reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-628 - Proof of claims; notice; hearing

20-628.
Proof of claims;  notice;  hearing
A. All claims against an insurer against which delinquency proceedings have been begun shall set forth in reasonable detail the amount of the claim,  or the basis upon which such amount can be ascertained,  the facts upon which the claim is based and the priorities asserted,  if any. All such claims shall be verified by the affidavit of the claimant,  or someone authorized to act on his behalf and having knowledge of the facts,  and shall be supported by such documents as may be material thereto.
B. All claims filed in this state shall be filed with the receiver,  whether domiciliary or ancillary,  in this state,  on or before the last date for filing as specified in this article.
C. Within ninety days after the claims bar date,  or within such further period as the court may,  for good cause shown,  fix,  the receiver shall report the claim to the court,  specifying in the report his recommendation with respect to the action to be taken thereon. Upon receipt of the report,  the court shall fix a time for hearing the claim and shall direct that the claimant or the receiver,  as the court specifies,  shall give such notice as the court determines to such persons as appear to the court to be interested therein. All such notices shall specify the time and place of the hearing and shall concisely state the amount and nature of the claim,  the priorities asserted,  if any,  and the recommendation of the receiver with reference thereto.
D. At the hearing,  all persons interested shall be entitled to appear and the court shall enter an order allowing,  allowing in part or disallowing the claim. Any such order shall be deemed to be an appealable order.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-630 - Attachment and garnishment of assets

20-630.
Attachment and garnishment of assets
A. During the pendency of delinquency proceedings in this or any reciprocal state,  an action or proceeding in the nature of an attachment,  garnishment or execution may not be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lien obtained by any such action or proceeding within four months before the commencement of any such delinquency proceeding or at any time thereafter is void as against any rights arising in the delinquency proceeding.
B. Notwithstanding any other provision of this chapter,  a federal home loan bank may not be stayed,  enjoined or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer member under any federal home loan bank security agreement or any pledge,  security,  collateral or guarantee agreement or other similar arrangement or credit enhancement relating to a security agreement to which that federal home loan bank is a party.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-631 - Uniform insurers liquidation act

20-631.
Uniform insurers liquidation act
A. Section 20-611,  paragraphs 1,  4,  5,  7,  8,  10,  13,  15,  16,  17,  18 and 19 and sections 20-613,  20-614,  20-624,  20-625,  20-626,  20-627,  20-628,  20-629 and 20-630 are and may be cited as the uniform insurers liquidation act.
B. The uniform insurers liquidation act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states that enact it. To the extent that its provisions when applicable conflict with other provisions of this article the provisions of such act shall control.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-632 - Deposit of monies collected

20-632.
Deposit of monies collected
The monies collected by the receiver in a proceeding under this article shall be from time to time deposited in one or more state or national banks,  savings banks or trust companies,  and in the case of the insolvency or voluntary or involuntary liquidation of any such depositary which is an institution organized and supervised under the laws of this state,  such deposits shall be entitled to priority of payment on an equality with any other priority given by the banking laws of this state. The receiver may deposit such monies or any part thereof in a national bank or trust company as a trust fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-634 - Borrowing on pledge of assets

20-634.
Borrowing on pledge of assets
For the purpose of facilitating the rehabilitation,  liquidation,  conservation or dissolution of an insurer pursuant to this article,  the receiver may,  subject to the approval of the court,  borrow money and execute,  acknowledge and deliver notes or other evidences of indebtedness therefor and secure its repayment by the mortgage,  pledge,  assignment,  transfer in trust or hypothecation of any or all of the property,  whether real,  personal or mixed,  of the insurer,  and the receiver,  subject to the approval of the court,  may take any and all other action necessary and proper to consummate the loan and to provide for the repayment thereof. The receiver is under no obligation personally or in the receiver's official capacity to repay any loan made pursuant to this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-635 - Rights and liabilities fixed as of date liquidation order filed

20-635.
Rights and liabilities fixed as of date liquidation order filed
The rights and liabilities of the insurer and of its creditors,  policyholders,  stockholders,  members,  subscribers and all other persons interested in its estate shall,  unless otherwise directed by the court,  be fixed as of the date on which the order directing the liquidation of the insurer is filed in the office of the clerk of the court which made the order,  subject to the provisions of this article with respect to the rights of claimants holding contingent claims.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-636 - Voidable transfers

