reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-405 - Prerequisites for participating in court action

20-405.
Prerequisites for participating in court action
Before an unauthorized insurer may initiate any action or proceeding in this state,  the insurer shall procure a certificate of authority to transact insurance in this state,  or deposit with the clerk of the court in which the action or proceeding is pending cash or securities,  or file with the clerk a bond with good and sufficient sureties,  to be approved by the court,  in an amount to be fixed by the court sufficient to secure the payment of any costs and attorney's fees which may be assessed against the unauthorized insurer in the action. The court may in its discretion make an order dispensing with the deposit or bond where the insurer makes a showing satisfactory to the court that it maintains in any state funds or securities,  in trust or otherwise,  sufficient and available to satisfy any such assessment which may be entered in the action or proceeding,  and that the insurer will pay any final judgment entered therein without requiring suit to be brought on the judgment in the state where the funds or securities are located.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-406 - Attorneys' fees in action against insurer

20-406.
Attorneys' fees in action against insurer
In any action against an unauthorized insurer pursuant to section 20-403,  if the insurer has failed for thirty days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract of insurance,  and it appears to the court that the refusal was vexatious and without reasonable cause,  the court may allow to the plaintiff a reasonable attorney's fee and include such fee in any judgment that may be rendered in the action. The attorney's fee shall not exceed one third of the amount which the court or jury finds the plaintiff is entitled to recover against the insurer,  but in no event shall such a fee be less than one hundred dollars. Failure of an insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-407 - Surplus lines; brokers

20-407.
Surplus lines;  brokers
A. Any portion or all of an insurance coverage designated in this article as " surplus lines"  may be procured from unauthorized insurers subject to the following conditions:
1. The insurance is procured through a surplus lines broker licensed in this state,  referred to in this article as the " broker" .
2. The insurance coverage is a recognized surplus line pursuant to section 20-409 or the insurance coverage is not procurable,  after diligent effort has been made to procure coverage or the coverage has been procured to the full extent the insurers are willing to insure,  and the placing of insurance with an unauthorized insurer is not for the purpose of securing advantages either as to premium rate or terms of the insurance contract.
B. Subsection A,  paragraph 2 of this section does not apply to the sale of insurance coverage to an industrial insured as defined in section 20-401.07. At the inception of each new policy and at the time of each renewal,  but not less than annually during the term of the policy,  each industrial insured that purchases a policy as provided in this section shall certify to the broker on a form prescribed by the director that the insured meets the definition of industrial insured prescribed in section 20-401.07. The broker shall maintain the certification in the broker's files. The insurance is surplus lines insurance and is subject to the applicable provisions of this article that relate to surplus lines insurance.
C. This section does not prohibit a resident or nonresident insurance producer licensed in this state for property or casualty insurance from obtaining surplus lines insurance for policyholders through a surplus lines broker if the insurance producer uses a surplus lines broker licensed in this state for the transaction of the insurance with the surplus lines insurer. The surplus lines broker is responsible for compliance with the applicable provisions of this article. The insurance producer may pay a fee or share a commission with a surplus lines broker who procures the surplus coverage on behalf of the insurance producer. For the purposes of this subsection,  " transaction"  means the acts listed in section 20-106,  subsection A.
D. For the transaction of surplus lines insurance,  a surplus lines broker licensed in this state shall not receive a fee,  commission,  brokerage or other valuable consideration from any person who is not licensed in this state as any of the following:
1. An insurance producer pursuant to article 3 of this chapter.
2. A managing general agent pursuant to article 3.1 of this chapter.
3. A surplus lines broker pursuant to section 20-411,  20-411.01 or 20-411.02.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-407.01 - Designation as a domestic surplus lines insurer; requirements; scope of business activity permitted

