reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1592 - Records

20-1592.
Records
A. Every domestic title insurer shall,  except as hereinafter provided,  keep and maintain at its principal office in this state:
1. A true copy of its articles of incorporation as filed in the office of the corporation commission,  and the original of its by-laws,
2. Its books of account,
3. A record containing the names and addresses of its stockholders,  the number and class of shares held by each and the dates when they respectively became the owners of record thereof,  and
4. The minutes of any meetings of its stockholders,  board of directors and committees thereof.
B. A domestic title insurer may keep and maintain its books of account without this state if,  in accordance with a plan adopted by its board of directors and approved by the director,  it maintains in this state suitable records in lieu thereof;  provided,  however,  that the director may after notice and hearing direct such title insurer to return all or any of its books of account to this state if such return is reasonably necessary (1) to protect the interests of the people of this state,  or (2) to permit their inspection in this state by a director or stockholder who has shown to the satisfaction of the director that he has made an application to such title insurer for inspection of such books in good faith and for a necessary and legitimate purpose,  and that such title insurer has either declined to permit such inspection or to agree to pay any additional expenses reasonably to be incurred by the applicant,  or his agent or attorney,  in connection with the inspection of such books as a result of their maintenance without this state. If in the judgment of the director delay in the return of any or all books of account of such title insurer may be hazardous,  or may cause irreparable injury,  to the people of this state or to the policyholders of such title insurer,  he may direct the return thereof without notice and hearing.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1602 - Scope and repeal

20-1602.
Scope and repeal
A. All consumer credit insurance issued,  sold or made effective in connection with a loan or other credit transaction for personal,  family or household purposes is subject to this article and to all other provisions of this title not inconsistent with this article. Any provision of other law,  general or special,  that is inconsistent with this article is repealed to the extent of the inconsistency. In addition,  all consumer credit insurance issued or made effective relative to consumer lender loans under title 6,  chapter 5 is subject to this article.
B. The following consumer credit insurance transactions are not subject to this article:
1. Insurance on credit transactions of more than fifteen years duration.
2. Insurance written in connection with a credit transaction that is secured by a first mortgage or deed of trust and made to finance the purchase of real property or the construction of a dwelling or to refinance a prior credit transaction made for such a purpose.
3. Insurance sold as an isolated transaction on the part of the insurer and not related to an agreement or a plan for insuring debtors of the creditor.
4. Insurance for which no identifiable charge is made to the debtor.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1603 - Definitions

20-1603.
Definitions
In this article,  unless the context otherwise requires:
1. " Consumer credit insurance"  means any one or a combination of the following:
(a) Credit life insurance.
(b) Credit disability insurance.
(c) Credit unemployment insurance.
2. " Credit disability insurance"  means insurance on a debtor to provide indemnity for payments becoming due or outstanding on a specific loan or other credit transaction while the debtor has a disability as defined in the policy or certificate.
3. " Credit life insurance"  means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction that provides for the satisfaction of a debt,  in whole or in part,  on the death of an insured debtor.
4. " Credit unemployment insurance"  means casualty insurance on a debtor to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed as defined in the policy.
5. " Creditor"  means the lender of money or vendor or lessor of goods,  services,  property,  rights or privileges,  including a lessor under a lease intended as a security,  where payment is arranged through a credit transaction. " Creditor"  means also any successor to the right,  title or interest of any such lender,  vendor or lessor or an affiliate,  associate or subsidiary of any of them or any director,  officer or employee of any of them or any other person in any way associated with any of them.
6. " Debtor"  means a borrower of money or a person possessing a commitment for a loan of certain funds or a purchaser or lessee of goods,  services,  property,  rights or privileges for which payment is arranged through a credit transaction.
7. " Gross debt"  means the sum of the remaining payments that a debtor owes a creditor.
8. " Identifiable charge"  means a charge for a type of consumer credit insurance that is made to debtors having that insurance and not made to debtors not having the insurance,  and that includes a charge for insurance that is disclosed in the credit or other instrument furnished to the debtor that states the financial elements of the credit transaction and any difference in the finance,  interest,  service or other similar charge made to debtors in like circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction.
9. " Loan"  means an advance or commitment of certain funds pursuant to a repayment agreement.
10. " Net debt"  means the amount necessary to liquidate a debt in a single lump sum payment,  excluding all unearned interest and other unearned finance charges.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1605 - Maximum amount of credit life insurance

