reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.03 - Deposit required

20-1097.03.
Deposit required
A. A prepaid legal insurance corporation shall maintain on deposit with the state treasurer through the director's office a surety bond,  guaranteeing services under its contracts,  or cash or securities eligible for investment of capital funds in the amount required by section 20-213.
B. The deposit prescribed by subsection A of this section shall be held by the state treasurer in trust for the benefit and protection of persons covered by a prepaid legal contract.
C. Any securities within the description of subsection A of this section,  with the approval of the director,  may be exchanged for similar securities or cash of equal value. Interest on securities deposited shall be payable to the prepaid legal insurance corporation depositing such securities.
D. An unpaid final judgment arising from a legal insurance contract shall be a lien on the deposit prescribed by subsection A of this section,  subject to execution thirty days from the entry of final judgment. If the deposit is reduced,  it shall be replenished within ninety days by the prepaid legal insurance corporation.
E. Upon liquidation or dissolution of a prepaid legal insurance corporation and satisfaction of all debts and liabilities,  any balance remaining of the cash or securities deposit prescribed in subsection A of this section together with any other assets of the corporation shall be returned by the director to the corporation.
F. The director may at any time enter an order increasing the amount of the deposit required by this section if:
1. He finds there has been a substantial change in the facts,  including an increase in the amount of premiums,  membership fees or similar charges in force in this state,  on which the original determination was based.
2. Other circumstances arise which lead the director to conclude that it is reasonably necessary in order to protect the purchasers of such contracts.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.04 - Prepaid legal insurance contract provisions

20-1097.04.
Prepaid legal insurance contract provisions
A. A corporation may not issue a contract or certificate of prepaid legal insurance in this state unless a copy of the form has been filed with and approved by the department.
B. A corporation may write prepaid legal insurance contracts as individual,  group,  payroll deduction,  blanket or franchise contracts. Each contractual obligation for prepaid legal insurance shall be evidenced by a contract. The corporation shall issue a certificate of the contract's coverage to each person protected under a group policy.
C. The department shall approve a contract form which contains all of the following:
1. A list and description of the legal service payments promised or the legal matters for which expenses are to be reimbursed and any limits on the amounts to be paid or reimbursed.
2. A clear statement of the name of the corporation issuing the contract and the full address of its principal place of business.
3. A statement that the individual beneficiary may retain at his own expense,  except if the policy provides otherwise,  any attorney authorized to practice law in this state.
D. Contracts with certificates issued under group policies must contain a full statement of the benefits provided and exceptions to the benefits but may summarize the other terms of the master contract.
E. No contract,  except a policy issued by a mutual or reciprocal insurance company,  may provide for assessments on contract beneficiaries or policyholders or for reduction of benefits for the purpose of maintaining a corporation's solvency.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.05 - Prepaid legal insurance contracts; rates

20-1097.05.
Prepaid legal insurance contracts;  rates
Rates shall not be considered unfairly discriminatory when they are averaged broadly among persons covered under group,  blanket or franchise contracts. Rates for legal insurance shall be established consistent with the requirements of title 20,  chapter 2,  article 4.1.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.06 - Contracts for underwriting

20-1097.06.
Contracts for underwriting
A corporation may contract with any company licensed to transact insurance in this state or any corporation organized pursuant to this title,  under which contracts such company agrees,  for consideration consisting of a specified premium,  to assume the monetary obligations of the prepaid legal insurance contracts issued by the corporation upon the failure of the corporation itself to meet such obligations within the specified period. The corporation shall file each contract with the director,  and such contract is subject to the approval of the director as to the fairness of its terms and premiums. Such contracts are deemed approved sixty days after the date of filing them with the director unless,  before the expiration of the sixty day period,  the director notifies the corporation in writing of the director's disapproval.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.07 - Fees and taxes

20-1097.07.
Fees and taxes
A. Any prepaid legal insurance corporation licensed pursuant to this article shall pay those fees prescribed by section 20-167 and those taxes prescribed by section 20-224.
B. A prepaid legal insurance corporation may claim a premium tax credit if the corporation qualifies for a credit pursuant to section 20-224.03.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.08 - Advertising and solicitation of legal services