20-407.01.
Designation as a domestic surplus lines insurer;  requirements;  scope of business activity permitted
A. Notwithstanding any other law,  a domestic insurer possessing minimum capital and surplus of at least fifteen million dollars,  pursuant to a resolution by its board of directors and on the written approval of the director,  may be designated as a domestic surplus lines insurer. A domestic surplus lines insurer shall be considered an unauthorized insurer for purposes of writing surplus lines insurance coverage pursuant to the requirements of this article.
B. A domestic surplus lines insurer shall only write surplus lines insurance in this state procured pursuant to the requirements of this article. A domestic surplus lines insurer may write surplus lines insurance in any other jurisdiction in which the insurer is eligible to write surplus lines insurance if the domestic surplus lines insurer complies with any requirements of that jurisdiction.
C. Insurance written by a domestic surplus lines insurer is subject to the tax on premiums required by section 20-416 and is exempt from the tax on premiums required by chapter 2,  article 1 of this title.
D. A domestic surplus lines insurer shall be considered a nonadmitted insurer as referenced in 15 United States Code section 8206 with respect to surplus lines insurance issued in this state.
E. Surplus lines insurance policies issued in this state by a domestic surplus lines insurer are not subject to the protection of or other provisions of the Arizona property and casualty insurance guaranty fund established by section 20-662.
F. Surplus lines insurance policies issued in this state by a domestic surplus lines insurer are not subject to and are exempt from all statutory requirements relating to insurance rating and rating plans,  policy forms,  policy cancellation and nonrenewal in the same manner and to the same extent as a surplus lines insurer domiciled in another state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-408 - Report of broker; civil penalty

20-408.
Report of broker;  civil penalty
A. A broker procuring surplus lines insurance on behalf of an insured whose home state is Arizona shall file with the director on or before the date specified in section 20-415,  subsection B a verified report setting forth facts from which it may be determined whether the requirements of section 20-407 have been met. The report shall also contain or be accompanied by the following:
1. The name of the insurer and the identification number assigned to it by the national association of insurance commissioners.
2. The number of the policy issued.
3. The name and the city,  state and zip code of the insured.
4. The premium,  including taxable policy fees.
5. The identity of the specific surplus lines coverage written.
6. The policy effective dates that shall not be open to public inspection.
B. The director shall prescribe the required report form.
C. The director may direct a broker to file the broker's report required by this section with a voluntary domestic organization of surplus lines brokers with which the director has contracted to accept reports pursuant to section 20-167.
D. A broker may collect from the insured the stamping fee prescribed in section 20-167.
E. The director may impose and collect a civil penalty of not more than $25 against a broker for each day the report prescribed in subsection A of this section is late.
F. In addition to the requirements of subsection A,  paragraph 5 of this section,  if the insurance coverage is not a recognized surplus line pursuant to section 20-409,  a surplus lines broker shall maintain evidence of compliance with the requirements of section 20-407,  subsection A for the duration of the insurance policy and for a period of six years after the expiration of the policy.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-409 - Recognized surplus lines

20-409.
Recognized surplus lines
A. If after a hearing the director finds that a particular insurance coverage or type,  class or kind of coverage is not readily procurable from authorized insurers,  the director may by order declare such coverage or coverages to be recognized surplus lines until the director's further order.
B. The order is subject to modification by the director. The director shall modify any coverage if the director determines that the coverage is no longer entitled to recognition as surplus lines after a hearing held on the director's initiative or on the request of any insurance producer,  surplus lines broker,  broker,  insurer,  rating or advisory organization,  or other person.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-410 - Validity of surplus lines insurance; disclosure; policy fees

20-410.
Validity of surplus lines insurance;  disclosure;  policy fees
A. Insurance contracts procured as surplus lines coverage are fully valid and enforceable as to all parties and shall be recognized in all matters in the same manner as like contracts issued by authorized insurers.
B. Any policy and any evidence of surplus lines coverage that are issued by an unauthorized insurer pursuant to this article and that are issued for delivery to the insured shall contain a conspicuously stamped or written notice in bold-faced type that states one of the following:
1. If the surplus lines policy and any evidence of coverage are issued by a surplus lines insurer that is not a domestic surplus lines insurer:
Pursuant to section 20-401.01,  subsection B,  paragraph 1,  Arizona Revised Statutes,  this policy is issued by an insurer that does not possess a certificate of authority from the director of the Arizona department of insurance and financial institutions. If the insurer that issued this policy becomes insolvent,  insureds or claimants will not be eligible for insurance guaranty fund protection pursuant to title 20,  Arizona Revised Statutes.
2. If the surplus lines policy and any evidence of coverage are issued by a domestic surplus lines insurer:
If the insurer that issued this policy becomes insolvent,  insureds or claimants will not be eligible for insurance guaranty fund protection pursuant to title 20,  Arizona Revised Statutes.
C. A surplus lines broker may charge and receive a fee in addition to the premium for services provided in the transaction of surplus lines insurance if before effecting any coverage both of the following conditions are met:
1. The service fees and the specific services for which the fees are charged are disclosed to the insured or the insured's representative and are agreed to in writing by the insured or the insured's representative.
2. The taxes prescribed in section 20-416 are paid on any fees charged to the insured.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-411 - Licensing of surplus lines broker; examination

