reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1742 - Insurers to report malpractice claims and actions; definition

20-1742.
Insurers to report malpractice claims and actions;  definition
A. Each health care insurer providing professional liability insurance to a health professional as defined in section 32-3201 shall report to the appropriate health profession regulatory board,  except the Arizona medical board,  within thirty days of its receipt,  any written or oral claim or action for damages for personal injury claimed to have been caused by:
1. An error,  omission or negligence in the performance of an insured's professional services.
2. The performance of professional services without adequate informed consent.
3. An alleged breach of contract for professional services.
B. The reports required by subsection A of this section shall be confidential,  nondiscoverable and nonadmissible as evidence,  shall be filed on such forms as the health profession regulatory board,  except the Arizona medical board,  may require and shall contain:
1. The name and address of the health professional involved in the claim.
2. The name and address of the person on whose behalf the claim is being filed.
3. The date of the occurrence that created the claim.
4. The date of the claim if a complaint is not simultaneously filed.
5. The date the complaint is filed,  if applicable.
6. A summary of the occurrence on which the claim is based as stated by the claimant.
7. Such other reasonable information related to the claim as the director may require.
C. Every health care insurer required to report to the health profession regulatory board pursuant to this section is required to advise the health profession regulatory board of any settlements or judgments entered against a health professional as defined in section 32-3201 within thirty days after the settlement was agreed to or the judgment was entered in superior court.
D. There shall be no liability on the part of and no cause of action shall arise against any health care insurer or its agents or employees reporting as required by this section.
E. The health profession regulatory board shall notify each health care insurer that is required to report pursuant to subsection A of this section of its duty to report.
F. This section does not limit the director of the department of insurance and financial institutions from obtaining any of the information required to be reported under this section.
G. For the purposes of this section,  " health profession regulatory board"  means an agency,  board or commission that licenses,  certifies or registers a health professional as defined by section 32-3201.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1801 - Definitions

20-1801.
Definitions
In this chapter,  unless the context otherwise requires:
1. " Assets of a life care facility"  means those assets held in the name of the life care facility only.
2. " Contract holder"  means a person who enters into a life care contract with a provider or who is designated,  in a life care contract,  to be a person provided with services in the person's private residence with the right to future access to services,  board and lodging in a facility.
3. " Entrance fee"  means an initial or deferred transfer to a provider of a sum of money or property,  made or promised to be made by a person entering into a life care contract,  which assures a resident or contract holder of services pursuant to a life care contract.
4. " Facility" :
(a) Means a place or places in which a provider undertakes to provide a resident with nursing services,  medical services or health-related services,  in addition to board and lodging,  for a term in excess of one year or for life pursuant to a life care contract.
(b) Does not include a contract holder's private residence.
5. " Life care contract"  means a contract to provide to a person for the duration of the person's life or for a term in excess of one year nursing services,  medical services or health-related services,  as defined in section 36-401,  in addition to board and lodging for the person in a facility or services in the person's private residence with the right to future access to services,  board and lodging in a facility,  conditioned on the transfer of an entrance fee to the provider of such services in addition to or in lieu of the payment of regular periodic charges for the care and services involved.
6. " Living unit"  means an apartment,  room or other area within a facility set aside for the exclusive use of one or more identified residents.
7. " Manager"  means a corporation,  partnership,  association,  joint stock company,  trust,  or any other unincorporated organization that is contracted with to manage the residential section or health-related section,  or both,  of a life care facility.
8. " Permit"  means a permit to enter into life care contracts issued by the department.
9. " Promoter"  means the primary person who is employed to consult or to promote the establishment of a life care facility.
10. " Provider"  means a person who provides services pursuant to a life care contract.
11. " Resident"  means a person who enters into a life care contract with a provider or who is designated,  in a life care contract,  to be a person provided with services,  board and lodging in a living unit or at a facility.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1803 - Issuance of permit

