reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1068 - Statutory construction and relationship to other laws

20-1068.
Statutory construction and relationship to other laws
A. Except as they relate to an insurer or a hospital or medical service corporation,  the provisions of this title are applicable to health care services organizations only as provided in this article,  chapter 1 of this title,  chapter 2,  article 12 of this title,  chapter 3,  articles 1,  2 and 7 of this title,  sections 20-223,  20-233,  20-234,  20-261,  20-1133,  20-1135,  20-1379 and 20-1380,  section 20-1408,  subsections C through K,  chapter 6,  article 16 of this title and chapters 11,  15,  17,  20,  21 and 30 of this title.
B. Unless preempted under federal law or unless federal law imposes greater requirements than this section,  this section applies to a provider sponsored health care services organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1070 - Acquisitions and mergers

20-1070.
Acquisitions and mergers
A. No health care services organization may merge with another foreign or domestic health care services organization or may be acquired by a person except on approval by the director and by complying with the provisions of general law governing the merger or consolidation of stock corporations and the other provisions of this section.
B. If the health care services organization is being acquired and if more than twenty-five per cent of the stock or ownership or control is being acquired,  the acquiring person shall file the statement described by section 20-481.03 with the director at least thirty days before the effective date of the acquisition.
C. In the case of a merger the plan of merger shall be filed with the director at least sixty days before the effective date of the merger.
D. The director shall approve the acquisition or merger if the acquiring or merging persons have met the requirements for a certificate of authority. The director shall make the decision either to approve or disapprove the acquisition or merger within thirty days of the filing of the acquisition statement pursuant to subsection B of this section or the plan of merger pursuant to subsection C of this section.
E. Unless preempted under federal law or unless federal law imposes greater requirements than this section,  this section applies to a provider sponsored health care services organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1071 - Prohibition against excluding coverage because of previous tests for a condition

20-1071.
Prohibition against excluding coverage because of previous tests for a condition
A. An insurance contract offered by a health care services organization shall not exclude coverage of a condition if the insured person has previously had tests for the condition and the condition was not found to exist. There must be evidence that a condition actually existed before the insurance contract was entered into in order to exclude coverage of the condition.
B. Unless preempted under federal law or unless federal law imposes greater requirements than this section,  this section applies to a provider sponsored health care services organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1073 - Eligibility; prohibiting cancellation because of eligibility for certain benefits

20-1073.
Eligibility;  prohibiting cancellation because of eligibility for certain benefits
A. Except as specifically provided in sections 20-1379 and 20-1380,  with respect to the determination of whether a person is an eligible individual,  a health care services organization shall not consider the availability of or a person's eligibility for medical assistance under a program pursuant to title XIX of the social security act (P.L. 89-97;  79 Stat. 344;  42 United States Code section 1396a (1980)) when considering eligibility for coverage or calculating payments under its plan for eligible enrollees.
B. To the extent that payment for covered expenses has been made under the state program pursuant to title XIX of the social security act for health care items or services furnished to an individual,  the state is considered to have acquired the rights of the individual to payment by any other party for those health care items or services. On presentation of proof that the state program pursuant to title XIX of the social security act has paid for covered items or services,  the health care services organization shall make payments to the state program pursuant to title XIX of the social security act according to the coverage provided in the evidence of coverage.
C. A health care services organization may not impose on a state agency that has been assigned the rights of an individual who is eligible for medical assistance and who is covered for health benefits from the insurer any requirements that are different from the requirements applicable to an agent or assignee of any other covered individual.
D. A health care services organization shall not cancel or fail to renew the contract of any person based on that person's eligibility for or enrollment in a program funded under title XIX of the social security act or title 36,  chapter 29 or 34. Nothing in this section prohibits cancellation or failure to renew for nonpayment of monies due under the contract.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1074 - Contract termination; duty to report; provision for continued services during insolvency; definitions