20-411.
Licensing of surplus lines broker;  examination
A. A person shall not act as a surplus lines broker in this state on behalf of an insured whose home state is Arizona unless the person has a current surplus lines broker license issued by the director.
B. Any individual who is a resident of this state and who is licensed as a resident insurance producer authorized for property or casualty insurance in this state may also be licensed as a resident surplus lines broker if the director determines that the insurance producer is competent. The director shall prescribe and furnish application forms.
C. Each individual applicant for an original license as a resident surplus lines broker or for renewal of a resident surplus lines broker license who has not previously taken and passed a surplus lines broker license examination in this state shall take and pass to the director's satisfaction a written examination given by or under the supervision of the director. The examination shall reasonably test the applicant's knowledge of surplus lines insurance and the legal responsibilities of a surplus lines broker.
D. The director may issue a resident surplus lines broker license to any business entity that is licensed as a resident property or casualty insurance producer in this state and that satisfies all of the requirements prescribed by section 20-285,  subsections C and D.
E. At least one individual in each office or place where surplus lines insurance is transacted in this state shall be licensed pursuant to this title as an insurance producer authorized for property or casualty insurance and shall be licensed pursuant to this article as a surplus lines broker.
F. The license prescribed in this section shall expire and be subject to renewal coincidental to,  and in the same manner as,  other insurance license authority as prescribed in section 20-289. The director shall charge the surplus lines broker license fee prescribed in section 20-167,  except that,  from and after June 30,  2005,  a licensee adding surplus lines broker authority to an existing insurance license shall be charged one-half the surplus lines broker license fee if less than two years remain in the term of the existing insurance license as of the date the director receives the application to add surplus lines broker authority to the existing insurance license.
G. To the extent not inconsistent with this article,  section 20-281,  section 20-283,  subsection B,  paragraph 6,  section 20-286,  subsection C and sections 20-287,  20-289,  20-291,  20-292,  20-295,  20-296,  20-297,  20-298,  20-299,  20-300,  20-301 and 20-302 apply to surplus lines brokers.
H. For the purposes of implementing the nonadmitted and reinsurance reform act of 2010 (15 United States Code section 8201),  the director shall participate in the national insurance producer database of the national association of insurance commissioners or any other equivalent national database for the licensure and license renewal of surplus lines brokers on and after July 21,  2012.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-411.01 - Licensing of Mexican insurance surplus lines broker

20-411.01.
Licensing of Mexican insurance surplus lines broker
A. Any resident or nonresident licensed insurance producer that maintains an office in this state may be licensed as a Mexican insurance surplus lines broker to transact insurance business as prescribed in section 20-422 if the director determines that the insurance producer is competent and the insurance producer complies with all of the requirements of section 20-411 except for section 20-411,  subsection C. The director shall prescribe and provide application forms.
B. Any surplus lines broker licensed pursuant to section 20-411 or 20-411.02 may transact the insurance business prescribed in section 20-422 without being licensed under this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-411.02 - Nonresident surplus lines broker; remittance of tax on insurance procured out of state

20-411.02.
Nonresident surplus lines broker;  remittance of tax on insurance procured out of state
A. The director shall license a nonresident person as a surplus lines broker in accordance with section 20-287.
B. Except as otherwise provided,  a nonresident surplus lines broker is subject to this title as if the broker were licensed as a resident.
C. A license from this state is not required for a nonresident who procures surplus lines insurance in another state in which the nonresident is licensed solely because of the allocation of premium to this state to determine the surplus lines tax due to this state pursuant to section 20-416,  subsection E. The nonresident shall remit the tax according to this article. The director shall prescribe the form of any reports or statements that are necessary for the nonresident to remit the tax.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-414 - Records of surplus lines brokers

20-414.
Records of surplus lines brokers
Each surplus lines broker shall keep in the broker's principal place of business a full and true record of each surplus lines contract procured by the broker under the license issued pursuant to this article. The director may examine the record at any time within three years after the expiration or cancellation date of the insurance policy. The record shall include the following items as applicable:
1. Name and address of the insurer.
2. Name and address of the insured.
3. Amount of insurance.
4. Gross premium charged.
5. Return premium paid,  if any.
6. Rate of premium charged on the several items of coverage.
7. Effective date and terms of the contract.
8. Brief general description of the risks insured against and the property insured.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-415 - Statement of surplus lines insurance business transacted by broker; reporting periods; exception