20-1803.
Issuance of permit
A. The director shall review applications for completeness and issue a report of deficiencies to the applicant within sixty days of receipt of the application. The director shall issue a permit to the provider within thirty days of the receipt of a completed application and exhibits and payment of the fee by the applicant,  and proof of compliance by the applicant with the provisions of sections 20-1804 and 20-1806. If the applicant has already paid the fee as a part of the process to receive a provisional permit under subsection E of this section,  this subsection does not establish an additional fee. The director shall issue an order refusing the permit if the applicant does not meet the requirements therefor. The permit shall be subject to the conditions imposed pursuant to sections 20-1804 through 20-1806 allowing the provider to enter into life care contracts with respect to the number of living units and facility and the number of contract holders to be provided services in their private residences described in the application.
B. A permit issued under this section shall remain in full force,  subject to the provisions of this chapter.
C. A permit issued pursuant to this section shall contain,  in a prominent location,  a statement that the issuance of a permit pursuant to section 20-1803 does not constitute approval,  recommendation or endorsement by the department or director,  nor does such a permit evidence the accuracy or completeness of the information set out in the application or the annual report of the provider.
D. All permits shall be nontransferable.
E. The director shall review an application for a provisional permit for completeness and issue a report of deficiencies to the applicant within sixty days of receipt of the application. The director may grant an applicant a provisional permit within thirty days of the receipt of a completed application and exhibits and payment of the fee by the applicant if the applicant has submitted an application containing the information required in section 20-1802,  subsection B,  paragraphs 1 through 15. Under the provisional permit,  the applicant may solicit reservations for residences in the facility and reservations for the provision of services in private residences and collect deposits therefor. The applicant shall establish a trust account in which all reservation deposits shall be placed. The person entering into the contract for a reservation may rescind the agreement at any time prior to entering into the life care contract. In the event the reservation agreement is rescinded,  all money or property,  including accrued interest thereon,  shall be returned to the person.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1806 - Reserve fund escrow

20-1806.
Reserve fund escrow
The director shall,  as a condition of the issuance of a permit pursuant to section 20-1803,  require that the provider maintain on a current basis,  in escrow with a bank,  trust company or other escrow agent approved by the director,  an amount which equals the aggregate principal and interest payments due during the next twelve months on account of any first mortgage or other long-term financing of the facility. The principal of the escrow account may be invested with the earnings thereon payable to the provider,  and up to one-sixth of the total principal shall be released to the provider upon notice to the director. The escrow agreement shall provide that upon withdrawal of any such amount by the provider,  the escrow agent shall provide immediate written notice of such withdrawal to the director and that any amount released to the provider shall be repaid to the escrow account within two years of the release of such amount. In the event that the provider does not repay the escrow account within such two year period,  the escrow agent shall provide immediate written notice to the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1811 - Violation; classification

20-1811.
Violation;  classification
After January 1,  1978,  any person acting in the capacity of a provider who enters into a life care contract,  or extends the term of an existing life care contract,  without first having been issued a permit by the department or without otherwise acting in compliance with the provisions of this chapter,  shall be guilty of a class 2 misdemeanor.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1812 - Disclosure statement; contents

20-1812.
Disclosure statement;  contents
At the time of or before the execution of a life care contract and the transfer of any money or other property to a provider pursuant thereto,  the provider shall deliver to the person with whom the life care contract is entered into a disclosure statement that contains a copy of the provider's certified financial statements and feasibility study prepared according to section 20-1802 and any other information required by the director. The cover of the disclosure statement shall contain the following statement in bold-faced print: " A permit for this life care facility has been issued by the Arizona department of insurance and financial institutions. This permit does not constitute approval,  recommendation or endorsement of the life care facility by the department,  nor does it evidence the accuracy or completeness of the information in this statement."
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1901 - Definitions

20-1901.
Definitions
In this chapter,  unless the context otherwise requires:
1. " Authorized agency"  means:
(a) The office of the state fire marshal when authorized or charged with the investigation of a fire.
(b) The director of the department of public safety.
(c) A county attorney.
(d) A county sheriff.
(e) The attorney general.
(f) The fire department of any city,  town or county of this state.
(g) A police agency of any city,  town or county of this state.
(h) Solely for the purposes of section 20-1902,  subsection A,  the federal bureau of investigation,  any other federal agency or the United States attorney general's office when authorized or charged with investigation or prosecution of a crime in this state.
(i) The automobile theft authority.
2. " Insurer"  means every person or entity engaged in the business of making contracts of insurance in this state.
3. " Relevant"  means having any tendency to make the existence of any fact that is of consequence to the investigation or determination of the issue more probable or less probable than it would be without the evidence.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1902 - Disclosure of information