20-1074.
Contract termination;  duty to report;  provision for continued services during insolvency;  definitions
A. A health care services organization shall submit quarterly to the director a list of all provider contracts that have been terminated during the prior three months. The list shall be in writing and shall include the name and address of each provider whose contract has been terminated but shall not include the reasons for termination.
B. A health care services organization shall include in its contracts with providers a statement that requires the provider to provide services to enrollees at the same rates and subject to the same terms and conditions established in the contract for the duration of the period after the health care services organization is declared insolvent,  until the earliest of the following:
1. A determination by the court that the organization cannot provide adequate assurance it will be able to pay contract providers' claims for covered services that were rendered after the health care services organization is declared insolvent.
2. A determination by the court that the insolvent organization is unable to pay contract providers' claims for covered services that were rendered after the health care services organization is declared insolvent.
3. A determination by the court that continuation of the contract would constitute undue hardship to the provider.
4. A determination by the court that the health care services organization has satisfied its obligations to all enrollees under its health care plans.
C. Unless preempted under federal law or unless federal law imposes greater requirements than this section,  this section applies to a provider sponsored health care services organization.
D. For the purposes of this section:
1. " Court"  has the same meaning prescribed in section 20-611.
2. " Delinquency proceeding"  has the same meaning prescribed in section 20-611.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1075 - Transactions with affiliates

20-1075.
Transactions with affiliates
A. A health care services organization shall not attempt to sell or otherwise transfer to an affiliate Arizona assets in excess of ten per cent of the organization's unimpaired capital or surplus as reported in its most recent annual statement,  without prior approval by the director. If the director does not disapprove such sale or transfer within forty-five days of the date received by the director,  the sale or transfer is deemed approved.
B. Unless preempted under federal law or unless federal law imposes greater requirements than this section,  this section applies to a provider sponsored health care services organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1077 - Use of freestanding urgent care centers; policies

20-1077.
Use of freestanding urgent care centers;  policies
A health care services organization that requires its enrollees to use a freestanding urgent care center as a condition of coverage or a reduction in copayment,  coinsurance or deductible amounts for covered health care services shall:
1. Develop and maintain policies for the appropriate referral of its enrollees to freestanding urgent care centers. The health care services organization's medical director shall approve these policies.
2. Inform its enrollees through an appropriate means as to when to seek care at a freestanding urgent care center instead of using a higher level of care,  such as a hospital emergency department.
3. At least every two years,  review the performance of and recredential the freestanding urgent care centers under contract with the health care services organization.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1079 - Individual health insurance policies; mandatory coverage exemption; definitions

20-1079.
Individual health insurance policies;  mandatory coverage exemption;  definitions
A. A health care services organization may issue an evidence of coverage to an uninsured individual that is not subject to the requirements of any of the following:
1. Section 20-1057,  subsections C,  K,  L,  Y,  Z,  AA and BB.
2. Sections 20-1057.01,  20-1057.03,  20-1057.04 and 20-1057.05.
3. Section 20-1057.02,  subsections B and E.
B. For the purposes of this section:
1. " Health insurance coverage" :
(a) Means a health care plan or arrangement that pays for or furnishes medical or health services and that is issued by a disability insurer,  group disability insurer,  blanket disability insurer,  health care services organization,  hospital service corporation,  medical service corporation or medical,  hospital,  dental and optometric service corporation or a similar entity in another state.
(b) Includes a self-insured or self-funded employee benefit plan or multiemployer employee benefit plan created pursuant to 29 United States Code section 186(c) if the regulation of that plan is preempted by section 514(b) of the employee retirement insurance security act of 1974 (29 United States Code section 1144(b)).
(c) Does not include limited benefit coverage as defined in section 20-1137.
2. " Uninsured individual"  means a person who has either:
(a) Not had health insurance coverage for the ninety days immediately before the effective date of coverage issued pursuant to this section,  except that this requirement does not apply at the renewal of coverage pursuant to this section.
(b) Lost health insurance coverage in one of the following ways within ninety days immediately before the effective date of coverage issued pursuant to this section:
(i) The individual left a job that provided health insurance coverage.
(ii) The individual's employer discontinued offering health insurance coverage.
(iii) The individual exhausted continuation coverage under a COBRA continuation provision as defined in section 20-2301.
(iv) The individual's family health insurance coverage was discontinued due to the death of a spouse or a divorce.
(v) The individual attained the maximum age for dependent coverage under a health insurance policy.
(vi) The individual's participation in a public health care program was discontinued.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1082 - Definitions