20-415.
Statement of surplus lines insurance business transacted by broker;  reporting periods;  exception
A. Each surplus lines broker shall file with the director a statement of all surplus lines insurance business covering Arizona risks transacted by the broker during the period for which the statement is being filed. The statement shall be on a form prescribed by the director and shall show:
1. Gross amount of each kind of insurance transacted.
2. Aggregate gross premiums charged.
3. Aggregate of return premiums paid to insureds.
4. Aggregate of net premiums.
5. Such additional information as may reasonably be required by the director.
B. The statement required by subsection A of this section is due on or before February 15 of each year for the preceding July through December and on or before August 15 of each year for the preceding January through June for business covering Arizona single-state risks,  except that for multistate transactions occurring on or before December 31,  2014,  the statement shall be due on or before the date specified in subsection D of this section.
C. If a clearinghouse is established and is in operation and if the director enters into a multistate agreement or compact pursuant to section 20-416.01,  each surplus lines broker shall file quarterly,  with the clearinghouse responsible for administering the compact or multistate agreement,  a notarized statement of all surplus lines insurance business covering multistate risks transacted by the broker on behalf of insureds whose home state is Arizona during the calendar quarter for which the statement is being filed. The statement shall be on a form prescribed by the clearinghouse and shall include all information required by the clearinghouse. A facsimile of the original notarized statement may be submitted in lieu of the original notarized statement. The broker shall maintain the original notarized statement for a period of six years after the calendar year in which the statement was filed.
D. The statement required by subsection C of this section is due on or before February 15 for the quarter ending the preceding December 31,  May 15 for the quarter ending the preceding March 31,  August 15 for the quarter ending the preceding June 30 and November 15 for the quarter ending the preceding September 30.
E. A surplus lines broker is not responsible for reporting any fees or remitting any premium taxes or stamping fees due on fees charged by an insurance producer in connection with the transaction of surplus lines insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-416.01 - Collection and payment of tax on surplus lines; multistate agreement

20-416.01.
Collection and payment of tax on surplus lines;  multistate agreement
A. In accordance with the nonadmitted and reinsurance reform act of 2010,  the director may enter into a compact or multistate agreement to provide for the reporting,  payment,  collection and allocation of taxes imposed pursuant to sections 20-401.07 and 20-416 on surplus lines insurance covering multistate risks if,  after a hearing conducted pursuant to section 20-161,  it is determined that entering into a compact or multistate agreement is in the best interests of this state. In determining whether entering into a compact or multistate agreement is in the best interests of this state,  the following factors shall be considered:
1. The impact on the state's gross receipt of premium taxes,  if any.
2. The regulatory burden and costs placed on insurance companies,  surplus lines brokers and insurance agents doing business in this state.
3. The cost impact on insureds resulting from any regulatory requirements attributable to a compact or multistate agreement,  if any.
4. Other factors as may be raised by the director or any other interested party.
B. Taxes imposed pursuant to sections 20-401.07 and 20-416 on unauthorized insurance covering Arizona single-state risks shall not be covered by or payable through any compact or multistate agreement entered into by the director pursuant to subsection A of this section.
C. If a clearinghouse is not established or otherwise in operation or if the director does not enter into a multistate agreement or compact pursuant to subsection A of this section,  any statements and taxes otherwise payable to a clearinghouse pursuant to this article shall be filed with the director or with a voluntary domestic organization of surplus lines brokers with which the director has contracted to accept reports pursuant to section 20-167.
D. The director may adopt reasonable rules to effectuate any provision of the nonadmitted and reinsurance reform act of 2010 (15 United States Code section 8201).
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-417 - Failure to remit tax; civil penalty; exception

20-417.
Failure to remit tax;  civil penalty;  exception
A. If any surplus lines broker fails to remit the surplus lines tax provided for by section 20-416,  the broker is liable for a civil penalty of not more than $25 for each additional day of delinquency. The director may collect the tax by distraint and may recover the civil penalty by an action in the name of this state against the insured and the surplus lines broker. All civil penalties are payable into the general fund of this state.
B. If the director requires the surplus lines tax to be paid electronically through a designated third-party service pursuant to section 20-416,  a penalty does not accrue for any payment of tax or interest that is late due to delays caused by the third-party service.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-418 - Denial, revocation or suspension of license; civil penalty

