reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-848 - Prescriptions; cost sharing; refills; dispensing fees; definition

20-848.
Prescriptions;  cost sharing;  refills;  dispensing fees;  definition
A. A subscription contract that is issued or renewed on or after January 1,  2017 and that provides coverage for prescription drugs:
1. May not deny coverage and shall prorate the cost sharing rate for a prescription drug covered by the contract that is dispensed by a network pharmacy for less than the standard refill amount if the subscriber requests enrollment into a medication synchronization program and less than the standard refill amount for the purpose of synchronizing the subscriber's medications.
2. Shall accept early refill and short fill requests for prescription drugs using the submission clarification and message codes as adopted by the national council for prescription drug plans or alternative codes provided by the plan upon July 3,  2015.
B. For the purposes of this section,  " medication synchronization"  means the coordination of medication refills for a patient taking two or more medications for a chronic condition that are being dispensed by a single contracted pharmacy to facilitate the synchronization of the patient's medications for the purpose of improving medication adherence.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-849 - Contracts; optometrists; covered services; definition

20-849.
Contracts;  optometrists;  covered services;  definition
A. Except as provided in subsection C of this section,  a contract,  entered into or renewed on or after January 1,  2022,  between an optometric service corporation and an optometrist who is licensed to practice in this state shall not:
1. Require the optometrist to provide a service to an individual covered under a subscription contract based on a fee set by the optometric service corporation unless the service for which the fee applies is a covered service under the individual's subscription contract.
2. Prohibit an optometrist from offering or providing a vision service that is not a covered service to a covered individual at a fee determined by the optometrist or by the optometrist and the covered individual.
3. Require an optometrist to use one or more specific vendors to replenish the optometrist's inventory of spectacle lenses after the optometrist dispenses the optometrist's inventory to eligible members of the vision plan as a covered vision service.
B. This section applies to an administrator providing third-party administration services or a provider network for a vision plan.
C. This section does not restrict the ability of an optometric service corporation to enter into a contract for an optometrist to participate in a discount program sponsored by the optometric service corporation for services that are not covered if:
1. Participation in the optometric service corporation network is not contingent on participation in the sponsored discount program.
2. The optometric service corporation offers equal treatment to an optometrist who does not participate in a sponsored discount program,  regarding:
(a) Promotional treatment.
(b) Marketing benefits.
(c) Materials.
(d) Contract terms for providing a covered service.
D. Notwithstanding subsection C,  paragraph 2,  subdivision (d) of this section,  an optometric service corporation,  when providing a typically formatted list of optometrists in the optometric service corporation network,  may identify whether an optometrist participates in a discount program for services not covered by the optometric service corporation if all lists state that other discounts may be available with individual optometrists.
E. All contracts shall be in compliance with this section by the first renewal period on or after January 1,  2022,  but not later than December 31,  2022.
F. For the purposes of this section,  " covered service"  means a service for which any reimbursement is available under a subscription contract without regard to contractual limitations by a deductible,  copayment,  coinsurance,  waiting period,  annual or lifetime maximum,  frequency limitation,  alternative benefit payment,  exclusion or other limitation.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-861 - Definitions

20-861.
Definitions
In this article,  unless the context otherwise requires:
1. " Association or order"  means any association or order that is a nonprofit military mutual aid association,  whose members are officers or enlisted,  regular or reserve,  active,  retired or honorably discharged members of the armed forces or sea services of the United States,  and whose principal purpose is to provide life insurance and annuities to its members and their dependents or beneficiaries.
2. " Benefit contract"  means an agreement for the provision of benefits.
3. " Benefit member"  means an adult who is a member of a fraternal benefit society and who is designated by the laws or rules of the society to be a benefit member under a benefit contract.
4. " Certificate"  means a document that is issued as written evidence of the benefit contract.
5. " Fraternal benefit society"  means a society,  order or supreme lodge without capital stock,  including an incorporated or unincorporated society that is exempt under section 20-893,  that is conducted solely for the benefit of its members and their beneficiaries,  is not for profit,  operates on a lodge system with a ritualistic form of work,  has a representative form of government and provides benefits according to this article.
6. " Laws"  means the articles of incorporation,  constitution and bylaws of the society.
7. " Lodge"  means a subordinate member of the society,  including any camp,  court,  council,  branch or other designated unit.
8. " Premiums"  means rates,  dues or other required contributions that are payable under the certificate.
9. " Rules"  means the rules,  regulations and resolutions that are adopted by the supreme governing body or board of directors and that are intended to apply to the members of the society.
10. " Society"  means a fraternal benefit society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-862 - Lodge system