20-636.
Voidable transfers
A. Any transfer of,  or lien on,  the property of an insurer that is made or created within four months before the granting of an order to show cause under this article with the intent of giving to any creditor or of enabling such creditor to obtain a greater percentage of the creditor's debt than any other creditor of the same class,  and that is accepted by such creditor having reasonable cause to believe that such preference will occur,  shall be voidable.
B. Every director,  officer,  employee,  stockholder,  member and subscriber and any other person acting on behalf of the insurer who is concerned in any such act or deed and every person receiving thereby any property of the insurer or the benefit thereof shall be personally liable therefor and shall be bound to account to the receiver.
C. The receiver in any proceeding under this article may avoid any transfer of or lien on the property of an insurer that any creditor,  stockholder,  subscriber or member of the insurer might have avoided and may recover the property so transferred unless the person was a bona fide holder for value before the date of the granting of an order to show cause under this article. Such property or its value may be recovered from anyone who has received it except a bona fide holder for value as specified in this article.
D. Notwithstanding any other provision of this chapter,  a receiver,  rehabilitator,  liquidator or conservator may not void any transfer of,  or any obligation to transfer,  money or other property arising under or in connection with any federal home loan bank security agreement with an insurer member,  or any pledge,  security,  collateral or guarantee agreement or any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement with an insurer member unless the transfer was made with actual intent to hinder,  delay or defraud either existing or future creditors.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-638 - Offsets

20-638.
Offsets
A. In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this article,  such credits and debts shall be set off and the balance only shall be allowed or paid,  except as provided in subsection B of this section.
B. No offset shall be allowed in favor of any such person where the obligation of the insurer to such person would not at the date of the entry of any liquidation order or otherwise as provided in section 20-635,  entitle him to share as a claimant in the assets of the insurer,  or the obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset,  or the obligation of such person is to pay an assessment levied against the members of a mutual insurer or against the subscribers of a reciprocal insurer or is to pay a balance upon the subscription to the capital stock of a stock insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-639 - Allowance of certain claims

20-639.
Allowance of certain claims
A. No contingent claim shall share in a distribution of the assets of an insurer which has been adjudicated to be insolvent by an order made pursuant to this article,  except that such claim shall be considered,  if properly presented,  and may be allowed to share where either:
1. Such claim becomes absolute against the insurer on or before the last day for filing proof of claims against the assets of such insurer.
2. There is a surplus and the liquidation is thereafter conducted upon the basis that such insurer is solvent.
B. Where an insurer has been so adjudicated to be insolvent any person who has a cause of action against an insured of such insurer under a liability insurance policy issued by such insurer shall have the right to file a claim in the liquidation proceeding,  regardless of the fact that the claim may be contingent,  and the claim may be allowed if all of the following requirements are met:
1. If it may be reasonably inferred from the proof presented upon the claim that the person would be able to obtain a judgment upon the cause of action against the insured.
2. If the person furnishes suitable proof,  unless the court for good cause shown otherwise directs,  that no further valid claim against the insurer arising out of his cause of action other than those already presented can be made.
3. If the total liability of the insurer to all claimants arising out of the same act of its insured shall be no greater than its maximum liability would be were it not in liquidation.
C. No judgment against such an insured taken after the date of entry of the liquidation order shall be considered in the liquidation proceedings as evidence of liability,  or of the amount of damages,  and no judgment against an insured taken by default or by collusion prior to the entry of the liquidation order shall be considered as conclusive evidence in the liquidation proceedings,  either of the liability of the insured to such person upon the cause of action or of the amount of damages to which the person is therein entitled.
D. No claim of any secured claimant shall be allowed at a sum greater than the difference between the value of the claim without security and the value of the security itself as of the date of the entry of the order of liquidation or such other date set by the court for determining rights and liabilities as provided in section 20-635 unless the claimant surrenders the claimant's security to the receiver,  in which event the claim shall be allowed in the full amount for which it is valued.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-640 - Time to file claims