20-1605.
Maximum amount of credit life insurance
A. The initial amount of credit life insurance shall not exceed the gross debt.
B. If a debt is repayable in substantially equal installments,  the amount of insurance shall at no time exceed the scheduled or actual amount of the gross debt,  whichever is greater.
C. Notwithstanding subsections A and B,  credit life insurance in connection with a loan not exceeding one year in duration,  or pursuant to a bank or financial institution loan checking account or revolving line of credit plan,  may be issued or made effective on a nondecreasing or level term plan in an amount not in excess of the loan. Credit life insurance on an educational transaction commitment may be issued or made effective in an amount which includes that portion of the commitment not yet advanced by the creditor.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1606 - Maximum amount of credit disability insurance and credit unemployment insurance

20-1606.
Maximum amount of credit disability insurance and credit unemployment insurance
A. The total amount of periodic indemnity payable by credit disability insurance in the event of disability,  as defined in the policy,  or credit unemployment insurance,  in the event of unemployment,  as defined in the policy,  shall not exceed the aggregate of the periodic scheduled unpaid installments of the gross debt or,  with respect to group insurance where the indebtedness is repayable in installments,  the maximum sum permitted by section 20-1401. The amount of each periodic indemnity payment shall not exceed the original gross debt divided by the number of periodic installments.
B. Notwithstanding subsection A of this section:
1. For credit disability insurance or credit unemployment insurance written in connection with an open-end credit agreement,  the amount of insurance shall not exceed the gross debt which would accrue on that amount using the periodic indemnity. Subject to any policy maximums,  the periodic indemnity shall not be less than the creditor's minimum repayment schedule.
2. An insurer may offer credit disability insurance with a periodic or lump sum indemnity that exceeds the creditor's minimum repayment schedule if no single indemnity exceeds the net debt.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1606.01 - Credit unemployment insurance; provisions

20-1606.01.
Credit unemployment insurance;  provisions
A. A credit unemployment insurance policy shall contain benefits that are at least as favorable to insureds as the following provisions:
1. The policy shall provide coverage for unemployment for any reason,  except that coverage may be excluded for unemployment due to:
(a) Voluntary forfeiture of salary,  wage or other employment income.
(b) Resignation.
(c) Retirement.
(d) General strike.
(e) Illegal walk out.
(f) War.
(g) Separation from the military.
(h) Willful misconduct,  criminal misconduct or unlawful behavior.
(i) Disability caused by injury,  sickness or pregnancy.
2. For credit unemployment insurance that provides a monthly benefit,  benefits shall start after a waiting period of no more than thirty days,  but need not be retroactive to the first day of unemployment and shall have a maximum benefit period of at least six months.
B. A credit unemployment insurance policy shall not contain eligibility requirements more restrictive than the following:
1. The policy may exclude from qualification for coverage:
(a) A self-employed individual.
(b) A worker in a seasonal or temporary job. For the purposes of this subdivision,  " seasonal or temporary job"  means a job designed to last no more than six consecutive months.
(c) A debtor who has been notified in writing of any layoff or employment termination that is to occur within sixty days of the date coverage begins.
2. The policy shall not have an employment requirement more restrictive than requiring a debtor to be employed full-time on the effective date of coverage for at least six consecutive months before the effective date of coverage. For the purposes of this paragraph,  " full-time"  means a regular work week of not less than thirty hours.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1607 - Term of insurance

20-1607.
Term of insurance
A. Subject to acceptance by the insurer,  the term of any consumer credit insurance shall commence on the date when the debtor becomes obligated to the creditor.
B. Notwithstanding subsection A of this section,  the term of a policy that provides coverage for an existing obligation shall commence on the effective date of the policy and where evidence of insurability is required and the evidence is furnished more than thirty days after the date when the debtor becomes obligated to the creditor,  the term of the insurance shall commence on the date on which the insurer determines the evidence to be satisfactory and in such event,  respecting collections from or charges to the debtor for earlier coverage,  there shall be an appropriate refund or adjustment.
C. Except where the creditor grants an extension of time for repayment of a debt,  the term of any consumer credit insurance shall not extend more than fifteen days beyond the scheduled maturity date of the debt unless done without additional cost to the debtor. If the debt is discharged due to renewal or refinancing prior to the scheduled maturity date,  the insurance in force shall be terminated before any new insurance may be issued in connection with the renewed or refinanced debt. In each case of termination prior to scheduled maturity,  a refund shall be paid or credited as provided in section 20-1611.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1609 - Filing, approval and disapproval of forms