20-1082.
Definitions
In this article,  unless the context otherwise requires:
1. " Affiliated"  has the same meaning prescribed in section 20-481.
2. " Credit life and disability reinsurer"  means a domestic life and disability reinsurer that reinsures only credit life insurance or credit disability insurance that is issued according to chapter 6,  article 10 of this title by an insurer that is authorized to transact insurance in this state,  as certified in a form prescribed by the director and reaffirmed annually in conjunction with the annual statement filed pursuant to section 20-223.
3. " Domestic life and disability reinsurer"  means an incorporated stock reinsurer holding a certificate of authority to accept insurance ceded by any domestic insurer or foreign insurer.
4. " Unaffiliated"  means not affiliated with another insurer as defined in section 20-104.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1083 - Law applicable to domestic life and disability reinsurers

20-1083.
Law applicable to domestic life and disability reinsurers
A. All other provisions of this title that are not inconsistent with the provisions of this article apply to domestic life and disability reinsurers.
B. Notwithstanding section 20-223,  an unaffiliated credit life and disability reinsurer shall submit an annual statement in a form acceptable to the director and the annual statement of the reinsurer is due August 1 if the reinsurer's fiscal year ends on the preceding December 31 or November 1 if the reinsurer's fiscal year ends on a preceding date other than the preceding December 31.
C. Notwithstanding section 20-223,  subsection A,  an unaffiliated credit life and disability reinsurer is exempt from the management discussion and analysis requirements prescribed in the accounting practices and procedures manual adopted by the national association of insurance commissioners.
D. Notwithstanding section 20-731 and any rule that requires a hearing on the withdrawal of an insurer from this state,  a hearing on a merger with or on withdrawal from this state by an unaffiliated credit life and disability reinsurer is not required,  unless the requirement of a hearing applies to another party to the transaction.
E. The following do not apply to unaffiliated credit life and disability reinsurers:
1. The requirement of an examination at least once every five years pursuant to section 20-156,  subsection A.
2. Any rule adopted pursuant to section 20-223,  subsection A relating to audited financial statements.
3. Chapter 2,  article 12 of this title.
4. The quantitative restrictions or limitations imposed on the investments of insurers by this title.
5. Chapter 3,  article 8 of this title.
6. Section 20-722.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1084 - Articles of incorporation

20-1084.
Articles of incorporation
A. Five or more individuals aged eighteen years or more may incorporate a domestic life and disability reinsurer. Not less than two-thirds of the incorporators shall be citizens of the United States residing in this state.
B. In addition to the requirements of title 10,  chapter 2,  article 1,  the articles of incorporation shall state:
1. The limitation upon the powers of the corporation consistent with this article.
2. The number of directors,  not less than five nor more than fifteen,  who shall conduct the affairs of the corporation,  and the names and addresses of the corporation's first directors and officers for stated terms of office of not less than two months or more than one year.
3. The time of the annual meeting of shareholders.
4. The city or town in this state in which the principal place of business is to be located,  and the counties,  states and countries in which business may be transacted.
5. The limitations,  if any,  on the corporation's indebtedness.
6. The extent,  if any,  to which stock of the corporation shall be liable to assessment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1085 - Capital

20-1085.
Capital
A. To qualify for initial authority to transact business a domestic life and disability reinsurer shall possess and thereafter maintain minimum required capital stock in the amount of $100, 000.
B. To qualify for initial authority to transact business,  an unaffiliated credit life and disability reinsurer shall possess and thereafter maintain unimpaired capital stock in the amount of $75, 000. An unaffiliated credit life and disability reinsurer may comply with this subsection with a clean,  irrevocable and unconditional letter of credit that contains an evergreen clause and that is payable to the director in trust for the protection of all ceding insurers,  affected policyholders and related expenses and that is issued or confirmed by a qualified United States financial institution as defined in section 20-3601,  subsection A. For the purposes of this subsection,  an evergreen clause provides for automatic renewal.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1086 - Surplus

20-1086.
Surplus
A. A life and disability reinsurer shall have on organization initial surplus in an amount not less than one-half of its minimum required capital stock and shall thereafter maintain one-half of such initial surplus.
B. This section does not apply to unaffiliated credit life and disability reinsurers.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1087 - Deposits

20-1087.
Deposits
A. The director shall not issue a certificate of authority to any life and disability reinsurer unless the reinsurer has deposited in trust with the state treasurer through the director's office cash or securities eligible for the investment of capital funds of domestic insurers under this title in an amount not less than the minimum paid-in capital stock required pursuant to this article to be maintained for authority to transact the kinds of insurance to be transacted.
B. This section does not apply to unaffiliated credit life and disability reinsurers that deliver to the director a letter of credit pursuant to section 20-1085,  subsection B.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1088 - Limit of risk