20-1902.
Disclosure of information
A. An authorized agency may,  in writing,  require an insurer to release to such other authorized agency any relevant information which the insurer has in its possession relating to a loss which such authorized agency is investigating including:
1. Application for an insurance policy.
2. Policy premium payment records.
3. History of previous claims made by the insured.
4. Material relating to the investigation of the loss,  including statements of any person,  proof of loss and any other evidence relevant to the investigation.
B. If an insurer has reason to believe that a loss in which it has an interest may be based on a false or fraudulent claim such insurer shall,  in writing,  notify an authorized agency and provide it with all material developed from the insurer's inquiry into the loss. Notice to any one of the authorized agencies listed in section 20-1901,  paragraph 1,  subdivisions (a) through (g) shall be sufficient notice for the purpose of this subsection.
C. Nothing in subsection B of this section shall abrogate or impair the rights or powers created under subsection A of this section.
D. The authorized agency provided with information pursuant to subsection A or B of this section shall upon request release or provide such information to any other authorized agency.
E. An insurer providing information to an authorized agency shall have the right to request in writing from such agency relevant information and receive,  within a reasonable time,  not to exceed thirty days,  the information requested. The relevant information shall not include non-conviction criminal history record information nor any other information detrimental to another ongoing criminal investigation or that would reveal the identity of a confidential source of information.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1906 - Violation; classification

20-1906.
Violation;  classification
A person,  insurer or authorized agency that knowingly fails to provide information pursuant to section 20-1902,  subsection A or who knowingly fails to hold information in confidence pursuant to section 20-1904 is guilty of a class 2 misdemeanor.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2101 - Scope

20-2101.
Scope
A. This chapter applies to insurance institutions,  insurance producers or insurance support organizations that:
1. In the case of life,  health or disability insurance either:
(a) Collect,  receive or maintain information in connection with insurance transactions that pertain to natural persons who are residents of this state.
(b) Engage in insurance transactions with applicants,  individuals or policyholders who are residents of this state.
2. In the case of property or casualty insurance:
(a) Collect,  receive or maintain information in connection with insurance transactions involving policies,  contracts or certificates of insurance delivered,  issued for delivery or renewed in this state.
(b) Engage in insurance transactions involving policies,  contracts or certificates of insurance delivered,  issued for delivery or renewed in this state.
B. The rights granted by this chapter extend to:
1. In the case of life,  health or disability insurance,  the persons who are residents of this state,  including natural persons who are the subject of information collected,  received or maintained in connection with insurance transactions,  and applicants,  individuals or policyholders who engage in or seek to engage in insurance transactions.
2. In the case of property or casualty insurance,  the persons,  including natural persons who are the subject of information collected,  received or maintained in connection with insurance transactions involving policies,  contracts or certificates of insurance delivered,  issued for delivery or renewed in this state,  and applicants,  individuals or policyholders who engage in or seek to engage in insurance transactions involving policies,  contracts or certificates of insurance delivered,  issued for delivery or renewed in this state.
C. For purposes of this section,  a person is considered a resident of this state if the person's last known mailing address,  as shown in the records of the insurance institution,  insurance producer or insurance support organization,  is located in this state.
D. Notwithstanding subsections A and B,  this chapter does not apply to information collected from the public records of a governmental authority and maintained by an insurance institution or its representatives for the purpose of insuring the title to real property located in this state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2103 - Pretext interviews; exception

20-2103.
Pretext interviews;  exception
An insurance institution,  insurance producer or insurance support organization shall not use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction,  except that a pretext interview may be undertaken to obtain information from a person or institution that does not have a generally or statutorily recognized privileged relationship with the person about whom the information relates for the purpose of investigating a claim where,  based upon specific information available for review by the director,  there is a reasonable basis for suspecting criminal activity,  fraud,  material misrepresentation or material nondisclosure in connection with the claim.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2106 - Content of disclosure authorization forms