20-1609.
Filing,  approval and disapproval of forms
A. A person shall not use or issue for delivery in this state a policy,  certificate of insurance,  application for insurance,  endorsement or rider that relates to consumer credit insurance unless the person has first filed the form with the director and the director has approved the form. A person shall file each form with the director at least thirty days before using the form. Unless the director issues an order affirmatively approving or disapproving the form within thirty days after the filing,  the form is deemed approved. On written notice given within the thirty day period to the person making the filing,  the director may extend the period for review up to fifteen additional days to enable the director to complete the review of the filing.
B. The director shall disapprove any form filed pursuant to subsection A if the form contains provisions that are unjust,  unfair,  inequitable,  misleading,  ambiguous or deceptive,  that encourage misrepresentations of the coverage or that are contrary to any provision of this title or of any rule adopted pursuant to this title.
C. If the director disapproves any form or determines that approval once given should be withdrawn,  the director shall notify the insurer of the reason for the decision and advise the insurer of the hearing procedure prescribed by title 41,  chapter 6,  article 10.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1610 - Premiums for consumer credit insurance; approval or disapproval of rates

20-1610.
Premiums for consumer credit insurance;  approval or disapproval of rates
A. The consumer credit insurance charge to the debtor shall not exceed the premium for the particular coverage that is specified in the insurer's rate schedule on file with the director. If the premium is less than that specified in the rate schedule,  the insurer shall charge the lesser amount.
B. A person shall not use in this state a schedule of premium rates or any revision of the schedule for consumer credit insurance unless the person has first filed the schedule or revision with the director and the director has approved the schedule or revision. A person shall file each schedule or revision with the director at least thirty days before using the schedule or revision. Unless the director issues an order affirmatively approving or disapproving the schedule or revision within thirty days after filing the schedule or revision,  the schedule or revision is deemed approved. On written notice given within the thirty day period to the person making the filing,  the director may extend the period for review up to fifteen additional days to enable the director to complete the review of the schedule or revision. The director shall disapprove the schedule or revision if in the director's opinion the premium rates charged or to be charged are excessive in relation to benefits that may be awarded. In determining whether to disapprove the schedule or revision the director shall accord due consideration to past and prospective loss experience within and outside this state,  to underwriting practice and judgment and to all other factors relevant to the relationship between premium rates and benefits.
C. Rates for credit unemployment insurance are subject to section 20-1621.05.
D. If the director disapproves any schedule of premium rates or determines that approval once given should be withdrawn,  the director shall so notify the insurer and thereafter the schedule shall not be used. The notice issued by the director shall specify the reason for the decision and advise the insurer of the hearing procedure prescribed by title 41,  chapter 6,  article 10.
E. Premiums in accordance with a schedule of rates filed with and approved by the director for consumer credit insurance shall be deemed not interest or as an amount in excess of permitted charges in connection with a loan or credit transaction,  and any gain or advantage to a creditor arising from a premium or commission in the sale or provision of this insurance shall be deemed not interest or charges.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1611 - Refunds

20-1611.
Refunds
A. Each individual policy or group certificate of consumer credit insurance shall provide that,  in the event of termination of insurance prior to the scheduled maturity date of the debt,  any refund of an amount paid by the debtor for insurance shall be remitted or credited promptly to the person entitled to the refund or credit. The director shall prescribe a minimum refund,  which shall be not less than five dollars. An insurer is not required to refund any amount that is less than the minimum. The formula to be used in computing refunds shall be filed with the director and shall be subject to the director's approval.
B. If a creditor requires a debtor to make any payment for consumer credit insurance and an individual policy or group certificate is not issued,  the creditor shall immediately give written notice to the debtor and shall promptly make an appropriate refund to the debtor or credit the debtor's account.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1612 - Authorization for issuance of policies

20-1612.
Authorization for issuance of policies
A. Each policy,  certificate of insurance,  application for insurance,  endorsement and rider of consumer credit insurance delivered or issued for delivery in this state shall be by an insurer authorized by the director to transact insurance in this state.
B. In any transaction where a premium is collected from,  or a payment made by,  a debtor for consumer credit insurance,  each policy,  certificate of insurance,  application for insurance,  endorsement and rider shall be solicited by and placed through a holder of a license issued by the director in accordance with chapter 2,  article 3 of this title. Nothing in this section requires a creditor to be licensed as an insurance producer solely because the creditor enrolls individuals in or administers a subsisting contract of group insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1613 - Reporting and settlement of claims