20-1088.
Limit of risk
Domestic life and disability reinsurers may be formed,  with capital and surplus as specified in sections 20-1085 and 20-1086 to accept any risk as a reinsurer under which the maximum possible benefits payable on the death or on the disability of any one insured shall not exceed five thousand dollars if the excess over three thousand dollars is reinsured by noncancellable reinsurance authorized under section 20-261. When the reinsurer's paid-in capital reaches one hundred thousand dollars,  the reinsurer may reinsure risks without the restrictions of this section and may reinsure as otherwise provided for pursuant to this title. Any risk accepted pursuant to this section shall be a risk under which the ceding life or disability insurer remains liable for the payment of all policyholder claims.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1089 - Certificates of authority

20-1089.
Certificates of authority
A. Any domestic limited stock insurer formed and existing pursuant to section 20-708 which does not come within the provisions of section 20-708,  subsection B,  and which holds a valid certificate of authority as such an insurer,  shall become a domestic life and disability reinsurer on the effective date of this article. If such reinsurer meets the requirements for a renewal certificate of authority under the provisions of this article,  it shall have its authority renewed under such provisions beginning with the first certificate of authority renewal following the effective date of this article.
B. Any domestic limited stock insurer formed and existing pursuant to section 20-708 which comes within the provisions of section 20-708,  subsection B,  which holds a valid certificate of authority as such an insurer,  but which was transformed into a domestic life and disability reinsurer by operation of the provisions of subsection D of section 20-210 shall be a domestic life and disability reinsurer,  but shall continue to have such right and privilege to issue life and disability policies direct to the public as is provided in section 20-708. If such reinsurer meets the requirements for a renewal certificate of authority under the provisions of this article,  it shall have its authority renewed under such provisions beginning with the first certificate of authority renewal following the effective date of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1090 - Reorganization; limitation

20-1090.
Reorganization;  limitation
Any domestic life and disability reinsurer,  with appropriate powers in its articles of incorporation and with the necessary capital and surplus,  and upon application to the director,  may become a domestic life and disability insurer free from the restrictions otherwise imposed by this article. Except as provided in subsection B of section 20-1089,  domestic life and disability reinsurers shall not have authority to transact insurance directly with the public.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1092 - Control of assets; definition

20-1092.
Control of assets;  definition
A. The director may require that a domestic life and disability stock reinsurer designate and comply with either or a combination of the following:
1. That pursuant to all written agreements with ceding insurers,  assets in an amount up to the net reserves established by such reinsurer be deposited by or withheld from such reinsurer as security for the payment of obligations under any reinsurance agreement if such assets are held subject to withdrawal by,  and under the control of,  any ceding insurer.
2. That pursuant to all written agreements,  assets in an amount up to the net reserves established by the reinsurer be placed in a trust account or custodial account with a bank which is a member of the federal reserve system located in the United States or in any bank located in this state.
B. For the purposes of this section,  " net reserves"  means the gross policy and claim reserves established by the reinsurer less policy and claim reserves retroceded and,  on risks retained by the reinsurer,  less policy loans,  net deferred and uncollected premiums,  and premiums due and unpaid.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1094 - Approval of reinsurance agreements

20-1094.
Approval of reinsurance agreements
Notwithstanding section 20-732,  an unaffiliated credit life and disability reinsurer shall file with the director all reinsurance agreements and amendments to which the reinsurer is a party. The agreement or amendment is not effective until the agreement or amendment is approved by the director. The agreement is deemed approved if the director does not disapprove the agreement within thirty days after the reinsurer files the agreement with the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1094.01 - Reserve requirements

20-1094.01.
Reserve requirements
A. An unaffiliated credit life and disability reinsurer shall secure liabilities that are assumed under a reinsurance agreement subject to approval pursuant to this article in any of the following:
1. With funds withheld.
2. With funds that are maintained in a trust fund that complies with section 20-3603 and in an amount that is not less than one hundred ten percent of the amount of the liabilities assumed.
3. With clean,  irrevocable and unconditional letters of credit that comply with section 20-3603,  subsection B.
B. For the purposes of this section,  the director shall value securities in the manner prescribed in sections 20-511 and 20-512.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.01 - Service companies; permits; rules; application of laws