20-862.
Lodge system
A. A society operates on the lodge system if the society has a supreme governing body and subordinate lodges into which members are elected,  initiated or admitted according to the society's laws,  rules and ritual. The laws of the society shall require subordinate lodges to hold meetings at least once in each month in furtherance of the purposes of the society.
B. A society may organize and operate lodges for children who are under the minimum age for adult membership. A local lodge shall not require membership or initiation for children,  and children shall not have a voice or vote in the management of the society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-863 - Representative form of government

20-863.
Representative form of government
A society has a representative form of government if:
1. It has a supreme governing body constituted in one of the following ways:
(a) The supreme governing body is an assembly that is composed of delegates who are elected directly by the members or at intermediate assemblies or conventions of members or their representatives,  together with other delegates that may be prescribed by the society's laws. A society may provide for the election of delegates by mail. The elected delegates shall constitute a majority in number and shall have not less than two-thirds of the votes and not less than the number of votes that is required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years. The assembly shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors that occur between elections may be filled in the manner prescribed by the society's laws.
(b) The supreme governing body is a board that is composed of persons who are elected directly by the members or their representatives in intermediate assemblies,  together with any other person that may be prescribed by the society's laws. A society may provide for the election of board members by mail. Board members shall serve not more than one four year term. Vacancies that occur on the board between elections may be filled in the manner prescribed by the society's laws. Time served by a new board member while filling a vacancy for the first time shall not count toward the one term limitation. The persons elected to the board shall constitute a majority in number and shall have not less than the number of votes required to amend the society's laws. A person who fills the unexpired term of an elected board member is considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society.
2. The officers of the society are elected either by the supreme governing body or the board of directors.
3. Only benefit members are eligible for election to the supreme governing body and the board of directors.
4. Each voting member has one vote,  and no vote may be cast by proxy.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-864 - Purposes and powers

20-864.
Purposes and powers
A. A society shall operate for the benefit of its members and their beneficiaries and shall:
1. Provide benefits pursuant to section 20-875.
2. Operate for social,  intellectual,  educational,  charitable,  benevolent,  moral,  fraternal,  patriotic or religious purposes. This benefit may also be extended to other persons.
B. The society may carry out its purposes directly or indirectly through subsidiary corporations or affiliated organizations. A subsidiary corporation or affiliated organization shall not transact insurance business or engage in any other activity regulated under this title unless the subsidiary corporation or affiliated organization complies with all of the applicable provisions of law. A society or a subsidiary corporation or affiliated organization through which a society carries out its purposes shall not own or operate a funeral home or undertaking establishment.
C. A society may adopt laws and rules for the government of the society,  admission of members and management of society affairs. The society may amend any law or rule and shall have any other powers that are necessary and incidental to carry out the purposes of the society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-865 - Qualifications for membership

20-865.
Qualifications for membership
A. A society shall specify all of the following:
1. Eligibility standards for each membership class. If the society provides benefits on the lives of children,  the minimum age for adult membership shall be not less than fifteen years of age or more than twenty-one years of age.
2. Admission procedures for each membership class.
3. The rights and privileges of each membership class,  except that only benefit members may vote on the management of the insurance affairs of the society.
B. A society may admit social members who have no voice in or vote on the management of the insurance affairs of the society.
C. Membership rights in the society are not assignable.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-866 - Location of office; publications; grievance procedure