20-1613.
Reporting and settlement of claims
A. In accordance with the terms of the applicable insurance contract,  each claim shall be promptly reported to the insurer or to its designated claim representative and once reported shall be settled as soon as practicable.
B. Each claim shall be paid either by draft drawn upon the insurer,  by electronic funds transfer or by check of the insurer to the order of the claimant to whom payment of benefits is due under the policy provisions or upon the claimant's direction paid to another.
C. No plan or arrangement shall be used whereby any person,  firm or corporation,  other than the insurer or its designated claim representative,  shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1614 - Debtor's option in satisfying security

20-1614.
Debtor's option in satisfying security
When consumer credit insurance is required as a condition to a loan or credit transaction or as security for a debt,  if so permitted by law,  the debtor,  upon request to the creditor,  shall have the option of satisfying the requirements by furnishing existing policies of insurance in sufficient amount owned or controlled by the debtor or by procuring the necessary coverage from any insurer authorized by the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1616 - Cease and desist order; hearing

20-1616.
Cease and desist order;  hearing
On finding that a person has violated this article or a rule adopted pursuant to this article,  the director may issue an order directing that the person cease and desist from committing the violation. On the issuance of an order to cease and desist,  the person may request a hearing pursuant to section 20-161 and title 41,  chapter 6,  article 10.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1616.01 - Penalties

20-1616.01.
Penalties
In addition to any other penalties authorized by this title,  after notice and a hearing,  the director may impose on an insurer that violates an order of the director that is issued pursuant to this article or any rule adopted pursuant to this article a civil penalty of not more than one thousand dollars for each violation but not to exceed an aggregate penalty of one hundred thousand dollars,  except that,  if the violation was committed flagrantly in a conscious disregard of this article,  the civil penalty shall not be more than twenty-five thousand dollars for each violation but not to exceed an aggregate penalty of two hundred fifty thousand dollars.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621 - Scope of article

20-1621.
Scope of article
A. This article applies to an insurer or producer transacting credit property insurance.
B. All credit property insurance written in connection with credit transactions for personal,  family or household purposes is subject to this article,  except:
1. Insurance resulting from transactions involving extensions of credit primarily for business or commercial purposes.
2. Insurance on mobile homes.
3. Insurance written in connection with a credit transaction that is secured by a real estate mortgage or deed of trust.
4. Creditor-placed insurance.
5. Title insurance.
6. Nonrecording insurance.
7. Insurance purchased by a creditor after repossession or a similar event where the creditor gains possession of the property.
C. All credit property insurance issued or made effective relative to consumer lender loans under title 6,  chapter 5 is subject to this article.
D. All other provisions of this title not inconsistent with this article apply to transaction of credit property insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.02 - Amount; term; coverage; prohibited practices

20-1621.02.
Amount;  term;  coverage;  prohibited practices
A. For credit property insurance sold in conjunction with a closed-end transaction,  an insurer shall not:
1. Issue credit property insurance coverage unless the amount financed exceeds one hundred dollars.
2. Issue credit property insurance in an amount that exceeds the amount of the underlying credit transaction unless otherwise required by the laws of this state.
3. Sell credit property insurance with a term that exceeds in duration the scheduled term of the underlying credit transaction.
B. At a minimum,  credit property insurance coverage shall include the coverages in the standard fire policy prescribed in section 20-1503 with coverage attachment and extended coverage endorsement.
C. Credit property insurance shall cover the possibility of an actual and substantial risk of loss of or damage to the property related to the credit transaction.
D. An insurer may not require the bundling of any other consumer credit insurance coverage with the purchase of credit property insurance coverage. A debtor may choose to purchase credit property insurance coverage separate from any other consumer credit insurance coverage.
E. An insurer shall not use gross debt as an exposure rating base in determining credit property insurance premiums.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.04 - Rates and forms; filing; approval; withdrawal of approval