20-1095.01.
Service companies;  permits;  rules;  application of laws
A. A service company may not offer or issue a service contract unless the service company has qualified for and been issued a permit by the director.
B. Except for the registration requirements in this article applicable to service companies,  service companies and related service contract sellers,  administrators and other persons that market,  sell or offer to sell service contracts are exempt from any licensing requirements of this title as a result of activities related to the marketing,  selling or offering of service contracts.
C. The director shall adopt rules that provide for the application for permit,  renewal procedures,  fees,  refund of the unearned portion of the contract price and approval of forms. Service companies are subject to chapter 1 of this title,  except section 20-116,  and this article.
D. A provider shall provide a consumer with a specimen copy of the service contract terms and conditions prior to the time of sale upon a request by the consumer. A provider may comply with this provision by providing the consumer with a complete sample copy of the terms and conditions or by directing the consumer to a website containing a complete sample of the terms and conditions of the service contract.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.02 - Exemptions; definition

20-1095.02.
Exemptions;  definition
A. This article,  except for section 20-1095.09,  does not apply to the following:
1. Warranties issued by manufacturers,  builders or sellers on the actual items,  structures or improvements that they manufacture,  build or sell.
2. Service contract programs if a motor vehicle manufacturer or motor vehicle dealer has financial responsibility for performance.
3. Warranties and service contracts issued by a corporation other than a manufacturer or seller in connection with consumer products that are distributed by the corporation if the issuing corporation:
(a) Is an affiliate of a consumer products manufacturer.
(b) By March 1 of each year submits to the director a financial statement in which at least one officer of the issuing corporation attests that the issuing corporation has and maintains a net worth in excess of $25, 000, 000. Any information,  documents and copies that are obtained by or disclosed to the director or any other person pursuant to this subdivision are not available for public inspection,  except that the director may use this information in any proceeding relating to this article.
4. A service company that issues a service contract to persons other than a consumer.
5. A service company that is in the business of selling or servicing any one of the following,  if the service contract only covers the actual item the service company sells:
(a) Appliances or electronic equipment,  or both.
(b) Residential heating,  cooling or air conditioning systems.
(c) Mechanical equipment,  other than motor vehicles or their components.
6. A service company only to the extent that it is in the business of selling or servicing directly,  or through other retailers,  cell phones and other electronic personal communications devices and accessories.
7. Any person licensed pursuant to title 32,  chapter 10,  or not required to be licensed because exempt pursuant to section 32-1121,  subsection A,  paragraph 13 whose service contract only covers the actual items,  structures or improvements that the person installs,  constructs or builds.
8. A maintenance agreement of limited duration that provides for scheduled maintenance only and does not include repair or replacement.
B. The director may employ independent examiners pursuant to section 20-156 to review and analyze the financial statements that are submitted pursuant to subsection A,  paragraph 3 of this section.
C. The types of agreements referred to in subsection A of this section are not insurance and are not required to comply with the insurance laws of this state unless a provision is made expressly applicable in this article.
D. For the purposes of this section,  " affiliate"  means a corporation that is owned or controlled by or is under common control with a manufacturer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.03 - Qualifications for permit

20-1095.03.
Qualifications for permit
A. The director shall not issue a permit to a service company unless all of the following conditions are met:
1. The applicant is solvent and organized under the laws of this state or another state,  district,  territory or possession of the United States.
2. The applicant furnishes proof as necessary to the director that the directors and management of the service company are competent and are capable of successfully managing the service company's affairs in compliance with law.
3. The applicant either:
(a) Files a surety bond or an alternative to a surety bond as required by section 20-1095.04.
(b) Is insured by a mechanical reimbursement insurance policy issued by an insurer authorized to do business in this state and provides a copy of the policy to the director.
4. The applicant is in compliance and continues to be in compliance with all applicable laws.
5. The applicant pays the initial fee prescribed in section 20-167.
B. This article does not require the director to determine the actual financial condition or claims practices of any service company. The issuance of a service company permit indicates only that the entity appears to be financially sound and to have satisfactory claims practices and that the director has no credible evidence to the contrary.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.04 - Filing of surety bond, securities or bonds