20-418.
Denial,  revocation or suspension of license;  civil penalty
A. The director may deny or suspend for not more than twelve months,  revoke or refuse to renew any surplus lines broker's license and,  in addition or in lieu thereof,  may levy a civil penalty and order restitution to any injured party:
1. If the broker fails to comply with any requirement of this article.
2. For any of the causes for which an insurance producer's license may be denied,  revoked or suspended.
B. The procedures provided by this title for the denial,  suspension or revocation of an insurance producer's license apply to denial,  suspension or revocation of a surplus lines broker's license.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-419 - Legal process against surplus lines insurer

20-419.
Legal process against surplus lines insurer
A. Every unauthorized nonresident insurer issuing or delivering a surplus lines policy through a surplus lines broker in this state is conclusively deemed to have irrevocably appointed the director as its agent for acceptance of service of all legal process issued in this state in any action or proceeding under or arising out of the policy,  and service of the process on the director is lawful personal service on the nonresident insurer.
B. Service of process in an action or proceeding against an unauthorized resident insurer issuing or delivering a surplus lines policy through a surplus lines broker in this state is valid if served on any person within this state who transacts an insurance business in this state on behalf of the insurer.
C. Each surplus lines policy shall contain a provision stating the substance of subsection A or B of this section,  whichever is applicable,  and designating the person to whom process shall be mailed as provided in subsection D of this section.
D. Duplicate copies of legal process against a nonresident insurer shall be served on the director,  and at the time of service the plaintiff shall pay to the director the service of process fee prescribed in section 20-167,  taxable as costs in the action. The director shall immediately mail one copy of the process served to the person designated by the nonresident insurer in the policy for the purpose,  by certified mail,  return receipt requested. Legal process against a resident insurer shall be served on any person within this state who transacts an insurance business within this state on behalf of the insurer. The plaintiff shall mail notice of service and a copy of the process to the person designated by the resident insurer in the policy for the purpose,  by certified mail,  return receipt requested. An insurer shall have forty days after the date of mailing within which to plead,  answer or otherwise defend the action.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-420 - Exemptions from surplus lines provisions

20-420.
Exemptions from surplus lines provisions
A. The sections of this article relating to surplus lines coverages do not apply to reinsurance or to the following classes of insurance placed by licensed insurance producers of this state:
1. Ocean marine and foreign trade insurance.
2. Insurance on subjects that are located,  resident or to be performed wholly outside this state,  or on vehicles or aircraft owned and principally garaged outside this state.
3. Insurance for an insured that is a federally recognized Indian tribe or who is a member of a federally recognized Indian tribe on subjects of insurance that are located,  resident or to be performed wholly within the boundaries of a federally recognized Indian reservation.
4. Insurance on property or operations of railroads engaged in interstate commerce.
B. Any insurance producer that places any of the classes of insurance prescribed in subsection A of this section with an unauthorized insurer shall keep a record of each coverage in detail as required of surplus lines insurance pursuant to section 20-414. The insurance producer shall preserve the record for not less than three years after the expiration or cancellation date of the insurance policy and shall make the record available in this state and open to the examination of the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-421 - Access of director to records of person insured by unauthorized insurer

20-421.
Access of director to records of person insured by unauthorized insurer
Upon the director's request any person in this state who is the insured under any policy issued by an unauthorized insurer upon a subject of insurance resident,  located or to be performed in this state at the time the policy was issued,  shall produce for examination all policies and other documents evidencing and relating to the insurance,  and shall disclose the amount of the gross premiums paid or agreed to be paid for the insurance,  through whom the insurance was procured,  and such other information relative to the placing of the insurance as may reasonably be required.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-422 - Alien insurance for coverage in Mexico

20-422.
Alien insurance for coverage in Mexico
A. A person shall not solicit or accept applications in this state for insurance or collect a commission on a policy that is to be effective in Mexico and only outside the geographical limits of this state and that is to be issued by an alien insurer or insurers not authorized to transact insurance in this state,  unless that person is licensed pursuant to section 20-411,  20-411.01 or 20-411.02 or any agent or employee of that licensed person or any other authorized insurance producer in this state provided that the insurance producer obtains the coverage through that licensed person.
B. Except for sections 20-411,  20-411.01,  20-411.02,  20-414 and 20-418,  the insurance prescribed in this section is not subject to this article.
C. Any policy and any evidence of coverage that are issued by an alien insurer and that are issued pursuant to this section for delivery to the insured in this state shall contain a conspicuously stamped or written notice in bold-faced type that states:
This policy is issued by an insurance company that is not regulated by the Arizona department of insurance and financial institutions. The insurance company may not provide claims service and may not be subject to service of process in Arizona. If the insurance company becomes insolvent,  insureds or claimants will not be eligible for protection under Arizona law.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-423 - Voluntary domestic organization of surplus lines brokers; membership; stamping fee collection; meetings; definition