20-866.
Location of office;  publications;  grievance procedure
A. The principal office of a domestic society shall be located in this state. The meetings of the society's supreme governing body may be held in any state,  district,  province or territory in which the society has at least one subordinate lodge or in any other place that is determined by the supreme governing body. Business that is transacted at an out of state meeting is valid in all respects as if the meeting were held in this state. The minutes of the proceedings of the supreme governing body and the board of directors shall be in English.
B. A society may publish an official publication in which any notice,  report or statement required by the society's laws to be given to its members is published. A required notice,  report or statement shall be conspicuously printed in the publication. If the records of the society show that two or more members have the same mailing address,  an official publication that is sent to one member is deemed to be sent to all members at the same address unless a member requests a separate copy.
C. By June 1 of each year,  the society shall publish and send to each benefit member a synopsis of the society's annual statement that explains the condition of the society. The synopsis may be published in the society's official publication.
D. A society may establish grievance or complaint procedures by law or rule.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-867 - Exemption from liability

20-867.
Exemption from liability
A. The officers and members of the supreme governing body or a subordinate body of a society are not personally liable for any benefits that are provided by the society.
B. A society may indemnify and reimburse any person who is or was a director,  officer,  employee or agent of a society or who is or was serving at the request of the society as a director,  officer,  employee or agent of any other firm,  corporation or organization for expenses reasonably incurred by and liabilities imposed on the person in connection with or arising out of any action,  suit or proceeding or the threat of an action,  suit or proceeding in which the person may be involved. In a civil action a person shall not be indemnified or reimbursed if a court of competent jurisdiction finds that the person breached a duty owed as a director,  officer,  employee or agent of the society or the matter is the subject of a settlement,  unless the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society. In a criminal action a person shall not be indemnified or reimbursed if the person negotiates a plea bargain or is found guilty in a court of competent jurisdiction of an offense relating to his position of director,  officer,  employee or agent of the society unless the person had no reasonable cause to believe that his conduct was unlawful. The supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action,  suit or proceeding or a court of competent jurisdiction shall determine if the person acted in good faith. The termination of an action,  suit or proceeding or a plea of no contest does not create a conclusive presumption that the person failed to act in good faith. The right of indemnification and reimbursement does not abrogate any other right to which the person is entitled as a matter of law and inures to the benefit of the heirs,  executors and administrators of the person.
C. A society may purchase and maintain insurance on behalf of a person who is or was a director,  officer,  employee or agent of the society or who is or was serving at the request of the society as a director,  officer,  employee or agent of any other firm,  corporation or organization against any liability that is asserted against the person and that the person incurred in his capacity as a director,  officer,  employee or agent. A society may purchase and maintain insurance pursuant to this subsection regardless of the society's ability to indemnify the person.
D. A director,  officer,  employee,  member or volunteer of a society who serves without compensation is not personally liable and no action may be maintained against him in his individual capacity for damages resulting from an act or omission within the scope of his duties and responsibilities unless the act or omission was caused by wanton or wilful misconduct.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-870 - Amendment to society laws

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-871 - Authority to maintain institutions

20-871.
Authority to maintain institutions
A. A society may create,  maintain and operate or establish an organization to operate not for profit institutions to further the purposes of the society as prescribed by section 20-864. An institution established pursuant to this section may provide services for free or for a reasonable charge.
B. The society shall report in each annual statement any real or personal property that the society owns,  holds or leases for the purposes of any institutions established pursuant to this section,  except that the property shall not be allowed as an admitted asset of the society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-872 - Reinsurance