20-1097.08.
Advertising and solicitation of legal services
The director may require that any advertising or sales material for use in the sale or the presentation for sale of any legal insurance contract be approved by him. Ten days after written demand from the director,  the corporation shall provide the advertising or sales material to the department. The director shall disapprove the material should he determine that it is in whole or in part false,  deceptive or misleading and shall notify the corporation of his disapproval within thirty days of receipt of the material.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.09 - Liability of corporation; civil penalty

20-1097.09.
Liability of corporation;  civil penalty
A. Notwithstanding section 20-1097.13,  subsection C,  if after a hearing the director finds that an insurance producer or salesperson of a corporation authorized to sell prepaid legal insurance contracts has made wilful misrepresentations,  the director may impose a civil penalty on the prepaid legal insurance corporation of not more than one hundred thousand dollars for each wilful misrepresentation.
B. Notwithstanding section 20-1097.13,  subsection C,  if after a hearing the director finds that an insurance producer or salesperson of a corporation authorized to sell prepaid legal insurance contracts has made negligent misrepresentations,  the director may impose a civil penalty on the prepaid legal insurance corporation of not more than ten thousand dollars for each misrepresentation.
C. No order of the director pursuant to this section or order of the court to enforce it,  or the holding of a hearing,  may in any manner relieve or absolve any person affected by the order or hearing from any other liability,  penalty or forfeiture under law.
D. Any monies collected from any civil penalty imposed pursuant to this section shall be deposited,  pursuant to sections 35-146 and 35-147,  in the state general fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.10 - Capital, surplus and reserve requirements

20-1097.10.
Capital,  surplus and reserve requirements
The director shall not authorize an applicant to sell prepaid legal insurance contracts within this state unless the applicant:
1. Possesses and thereafter maintains unimpaired capital of at least six hundred thousand dollars,  except that an applicant to sell prepaid legal insurance contracts that only provide legal services plans related to the lawful use of firearms shall possess and maintain unimpaired capital of at least fifty thousand dollars.
2. Possesses and thereafter maintains surplus funds in an amount equal to at least fifty percent of the capital requirement prescribed in paragraph 1 of this section.
3. Possesses and thereafter maintains an unearned premium reserve that meets the requirements prescribed in section 20-506.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.11 - Assets; valuation; reporting

20-1097.11.
Assets;  valuation;  reporting
A. The assets of a prepaid legal insurance corporation shall be reported at values determined pursuant to sections 20-511 through 20-515. If the director deems it necessary to value any real estate,  he may employ one or more appraisers for that purpose,  and the reasonable expense thereof and shall be borne by the corporation.
B. The corporation shall include the information required by subsection A in its annual statement filed with the director pursuant to section 20-1097.12.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.13 - Suspension or revocation of authorization or registration; appeal; civil penalty; rules

20-1097.13.
Suspension or revocation of authorization or registration;  appeal;  civil penalty;  rules
A. The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes:
1. Material misstatement,  misrepresentation or fraud in registration.
2. Any wilful attempt to circumvent the requirements of this article.
3. Wilful misrepresentation or wilful deception with regard to any contract issued or sold under this article.
4. Any material misrepresentation to a contract holder or other interested party regarding the adjustment of the claim or the payment of a claim under the provisions of a contract issued or sold under the terms of this article,  if the misrepresentation is made with the intent and for the purpose of affecting settlement of such claim on less favorable terms than those provided in and contemplated by the contract.
5. Fraudulent or dishonest practices in the conduct of its business.
6. Misappropriation,  conversion or unlawful withholding of monies belonging to a legal services corporation or to others received in the conduct of business under this article.
7. Failure to comply with or wilful violation of any provision of this article,  or order or rule of the department adopted pursuant to this article.
B. Any corporation or insurance producer of a corporation whose certificate or license has been suspended or revoked by the director for cause under this section may request a hearing pursuant to title 41,  chapter 6,  article 10.
C. The director may impose a civil penalty in an amount not to exceed two thousand five hundred dollars for an insurance producer or ten thousand dollars for a corporation in lieu of suspension or revocation of authorization or registration if under this article the director deems the civil penalty in lieu of suspension or revocation to be a satisfactory means of fulfilling the intent of this article. A civil penalty imposed under this subsection shall be deposited,  pursuant to sections 35-146 and 35-147,  in the state general fund.
D. The director shall adopt rules not inconsistent with the provisions of this article,  as the director deems advisable for effectuating its orderly administration.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.02 - Names of companies