20-1095.04.
Filing of surety bond,  securities or bonds
A. To ensure faithful performance of its obligations to contract holders,  every service company electing to comply with section 20-1095.03,  subsection A,  paragraph 3,  subdivision (a),  before the issuance of a permit,  shall file with or for the benefit of the director a surety bond that complies with subsection C of this section and that at all times has a value of at least one hundred thousand dollars.
B. The service company may file alternatives to a surety bond in the form of securities eligible for the investment of capital funds of domestic insurers under this title or bonds of the United States government.
C. A surety bond that is filed under subsection A of this section must be issued by a surety insurer licensed to do business in this state and must be for the same purpose as required in subsection A of this section. The surety bond is subject to the approval of the director. The surety insurer shall not cancel the bond or subject the bond to cancellation unless thirty days' written notice is given to the director.
D. If securities or bonds of the United States government are filed as an alternative to a surety bond,  the securities or bonds shall be irrevocably pledged to the director. The service company is entitled to any accrued interest earned from the securities or bonds.
E. The service company shall not impair or encumber the surety bond,  securities or bonds of the United States government filed under this section and shall pledge the same to the director. The service company shall maintain the surety bond,  securities or bonds of the United States government in force until such time as all of the service company's contractual obligations to contract holders are fulfilled.
F. Notwithstanding sections 20-116 and 35-155,  a service company may not use a cash deposit to comply with this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.07 - Sale of unapproved service contract; violation; classification

20-1095.07.
Sale of unapproved service contract;  violation;  classification
A. A person who sells an unapproved service contract is guilty of a class 2 misdemeanor.
B. A service contract is not invalid solely by reason of not being approved as required by this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.08 - Nonrenewal, revocation or suspension of permit

20-1095.08.
Nonrenewal,  revocation or suspension of permit
The director may refuse to renew or may revoke or suspend any permit issued to a service company pursuant to this article if,  after notice and a hearing,  the director finds any of the following:
1. Any judgment in favor of a contract holder or his heir or assignees has become final and has not been paid in full within sixty days.
2. The service company has violated any provision of this article.
3. In the opinion of the director,  the service company is insolvent.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.09 - Unfair trade practices; violation of article; cease and desist order

20-1095.09.
Unfair trade practices;  violation of article;  cease and desist order
A. The director may order any service company,  its agents,  officials and representatives,  a motor vehicle dealer or an administrator to cease and desist from engaging in any unfair trade practices if upon notice and a hearing it is determined that the person has engaged in such practices. Unfair trade practices include:
1. The making of any false or misleading statements,  either oral or written,  in connection with the sale,  offer to sell or advertisement of a service contract.
2. The omission of any material statement in connection with the sale,  offer to sell or advertisement of a service contract,  which under the circumstances should have been made in order to make the statements that were made not misleading.
3. The making of any false or misleading statements,  either oral or written,  about the benefits or services available under the service contract.
4. The failure to perform the services promised under the service contract within a reasonable time and in a competent or workmanlike manner.
B. If the director determines that the provisions of this article have been violated,  the director,  in addition to the authority to revoke or suspend a permit as provided in section 20-1095.08,  may issue an order requiring the person violating the provisions of this article to cease and desist from such method,  act or practice. The director shall make a written record of the director's findings.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1095.10 - Scope and limitations of article

20-1095.10.
Scope and limitations of article
A. This article applies to any home warranty or home protection contract,  and to service contracts covering motor vehicles.
B. This article does not alter or diminish any right,  privilege or authority granted to any insurer under any section of this title.
C. All service companies operating pursuant to a permit as required by this article and those items exempt pursuant to section 20-1095.02 are exempt from the applicability of the insurance laws of this state,  except if the laws are specifically made applicable.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096 - Definitions