20-640.
Time to file claims
A. If,  upon the granting of an order of liquidation under this article or at any time thereafter during the liquidation proceeding,  the insurer is not clearly solvent,  the court shall,  after such notice and hearing as it deems proper,  make an order declaring the insurer to be insolvent. Thereupon regardless of any prior notice which may have been given to creditors,  the receiver shall notify all persons who may have claims against the insurer and who have not filed proper proofs thereof to present them to him,  at a place specified in the notice,  within four months from the date of entry of the order,  or if the receiver certifies that it is necessary,  within such longer time as the court shall prescribe. The last day for filing of proofs of claims shall be specified in the notice,  and notice shall be given in a manner to be determined by the court.
B. Proofs of claim may be filed subsequent to the date specified,  but no such claim shall share in the distribution of the assets until all allowed claims,  proofs of which have been filed before such date,  have been paid in full with interest according to the priorities established in section 20-629.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-641 - Report for assessment

20-641.
Report for assessment
Within three years from the date an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer was filed in the office of the clerk of the court by which the order was made,  the receiver may make a report to the court setting forth:
1. The reasonable value of the assets of the insurer.
2. The insurer's probable liabilities.
3. The probable necessary assessment,  if any,  to pay all claims and expenses in full,  including expenses of administration.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-642 - Levy of assessment

20-642.
Levy of assessment
A. Upon the basis of the report provided for in section 20-641,  including any amendments thereof,  the court,  ex parte,  may levy one or more assessments against all members of the insurer who,  as shown by the records of the insurer,  were members,  if a mutual insurer,  or subscribers,  if a reciprocal insurer,  at any time within one year prior to the date of issuance of the order to show cause under section 20-613.
B. The assessment or assessments shall cover the excess of the probable liabilities over the reasonable value of the assets,  together with the estimated cost of collection and percentage of uncollectibility thereof. The total of all assessments against any member or subscriber with respect to any policy,  whether levied pursuant to this article or pursuant to any other provision of this title,  shall be for no greater amount than that specified in the policy or policies of the member or subscriber and as limited under this title,  except that if the court finds that the policy was issued at a rate of premium below the minimum rate lawfully permitted for the risk insured,  the court may determine the upper limit of the assessment upon the basis of the minimum rate.
C. No assessment shall be levied against any member or subscriber with respect to any nonassessable policy issued in accordance with this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-643 - Order to pay assessment

20-643.
Order to pay assessment
After levy of an assessment as provided in section 20-642,  upon the filing of a further detailed report by the receiver the court shall issue an order directing each member,  if a mutual insurer,  or each subscriber,  if a reciprocal insurer,  if the member or subscriber has not paid the amount assessed against the member or subscriber to the receiver on or before a day specified in the order,  to show cause why the member or subscriber should not be held liable to pay such assessment,  together with costs as provided in section 20-645,  and to show cause why the receiver should not have judgment therefor.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-644 - Publication and service of assessment order

20-644.
Publication and service of assessment order
The receiver shall cause a notice of the assessment order,  setting forth a brief summary of the contents of the order,  to be published in such manner as shall be directed by the court,  and enclosed in a sealed envelope,  addressed and mailed postage prepaid,  to each member or subscriber liable thereunder at his last known address as it appears on the records of the insurer,  at least twenty days before the return day of the order to show cause provided for in section 20-643.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-645 - Judgment upon assessment

20-645.
Judgment upon assessment
A. Upon the return day of the order to show cause provided for in section 20-643,  if the member or subscriber does not appear and serve duly verified objections upon the receiver,  the court shall make an order adjudging that the member or subscriber is liable for the amount of the assessment against him,  together with costs,  and that the receiver may have judgment against the member or subscriber therefor.
B. If,  on such return day,  the member or subscriber appears and serves duly verified objections upon the receiver,  there shall be a full hearing before the court which,  after the hearing,  shall make such order as the facts warrant.
C. Any such order shall have the same force and effect,  shall be entered and docketed and may be appealed from,  as if it were a judgment in an original action brought in the court in which the proceeding is pending.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-646 - Cooperation with Arizona property and casualty insurance guaranty fund and life and disability insurance guaranty fund