20-1098.02.
Names of companies
A. A captive insurer shall not adopt a name that is the same,  deceptively similar to or likely to be confused with or mistaken for any other existing business name registered in this state.
B. The name of a captive insurer that is a mutual company shall contain the word " mutual" .
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.03 - Minimum capital and surplus; letter of credit; borrowed surplus

20-1098.03.
Minimum capital and surplus;  letter of credit;  borrowed surplus
A. The director shall not issue a license to a captive insurer unless the insurer possesses and thereafter maintains minimum unimpaired paid-in capital and surplus in combination as follows:
1. In the case of a pure captive insurer,  at least $250, 000.
2. In the case of a group captive insurer,  at least $500, 000.
3. In the case of an agency captive insurer,  at least $500, 000.
4. In the case of a protected cell captive insurer,  at least $500, 000.
5. In the case of a captive insurer that is organized as a reciprocal insurer,  at least $500, 000.
6. In the case of a pure or group captive insurer that transacts only reinsurance,  one-half of the applicable amount prescribed in paragraph 1 or 2 of this subsection.
B. All minimum capital and surplus requirements shall be in the form of cash or an irrevocable and unconditional letter of credit that contains an evergreen clause,  that is payable to,  filed with and held by the director in trust for the protection of all policyholders,  ceding insurers and related expenses and that meets the following conditions:
1. The letter of credit shall be issued or confirmed by a qualified United States financial institution as defined in section 20-3601,  subsection A and shall comply with the requirements prescribed by the director.
2. The captive insurer shall not be directly or contingently liable for any letter of credit comprising its capital or surplus,  and its assets shall not be pledged as security for the letter of credit.
C. The director may prescribe additional capital and surplus requirements based on the type,  volume and nature of insurance. The captive insurer may pledge,  with the approval of the department,  any additional prescribed capital and surplus,  whether in the form of cash,  another allowable asset or any irrevocable and unconditional letter of credit that contains an evergreen clause.
D. Notwithstanding any other provision of this title,  a written agreement under which a captive insurer borrows monies that are required to be repaid only out of the insurer s surplus in excess of that stipulated in the agreement may provide for interest at any rate agreed on and approved by the director.
E. A captive insurer that is established solely for the purpose of reinsuring risks as part of a program filed and approved by the director to facilitate the securitization of risks ceded to the captive insurer may be a party to contracts that provide that subsequent purchasers of interests in the program assume the interests on a nonrecourse basis,  both as to the captive insurer and any affiliate.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.05 - Protected cell captive insurers

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.06 - Protected cell captive insurers; sponsors; participants

20-1098.06.
Protected cell captive insurers;  sponsors;  participants
A. A risk retention group shall not be either a sponsor or a participant in a protected cell captive insurer.
B. An association,  corporation,  limited liability company,  partnership,  trust or any other business entity may be a participant in any protected cell captive insurer formed or licensed under this article.
C. A sponsor may be a participant in a protected cell captive insurer.
D. A participant need not be a shareholder of a protected cell captive insurer or any affiliate of a protected cell captive insurer.
E. Each protected cell shall comply with the restrictions prescribed in section 20-1098.01,  subsection A with respect to the risks insured through the protected cell.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.07 - Annual report