20-1621.04.
Rates and forms;  filing;  approval;  withdrawal of approval
A. A person shall not deliver,  or issue for delivery in this state,  any credit property insurance policy or rate unless the person has first filed the form or rate with the director and the director has approved the form or rate. Unless the director issues an order affirmatively approving or disapproving the form or rate within thirty days after filing,  the form or rate is deemed approved. On written notice given to the insurer within the thirty day period,  the director may extend the thirty day review period for up to fifteen additional days.
B. The director shall disapprove a rate or form if either:
1. The rate is inadequate,  unfairly discriminatory or excessive or not reasonable in relation to the coverage provided.
2. The form contains provisions that are unjust,  unfair,  inequitable,  ambiguous,  misleading or deceptive,  that encourage misrepresentation of the coverage or that are contrary to this title or of any rule adopted pursuant to this title.
C. If the director disapproves a rate or form,  the director shall send the insurer a written notice specifying the reason for disapproval. The insurer may request a hearing pursuant to title 41,  chapter 6,  article 10 to contest the disapproval. It is unlawful for the insurer to issue or use a rate or form that has been disapproved.
D. At any time after notice and for cause shown,  the director may issue an order withdrawing approval of any form or rate for any reason listed in subsection B. The insurer may request a hearing pursuant to title 41,  chapter 6,  article 10 to contest the director's order.
E. An insurer shall not issue or use a rate or form after the effective date of an order withdrawing approval.
F. An insurer shall not issue any credit property insurance policy for which the rates have not been filed with the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.05 - Reasonableness of benefits in relation to premium charged

20-1621.05.
Reasonableness of benefits in relation to premium charged
A. An insurer's premium rates shall be reasonable in relation to the benefits provided and shall not be excessive,  inadequate or unfairly discriminatory.
B. At least once every three years,  the director shall establish by order a loss ratio standard. In establishing the loss ratio standard,  the director shall consider the standard prescribed in subsection A of this section and the actual and expected loss experience of insurers,  including a reasonable catastrophe provision. The director shall also consider other rate components,  including reasonable general and administrative expenses,  reasonable acquisition expenses,  reasonable creditor compensation,  investment income,  premium taxes,  licenses,  fees,  assessments and reasonable underwriting profit and contingencies.
C. Concurrently with the establishment of a loss ratio standard pursuant to subsection B of this section,  the director,  by order,  shall establish prima facie rates. If an insurer's actual rates do not exceed the prima facie rates,  the insurer's rates are presumed not to be excessive and the insurer is not required to file its rates with the director,  subject to the following:
1. On or before April 1 of each year,  on a form prescribed by the director,  the insurer shall certify to the director that the rates currently applied by the insurer do not exceed the prima facie rates and that the rates are not inadequate or unfairly discriminatory. The insurer shall also state the actual rates then in effect. If the insurer changes the rates before the next April 1,  the insurer shall file an amended certification with the director.
2. At any time the director may require the insurer to make rate filings according to section 20-1621.04.
D. The reasonable cost of actuarial or other professional services necessary to perform the duties required by this section are chargeable as examination expenses pursuant to section 20-159 and shall be allocated among insurers transacting credit property insurance or credit unemployment insurance in this state in proportion to the relative amounts of combined direct credit property and credit unemployment insurance premiums received in this state for the calendar year immediately before the date of the director's order pursuant to this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.06 - Experience reports

20-1621.06.
Experience reports
An insurer transacting credit property insurance in this state shall annually file with the director and the national association of insurance commissioner's a report of credit property insurance written on a calendar year basis. The report shall use the credit insurance supplement annual statement blank approved by the commissioners,  and shall contain data separately for each state,  rather than an allocation of the company's countrywide experience. The filing shall be made in accordance with and no later than the due date in the instructions to the annual statement.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.07 - Cancellation and refund of unearned premium

20-1621.07.
Cancellation and refund of unearned premium
On cancellation for any reason,  the debtor is entitled to a refund of unearned premiums calculated on a daily pro rata basis,  except that an insurer is not required to make any refund of less than five dollars.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.08 - Claims

20-1621.08.
Claims
A. A creditor shall promptly report all claims to the insurer or its designated claim representative.
B. All claims shall be paid either by draft drawn on the insurer,  by electronic funds transfer,  by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions or on direction of the claimant to the party specified by the claimant.
C. A person shall not authorize a person,  firm or corporation,  other than the insurer or its designated claim representative,  to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims,  except that once the amount is determined,  a group policyholder,  by arrangement with the group insurer,  may draw drafts,  checks or electronic transfers in payment of claims due to the group policyholder subject to audit and review by the insurer.
D. A person shall not deny a claim because the debtor was ineligible for coverage later than ninety days after the initiation of coverage unless the debtor misrepresented a material fact. If a claim is denied because the debtor was ineligible for coverage within ninety days of initiation of coverage or because the debtor misrepresented a material fact for coverage,  the insurer shall refund to the debtor all premiums paid and the creditor shall refund any finance charge paid on the premiums.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.09 - Cease and desist order; hearing