20-872.
Reinsurance
A. Pursuant to a reinsurance agreement,  a domestic fraternal benefit society may cede any part or all of its risks to an insurer other than another fraternal benefit society that has the power to take the reinsurance and that is authorized to transact business in this state,  or if the reinsurer is not authorized to transact business in this state,  that is approved by the director. A society may not reinsure substantially all of its insurance in force without the written permission of the director. A society may take credit for the reserves on the ceded risks to the extent that the risks are reinsured. Any credit taken by a ceding society is not allowed as an admitted asset or as a deduction from liability for reinsurance that is made,  ceded,  renewed or otherwise effective after January 1,  1995,  unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
B. Notwithstanding subsection A of this section,  a society may reinsure the risks of another society in a consolidation or merger that is approved by the director pursuant to section 20-873.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-874 - Conversion of fraternal benefit society to mutual life insurance company

20-874.
Conversion of fraternal benefit society to mutual life insurance company
A domestic fraternal benefit society may convert to and be licensed as a mutual life insurance company by complying with the requirements of this title relating to mutual insurers. The board of directors shall prepare a plan of conversion in writing. The plan of conversion shall prescribe the terms and conditions of conversion. The affirmative vote of two-thirds of the members of the supreme governing body at a regular or special meeting is required for approval of the plan. A plan of conversion is not effective unless it is approved by the director. The director may approve the plan of conversion if the director finds that the proposed change conforms to the law and is not prejudicial to the certificate holders of the society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-875 - Benefits

20-875.
Benefits
A. A fraternal benefit society may provide the following contractual benefits in any form:
1. Death benefits.
2. Endowment benefits.
3. Annuity benefits.
4. Temporary or permanent disability benefits.
5. Hospital,  medical or nursing benefits.
6. Monument or tombstone benefits to the memory of deceased members.
7. Any other benefits that are authorized for life insurers and that are not prescribed by this article.
B. A society shall specify by rule those persons who may be issued or covered by the contractual benefits prescribed by subsection A. The rules shall be consistent with providing benefits to members and dependents of members. On the application of an adult member,  a society may provide benefits on the lives of children who are under the minimum age for adult membership.
C. Any benefit or combination of benefits authorized by this section may be provided in the same certificate,  and the certificates may be participating.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-876 - Beneficiaries

20-876.
Beneficiaries
A. At all times the owner of a benefit contract may change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right and requests in writing that the beneficiary designation be irrevocable. A society may limit the scope of beneficiary designations and shall provide that no revocable beneficiary has or may obtain any vested interest in the proceeds of a certificate until the certificate becomes due and payable in conformity with the provisions of the benefit contract.
B. A society may provide for the payment of funeral benefits to the extent of that portion of any payment under a certificate that reasonably appears to be due to any person who is equitably entitled to the payment and who incurred expenses resulting from the burial of a member. Any amount paid pursuant to this section shall not exceed one thousand dollars.
C. If a lawful beneficiary to whom death benefits are payable does not exist at the death of a person insured under a benefit contract,  the benefit shall be paid to the estate of the deceased insured,  except to the extent that funeral benefits have been paid pursuant to subsection B. If the owner of the certificate is a person other than the insured,  the benefits shall be paid to the certificate owner.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-877 - Benefits not attachable

20-877.
Benefits not attachable
Any money or other benefit,  charity,  relief or aid that a society pays,  provides or renders is not subject to attachment,  garnishment or other process and shall not be seized,  taken,  appropriated or applied to pay any debt or liability of any member,  beneficiary or other person who may have a right under a benefit contract,  either before or after the society pays the benefit.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-879 - Nonforfeiture benefits, cash surrender value, certificate loans and other options

20-879.
Nonforfeiture benefits,  cash surrender value,  certificate loans and other options
A. For certificates that are issued before January 1,  1996,  the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value,  loan or other option granted shall comply with the applicable provisions of law that were in effect before January 1,  1995.
B. For certificates that are issued on or after January 1,  1996 and for which reserves are computed pursuant to the commissioner's 1941 standard ordinary mortality table,  the commissioner's 1941 standard industrial table,  the commissioner's 1958 standard ordinary mortality table,  the commissioner's 1980 standard mortality table or any other more recent table that is applicable to life insurers,  every paid-up nonforfeiture benefit and the amount of any cash surrender value,  loan or other option granted shall not be less than the corresponding amount that is ascertained and based on those tables for life insurance policies containing like benefits.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-880 - Investments