20-1098.07.
Annual report
A. Not later than ninety days after the end of the captive insurer's fiscal year,  the captive insurer shall submit to the director a report of its financial condition that is verified by oath of two of its executive officers and that is supplemented by additional information as required by the director. Except as provided in section 20-1098.03,  a captive insurer may submit a report that uses generally accepted accounting principles unless the director requires the captive insurer to use statutory accounting principles with any useful or necessary modifications or adaptations of those principles required by the director for the type of insurance and kinds of insurers to be reported on.
B. The captive insurer's financial statements shall be audited by an independent certified public accountant and be in compliance with chapter 3,  article 10 of this title,  unless the director determines that an audit is not necessary. The audit shall include a reconciliation of differences,  if any,  between the audited financial report and the statement or form filed with the department. The audit opinion shall be filed with the director not later than six months after the end of the captive insurer's fiscal year.
C. Unless exempted by the director,  the annual report shall be based on the type of risks insured by the insurer and shall meet the applicable requirements of one or more of the following:
1. Chapter 3,  article 8 of this title.
2. Chapter 3,  article 9 of this title.
3. The actuarial provisions of the national association of insurance commissioners health annual statement instructions.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.08 - Examinations

20-1098.08.
Examinations
A. Whenever the director determines it to be prudent,  the director may examine the business,  transactions and affairs of each captive insurer to ascertain the captive insurer's financial condition and ability to fulfill its obligations and whether the captive insurer has complied with this article.
B. Section 20-1098.23 applies to all examination reports,  preliminary examination reports or results,  working papers,  recorded information,  documents and copies of any of those reports,  results,  papers,  information or documents produced by,  obtained by or disclosed to the director in the course of an examination made under this section.
C. The director may use independent contractor examiners pursuant to sections 20-148 and 20-159 to conduct examinations pursuant to this section. All examinations and examination related expenses shall be borne by the captive insurer and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.
D. An alien captive insurer or foreign captive insurer that establishes a business unit in this state and that is licensed as a branch captive insurer shall consent to the examination by the director of the affairs of the alien captive insurer or foreign captive insurer in the jurisdiction in which the alien captive insurer or foreign captive insurer is formed. The examination of a branch captive insurer shall be of branch business and branch operations only,  during the period the branch captive insurer is formed,  and must demonstrate to the director's satisfaction that the alien captive insurer or foreign captive insurer is operating in a sound financial condition pursuant to all the applicable laws and regulations of the jurisdiction.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.09 - Grounds and procedures for license suspension or revocation

20-1098.09.
Grounds and procedures for license suspension or revocation
The director may suspend,  revoke or refuse to renew the license of a captive insurer to transact insurance business in this state for any of the following reasons:
1. Insolvency or impairment of capital and surplus.
2. Refusal or failure to submit an annual report as prescribed in section 20-1098.07 or any other report or statement required by law or by lawful order of the director.
3. Failure to comply with the provisions of its own articles of incorporation,  bylaws or other organizational document.
4. Failure to submit to an examination or any legal obligation related to the examination as prescribed in section 20-1098.08.
5. Refusal or failure to pay the cost of an examination as prescribed in section 20-1098.08.
6. Use of methods that,  although not otherwise specifically prohibited by law,  render its operation hazardous or its condition unsound with respect to the public or to its policyholders.
7. Failure to otherwise comply with this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.10 - Legal investments

20-1098.10.
Legal investments
A. A group captive insurer,  an agency captive insurer and a protected cell captive insurer shall comply with the investment requirements prescribed in chapter 3,  article 2 of this title. Notwithstanding any other provision of this title,  the director may approve the use of alternative reliable methods of valuation and rating.
B. A pure captive insurer is not subject to restrictions on allowable investments,  except that the director may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.
C. Only a pure captive insurer may make loans to its affiliates. A note shall evidence the loan. Before making any such loan,  the pure captive insurer shall obtain the director's written approval to make the loan and approval for the form of the note.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.11 - Reinsurance

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.13 - Associations; benefits; prohibitions