20-2106.
Content of disclosure authorization forms
Notwithstanding any other statute no insurance institution,  insurance producer or insurance support organization may utilize as its disclosure authorization form in connection with insurance transactions a form or statement which authorizes the disclosure of personal or privileged information about an individual to the insurance institution,  insurance producer or insurance support organization unless the form or statement:
1. Is written in plain language.
2. Is dated.
3. Specifies the types of persons authorized to disclose information about the individual.
4. Specifies the nature of the information authorized to be disclosed.
5. Names the insurance institution or insurance producer and identifies by generic reference representatives of the insurance institution to whom the individual is authorizing information to be disclosed.
6. Specifies the purposes for which the information is collected.
7. In the case of authorizations signed for the purpose of collecting information in connection with an application for an insurance policy,  a policy reinstatement or a request for change in policy benefits,  specifies the length of time the authorization remains valid. The length of time shall be no longer than:
(a) Thirty months from the date the authorization is signed if the application or request involves life,  health or disability insurance.
(b) One year from the date the authorization is signed if the application or request involves property or casualty insurance.
8. In the case of authorizations signed for the purpose of collecting information in connection with a claim for benefits under an insurance policy,  specifies the length of time the authorization remains valid. The length of time shall be no longer than:
(a) The term of coverage of the policy if the claim is for a health insurance benefit.
(b) The duration of the claim if the claim is not for a health insurance benefit.
9. Advises the individual or a person authorized to act on behalf of the individual that the individual or the individual's authorized representative is entitled to receive a copy of the authorization form.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2107 - Investigative consumer reports

20-2107.
Investigative consumer reports
A. No insurance institution,  insurance producer or insurance support organization may prepare or request an investigative consumer report about an individual in connection with an insurance transaction involving an application for insurance,  a policy renewal,  a policy reinstatement or a change in insurance benefits unless the insurance institution or insurance producer informs the individual that the individual may request to be interviewed in connection with the preparation of the investigative consumer report and that upon a request pursuant to section 20-2108 the individual is entitled to receive a copy of the investigative consumer report.
B. If an investigative consumer report is to be prepared by an insurance institution or insurance producer,  the insurance institution or insurance producer shall institute reasonable procedures to conduct a personal interview requested by an individual.
C. If an investigative consumer report is to be prepared by an insurance support organization,  the insurance institution or insurance producer desiring the report shall inform the insurance support organization whether a personal interview has been requested by the individual. The insurance support organization shall institute reasonable procedures to conduct the interview,  if requested.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2111 - Information concerning previous adverse underwriting decisions

20-2111.
Information concerning previous adverse underwriting decisions
An insurance institution,  insurance producer or insurance support organization shall not seek information in connection with an insurance transaction concerning any previous adverse underwriting decision experienced by an individual or any previous insurance coverage obtained by an individual through a residual market mechanism,  unless the inquiry also requests the reasons for any previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2112 - Previous adverse underwriting decisions

20-2112.
Previous adverse underwriting decisions
An insurance institution or insurance producer shall not base an adverse underwriting decision in whole or in part:
1. On the fact of a previous adverse underwriting decision or the fact that an individual previously obtained insurance coverage through a residual market mechanism,  except that an insurance institution or insurance producer may base an adverse underwriting decision on further information obtained from an insurance institution or insurance producer responsible for a previous adverse underwriting decision.
2. On personal information received from an insurance support organization whose primary source of information is insurance institutions,  except that an insurance institution or insurance producer may base an adverse underwriting decision on further personal information obtained as the result of information received from the insurance support organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2113.01 - Consumer reporting agency; sale of  information obtained by insurance inquiry prohibited; exceptions

20-2113.01.
Consumer reporting agency;  sale of information obtained by insurance inquiry prohibited;  exceptions
A. A consumer reporting agency shall not provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with an insurance inquiry about a consumer's credit information or a request for a credit report or insurance score. Such information includes the expiration dates of an insurance policy or any other information that may identify time periods during which a consumer's insurance may expire and the terms and conditions of the consumer's insurance coverage.
B. Subsection A does not apply to data or lists that the consumer reporting agency supplies to the insurance producer from whom the information was received,  the insurer on whose behalf the producer acted or the insurer's affiliates or holding companies.
C. This section shall not restrict an insurer from being able to obtain a claims history report or a motor vehicle report.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2114 - Director; powers