20-880.
Investments
A society shall invest its funds only in those investments that are authorized by this title. A foreign or alien society that is permitted or seeking to do business in this state and that invests its funds in accordance with the laws of the state,  district,  territory,  country or province in which it is incorporated is deemed to meet the requirements of this section for the investment of funds.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-881 - Funds

20-881.
Funds
A. Unless otherwise provided in the benefit contract,  all assets shall be held,  invested and disbursed for the use and benefit of the society,  and no member or beneficiary has any individual rights in the assets and is not entitled to any apportionment on the surrender of any part of the assets.
B. A society may create,  maintain,  invest,  disburse and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society.
C. Pursuant to a resolution of the supreme governing body,  a society may establish and maintain one or more separate accounts and issue contracts on a variable basis,  subject to the provisions of this title regulating life insurers. To the extent that the society deems it necessary in order to comply with any applicable federal or state law,  the society may:
1. Adopt special procedures for the conduct of the business and affairs of a separate account.
2. For persons who have beneficial interests in a separate account,  provide special voting and other rights,  including,  without limitation,  special rights and procedures relating to investment policy,  investment advisory services,  selection of certified public accountants and selection of a committee to manage the business and affairs of the account.
3. Issue contracts on a variable basis. Section 20-878,  subsections B and D do not apply to these contracts.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-882 - Applicable insurance provisions

20-882.
Applicable insurance provisions
Fraternal benefit societies are governed by this article and are subject to and governed by the following articles and sections of this title to the extent that the articles and sections apply to the societies and are not modified by the provisions of this article:
1. Chapter 1,  articles 1 and 2 of this title.
2. Chapter 2,  article 1 of this title,  except that sections 20-209 through 20-214,  20-224,  20-224.01,  20-224.02,  20-225,  20-226,  20-227 and 20-229 do not apply to fraternal benefit societies.
3. Sections 20-501 through 20-505 and 20-511 through 20-514.
4. Chapter 3,  article 2 of this title,  except that section 20-535,  section 20-536,  subsections B and C and section 20-556,  paragraphs 4 and 6 do not apply to limitations with respect to monies invested in real property for home or branch office purposes.
5. Chapter 3,  article 4 of this title.
6. Chapter 3,  article 8 of this title.
7. Sections 20-1110,  20-1111,  20-1115,  20-1133 and 20-1135.
8. Section 20-1408.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-883 - Tax exemption; exception

20-883.
Tax exemption;  exception
Every authorized society and every society that is exempt under section 20-893 is deemed to be a charitable and benevolent institution and is exempt from all state,  county,  district,  municipal and school taxes,  including the taxes prescribed by this title,  except that a society is subject to the fees prescribed by chapter 1,  article 2 of this title and taxes on real and tangible personal property located in this state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-884 - Valuation