20-1098.13.
Associations;  benefits;  prohibitions
Except as otherwise provided in section 20-1098.01,  subsection B for a self-insurance program approved under section 23-961,  a captive insurer shall not join or contribute financially to any plan,  pool,  association or guaranty or insolvency fund in this state. A captive insurer or its insured,  a parent,  an affiliate,  group members,  a member organization of an association or a claimant under any captive insurance shall not receive any benefit from the plan,  pool,  association or guaranty or insolvency fund for claims arising out of the operations of the captive insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.15 - Applicability

20-1098.15.
Applicability
A. Chapter 2,  article 6 of this title relating to unfair trade practices and frauds applies to captive insurers,  except to the extent the director determines the nature of captive insurance renders particular provisions of chapter 2,  article 6 of this title inappropriate.
B. All other provisions of this title that are not inconsistent with this article apply to captive insurers,  except to the extent the director determines the nature of captive insurance renders particular provisions of this title inappropriate.
C. A captive insurer that is formed as a corporation is subject to the applicable provisions of title 10,  except as otherwise prescribed in this article.
D. A captive insurer that is formed as a limited liability company is subject to the applicable provisions of title 29,  except as otherwise prescribed in this article.
E. The provisions of article 1 of this chapter relating to mergers,  consolidations,  conversions,  mutualizations and redomestications apply in determining the procedures to be followed by captive insurers in carrying out those transactions,  except that the director may waive or modify the requirements for a public notice and hearing prescribed in section 20-731. Notwithstanding section 20-731,  a domestic captive insurer may merge or consolidate with any other domestic captive insurer,  foreign captive insurer or alien captive insurer even if the domestic captive insurer,  foreign captive insurer or alien captive insurer was formed as a limited liability company or a stock corporation.
F. Chapter 2,  article 8 of this title relating to insurance holding company systems applies to risk retention groups as defined in section 20-1098 or 20-2401.
G. Chapter 2,  article 12 of this title relating to risk-based capital,  as modified by the national association of insurance commissioners for risk retention groups,  applies to risk retention groups as defined in section 20-1098 or 20-2401. If a risk retention group is subject to regulatory action as prescribed in section 20-488.02,  20-488.03,  20-488.04 or 20-488.05,  the regulatory action shall be at the discretion of the director.
H. Unless otherwise prescribed by the director based on a risk retention group's business plan,  remoteness of the risk and claim frequency,  section 20-260,  subsection A,  relating to individual risk limitation,  applies to risk retention groups as defined in section 20-1098 or 20-2401.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.16 - Captive manager

20-1098.16.
Captive manager
A captive insurer shall engage a manager who shall maintain the books and records of the captive insurer s business,  transactions and affairs at a location that is in this state and that is accessible to the director. The captive manager shall promptly notify the director of any failure of the captive insurer to comply with this article. The director may require a captive insurer to discharge a captive manager for failure to substantively fulfill the captive manager s duties under this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.17 - Effect of fees payment; premium tax

20-1098.17.
Effect of fees payment;  premium tax
A. The fees paid by a captive insurer pursuant to section 20-167,  subsection F are payment in full and in lieu of all other demands for all state,  county,  district,  municipal and school taxes,  licenses and excises of whatever kind or character,  except for:
1. A tax on real and tangible personal property that is located within this state.
2. The transaction privilege tax and the use tax that is imposed pursuant to title 42,  chapter 5,  articles 1 and 4.
3. The transaction privilege tax and use tax that is imposed by any county,  city or town.
B. Notwithstanding subsection A of this section,  an agency captive insurer that insures risks on policies as specified in section 20-1098.01,  subsection A,  paragraph 3,  subdivision (b) shall pay the premium tax prescribed in section 20-224 for such policies that is in excess of any fees paid pursuant to section 20-167.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.18 - Captive insurance regulatory and supervision fund; purpose