20-2114.
Director;  powers
A. The director may examine and investigate the affairs of every insurance institution or insurance producer doing business in this state to determine whether the insurance institution or insurance producer has been or is engaged in any conduct in violation of this chapter.
B. The director may examine and investigate the affairs of every insurance support organization acting on behalf of an insurance institution or insurance producer which either transacts business in this state or transacts business outside this state that has an effect on a person residing in this state in order to determine whether the insurance support organization has been or is engaged in any conduct in violation of this chapter.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2115 - Service of process; insurance support organizations

20-2115.
Service of process;  insurance support organizations
For the purpose of this chapter,  an insurance support organization transacting business outside this state which has an effect on a person residing in this state is deemed to have appointed the director to accept service of process on its behalf,  if the director causes a copy of the service to be mailed immediately by registered mail to the insurance support organization at its last known principal place of business. The return postcard receipt for the mailing is sufficient proof that the copy of the service was properly mailed by the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2116 - Cease and desist order and reports

20-2116.
Cease and desist order and reports
If,  after a hearing,  the director determines that the insurance institution,  insurance producer or insurance support organization charged has engaged in conduct or practices in violation of this chapter,  the director shall put the director's findings in writing and shall issue and cause to be served upon the insurance institution,  insurance producer or insurance support organization a copy of the findings and an order requiring the insurance institution,  insurance producer or insurance support organization to cease and desist from the conduct or practices constituting a violation of this chapter.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2117 - Civil penalty

20-2117.
Civil penalty
A. In any case in which a hearing results in the finding of a knowing violation of this chapter,  the director may,  in addition to the issuance of a cease and desist order as prescribed in section 20-2116,  order payment of a civil penalty of not more than five hundred dollars for each violation but not to exceed ten thousand dollars in the aggregate for multiple violations.
B. After notice and a hearing,  the director may subject any person who violates a cease and desist order of the director under section 20-2116 to one or more of the following penalties:
1. A civil penalty of not more than ten thousand dollars for each violation.
2. A civil penalty of not more than fifty thousand dollars if the director finds that violations have occurred with such frequency as to constitute a general business practice.
3. Suspension or revocation of an insurance institution's or agent's license.
C. The director shall deposit all civil penalties pursuant to this section for deposit in the state general fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2118 - Individual remedies

20-2118.
Individual remedies
A. If any insurance institution,  insurance producer or insurance support organization fails to comply with the rights granted under sections 20-2108 through 20-2110,  any person whose rights are violated may apply to the superior court of this state,  or any other court of competent jurisdiction,  for appropriate equitable relief.
B. An insurance institution,  insurance producer or insurance support organization which discloses information in violation of section 20-2113 is liable for damages sustained by the individual about whom the information relates,  except that no individual is entitled to a monetary award which exceeds the actual damages sustained by the individual as a result of a violation of section 20-2113.
C. In any action brought pursuant to this section,  the court may award the cost of the action and reasonable attorney fees to the prevailing party.
D. An action under this section must be brought within two years from the date the alleged violation is or should have been discovered.
E. Except as specifically provided in this section,  there is no remedy or recovery available to individuals,  in law or in equity,  for a violation of this chapter.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2119 - Immunity

20-2119.
Immunity
No claim for relief in the nature of defamation,  invasion of privacy or negligency may arise against any person for disclosing personal or privileged information according to this chapter nor may such a claim for relief arise against any person for furnishing personal or privileged information according to this chapter to an insurance institution,  insurance producer or insurance support organization,  except that this section provides no immunity for disclosing or furnishing false information with malice or wilful intent to injure any person.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2121 - Enforcement of privacy provisions of Gramm Leach Bliley act

20-2121.
Enforcement of privacy provisions of Gramm Leach Bliley act
A. The department may enforce title V,  subtitle A of the Gramm Leach Bliley act (15 United States Code sections 6801 through 6809) related to privacy and protection of nonpublic personal information.
B. The director may adopt rules pursuant to title 41,  chapter 6 to carry out this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2122 - Partial exemption for health insurers subject to HIPAA