20-423.
Voluntary domestic organization of surplus lines brokers;  membership;  stamping fee collection;  meetings;  definition
A. A voluntary domestic organization of surplus lines brokers that contracts with the director pursuant to section 20-167,  subsection E shall be incorporated in this state as a nonprofit corporation. A surplus lines broker who is licensed and in good standing in this state may be a member in the organization if the broker pays any required membership fee and dues required to be paid by all members.
B. The organization may collect stamping fees pursuant to section 20-167 from any of the following:
1. A member of the organization.
2. A licensed surplus lines broker who is not a member of the organization.
3. A person who is no longer a licensed surplus lines broker if the stamping fee is paid in connection with transactions that the person effectuated while licensed as a surplus lines broker.
C. The organization shall hold an annual meeting of its members and may hold special meetings of its members. Members may participate in annual and special member meetings through the use of any means of communication if the communication allows all members participating in the meeting to simultaneously hear each other during the meeting and the organization provides a meeting notice that specifies how members can participate. Any member participating by this alternate means of communication is deemed to be present in person at the meeting for purposes of determining a quorum and voting and for any other purpose authorized or required by law.
D. Two percent of the total membership of the organization present in person or by proxy and entitled to vote at a meeting constitutes a quorum for the transaction of business at the meeting.
E. For the purposes of this section,  " stamping fee"  has the same meaning prescribed in section 20-167.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-441 - Purpose of article; definition

20-441.
Purpose of article;  definition
A. Among the purposes of this article is the regulation of trade practices in the business of insurance in accordance with the intent of Congress as expressed in the act of Congress of March 9,  1945,  59 Stat. 33,  by defining,  or providing for the determination of,  all such practices in this state that constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.
B. For the purposes of this article,  " insurance company"  or " insurer"  means any:
1. Stock,  mutual,  reciprocal or title insurer.
2. Fraternal benefit society.
3. Health care services organization.
4. Hospital,  medical,  dental and optometric service corporation.
5. Prepaid dental plan organization.
6. Mechanical reimbursement reinsurer.
7. Prepaid legal plan.
8. Lloyd's association.
9. Service company as defined in this title.
10. Any other entity licensed under this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-442 - Unfair trade practices prohibited

20-442.
Unfair trade practices prohibited
No person shall engage in this state in any trade practice which is prohibited by this article,  or defined in this article as,  or determined pursuant to this article to be,  an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-443 - Misrepresentations and false advertising of policies; false disclosure of compensation

20-443.
Misrepresentations and false advertising of policies;  false disclosure of compensation
A. A person shall not make,  issue or circulate,  or cause to be made,  issued or circulated,  any estimate,  illustration,  circular,  sales material or statement:
1. Misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised or the dividends or share of the surplus to be received.
2. Making any false or misleading statement as to the dividends or share of surplus previously paid on similar policies.
3. Making any misleading representation or any misrepresentation as to the financial condition of any insurer or as to the legal reserve system upon which any life insurer operates.
4. Using any name or title of any policy or class of policies misrepresenting the true nature of the policy.
5. Making any misrepresentation to any policyholder for the purpose of inducing or tending to induce the policyholder to lapse,  forfeit,  surrender,  retain or convert any insurance policy.
6. Referring to the coverage or any of the provisions of chapter 3,  article 6 or 7 of this title in connection with the sale or attempted sale of any policy of insurance,  except in connection with the notice prescribed in section 20-400.10,  subsection E,  section 20-410,  subsection B and section 20-422,  subsection C.
B. An insurance producer,  consultant or third party administrator shall not falsely disclose the method or amount of compensation associated with a health benefits plan as defined in section 20-2301.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-443.01 - Misrepresentation in sale of insurance; violation; classification

20-443.01.
Misrepresentation in sale of insurance;  violation;  classification
A. It is unlawful for a person to knowingly make any misrepresentation as proscribed by section 20-443 in the sale of insurance.
B. A person who violates this section is guilty of a class 5 felony.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-444 - False or deceptive advertising of insurance or status as insurer