20-646.
Cooperation with Arizona property and casualty insurance guaranty fund and life and disability insurance guaranty fund
The provisions of this article shall be construed to permit the orderly and effective payment of claims by the Arizona property and casualty insurance guaranty fund established pursuant to article 6 of this chapter and the life and disability insurance guaranty fund established pursuant to article 7 of this chapter.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-647 - Giving guaranty fund or association immediate access to assets

20-647.
Giving guaranty fund or association immediate access to assets
A. As soon as practicable after a final determination of insolvency of an insurer by a court of competent jurisdiction of this state,  the receiver may make application to the court for approval of a proposal to distribute assets out of such company's marshaled assets,  from time to time as such assets become available,  to the Arizona property and casualty insurance guaranty fund established in section 20-662 and the life and disability insurance guaranty fund established in section 20-683 or a similar organization in another state to the extent the organization provides substantially similar protection with respect to the same kinds of insurance.
B. Such proposal shall at least include provisions for:
1. Reserving amounts for the payment of claims of secured creditors and claims accorded a higher priority pursuant to section 20-629.
2. Distribution of assets marshaled to date and subsequent distribution of assets as such assets become available.
3. Equitable allocation of disbursements to each of the funds.
4. The securing by the receiver from each of the funds entitled to distribution pursuant to this section of an agreement to return to the receiver such assets previously distributed as may be required to pay claims of secured creditors and claims accorded a higher priority pursuant to section 20-629. No bond shall be required of any such fund.
5. A full report to be made by the funds to the receiver accounting for all assets distributed to the fund,  all disbursements made,  any interest earned by the funds from such assets and any other matter as the court may direct.
C. The receiver's proposal shall provide for distribution to the funds in amounts estimated to at least equal the claim payment made or to be made for which such funds could assert a claim against the receiver,  and shall further provide that if the assets available for distribution do not equal or exceed the amount of such claim payments made or to be made by the funds,  then distribution shall be in the amount of available assets.
D. Notice of such application shall be given to the funds and to the commissioners and directors of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States mail,  first class postage prepaid,  at least thirty days prior to submission of such application to the court. Action on the application may be taken by the court if required notice has been given and if the receiver's proposal complies with subsection B,  paragraphs 1 and 2 of this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-648 - Receivership liquidation fund; purpose; deposit; expenses of receivership; deputy receiver; powers and duties

20-648.
Receivership liquidation fund;  purpose;  deposit;  expenses of receivership;  deputy receiver;  powers and duties
A. The director shall appoint a deputy receiver to administer the conservation,  rehabilitation or liquidation of an insurer pursuant to this article.
B. A receivership liquidation fund is established. The deputy receiver shall file a petition with the court authorizing the deputy receiver to deposit in the fund ten per cent of the insolvent insurer's deposit required under section 20-213.
C. The common administrative costs of the receiverships incurred by the deputy receiver are payable from the receivership liquidation fund. The director shall by order after a hearing describe the nature of administrative costs common to every receivership in the operation of the receivership office that are payable from this fund. Costs may include the compensation of special deputies,  clerks or assistants but shall not include attorney fees.
D. The deputy receiver shall prepare and file with the court a quarterly financial report listing expenditures and the balance remaining in the fund allocable to the respective insurer. On termination of a receivership,  the deputy receiver shall remit any balance remaining in the fund that is allocated to a particular insurer to the separate account for that receivership or to the person entitled to the monies. If the common administrative expenses allocable to a receivership exceed the initial ten per cent deposit to the fund,  the deputy receiver may petition the court to authorize an amount,  equal to the excess,  to be deposited in the fund.
E. On notice from the director,  the state treasurer shall invest and divest monies in the receivership liquidation fund as provided by section 35-313,  and monies earned from investment shall be credited to the fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-649 - Extension of time