20-2122.
Partial exemption for health insurers subject to HIPAA
A. Except as provided in subsection B of this section,  if an insurance institution is subject to and in compliance with 45 Code of Federal Regulations part 164,  subparts A and E,  the insurance institution is deemed to comply with this article.
B. An insurance institution is subject to sections 20-2103,  20-2107,  20-2110,  20-2111,  20-2112,  20-2114,  20-2115,  20-2116,  20-2117,  20-2118,  20-2119,  20-2120 and 20-2121.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2201 - Voluntary plans; assessments; fund

20-2201.
Voluntary plans;  assessments;  fund
A. If the director finds after a hearing that in any part of this state any liability insurance coverage is not readily available in the voluntary insurance market and that the public interest requires such availability,  the director may authorize the formation of voluntary plans to provide the coverage for any class or classes of risk in this state which are entitled to but otherwise unable to obtain the coverage. The director may request insurers,  agents and brokers to prepare the plans or assist as needed in the preparation and administration of the plans.
B. A plan formulated pursuant to this section shall give consideration to all of the following:
1. The need for adequate and readily accessible coverage.
2. Alternative methods of improving the market affected.
3. Inherent limitations of providing coverage.
4. The need for reasonable underwriting standards.
5. The requirement of reasonable loss prevention measures.
C. The plans shall establish procedures that will encourage use of the voluntary insurance market as a condition of placement of coverage through the plan.
D. The director may annually assess each insurer authorized to transact liability insurance in this state up to two hundred dollars for the costs of administering the plan. Monies collected from assessments shall be deposited in the assessment fund for voluntary plans established by subsection E of this section.
E. An assessment fund for voluntary plans is established consisting of the monies that are deposited pursuant to subsection D of this section. The director shall administer the fund monies as a continuing appropriation for the purposes provided for in this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2202 - Joint underwriting association; establishment

20-2202.
Joint underwriting association;  establishment
A. A joint underwriting association is established in the department of insurance and financial institutions consisting of insurers authorized to write and engaged in writing in this state on a direct basis liability insurance,  including the liability portion of multiperil policies,  but not including ocean marine insurance. Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact insurance in this state.
B. If after a hearing conducted pursuant to section 20-2201,  the director determines that a voluntary plan would fail to provide coverage,  the association shall provide liability insurance coverages for a designated class or classes of risks on a primary basis in this state. The association shall not be required to provide coverage available through an assigned risk plan or coverages for pollution liability,  hazardous waste liability or workers' compensation. The association may operate only on a finding by the director after a public hearing pursuant to section 20-161 that liability insurance is substantially unavailable through private insurers for a particular line.
C. If the director determines,  on application of any interested party and after a public hearing,  that liability insurance for a particular line is no longer substantially unavailable through private insurers,  the association shall cease its underwriting operations.
D. This chapter does not prohibit an insurer from issuing or renewing a policy of liability insurance in this state. However,  on a determination by the director,  after a public hearing pursuant to section 20-161,  that substantial adverse selection has,  or will likely,  result,  the director may issue an order to insurers that no original policies shall thereafter be issued or that renewal policies shall be issued only if the insurer will offer the insurance to a representative sample of rating classifications,  or both.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2203 - Powers of the joint underwriting association

20-2203.
Powers of the joint underwriting association
The association may,  on behalf of its members and with the approval of the director,  do all of the following,  which may be exercised directly or by contractual delegation:
1. Issue or cause to be issued policies of liability insurance on a claims-made basis to applicants,  including incidental coverages,  subject to limits as specified in the plan of operation. The policies shall be offered on one of the following bases:
(a) One hundred thousand dollars for each claimant under one policy and three hundred thousand dollars for all claimants under one policy in any one year.
(b) Two hundred fifty thousand dollars for each claimant under one policy and seven hundred fifty thousand dollars for all claimants under one policy in any one year.
(c) Five hundred thousand dollars for each claimant under one policy and one million five hundred thousand dollars for all claimants under one policy in any one year.
(d) One million dollars for each claimant under one policy and three million dollars for all claimants under one policy in any one year.
2. Underwrite the insurance and adjust and pay losses with respect to the insurance or retain service companies to perform those functions.
3. Assume reinsurance from its members.
4. Cede reinsurance.
5. Receive,  invest and disburse monies.
6. Open bank accounts and delegate authority for deposit,  withdrawal and disbursement of monies.
7. Borrow monies for the association's necessary administrative expenses.
8. Provide for such fidelity and surety bonds as are deemed necessary to transact the business of the association.
9. Review,  consider and act on any matters deemed by it to be necessary and proper for the administration of the association.
10. Develop,  promulgate and effectuate loss prevention programs.
11. Sue and be sued,  except that no judgment against the association shall create any liability in the individual member companies,  and the association may provide for the indemnification of its member companies,  members of the board of directors and officers and employees and other persons acting on behalf of the association.
12. Employ attorneys and other persons necessary to perform the functions of the association.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2204 - Directors; election; appointment