20-1098.18.
Captive insurance regulatory and supervision fund;  purpose
A. The captive insurance regulatory and supervision fund is established within the department consisting of monies deposited pursuant to section 20-1098.01,  subsection J. The director shall administer the fund as prescribed in subsections B and C of this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations,  except that,  on the close of each fiscal year,  all unencumbered monies in the fund exceeding two hundred thousand dollars revert to the state general fund.
B. In addition to the purposes specified in subsection C of this section,  the director may use up to one hundred thousand dollars in the captive insurance regulatory and supervision fund each fiscal year to administer programs in accordance with the department's other statutory responsibilities.
C. The director shall use monies in the captive insurance regulatory and supervision fund to pay the costs of administering this article and for reasonable expenses incurred in promoting this state's captive insurance industry,  pursuant to written guidelines adopted by the director.
D. The department shall not receive a general fund appropriation for operation of the captive insurance program and promotion of this state's captive insurance industry for any fiscal year in which the department had at least twenty-five captive insurers holding an active certificate of authority as of the immediately preceding calendar year end.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.19 - Establishment of branch captive insurer

20-1098.19.
Establishment of branch captive insurer
A. An alien captive insurer or foreign captive insurer may establish a business unit in this state and become licensed as a branch captive insurer in this state pursuant to this chapter to write insurance or reinsurance in this state except as provided in section 20-1098.01,  subsection B and other than workers' compensation or employers' liability insurance.
B. A branch captive insurer shall not conduct any branch business in this state unless it maintains the principal place of business for its branch operations in this state.
C. A branch captive insurer shall be a pure captive insurer with respect to operations and minimum capitalization in this state unless otherwise permitted by the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.20 - Security for branch business and branch operations

20-1098.20.
Security for branch business and branch operations
A. In the case of a branch captive insurer,  as security for the payment of liabilities attributable to the branch operations,  the director shall require that either a trust fund that is funded by assets acceptable to the director or an irrevocable letter of credit be established and maintained in the United States for the benefit of United States policyholders and United States ceding insurers under insurance policies issued or reinsurance contracts issued or assumed by the branch captive insurer through its branch operations.
B. The amount of each security shall be at least the amount prescribed in section 20-1098.03 and the reserves on such insurance policies or such reinsurance contracts,  including reserves for losses,  allocated loss adjustment expenses,  incurred but not reported losses and unearned premiums with regard to business written through the branch operations. Notwithstanding this section the director may permit a branch captive insurer that is required to post security for loss reserves on branch business by its reinsurer to reduce the monies in the trust account or the amount payable under the irrevocable letter of credit required by this section by the same amount if the security remains posted with the reinsurer.
C. If the form of security selected is a letter of credit,  the letter of credit must be established by,  or issued or confirmed by,  a qualified United States financial institution.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.21 - Branch captive insurer reports

20-1098.21.
Branch captive insurer reports
Within sixty days after its fiscal year end,  a branch captive insurer shall file with the director a copy of all reports and statements that are required to be filed under the laws of the jurisdiction in which the alien captive insurer or foreign captive insurer is formed and that are verified by oath of two of its executive officers.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1098.23 - Confidentiality of information; exceptions

20-1098.23.
Confidentiality of information;  exceptions
A. Notwithstanding title 39,  chapter 1,  information submitted pursuant to this article is confidential and the director and the director's employees and agents shall not provide the information to any other person without the permission of the captive insurer,  except that:
1. This section does not apply to the department's use of information submitted by a captive insurer for any regulatory purpose,  disciplinary action or hearing. The director shall provide the captive insurer with a copy of any document that the director believes supports a violation of this title or that justifies any regulatory or other action against the captive insurer. A disclosure pursuant to this paragraph is not a waiver of any applicable privilege or claim of confidentiality in the disclosed document.
2. The director shall provide information submitted by a captive insurer that is required by subpoena issued in connection with an administrative,  civil or criminal investigation by a government agency.
3. The information may be discoverable by a party in a civil action or contested case to which the captive insurer that submitted the information is a party,  if the party seeking to discover the information demonstrates all of the following:
(a) The information sought is relevant to and necessary for the furtherance of the action or case.
(b) The information sought is unavailable from other nonconfidential sources.
(c) A subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the director.
4. The director may disclose the information to a public official that has jurisdiction over the regulation of insurance in another state if the public official agrees in writing to maintain the confidentiality of the information and the laws of the state in which the public official serves allow or require the information to be and remain confidential.
5. The director may provide the information to the industrial commission of Arizona. The industrial commission shall maintain the confidentiality of the information pursuant to this section.
6. For the purpose of administering this article and promoting this state's captive insurance industry,  the director may disclose only the following information about licensed captive insurers:
(a) The name of the captive insurer.
(b) The date licensed.
(c) The type of captive insurer.
(d) The business or industry of the owners or members.
(e) The captive insurer's license status.
B. This section does not apply to risk retention groups.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1099 - Definitions