20-1621.09.
Cease and desist order;  hearing
On finding that a person has violated this article or a rule adopted pursuant to this article,  the director may issue an order directing that the person cease and desist from committing the violation. On the issuance of an order to cease and desist,  the person may request a hearing pursuant to section 20-161 and title 41,  chapter 6,  article 10.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1621.11 - Penalties

20-1621.11.
Penalties
In addition to any other penalties authorized by this title,  after notice and a hearing,  the director may impose on an insurer that violates an order of the director that is issued pursuant to this article or any rule adopted pursuant to this article a civil penalty of not more than one thousand dollars for each violation but not to exceed an aggregate penalty of one hundred thousand dollars,  except that,  if the violation was committed flagrantly in a conscious disregard of this article,  the civil penalty shall not be more than twenty-five thousand dollars for each violation but not to exceed an aggregate penalty of two hundred fifty thousand dollars.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1632 - Cancellation, nonrenewal and reduction of limits for reasons other than nonpayment of premium; notices to insured; refund of unearned premium

20-1632.
Cancellation,  nonrenewal and reduction of limits for reasons other than nonpayment of premium;  notices to insured;  refund of unearned premium
A. A notice by the insurer to the policyholder of cancellation or reduction in the limits of liability or coverage for reasons other than nonpayment of premium shall be sent to the named insured at least ten days before the effective date of the cancellation or reduction in limits of liability or coverage. Notice of nonrenewal for reasons other than nonpayment of premium shall be sent at least forty-five days before the effective date of the nonrenewal. A notice under this subsection shall include or be accompanied by all of the following:
1. A statement in writing of the specific facts that constitute the reasons,  consistent with this article,  for such action by the insurer and a notice indicating the named insured's right to complain to the director of the insurer's action within ten days after receipt of the notice by the insured.
2. Notice of the insured's possible eligibility for insurance through the automobile assigned risk plan,  and the notice shall state that all information included in the notice is given pursuant to this article.
3. Except as provided in paragraph 4 of this subsection,  a refund of unearned premium. For the purposes of this paragraph,  the insurer shall either send the notice and refund of unearned premium together at least ten days before the effective date or send the notice before the refund of unearned premium if both the notice and the refund of unearned premium are sent separately to the insured at least ten days before the effective date. As an alternative to sending the refund by mail,  an insurer may refund the unearned premium by any electronic means previously established with the insured to make and receive premium payments for the policy.
4. In the case of a notice of cancellation or nonrenewal of a policyholder whose premium payment is collected and remitted on the insurer's behalf by the insurer's affiliate,  the insurer shall refund any unearned premium to the policyholder within ten days after the policy cancellation or nonrenewal. For the purposes of this paragraph,  " affiliate"  has the same meaning prescribed in section 20-481.
B. Failure of the insurer to comply with subsection A of this section shall invalidate any cancellation,  nonrenewal or reduction in limits of liability or coverage.
C. If a premium has been financed,  a refund of unearned premium shall be returned as provided in section 6-1416.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1632.01 - Cancellation or nonrenewal for nonpayment of premium; grace period; notice of cancellation; discrimination; definition

20-1632.01.
Cancellation or nonrenewal for nonpayment of premium;  grace period;  notice of cancellation;  discrimination;  definition
A. Motor vehicle insurance policies shall contain a provision that the policyholder is entitled to a minimum grace period of seven days for the payment of any premium due except the first payment,  during which grace period the policy shall continue in full force. For the purposes of this subsection,  an initial payment on the renewal of a policy is not a first payment of premium.
B. For any motor vehicle insurance policy that is cancelled or nonrenewed for nonpayment of premium by the insurer after the grace period,  the insurer must send a notice of cancellation or nonrenewal to the policyholder. The cancellation or nonrenewal is effective on the date the notice is sent to the policyholder. The notice shall include or be accompanied by a statement in writing of the reasons for such action by the insurer and a notice indicating the named insured's right to complain to the director of the insurer's action within ten days after receipt of the notice by the insured. An insurer shall not cancel or nonrenew a motor vehicle insurance policy pursuant to this section because of the named insured's location of residence,  age,  race,  color,  religion,  sex,  sexual orientation,  marital status,  national origin,  ancestry or driving record.
C. This section does not apply to policies being cancelled pursuant to section 6-1415. The grace period provided in such policies shall be satisfied by the ten-day notice of intent of the premium finance company to cancel the insurance contract unless the default is cured within the ten-day period.
D. For the purposes of this section,  " grace period"  means the period of time after the premium due date during which the policy remains in force without penalty even though the premium due has not been paid.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1633 - Objections; investigation; determination