20-649.
Extension of time
A. Except as provided in subsection D,  if any law,  rule,  order or agreement fixes a period of time within which the insurer subject to a delinquency proceeding or the receiver may commence an action,  and that period is enforceable and has not expired before the date of the commencement of the delinquency proceeding under this title,  the receiver may commence the action before any of the following,  whichever is later:
1. The end of the period,  including any suspension of the period occurring on or after commencement of the delinquency proceeding under this title.
2. Five years after the entry of the order appointing the receiver.
3. A date set by the court that in no event is more than eight years after the entry of the order appointing the receiver.
B. Except as provided in subsection A or D,  if any law,  rule,  order or agreement fixes a period of time within which the insurer subject to a delinquency proceeding or the receiver may file any pleading,  motion,  demand,  notice or proof of claim or loss,  may cure a default or may perform any other similar act and that period is enforceable and has not expired before the commencement of the delinquency proceeding,  the receiver may file,  cure or perform before either of the following,  whichever is later:
1. The end of the period,  including any suspension of the period occurring on or after the commencement of the delinquency proceeding under this title.
2. One hundred twenty days after the entry of the order appointing the receiver.
C. Except as provided in subsection D,  if any law,  rule,  order or agreement fixes a period for commencing or continuing a civil action in any court on a claim against the insurer in receivership,  and that period has not expired before the date of the commencement of the delinquency proceeding,  the court may extend that period to permit the filing of a claim with the receiver pursuant to this article.
D. The extension of time provided under this section does not apply to any other time period imposed by this chapter,  an agreement executed by the receiver and approved by the court or an order of the court.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-650 - Recovery of shareholder liability

20-650.
Recovery of shareholder liability
A. The receiver of an insurer may file a claim in the receivership proceeding to recover the liability of shareholders under article XIV,  section 11,  Constitution of Arizona.
B. Any amount recovered in an action under this section shall be distributed in the same manner provided by law for the distribution of general assets of the estate.
C. The receiver shall bring an action pursuant to subsection A of this section,  within four years of the entry of an order of liquidation or other order fixing the rights and liabilities of shareholders under section 20-635.
D. In an action pursuant to this section:
1. The defendant is not entitled to offset obligations of the insurer to the defendant,  except that a defendant may file a claim with the receiver for those obligations.
2. The receiver shall recover costs and reasonable attorney fees.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-661 - Definitions

20-661.
Definitions
In this article,  unless the context otherwise requires:
1. " Account"  means any one of the three accounts within the Arizona property and casualty insurance guaranty fund.
2. " Board"  means the guaranty fund board.
3. " Covered claim"  means an unpaid claim,  including one for unearned premium,  which arises out of and is within the coverage of an insurance policy to which this article applies issued by an insurer,  if such insurer becomes an insolvent insurer after August 27,  1977 and the claimant or insured is a resident of this state at the time of the insured event or the property from which the claim arises is permanently located in this state. Covered claim does not include any amount due any reinsurer,  insurer,  insurance pool or underwriting association as subrogation recoveries or otherwise nor shall it include any obligations of the insolvent insurer arising out of any reinsurance contracts nor shall it include attorney fees or adjustment expenses incurred prior to the determination of insolvency.
4. " Fund"  means the Arizona property and casualty insurance guaranty fund.
5. " Insolvent insurer"  means an insurer that is licensed to transact insurance in this state either at the time the policy was issued or when the insured event occurred and against whom an order of liquidation with a finding of insolvency has been entered after September 19,  2007 by a court of competent jurisdiction in the insurer's state of domicile or by this state pursuant to section 20-623,  and the order of liquidation has not been stayed or been the subject of a writ of supersedeas or other comparable order. For purposes of the workers' compensation insurance account,  insolvent insurer includes any insolvent insurer against which an order of liquidation with a finding of insolvency has been entered on,  before or after the effective date of this section.
6. " Member insurer"  means any person who writes any kind of insurance,  unless such writing is restricted solely to life,  title,  surety,  disability,  credit,  mortgage guaranty,  ocean-marine or surplus lines insurance,  including the exchange of reciprocal or inter-insurance contracts,  and is licensed to transact insurance in this state.
7. " Net direct written premiums"  means direct gross premiums written in this state on insurance policies to which this article applies,  less return premiums and dividends paid or credited to policyholders on such direct business. Net direct written premiums do not include premiums on contracts between insurers or reinsurers.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-662 - Arizona property and casualty insurance guaranty fund