20-1099.
Definitions
In this article,  unless the context otherwise requires:
1. " Administrator"  means a third party other than the warrantor who is designated by the warrantor to be responsible for the administration of vehicle protection product warranties.
2. " Incidental costs"  means expenses that are specified in the vehicle protection product warranty incurred by the warranty holder relating to the failure of the vehicle protection product to perform as provided in the warranty. Incidental costs may include insurance policy deductibles,  rental vehicle charges,  the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle,  sales taxes,  registration fees,  transaction fees and mechanical inspection fees.
3. " Vehicle protection product"  means a vehicle protection device,  system or service that:
(a) Is installed on or applied to a vehicle.
(b) Is designed to prevent loss or damage to a vehicle from a specific cause.
(c) Includes a written warranty by a warrantor that provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause,  the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty.
(d) Covers the warrantor's liability with a warranty reimbursement insurance policy.
Vehicle protection product includes alarm systems,  body part marking products,  steering locks,  window etch products,  pedal and ignition locks,  fuel and ignition kill switches and electronic,  radio and satellite tracking devices.
4. " Vehicle protection product warrantor"  or " warrantor"  means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. Warrantor does not include an authorized insurer.
5. " Warranty reimbursement insurance policy"  means a policy of insurance issued to the vehicle protection product warrantor to pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the vehicle protection product warranty. An insurer authorized to do business in this state that has filed its policy form with the department shall issue the warranty reimbursement insurance policy.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1099.01 - Vehicle protection products; exemption from insurance code

20-1099.01.
Vehicle protection products;  exemption from insurance code
A vehicle protection product that is sold or offered for sale in this state and that meets the requirements of section 20-1099.02 is not subject to this title. Vehicle protection product warrantors and related vehicle protection product sellers and administrators that comply with section 20-1099.02 are not required to comply with and are not subject to this title. The vehicle protection products' written warranties are express warranties and not insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1099.02 - Exemption from insurance code; requirements

20-1099.02.
Exemption from insurance code;  requirements
A. To be exempted from this title,  a vehicle protection product shall:
1. Identify the warrantor,  the seller,  the warranty holder and the terms of the sale.
2. Conspicuously state that the obligations of the warrantor to the warranty holder are guaranteed under a warranty reimbursement insurance policy.
3. Conspicuously state that if the payment due under the terms of the warranty is not provided by the warrantor within sixty days after proof of loss has been filed pursuant to the terms of the warranty by the warranty holder,  the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement.
4. Conspicuously state the name and address of the warranty reimbursement insurance company. This information is not required to be preprinted on the warranty form but may be stamped on the warranty.
5. Contain a disclosure that reads substantially as follows:
" This agreement is a product warranty and is not insurance."
B. A warranty reimbursement insurance policy shall have the following provisions:
1. The policy shall state that the warranty reimbursement insurance company will reimburse or pay on behalf of the vehicle protection product warrantor all covered sums that the warrantor is legally obligated to pay or will provide the service that the warrantor is legally obligated to perform according to the warrantor's contractual obligations under the vehicle protection product warranty.
2. The policy shall state that if the payment due under the terms of the warranty is not provided by the warrantor within sixty days after proof of loss has been filed according to the terms of the warranty by the warranty holder,  the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1101 - Scope of article