20-1096.
Definitions
In this article,  unless the context otherwise requires:
1. " Consumer"  means a buyer other than for purposes of resale of any consumer product,  any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or issuer of the service contract the obligations of the warranty or service contract. A consumer also means the buyer or seller of residential property.
2. " Consumer product"  means any tangible personal property which is distributed in commerce and which is normally used solely for personal,  family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed.
3. " Mechanical reimbursement insurance"  means an insurance policy issued to a motor vehicle dealer or to insure the performance of a service contract to a consumer if the motor vehicle dealer or the issuer of a service contract becomes insolvent or ceases to do business or,  if approved by the director,  similar such insurance.
4. " Mechanical reimbursement reinsurer"  or " reinsurer"  means a domestic reinsurer reinsuring mechanical reimbursement insurance.
5. " Motor vehicle service contract program"  means contractual documents,  including service contract forms,  claim forms and other forms,  used in connection with the sale of service contracts by motor vehicle dealers.
6. " Residential property"  means a house,  townhouse,  condominium or other habitable structure consisting of no more than four units which is used principally as a residence.
7. " Service contract"  means a written contract for a prepaid separately stated consideration to perform,  over a fixed period of time or for a specified duration,  services relating to the maintenance or repair,  including replacement,  of:
(a) A consumer product.
(b) All or any part of the structural components,  the appliances or the electrical,  plumbing,  heating,  cooling or air conditioning systems of residential property.
8. " Warranty"  means:
(a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time.
(b) Any undertaking by a manufacturer or seller in writing in connection with the sale of a consumer product to refund,  repair,  replace or take other remedial action with respect to such a product if the product fails to meet the specifications set forth in the undertaking,  which written affirmation,  promise or undertaking becomes part of the basis of the bargain for purposes other than resale of such product and if there is no separate identifiable charge to the consumer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.01 - Formation of mechanical reimbursement reinsurer; articles of incorporation

20-1096.01.
Formation of mechanical reimbursement reinsurer;  articles of incorporation
A. Five or more individuals who are eighteen years of age or older may incorporate as a mechanical reimbursement reinsurer. Not less than two-thirds of the incorporators shall be citizens of the United States residing in this state.
B. In addition to the requirements of title 10,  chapter 2,  article 1,  the articles of incorporation shall state:
1. The limitation upon the powers of the corporation consistent with this article.
2. The number of directors,  not less than five nor more than fifteen,  who shall conduct the affairs of the corporation and the names and addresses of the corporation's first directors and officers for stated terms of office of not less than two months or more than one year.
3. The time of the annual meeting of shareholders.
4. The city or town in this state in which the principal place of business is to be located and the counties,  states and countries in which business may be transacted.
5. The limitations,  if any,  on the corporation's indebtedness.
6. The extent,  if any,  to which stock of the corporation is liable to assessment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.04 - Qualifications

20-1096.04.
Qualifications
The director shall not issue a certificate of authority to a mechanical reimbursement reinsurer unless all of the following conditions are met:
1. The applicant is a corporation incorporated under the laws of this state.
2. The applicant furnishes such proof as necessary to the director that the directors and management of the reinsurer are competent and are capable of successfully managing its affairs in compliance with law.
3. The applicant makes the deposit as required by section 20-1096.06.
4. The applicant is in compliance and continues to be in compliance with all applicable laws.
5. The applicant pays the initial fee prescribed in section 20-167.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.05 - Annual reports; renewal of certificate of authority

20-1096.05.
Annual reports;  renewal of certificate of authority
A. No later than April 1 of each year,  a mechanical reimbursement reinsurer shall submit to the director a report written in a form designated by the director and signed by the president and secretary of the reinsurer that clearly indicates the method being used to determine policy and loss reserves and the amount in the policy and loss reserves.
B. The reinsurer shall accompany the annual report with an application for renewal of the certificate of authority,  together with the fee prescribed in section 20-167.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.06 - Filing of cash or alternatives to cash

20-1096.06.
Filing of cash or alternatives to cash
A. To assure faithful performance of its reinsurance obligations each mechanical reimbursement reinsurer shall,  prior to the issuance of a certificate of authority,  file with or for the benefit of the director cash or alternatives to cash which at all times have a value of at least one hundred thousand dollars.
B. The reinsurer may file alternatives to cash which shall be certificates of deposit purchased from a financial institution licensed to conduct business in this state or bonds of the United States government.
C. If alternatives to cash are made in the form of certificates of deposit or a bond,  it shall be irrevocably pledged to the director. The reinsurer is entitled to any accrued interest earned from the alternatives to cash.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.08 - Nonrenewal, revocation or suspension of certificate of authority