20-1633.
Objections;  investigation;  determination
A. Any individual who believes cancellation of the individual's policy is arbitrary,  capricious or otherwise in violation of this article,  who believes nonrenewal is in violation of this article or who believes notice of nonrenewal or cancellation,  or the reasons for nonrenewal or cancellation,  were not given as provided by this article,  within ten days after receipt of notice,  may file in writing an objection to the action with the director.
B. On receipt of a written objection pursuant to this article,  the director shall notify the insurer of receipt of the objection and of the right of the insurer to file a written response within ten days of receipt of the notification. The director may also order an examination of the objection or complaint,  the submission of additional information by the insured or the insurer about the action by the insurer or the objections of the insured,  or any other procedure as the director deems appropriate or necessary. The insurer shall pay the cost of the examination pursuant to section 20-159. Within fifteen days of receipt of the written objection by an insured the director shall approve or disapprove the insurer's action and shall notify the insured and insurer in writing of the director's final decision. The director shall order an insurer that has failed to renew a policy in violation of this article to reinstate the policy retroactive to the effective date of the nonrenewal. Except as provided in section 41-1092.08,  subsection H,  either party may institute proceedings for judicial review of the director's final decision pursuant to title 12,  chapter 7,  article 6. Notwithstanding any other law,  if the director decides in favor of the insured,  the director may order that the decision not be stayed pending judicial review.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1651 - Application; types of risks

20-1651.
Application;  types of risks
This article shall apply to policies of insurance,  other than motor vehicle insurance and workers' compensation insurance,  on risks located or resident in this state which insure any of the following contingencies:
1. Loss of or damage to real property which is used predominantly for residential purposes and which consists of not more than four dwelling units.
2. Loss of or damage to personal property in which natural persons resident in specifically described real property of the kind described in paragraph 1 have an insurable interest,  except personal property used in the conduct of a commercial or industrial enterprise.
3. Legal liability of a natural person for loss,  damage or injury to persons or property,  but not including policies primarily insuring risks arising from the conduct of a commercial or industrial enterprise.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1653 - Sending notice of cancellation or nonrenewal to insured; statement of grounds and facts on which cancellation or nonrenewal is based

20-1653.
Sending notice of cancellation or nonrenewal to insured;  statement of grounds and facts on which cancellation or nonrenewal is based
All notices of cancellation or nonrenewal shall be in writing,  shall be sent to the named insured and shall state,  with respect to cancellation of policies in effect after the time limits specified in section 20-1652 and,  in the case of nonrenewal of policies as specified in section 20-1654:
1. In the case of cancellation the specific facts that constitute the grounds set forth in section 20-1652 relied on.
2. In the case of nonrenewal the specific facts that constitute the reason the policy is not being renewed,  which may include the grounds set forth in section 20-1652.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1654 - Sending notice of intention not to renew to insured; time; term of policy

20-1654.
Sending notice of intention not to renew to insured;  time;  term of policy
A. Unless the insurer,  at least thirty days before the end of the policy period,  sends to the named insured notice of its intention not to renew the policy or to condition its renewal on reduction of limits or elimination of coverages,  the insurer shall not fail to renew the policy on payment of the premium due on the effective date of the renewal,  in accordance with the then existing rating manual of the insurer.
B. For the purposes of this section:
1. Any policy written for a term of less than one year may be renewed for a term of one year if the notice is not given as required by subsection A of this section. For the purposes of subsection A of this section,  a policy with no fixed expiration date is deemed written for successive policy periods of one year.
2. Nonrenewal does not include the issuance and delivery of a new policy within the same insurer or an insurer under the same ownership or management as the original insurer as provided in this paragraph. An insurer may transfer any of its policies to an affiliated insurer. An insurer may not transfer a policyholder because of the policyholder's location of residence,  age,  race,  color,  religion,  sex,  national origin or ancestry. A transfer by an insurer pursuant to this paragraph does not allow the insurer to apply a new unrestricted sixty-day period for cancellation or nonrenewal.
C. This section does not apply if the insured has accepted replacement coverage or has agreed to nonrenewal.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1655 - Liability of insurer and representatives for statements in notice of cancellation, other communication or evidence given in court relating to cancellation