20-2204.
Directors;  election;  appointment
A. The association shall be governed by a board of eleven directors annually appointed by the director. Six of the directors shall be selected from the members of the association. Three of the directors shall be domestic insurers and three shall be foreign insurers. Five of the directors shall be representatives of commercial insureds.
B. Directors of the association shall receive no compensation and shall not be entitled to travel expenses as authorized by title 38,  chapter 4,  article 2,  but shall be entitled to be reimbursed for expenses incurred by them as members of the board from the assets of the association.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2205 - Plan of operation; contents

20-2205.
Plan of operation;  contents
Within forty-five days after the effective date of the initial order of the director issued pursuant to section 20-2202,  the directors of the association shall submit to the director for his review a proposed plan of operation consistent with the provisions of this chapter. The plan of operation shall provide for economic,  fair and nondiscriminatory administration and for the prompt and efficient provision of liability insurance coverage in designated lines. The plan shall contain provisions pertaining to preliminary assessment of all members for initial expenses necessary to commence operations,  establishment of necessary facilities,  management of the association,  assessment of members or surcharging of insureds to defray losses and expenses,  commission arrangements,  reasonable and objective underwriting standards,  acceptance and cession of reinsurance,  retention of servicing carriers or other servicing arrangements,  procedures for determining amounts of insurance to be provided by the association and retention of persons necessary to effectuate the purposes of this chapter. The plan shall contain a provision for a system or program of reasonable loss control efforts.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2206 - Approval of plan of operation

20-2206.
Approval of plan of operation
A. The plan of operation prepared pursuant to section 20-2205 is subject to approval by the director after consultation with the members of the association and other affected individuals and organizations. If the director disapproves all or any part of the proposed plan of operation,  the directors of the association,  within fifteen days,  shall submit for review an appropriate revised plan of operation or a part of a revised plan. If the directors of the association fail to act,  the director shall promulgate a plan of operation or a part of a plan,  whichever is appropriate. The plan of operation approved or promulgated by the director becomes effective and operational on order of the director.
B. A plan of operation shall require the association to issue a claims-made policy. Pending the approval of the plan of operation,  the association shall designate a service company or service companies to bind the association for the coverage. The policies shall make provision for payment of dividends.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2209 - Claims-made policy; cancellation

20-2209.
Claims-made policy;  cancellation
A policy issued pursuant to this chapter may provide that the association may cancel any of its policies for the reasons specified in section 20-1673 or in the event of nonpayment of any premium assessment or other charge by sending to the insured written notice at least ten days before the effective date of the cancellation.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2210 - Occurrence riders; premiums; assessments

20-2210.
Occurrence riders;  premiums;  assessments
A. All policies written by the association shall contain a provision that guarantees the insured that the association shall issue,  on the written demand of any insured to whom it has issued a claims-made policy,  an occurrence rider comparable to that provided in the voluntary market.
B. The premium for the occurrence rider shall not exceed the total amount that the insured would have paid for occurrence policies,  if the occurrence policies had been issued to the insured by the association,  less the total amount that the insured paid for claims-made policies issued to him by the association. However,  if a majority of the directors of the association concludes that the occurrence rider premium would be inadequate,  the directors may request the actuary provided for in section 20-2211 to determine whether a premium surcharge based on the experience of the policyholder should be required. Based on his actuarial opinion,  the actuary may recommend to the director a premium surcharge of no more than ten per cent of the initial net occurrence rider premium. If the director approves a recommended surcharge,  the surcharge shall be imposed no earlier than the end of the policy term. Individual policyholders may pay for an occurrence rider on a quarterly basis for a period of not to exceed two years. If the policyholder fails to make payment,  the occurrence rider is void. A policyholder electing to pay for the occurrence rider on a deferred payment basis may be assessed a finance charge of not to exceed six per cent per year on the unpaid balance. A private insurer issuing a liability insurance policy on an occurrence or claims-made basis which replaces or begins coverage on the expiration of a policy issued by the association may provide liability coverage for acts or omissions by the insured which occurred during the period the association's policy was in effect,  excluding liability for any claim of injury or loss made to the association during the period.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2211 - Rates; actuary