20-884.
Valuation
A. The standards of valuation for certificates that are issued before January 1,  1996 are the standards of valuation that were in effect immediately before January 1,  1995.
B. The minimum standards of valuation for certificates that are issued on or after January 1,  1996 shall be based on the following tables:
1. For certificates of life insurance: the commissioner's 1941 standard ordinary mortality table,  the commissioner's 1941 standard industrial mortality table,  the commissioner's 1958 standard ordinary mortality table,  the commissioner's 1980 standard ordinary mortality table or a more recent table that applies to life insurers.
2. For annuity and pure endowment certificates,  total and permanent disability benefits,  accidental death benefits and noncancellable accident and health benefits: the tables that are authorized for use by like insurers in this state.
C. The tables listed under subsection B of this section shall be under the valuation methods and standards,  including interest assumptions,  that are in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
D. The director may accept other standards for valuation if the director finds that the reserves produced by those standards will not be less in the aggregate than the reserves computed in accordance with the minimum valuation standards prescribed by this section. The director may vary the standards of mortality that apply to all benefit contracts on substandard lives or other extra hazardous lives issued by a society authorized to do business in this state.
E. With the consent of the insurance director in the domiciliary state of the society and under any conditions that the director of the department of insurance and financial institutions in this state may impose,  a society may establish and maintain reserves on its certificates in excess of the reserves required by the standards of valuation,  except that the contractual rights of a benefit member are not affected by the excess reserves.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-885 - Reports

20-885.
Reports
Each fraternal benefit society shall file reports as follows:
1. Unless the director extends the time for filing for good cause shown,  on or before March 1,  each society transacting business in this state shall annually file with the director a true statement of its financial condition,  transactions and affairs for the preceding calendar year and shall pay the fee prescribed by section 20-167 for filing the statement. The statement shall be in the general form and context that is approved by the national association of insurance commissioners for fraternal benefit societies,  supplemented by any additional information that the director requires.
2. At the time of filing its annual statement pursuant to paragraph 1 of this section,  each society shall also file with the director a valuation of its certificates in force as of the preceding December 31. On a showing of good cause,  the director may extend the time for filing the valuation for a period of not more than two calendar months. The valuation shall be conducted pursuant to section 20-884. A qualified actuary shall certify the valuation and underlying data or,  at the expense of the society,  an actuary of the insurance department in the domiciliary state of the society shall verify the valuation and underlying data.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-887 - Examination of societies; limitation on disclosure

20-887.
Examination of societies;  limitation on disclosure
A. The director or the director's designee may examine any domestic,  foreign or alien society that is authorized or applying for authorization to transact business in this state in the same manner as prescribed by section 20-156.
B. The director shall not make public any financial statement,  report or finding pending,  during or after an examination or investigation of a domestic or foreign society. The director shall not make public any financial statement,  report or finding affecting the status,  standing or rights of the society until a copy of the statement,  report or finding is served on the society at its home office and the society is afforded a reasonable opportunity to answer and make a showing in connection with the statement,  report or finding.
C. On a statement from the director,  the society shall pay for the expenses of each examination and valuation,  including the compensation and actual expenses of the examiners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-888 - Admission of foreign or alien societies

20-888.
Admission of foreign or alien societies
A foreign or alien society shall not transact business in this state unless the director issues a certificate of authority to the foreign or alien society pursuant to sections 20-215 and 20-216. A foreign or alien society applying for a certificate of authority shall substantially comply with this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-889 - Injunction; delinquency or dissolution proceedings

20-889.
Injunction;  delinquency or dissolution proceedings
A court in this state shall not hear an application or petition for injunction against a domestic,  foreign or alien society or lodge,  any delinquency or other proceeding for dissolution of a society or the appointment of a conservator or receiver unless the application or petition is filed in the name of this state on the relation of the director pursuant to chapter 3,  article 4 of this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-890 - Licensing of insurance producers

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-891 - Unfair acts and practices

20-891.
Unfair acts and practices
Each society authorized to transact business in this state is subject to chapter 2,  article 6 of this title,  except that nothing in chapter 2,  article 6 of this title applies to or affects the right of a society to determine its eligibility requirements for membership or to offer its benefits exclusively to members or persons eligible for membership in the society through a subsidiary corporation or affiliated organization of the society.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-892 - Violation; classification

