lien on the deposit prescribed by this section, subject to execution after thirty days from the entry of final judgment. If the deposit is reduced thereby, it shall be replenished within ninety days.

E. Upon the liquidation or dissolution of the corporation and the satisfaction of all its liabilities, any balance remaining in the deposit in the hands of the state treasurer and any other assets of the insurer shall be distributed to the holders of certificates of participation in good standing at the time proceedings for the liquidation or dissolution of the corporation were commenced, prorated according to the gross amount of subscriptions which have been paid on the certificates up to the time such proceedings were commenced.
A.R.S. § 20-562 — Arizona Code / Title 20 / Chapter 3 / Article 2 / Section 562
20-562 Insurer investments; partnerships; limited liability companies; limitations
Status: in_force

20-562. Insurer investments; partnerships; limited liability companies; limitations

A. An insurer that meets the standards prescribed in subsection B may invest in a partnership or limited liability company interest if the investments held by the partnership or limited liability company, if added to the assets of the insurer in the same proportion as the interests in the partnership or limited liability company held by all other partners or members, would not cause the insurer to exceed the limitations prescribed in this article.

B. To be eligible to make any investment provided in this section, an insurer shall possess surplus as regards policyholders of at least:

1. Seven million dollars if the surplus is at least seven per cent of the insurer's admitted assets.

2. One hundred million dollars if the surplus is at least six per cent of the insurer's admitted assets.

3. Two hundred fifty million dollars if the surplus is at least five per cent of the insurer's admitted assets.

C. Except with the director's consent, the eligible insurer investments pursuant to this section are subject to the following limitations:

1. An insurer's investment in a partnership or limited liability company shall not exceed two per cent of the insurer's admitted assets.

2. An insurer's total investments in partnerships and limited liability companies shall not exceed ten per cent of the insurer's admitted assets.