20-2211.
Rates;  actuary
A. The rates,  rating plans,  rating rules,  rating classifications and territories applicable to insurance written by the association,  and the statistics relating thereto,  are subject to the provisions of chapter 2,  article 4.1 of this title,  giving consideration to the past and prospective loss and expense experience for the designated class or classes of liability insurance,  trends in the frequency and severity of losses,  the investment income of the association and other relevant information. The premium rates for an occurrence policy and a claims-made policy for each year the association issues policies shall be established by the association. In determining whether the association's rates are not inadequate,  excessive or unfairly discriminatory,  the director shall consider recommendations made by the actuary. All rates shall be on an actuarially sound basis,  giving consideration to the group retrospective rating plan,  and shall be calculated to be self-supporting,  except that the total initial expenses necessary to establish,  commence and manage operations may be amortized over a period of at least five years. Such rates shall be deemed not inadequate if they are so constituted that the expenses and loss costs of the plan of operation are equal to or exceeded by the premium. Competition or lack of competition shall not be considered as a rating standard under this section.
B. All policies issued by the association are subject to a group retrospective rating plan under which the final premium for all policyholders of the association,  as a group,  shall be equal to administrative,  servicing and contingency expenses,  modified as applicable in accordance with subsection A,  loss and loss adjustment expenses,  and taxes. Policyholders shall be given full credit for all investment income,  net of expenses and a reasonable management fee on policyholder supplied monies. The maximum final premium for all policyholders of the association,  as a group,  is limited as provided in this chapter.
C. The director shall examine the association as often as he deems appropriate to ensure that the group retrospective rating plan is being operated in a manner consistent with this section. If he finds that it is not being so operated,  he shall issue an order to the association,  specifying in what respect its operation is deficient and stating what corrective action shall be taken.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2212 - Deficits; equitable assessments; premium tax credits

20-2212.
Deficits;  equitable assessments;  premium tax credits
A. On a determination that within the next one hundred eighty days thereafter the association will be unable to pay its outstanding lawful obligations as they mature in the regular course of business as shown by an excess of such lawful obligations over admitted assets,  the association shall certify to the director the existence of this condition.
B. At the time of certification,  the association shall submit a schedule of policyholder surcharges and a plan of member assessments which,  in combination,  are sufficient to assure the continued sound financial operation of the association. The surcharge may not exceed ten per cent of the total premium paid for a policy or policies obtained through the association. Member assessments shall not exceed one per cent of each member's net direct premium in this state attributable to the line of insurance,  the writing of which requires it to be a member of the association.
C. Any member of the association subject to an assessment in any one calendar year shall be allowed a premium tax credit beginning in the following calendar year,  at the rate of twenty per cent per year for five years.
D. The association shall certify to the director the estimated amount of any deficit remaining after the termination of all underwriting activities of the association. Policyholder surcharges are limited to ten per cent of the annual premium.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-2213 - Initial assessment; temporary contribution by members

20-2213.
Initial assessment;  temporary contribution by members
A. An initial assessment of up to five hundred dollars may be imposed by the director on every participating insurer of the association to defray the initial operating expenses of the plan. The initial assessment may be refunded by the association.
B. If sufficient monies are not available for the sound financial operation of the association as provided for in this chapter,  all members shall contribute to the financial requirements of the association in the manner provided for in this chapter. Any such contributions shall not exceed one per cent annually of each member's net direct premium attributable to the liability insurance the member writes as a requirement for membership in the association pursuant to section 20-2202,  subsection A.
C. If the association determines that the applicant meets the underwriting standards of the association,  as prescribed in the plan of operation,  the association,  on receipt of the premium or the portion of the premium as is prescribed in the plan of operation,  shall cause a policy of liability insurance to be issued.