20-1655.
Liability of insurer and representatives for statements in notice of cancellation,  other communication or evidence given in court relating to cancellation
There shall be no liability on the part of,  and no cause of action of any nature shall arise against,  any insurer or its authorized representatives,  agents or employees,  or any licensed insurance producer,  for any statement made,  unless shown to have been made in bad faith with malice in any of the following:
1. Written notice of cancellation or nonrenewal or in any other oral or written communication specifying the reasons for cancellation or nonrenewal.
2. Communication providing information pertaining to such cancellation or nonrenewal.
3. Evidence submitted at any court proceeding or informal inquiry in which such cancellation or nonrenewal is an issue.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1656 - Proof of sending as proof of notice

20-1656.
Proof of sending as proof of notice
A. Proof of sending a notice of cancellation and the reasons for cancellation or of intention not to renew to the named insured by mail at the address shown in the policy is sufficient proof of the notice required by this article.
B. Any method of proof retained by the insurer for sending a notice of cancellation by any method other than by mail is sufficient proof of the notice required by this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1661 - Definitions

20-1661.
Definitions
A. In this article,  unless the context otherwise requires:
1. " Direct response solicitation"  means any offer by an insurer to persons in this state,  either directly or through a third party,  to effect life or health insurance coverage which enables the individual to apply or enroll for the insurance on the basis of the offer.
2. " Mass marketed life or health insurance"  means insurance under any franchise,  group or blanket policy of life or health insurance which is offered by means of direct response solicitation through a sponsoring organization or through the mails or other mass communications media and under which the person who is insured pays all or substantially all of the cost of his insurance.
B. In this article,  " direct response solicitation"  does not include solicitations for insurance through an employee benefit plan or a solicitation through the individual's creditor with respect to credit life or credit health insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1662 - Requirements to transact mass marketed insurance

20-1662.
Requirements to transact mass marketed insurance
An insurer extending mass marketed life or health insurance under a group or blanket policy issued outside this state to residents of this state shall,  before offering coverage to the citizens of this state:
1. Make available for the purpose of determining compliance with this article copies of any such policy or certificates issued under such policy and advertising material used within this state in connection with such insurance.
2. Comply with the requirements of this state relating to advertising and to claims settlement practices.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1663 - Unreasonable mass marketed insurance prohibited; hearing; findings; rules

20-1663.
Unreasonable mass marketed insurance prohibited;  hearing;  findings;  rules
A. No mass marketed life or health insurance may continue to be transacted in this state if the director finds that the total charges for the insurance to the persons who are insured are unreasonable in relation to the benefits provided. The director shall make any such finding after conducting a hearing on not less than thirty days' written notice to the insurer. The director shall make such findings in writing,  including the reasons for such findings,  and may issue an order directing the insurer to cease transacting such insurance. Such an order continues in effect until the director determines that the total charges for the insurance are found to be reasonable in relation to the benefits.
B. The director may adopt reasonable rules to determine whether the total charges for the insurance to persons insured are unreasonable in relation to the benefits provided.
C. Nothing in this section shall be construed to permit the director to set rates.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1671 - Scope of article

20-1671.
Scope of article
This article applies to commercial property insurance policies,  commercial liability policies and commercial multi-peril insurance policies other than automobile policies. This article does not apply to any of the following:
1. Life and disability insurance.
2. Annuities.
3. Workers' compensation and employers' liability insurance written in connection with workers' compensation.
4. Motor vehicle policies governed by section 20-1631.
5. Surplus lines insurance.
6. Mortgage guaranty insurance.
7. Title insurance.
8. Marine,  as distinguished from inland marine,  insurance.
9. Policies covering multistate location risks.
10. Excess policies.
11. Policies issued through assigned risk plans,  joint underwriting associations or other residual market mechanisms.
12. Such other policies as the director may exempt.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1672 - Definitions

20-1672.
Definitions
In this article,  unless the context otherwise requires:
1. " Cancellation"  means termination of a policy at a date other than its expiration date.
2. " Expiration date"  means the date on which coverage under a policy ends as set forth in the policy. For a policy written for a term longer than one year or with no fixed expiration date,  each annual anniversary date of the policy is the expiration date.
3. " Nonpayment of premium"  means the failure or inability of the named insured to discharge any obligation in connection with the payment of premiums on a policy of insurance subject to this article,  whether the payments are payable directly to the insurer or its agent or payable through a premium finance plan or extension of credit.
4. " Nonrenewal"  means termination of a policy at its expiration date.
5. " Renewal"  or " to renew"  means the issuance of or the offer to issue by an insurer a policy succeeding a policy previously issued and delivered by the same insurer or an insurer within the same group of insurers or the issuance of a certificate or notice extending the term of an existing policy for a specified period beyond its expiration date.