20-444.
False or deceptive advertising of insurance or status as insurer
A. No person shall make,  publish,  disseminate,  circulate or place before the public,  or cause,  directly or indirectly,  to be made,  published,  disseminated,  circulated or placed before the public,  in a newspaper,  magazine or other publication,  or in the form of a notice,  circular,  pamphlet,  letter or poster,  or over any radio or television station,  or in any other way,  any advertisement,  announcement,  sales material or statement containing any assertion,  representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business,  which is untrue,  deceptive or misleading.
B. No person that is not an insurer shall assume or use any name which deceptively infers or suggests that it is an insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-445 - Defamation

20-445.
Defamation
No person shall make,  publish,  disseminate or circulate,  directly or indirectly,  or aid,  abet or encourage the making,  publishing,  disseminating or circulating of any oral or written statement or any pamphlet,  circular,  article,  sales material or literature which is false or maliciously critical of or derogatory to the financial condition of an insurer,  and which is calculated to injure any person engaged in the business of insurance,  or any domestic corporation or group being formed pursuant to this code for the purpose of becoming an insurer. This provision shall not be deemed to restrict the right,  lawfully exercised,  of newspapers,  magazines,  radio and television stations,  and similar public media for news dissemination,  objectively to publish and disseminate news.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-446 - Acts tending to result in unreasonable restraint or monopoly of insurance business

20-446.
Acts tending to result in unreasonable restraint or monopoly of insurance business
No person shall enter into any agreement to commit,  or by any concerted action commit,  any act of boycott,  coercion or intimidation resulting in or tending to result in unreasonable restraint of,  or monopoly in,  the business of insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-447 - False financial statements or records

20-447.
False financial statements or records
A. No person shall file with any public official,  or make,  publish,  disseminate,  circulate or deliver to any person,  or place before the public,  or cause,  directly or indirectly,  to be made,  published,  disseminated,  circulated or delivered to any person,  or placed before the public,  any false statement of the financial condition of an insurer with intent to deceive.
B. No person shall make any false entry in any book,  report or statement of any insurer or other person required to have records under this title,  with intent to deceive any agent or examiner lawfully appointed to examine into its condition or into any of its affairs,  or any public official to whom the insurer or person is required by law to report,  or who has authority by law to examine into its condition or into any of its affairs,  or,  with like intent,  wilfully omit to make a true entry of any material fact pertaining to the business of the insurer or person in any book,  report or statement thereof.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-448.02 - Genetic testing; informed consent; definitions

20-448.02.
Genetic testing;  informed consent;  definitions
A. Except as otherwise specifically authorized or required by this state or by federal law,  a person shall not order or require the performance of a genetic test without first receiving the specific written informed consent of the subject of the test who has the capacity to consent or,  if the person subject to the test lacks the capacity to consent,  of a person authorized pursuant to law to consent for that person. Written consent shall be in a form prescribed by the director. Except as authorized in section 12-2802,  the results of a genetic test performed are privileged and confidential and may not be released to any party without the express consent of the subject of the test or the person authorized pursuant to law to consent for that person.
B. For the purposes of this section:
1. " Gene products"  means gene fragments,  nucleic acids or proteins derived from deoxyribonucleic acids that would be a reflection of or indicate DNA sequence information.
2. " Genetic test"  means an analysis of an individual's DNA,  gene products or chromosomes that indicates a propensity for or susceptibility to illness,  disease,  impairment or other disorders,  whether physical or mental,  or that demonstrates genetic or chromosomal damage due to environmental factors,  or carrier status for a disease or disorder.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-449 - Rebates on life or disability insurance

20-449.
Rebates on life or disability insurance
A. Except as otherwise expressly provided by law,  no person shall knowingly permit or offer to make or make any contract of life insurance,  life annuity or disability insurance,  or agreement as to such contract other than as plainly expressed in the contract issued thereon,  or pay or allow,  or give or offer to pay,  allow or give,  directly or indirectly,  as an inducement to such insurance or annuity,  any rebate of premiums payable on the contract,  or any special favor or advantage in the dividends or other benefits thereon,  or any valuable consideration or inducement whatever not specified in the contract.
B. This section does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed two hundred dollars. An insurer may not offer,  reference or promote an incentive or feedback effort under this section in connection with an application for or renewal of insurance coverage. For the purposes of this subsection,  " feedback effort"  means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services,  including in-person,  telephonic or online surveys,  polls,  focus groups,  interviews,  questionnaires and other recognized opinion-gathering mechanisms.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-452 - Prohibited inducements