20-662.
Arizona property and casualty insurance guaranty fund
A. The Arizona property and casualty insurance guaranty fund is established within the department. The fund shall be deposited in a depository designated by the director and shall exercise its powers through a board established pursuant to section 20-663.
B. For the purpose of assessment,  the fund shall be divided into three separate accounts:
1. The automobile insurance account.
2. The workers' compensation insurance account.
3. The account for all other insurance to which this article applies.
C. All costs,  expenses and liabilities of the fund shall be paid by the fund and shall not be a general obligation of this state.
D. All monies placed in the accounts of the fund may be expended only for the purposes of this article and only for the purposes of the account into which the monies were placed. Monies placed in one of the three separate accounts established by this section may not be used directly or indirectly for any other purpose,  including to satisfy an obligation attributable to another account.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-663 - Guaranty fund board; composition; compensation

20-663.
Guaranty fund board;  composition;  compensation
A. The guaranty fund board is established within the department of insurance and financial institutions consisting of eleven members who are appointed by the governor. Membership on the board shall be for a term of three years.
B. The members of the board shall be appointed from a list of persons submitted to the governor by the director of the department of insurance and financial institutions and shall be representative of a cross section of the industry that is authorized to transact property or casualty insurance within this state. The board shall be composed of:
1. Nine members,  each representing a different insurer that is authorized to transact property or casualty insurance business in this state,  including at least one member who represents a workers' compensation insurer that has been authorized to transact workers' compensation insurance business in this state for at least ten consecutive years.
2. One member who is a casualty insurance producer residing in this state.
3. One member who represents the general public.
C. The board shall conduct periodic meetings in Phoenix. Meetings shall be held on the call of the director or on the written request of any two members of the board.
D. Subject to the powers of the director,  the board shall administer,  operate and manage the fund pursuant to this article. The board shall advise and counsel the director on matters relating to the solvency of insurers.
E. Members of the board are not entitled to receive compensation and travel expenses as authorized by title 38,  chapter 4,  article 2,  but are entitled to be reimbursed for expenses incurred by them as members of the board from the assets of the fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-664 - Powers and duties of the board

20-664.
Powers and duties of the board
A. The board shall:
1. Investigate claims brought against the fund and adjust,  compromise,  settle and pay covered claims to the extent of the fund's obligation and deny all other claims. In regard to workers' compensation claims,  the board shall adjust,  compromise,  settle and pay compensable claims,  and deny all other claims,  subject to the regulatory and adjudicatory authority of the industrial commission over workers' compensation claims pursuant to title 23,  chapter 6.
2. Within six months after the determination of insolvency or six months after the fund discovers or should have discovered the settlement of a covered claim,  whichever is later,  deny and state the basis for the denial or pay any covered claim that was settled within four months before the determination of insolvency of the insolvent insurer. This paragraph does not apply to a settlement of a workers' compensation claim or commutation of permanent disability benefits approved by the industrial commission unless the industrial commission award approving the settlement or commutation of benefits has not become final.
3. Allocate claims paid and expenses incurred among the three accounts of the fund separately.
4. Assess member insurers separately for each account of the fund and expend amounts assessed only for the purposes of the account into which the amounts assessed were placed.
5. Notify such persons as the director directs pursuant to section 20-668,  subsection B,  paragraph 1.
6. Handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility shall be subject to the approval of the director. Designation may be declined by a member insurer.
7. Reimburse each servicing facility for obligations of the fund paid by the facility and for expenses incurred by the facility while handling the claims on behalf of the fund and pay the other expenses of the fund authorized pursuant to this article.
B. The board may:
1. Appear in,  defend and appeal any action on a claim that is brought against the fund.
2. Employ or retain such persons as are necessary to handle claims and perform other duties of the fund.
3. Borrow funds necessary to carry out the intent of this article pursuant to the plan of operation.
4. Sue and be sued.
5. Negotiate and become a party to such contracts as are necessary to carry out the intent of this article.
6. Perform such other acts as are necessary or proper to carry out the intent of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-667 - Obligations of the fund