20-1101.
Scope of article
This article shall not apply to:
1. Reinsurance.
2. Policies or contracts not issued for delivery in this state nor delivered in this state,  except as provided in section 20-1110,  subsection G (approval of forms for delivery in jurisdictions where local approval not provided for) and in section 20-1133,  subsection A (medicare supplement insurance minimum standards).
3. Ocean marine and foreign trade insurances.
4. Title insurance,  except as to section 20-1115.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1104 - Insurable interest with respect to personal insurance; definition

20-1104.
Insurable interest with respect to personal insurance;  definition
A. Any individual of competent legal capacity may procure or effect an insurance contract on his own life or body for the benefit of any person. But no person shall procure or cause to be procured any insurance contract on the life or body of another individual unless the benefits under such contract are payable to the individual insured or his personal representatives,  or to a person having,  at the time when the contract was made,  an insurable interest in the individual insured.
B. If the beneficiary,  assignee or other payee under any contract made in violation of this section receives from the insurer any benefits thereunder accruing on the death,  disablement or injury of the individual insured,  the individual insured or his executor or administrator,  as the case may be,  may maintain an action to recover such benefits from the person so receiving them.
C. " Insurable interest"  with reference to personal insurance includes only interests as follows:
1. In the case of individuals related closely by blood or by law,  a substantial interest engendered by love and affection.
2. In the case of other persons,  a lawful and substantial economic interest in having the life,  health or bodily safety of the individual insured continue,  as distinguished from an interest which would arise only by,  or would be enhanced in value by,  the death,  disablement or injury of the individual insured.
3. An individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm,  or of shares of stock of a closed corporation or of an interest in the shares,  has an insurable interest in the life of each individual party to the contract and for the purposes of the contract only,  in addition to any insurable interest which may otherwise exist as to the life of the individual.
4. A charitable organization as provided in section 501(c)(3) of the internal revenue code,  which has a policy ownership interest has an insurable interest in the life of each proposed insured who joins with the charitable organization in applying for a life insurance policy naming the charitable organization as owner and irrevocable beneficiary.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1105 - Insurable interest with respect to property insurance

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1106 - Capacity to contract for insurance; minors

20-1106.
Capacity to contract for insurance;  minors
A. Any person of competent legal capacity may contract for insurance.
B. A minor who is at least fifteen years of age as of the minor's nearest birthday may contract,  notwithstanding the minor's minority,  for life or disability insurance on the minor's own life or body,  for the minor's own benefit or for the benefit of the minor's father or mother,  spouse,  child,  brother,  sister or grandparents.
C. A minor who is at least sixteen years of age as of the minor's nearest birthday,  who is a foster child as defined in section 8-501 or a youth participating in the independent living program pursuant to section 8-521 and who has completed a driver education program may contract,  notwithstanding the minor's minority,  for motor vehicle liability insurance that satisfies the requirements of section 28-4009 and that covers the minor.
D. A minor described in subsection B or C of this section,  notwithstanding the minor's minority,  shall be deemed competent to exercise all rights and powers with respect to or under any contract of life or disability insurance on the minor's own life or body or contract of motor vehicle liability insurance pursuant to this section,  as though of full legal age,  and may surrender the minor's interest in the contract and give a valid discharge for any benefit accruing or money payable under the contract. The minor,  by reason of his minority,  may not rescind,  avoid or repudiate the contract,  nor rescind,  avoid or repudiate any exercise of a right or privilege under the contract,  except that the minor,  not otherwise emancipated,  may not be bound by any unperformed agreement to pay,  by promissory note or otherwise,  any premium on such an insurance contract.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1107 - Application for insurance

20-1107.
Application for insurance
No life or disability insurance contract upon an individual,  except a contract of group life insurance or of group or blanket disability insurance,  shall be made or effectuated unless at the time of making the contract the individual insured,  being of competent legal capacity to contract,  applies therefor or consents thereto,  except in the following cases:
1. A spouse may effectuate such insurance upon the other spouse.
2. Any person having an insurable interest in the life of a minor,  or any person upon whom a minor is dependent for support and maintenance,  may effectuate insurance upon the life of or pertaining to the minor.