20-452.
Prohibited inducements
A. Except as allowed in subsection B of this section and sections 20-453 and 20-454,  any insurer,  insurance producer or other person,  as an inducement to insurance or in connection with any insurance transaction,  shall not provide in any policy for or offer,  sell,  buy or offer or promise to buy,  sell,  give,  promise or allow to the insured or prospective insured or to any other person on behalf of the insured or prospective insured in any manner:
1. Any employment.
2. Any shares of stock or other securities issued or at any time to be issued or any interest therein or rights thereto.
3. Any advisory board contract,  or any similar contract,  agreement or understanding,  offering,  providing for or promising any special profits.
4. Any prizes,  goods,  wares,  merchandise or tangible property of an aggregate value of more than $100. This paragraph does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed $200. An insurer may not offer,  reference or promote an incentive or feedback effort under this paragraph in connection with an application for or renewal of insurance coverage. For the purposes of this paragraph,  " feedback effort"  means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services,  including in-person,  telephonic or online surveys,  polls,  focus groups,  interviews,  questionnaires and other recognized opinion-gathering mechanisms.
B. An insurer,  insurance producer or other person may offer or provide products or services that are ancillary or related to any insurance coverage and that are intended to minimize or prevent claims-related losses or expenses or harm to the public,  including fire or smoke detectors,  risk audits or assessments and products or services to deter injury,  death or property theft or damage. The products and services that may be offered or provided in this subsection are exempt from the prohibitions set forth in subsection A of this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-452.01 - Designation of particular insurer or person transacting insurance prohibited

20-452.01.
Designation of particular insurer or person transacting insurance prohibited
No person engaged in the business of financing the purchase of real or personal property or of lending money on the security of real or personal property,  and no trustee,  director,  officer,  agent or other employee,  or affiliate of,  any such person shall require,  as a condition precedent to financing the purchase of such property or to lending money upon the security thereof,  or as a condition prerequisite for the renewal or extension of any such loan or for the performance of any other act in connection therewith,  that the person for whom such purchase is to be financed or to whom the money is to be loaned,  or for whom such extension,  renewal or other act is to be granted or performed,  negotiate any insurance or renewal thereof covering such property through a particular insurer or person transacting insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-452.02 - Exceptions

20-452.02.
Exceptions
Section 20-452.01 shall not prevent:
1. The exercise by any person engaged in such business of his right to approve or disapprove of the insurer selected to underwrite the insurance,  nor of his right to furnish such insurance or to renew any insurance required by the contract of sale or trust deed or other loan agreement if the borrower or purchaser shall have failed to furnish the insurance or renewal thereof within such reasonable time or form as may be specified in the sale or loan agreement.
2. Any lender from recommending to any borrower or prospective borrower the placing of insurance with a specified insurer,  or through a specified insurer or person transacting insurance,  as long as such recommendation does not violate the provisions of section 20-452.01.
3. The free choice of insurer or person transacting insurance by any borrower or purchaser at any time,  and he may revoke any designation of insurer or person transacting insurance at any time,  irrespective of the provisions of any loan or purchase agreement or trust deed.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-452.03 - Evidence of nonviolation

20-452.03.
Evidence of nonviolation
In any trial,  hearing or proceeding to determine a violation of section 20-452.01,  a written statement or authorization signed by the person for whom any purchase is financed,  to whom any money is loaned or for whom any extension,  renewal or other act in connection with a loan is to be granted or performed,  declaring that such person voluntarily chooses the insurer or person transacting insurance through whom the insurance or its renewal was transacted,  and that the choice of such insurer or person transacting insurance was not made a condition precedent to such purchase,  loan,  extension,  renewal or other act,  shall be prima facie evidence that no violation of section 20-452.01 has occurred,  if the borrower or purchaser in his own handwriting shall have written the name of his chosen insurer or person transacting insurance on a written statement or authorization of such insurer or person transacting insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-452.04 - Investigation by director of alleged violations

20-452.04.
Investigation by director of alleged violations
The director may investigate any person,  whether licensed or not,  for the purpose of determining if there has been any violation of section 20-452.01;  however,  if such investigation be upon a complaint,  the complainant must be party to the contract of sale,  trust deed,  mortgage,  or loan agreement,  and must make such complaint within three months of the execution or any modification thereof.