20-667.
Obligations of the fund
A. The fund is obligated solely to the extent of the covered claims existing during any of the following periods:
1. Before the determination of insolvency and arising within thirty days after the determination of insolvency.
2. Before the policy expiration date if less than thirty days after the determination of insolvency.
3. Before the insured replaces the policy or on request effects cancellation,  if the insured does so within thirty days of the determination of insolvency.
B. Except for obligations arising out of a covered workers' compensation claim for benefits under title 23,  chapter 6,  such obligation shall include only that amount of each covered claim that is more than one hundred dollars and that is less than three hundred thousand dollars or an amount of more than twenty-five dollars but not exceeding ten thousand dollars for a covered claim for the return of unearned premiums. In no event shall the fund be obligated to a policyholder or claimant in any amount in excess of the face amount of the policy from which the claim arises.
C. The fund is deemed the insurer to the extent of its obligation on the covered claims and to such extent shall have all rights,  duties and obligations of the insolvent insurer as if the insurer had not become insolvent. Notwithstanding any other law,  the fund is not obligated to pay any amount that does not constitute a payment of a covered claim,  including taxable costs,  attorney fees or interest that could be awarded or any additional liabilities or obligations that might otherwise exist or accrue against the insolvent insurer if the insurer had not become insolvent.
D. Any settlement of a covered claim that is entered into with any insured or claimant within four months before the determination of insolvency and that has not been paid is voidable by the fund for six months after the determination of the insolvency or six months after the fund discovers or should have discovered the settlement,  whichever is later.
E. Notwithstanding subsection D of this section,  a settlement or commutation of a workers' compensation claim approved by an award of the industrial commission that has become final pursuant to section 23-942 or 23-943 is not voidable.
F. The fund is not bound by any settlement that is more than the fund's limits of liability established by this article.
G. Beginning on the effective date of this amendment to this section,  the fund shall assume all contractual rights and obligations of the industrial commission regarding the administration of workers' compensation insolvent carrier claims if the industrial commission has contracted with a third-party processor to administer claims.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-668 - Powers and duties of the director

20-668.
Powers and duties of the director
A. The director shall:
1. Report to the board when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board may be insolvent or in a financial condition hazardous to the policyholders or to the public.
2. Notify the board of the existence of an insolvent insurer not later than three working days after the director receives notice of such insolvency.
3. Upon request of the board,  provide the fund with a statement of the net direct written premiums of each member insurer.
4. Immediately make available to the fund for the purpose of making payment upon all covered claims such assets of the insolvent insurer which are not required for payment of any claim accorded a higher priority pursuant to section 20-629.
B. The director may:
1. Require that the fund notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights pursuant to this article. Such notification shall be by mail at their last known address,  where available. If sufficient information for notification by mail is not available,  notice shall be by publication in a newspaper of general circulation.
2. Suspend or revoke,  after notice and hearing,  the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative,  the director may assess a civil penalty on any member insurer which fails to pay an assessment when due. The penalty shall not exceed five per cent of the unpaid assessment per month. No penalty shall be less than one hundred dollars per month,  which amount shall be deposited,  pursuant to sections 35-146 and 35-147,  in the state general fund.
3. Revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily.
C. Any final action or order of the director pursuant to this article shall be subject to review pursuant to chapter 1,  article 2 of this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-669 - Examination of member insurer; costs; release of report

20-669.
Examination of member insurer;  costs;  release of report
A. Within thirty days of receipt by the director of a request from the board to examine any member insurer,  the director shall begin such examination. The director may conduct the examination in any manner deemed appropriate.
B. The cost of such examination shall be paid by the board and the examination report shall be treated as are other examination reports.
C. Such examination report may be released to the board prior to its release to the public. The director shall notify the board when the examination is completed. The request for an examination shall be kept on file by the director but it shall not be open to public inspection prior to the release of the examination report to the public.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-670 - Meetings; information; subpoena power; confidentiality

20-670.
Meetings;  information;  subpoena power;  confidentiality
A. Upon receipt of notification from the board that a member insurer may be unable to fulfill its contractual obligations,  the director shall meet with the board.
B. At such meeting,  the director may divulge to the board any information in his possession and any records of his office,  including examination reports or preliminary reports from examiners relating to such insurer.
C. The director may subpoena officers,  directors and employees of an insolvent or impaired insurer or of an insurer the director considers to be in danger of insolvency or impairment,  to appear before the board for a conference or for taking of testimony.
D. The board shall not reveal information received in such meetings to anyone unless authorized by the director or when required as a witness in court.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-671 - Special meetings closed