20-892.
Violation;  classification
A. A person who knowingly or wilfully makes a false or fraudulent statement or representation in or relating to an application for membership or for the purpose of obtaining money from or a benefit in a society is guilty of a class 6 felony.
B. A person who wilfully makes a false or fraudulent statement in a verified report or declaration under oath required by this article or who makes a false or fraudulent statement of a material fact that is contained in a sworn statement concerning the death or disability of an insured for the purpose of procuring the payment of a benefit named in the certificate is guilty of perjury and is subject to section 13-2702.
C. A person who solicits membership for or who in any manner assists in procuring membership in a society that is not licensed to do business in this state is guilty of a violation and is subject to section 20-114.
D. A person who wilfully violates,  neglects or refuses to comply with this article is guilty of a violation and is subject to section 20-114.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1001 - Definitions

20-1001.
Definitions
In this article,  unless the context otherwise requires:
1. " Member"  means an individual who is enrolled in a group prepaid dental plan as a principal subscriber together with such person's dependents who are entitled to dental care services under the plan solely because of their status as dependents of the principal subscriber.
2. " Membership coverage"  means any certificate or contract issued to a member setting out the dental coverage to which such member is entitled.
3. " Prepaid dental plan"  means any contractual arrangement whereby any prepaid dental plan organization undertakes to provide directly or to arrange for prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise.
4. " Prepaid dental plan organization"  means any person who undertakes to conduct one or more prepaid dental plans providing only dental services.
5. " Prepaid dental services"  means services included in the practice of dentistry as described in section 32-1202.
6. " Provider"  means any person licensed or otherwise authorized to furnish prepaid dental services in this state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1002 - Establishment of prepaid dental plan organizations

20-1002.
Establishment of prepaid dental plan organizations
A. No person,  unless authorized pursuant to article 3 or article 9 of this chapter,  may establish or operate a prepaid dental plan organization in this state,  or sell or offer to sell,  or solicit offers to purchase,  or receive advance or periodic consideration in conjunction with a prepaid dental plan without obtaining and maintaining a certificate of authority pursuant to this article.
B. Within ninety days after the effective date of this article,  every prepaid dental plan organization operating in this state shall submit an application for a certificate of authority to the director. Each such applicant may continue to operate as an organization until the director acts upon the application.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1004 - Issuance of certificate of authority

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.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1005 - Deposit requirement; exception

20-1005.
Deposit requirement;  exception
A. A prepaid dental plan organization shall maintain on deposit with the state treasurer through the director's office a surety bond,  guaranteeing services under the plan,  or cash or securities eligible for investment of capital funds,  in the following amounts depending on the number of members entitled to dental care services pursuant to contracts issued by the plan:
Number of members Deposit
5, 000 or less $ 25, 000
5, 001 - 7, 500 30, 000
7, 501 - 10, 000 50, 000
10, 001 - 15, 000 75, 000
15, 001 - 20, 000 100, 000
20, 001 - 25, 000 125, 000
25, 001 - 30, 000 150, 000
30, 001 - 40, 000 175, 000
40, 001 and above 200, 000
B. The deposit prescribed by subsection A shall be held by the state treasurer in trust for the benefit and protection of persons covered by a prepaid dental plan.
C. Any securities within the description of subsection A,  with the approval of the director,  may be exchanged for similar securities or cash of equal amount. Interest on securities deposited shall be payable to the prepaid dental plan organization depositing such securities.
D. An unpaid final judgment arising upon a membership coverage shall be a lien on the deposit prescribed by subsection A,  subject to execution after thirty days from the entry of final judgment. If the deposit is reduced,  it shall be replenished within ninety days by the prepaid dental plan organization.
E. Upon liquidation or dissolution of a prepaid dental plan organization and the satisfaction of all its debts and liabilities,  any balance remaining of the cash or securities deposit prescribed in subsection A together with any other assets of the prepaid dental plan organization shall be returned by the director to the prepaid dental plan organization.
F. The deposit prescribed by subsection A shall not apply with respect to a prepaid dental plan organization which is funded by the federal,  state or a municipal government or any political subdivision or body to the extent and for such period of time that the prepaid dental plan organization can demonstrate to the director the presence of operational commitments from such sources equivalent to such deposit.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1006 - Reserve requirement; exception