20-1096.08.
Nonrenewal,  revocation or suspension of certificate of authority
The director may refuse to renew or may revoke or suspend any certificate of authority issued to a mechanical reimbursement reinsurer pursuant to this article if,  after notice and a hearing,  the director finds any of the following:
1. In the opinion of the director the policy and loss reserves maintained by the mechanical reimbursement reinsurer are insufficient to cover future losses.
2. In the opinion of the director,  the mechanical reimbursement reinsurer is insolvent.
3. The mechanical reimbursement reinsurer has not filed its annual report or paid its renewal fee on a timely basis.
4. The mechanical reimbursement reinsurer has violated any provisions of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.09 - Cease and desist order; violation of article

20-1096.09.
Cease and desist order;  violation of article
If a hearing is held pursuant to the provisions of this title,  and if the director determines that the provisions of this article have been violated,  the director shall,  in addition to the authority to revoke or suspend a certificate of authority,  issue an order requiring the person violating the provisions of this article to cease and desist from such method,  act or practice. The director shall make a written record of his findings.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1096.11 - Scope and limitations of article

20-1096.11.
Scope and limitations of article
A. This article does not alter or diminish any right,  privilege or authority granted to any insurer under any section of this title.
B. All mechanical reimbursement reinsurers operating pursuant to a certificate of authority as required by this article are exempt from the applicability of the insurance laws of this state,  except if the laws are specifically made applicable.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097 - Definitions

20-1097.
Definitions
In this article,  unless the context otherwise requires:
1. " Administrative fee"  means a fixed amount paid by a corporation on a periodic basis to a contracted attorney for the contracted attorney's overhead and administrative costs.
2. Pay or reimburse for specific legal services does not include payment of an administrative fee only.
3. " Prepaid legal insurance contract"  means a contractual obligation to pay or reimburse for specific legal services rendered in the normal and ordinary course of business by an active member of the state bar of Arizona.
4. " Prepaid legal insurance corporation"  or " corporation"  means any corporation organized for the purpose of selling prepaid legal insurance contracts in this state or any insurer licensed pursuant to this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.01 - Exceptions

20-1097.01.
Exceptions
This article does not apply to:
1. Any lawyer referral services authorized by the state bar of Arizona.
2. Retainer contracts made by attorneys-at-law with individual or group clients with fees based on estimates of the nature and the amount of the legal services to be provided.
3. The furnishing of legal assistance by employee organizations to their members in matters relating to employment or occupations.
4. The furnishing of legal assistance to members or dependents of churches,  cooperatives,  educational institutions,  credit unions,  labor unions or other organizations of employees in which the organization contracts directly with a lawyer or a law firm for the provision of legal services.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-1097.02 - Certificate of authority; requirements; issuance

20-1097.02.
Certificate of authority;  requirements;  issuance
A. No person may enter into any contract with any other person in which the contract purports to extend certain prepaid legal insurance without the person having first obtained a certificate of authority from the director.
B. An applicant shall file with the department an application for a certificate of authority on a form to be furnished by the department which shall include the following:
1. The names and,  for the preceding five years,  all addresses and all occupations of officers and directors of the corporation.
2. A certified copy of the corporate articles and bylaws and,  for the three most recent years,  the corporation's annual statement and report,  if applicable.
3. A copy of any insurance or reinsurance contract executed by the corporation for insuring the payment of the cost for legal services or the provision for automatic applicability of an alternative coverage in the event the applicant is unable to perform its obligations.
4. The forms to be used for any proposed contract between the applicant and individual purchasers of the applicant's prepaid legal insurance contract,  any contracts between the applicant and participating attorneys under the program,  any contracts between the applicant and other persons who perform administration,  marketing or management services and all forms relating to the provision of services to beneficiaries or purchasers of the prepaid legal insurance contracts.
5. A narrative plan detailing the proposed conduct of the prepaid legal insurance business within this state which must include all of the following:
(a) The geographical area in which business is intended to be conducted in the first five years of operation.
(b) The proposed marketing method to be used by the corporation.
(c) A current statement of the assets and liabilities of the applicant.
(d) Forms of all service contracts the applicant chooses to offer showing the rates to be charged for each form of contract.
(e) Such other documents and information as the director may reasonably require.
C. The director shall,  within sixty days after the filing of the application,  either issue a certificate pursuant to the application or provide the applicant with a written explanation as to why the application has been denied.
D. The director shall issue the certificate if he is satisfied that the applicant has:
1. Demonstrated that it is competent.
2. Provided the director with a business plan which is consistent with the interests of the potential insureds and of the public.
3. Met all other requirements of this article.