20-671.
Special meetings closed
Notwithstanding any law to the contrary,  special meetings of the board in which the financial condition of any member insurer is discussed shall not be open to the public and only members of the board,  the director of the department of insurance and financial institutions and other persons specifically authorized by the board may attend such meetings.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-672 - Effect of paid claims

20-672.
Effect of paid claims
A. Any person recovering pursuant to this article shall be deemed to have assigned his or her rights under the policy to the fund to the extent of his or her recovery from the fund. Every insured or claimant seeking the protection of this article shall cooperate with the fund to the same extent as such person would have been required to cooperate with the insolvent insurer. The fund shall have no cause of action against the insured of the insolvent insurer for any sums it has paid.
B. The receiver,  conservator,  liquidator or statutory successor of an insolvent insurer shall be bound by settlement of covered claims by the fund or similar organization in another state.
C. The board shall periodically file with the receiver,  conservator,  liquidator or statutory successor of the insolvent insurer statements of the covered claims paid by the fund and estimates of anticipated claims on the fund which shall preserve the rights of the fund against the assets of the insolvent insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-674 - Premium tax offset

20-674.
Premium tax offset
A. The fund shall issue to each insurer paying an assessment pursuant to this article a certificate of contribution,  in a form prescribed by the director for the amount paid. All outstanding certificates shall be of equal priority without reference to amounts or dates of issue.
B. Except for premium taxes and assessments collected pursuant to title 23,  chapter 6,  a certificate of contribution issued to a member insurer may be offset against the insurer's premium tax liability to this state in the amount of twenty per cent of the assessment for the year of assessment and twenty per cent of the assessment per year for each of the succeeding four years. A member shall at its option have the right to show a certificate of contribution as an asset in the form approved by the director at percentages of the original face amount approved by the director,  for calendar years as follows:
1. One hundred per cent for the calendar year of issuance.
2. Eighty per cent for the first calendar year after the year of issuance.
3. Sixty per cent for the second calendar year after the year of issuance.
4. Forty per cent for the third calendar year after the year of issuance.
5. Twenty per cent for the fourth calendar year after the year of issuance.
C. Any sums available for refund,  pursuant to section 20-666,  from the fund that have been written off by contributing insurers and offset against premium taxes shall be paid to the director and shall be deposited,  pursuant to sections 35-146 and 35-147,  in the state general fund.
D. Notwithstanding subsection B of this section,  the total amount a member insurer,  as defined in section 20-661,  may offset against its premium tax liability pursuant to a certificate of contribution that is issued from 1987 through 1994 shall not exceed the following percentage amounts for each certificate of contribution,  except that in no event may the total amount of the offset exceed one hundred per cent of each assessment:
1. For 1992,  thirteen per cent.
2. For 1993,  eleven per cent.
3. For 1994,  thirteen per cent.
E. No insurer may offset its premium tax liability by any amount unless the assessment for which the first year credit is claimed was collected by the guaranty fund in the calendar year for which the insurer seeks to offset its taxes.
F. Beginning in 1995,  the total amount that a member insurer may offset against its premium tax liability pursuant to a certificate of contribution shall be as provided in subsection B of this section,  except that in no event may the total amount of the offset exceed one hundred per cent of the assessment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-675 - Immunity and indemnification

20-675.
Immunity and indemnification
A. There shall be no liability on the part of,  and no cause of action shall rise against,  the fund,  any member insurer,  the board or its agents or employees,  the director or representatives of the director for any action taken in the performance of their powers and duties pursuant to this article.
B. The board and its agents or employees shall be indemnified by the fund against all expenses incurred in the defense of any action,  suit or proceeding brought against such person on account of any action taken in the performance of the powers and duties of such person pursuant to this article,  unless such person is finally adjudged to have committed a breach of duty involving gross negligence,  bad faith,  dishonesty,  wilful malfeasance or reckless disregard of the responsibilities of his or her office. In the event of settlement before the final adjudication,  such indemnity shall be provided only if the board is advised by independent counsel selected by the board that such person did not,  in the counsel's opinion,  commit such a breach of duty.
C. The fund's reimbursement of such expenses of indemnification shall be prorated and paid for by the member insurers in the proportion that the net direct written premiums of each member insurer for the calendar year preceding the commencement of such action,  suit or proceeding bears to the net direct written premiums of all member insurers for the preceding calendar year.