20-1006.
Reserve requirement;  exception
A. A prepaid dental plan organization at all times shall maintain for protection of members a financial reserve consisting of two per cent of prepaid charges collected from members for the plan,  until such reserve totals five hundred thousand dollars. Such reserve shall be in addition to the deposit prescribed by section 20-1005.
B. The reserve prescribed by subsection A of this section shall not apply with respect to a prepaid dental plan organization which is funded by the federal,  state or a municipal government or any political subdivision or body and meets the requirements of section 20-1005,  subsection F.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1006.01 - Risk-based capital requirements; minimum capital and surplus

20-1006.01.
Risk-based capital requirements;  minimum capital and surplus
A. A prepaid dental plan organization shall comply with chapter 2,  article 12 of this title.
B. A prepaid dental plan organization that is exempt from the risk-based capital requirements prescribed in section 20-488.08 shall maintain unimpaired capital or surplus,  or both,  in an amount of at least twenty-five thousand dollars.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1008 - Examination of prepaid dental plan organization

20-1008.
Examination of prepaid dental plan organization
A. The director may once in each six months for the first three years after organization and once each year thereafter,  or more often if deemed necessary by the director,  visit each prepaid dental plan organization organized under the laws of this state and examine its financial condition and its ability to meet its liabilities and its compliance with the laws of this state affecting the conduct of its business. The director may annually visit and examine each prepaid dental plan organization not organized under the laws of this state but authorized to transact business in this state.
B. The director may in like manner examine each prepaid dental plan organization applying for an initial certificate of authority to do business in this state.
C. In lieu of making an examination,  the director may accept a full report of the most recent examination of a foreign or alien prepaid dental plan organization,  certified to by the appropriate examining official of another state,  territory,  commonwealth or district of the United States.
D. On request by the director of the department of insurance and financial institutions,  the director of the department of health services or another person the director of the department of insurance and financial institutions determines to be qualified may participate in the examinations and visits described in this section to verify the existence of an effective prepaid dental plan and to review the delivery of services by the prepaid dental plan organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1009 - Annual report to director

20-1009.
Annual report to director
A. Every prepaid dental plan organization annually on or before the first day of March shall file with the director a report of its financial condition,  transactions and affairs as of the preceding December 31 as prescribed in sections 20-223 and 20-234 and shall pay the annual renewal fee prescribed in section 20-167.
B. The prepaid dental plan organization shall also submit any reports required by chapter 2,  article 12 of this title.
C. A prepaid dental plan organization that fails to timely file the annual report required under subsection A of this section is subject to the penalties prescribed in section 20-223.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1010 - Taxes

20-1010.
Taxes
A. On the tax payment dates prescribed in section 20-224,  each prepaid dental plan organization shall pay to the director for deposit,  pursuant to sections 35-146 and 35-147,  in a form prescribed by the director a tax for transacting a prepaid dental plan in the amount of 2.0 percent of prepaid net charges received from members.
B. The failure by an organization to pay the tax imposed by this section results in a civil penalty determined pursuant to section 20-225.
C. A prepaid dental plan organization may claim a premium tax credit if the organization qualifies for a credit pursuant to section 20-224.03.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1011 - Operational expenses

20-1011.
Operational expenses
No more than thirty per cent of prepaid charges in the first year of operation,  twenty-five per cent of prepaid charges in the second year of operation and twenty per cent of prepaid charges in any subsequent year shall be used for the marketing and administrative expenses of a prepaid dental plan organization,  including all costs related to soliciting members and providers.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1013 - Regulation of agents

20-1013.
Regulation of agents
The director shall,  after notice and hearing,  promulgate such rules and regulations as are necessary to provide for the licensing of agents which shall include provisions for examination,  licensing,  annual fees and disciplinary procedures similar to those provided in chapter 2,  article 3 of this title.