reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-676 - Stay of proceedings

20-676.
Stay of proceedings
A. All proceedings in which the insolvent insurer or the insolvent insurer's insured is a party in any court of this state shall be stayed for six months from the date the insolvency is determined or an ancillary proceeding is instituted in this state,  whichever is later,  to permit proper defense by the fund of all pending causes of action as to any covered claim. At the request of any party and on a showing of good cause,  the court may shorten or lengthen the stay prescribed in this section. This subsection does not apply to proceedings in which the insolvent insurer is a party to a proceeding before the industrial commission regarding an employee's entitlement to benefits under title 23,  chapter 6,  except that,  on a showing of good cause,  the industrial commission shall grant up to a ninety-day continuance of any scheduled hearing to allow the fund to assume the defense and investigate the claim.
B. On application of the fund,  either on the fund's own behalf or on the insured's behalf,  the court may set aside any judgment,  order,  decision,  verdict,  finding or award arising from the default of the insolvent insurer or the insurer's failure to defend the insured and the fund shall be allowed to defend the claim on the merits.
C. Notwithstanding any other provision of this chapter,  a federal home loan bank may not be stayed,  enjoined or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer member under any federal home loan bank security agreement or any pledge,  security,  collateral or guarantee agreement or other similar arrangement or credit enhancement relating to a security agreement to which that federal home loan bank is a party.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-678 - Examination of the fund; annual report

20-678.
Examination of the fund;  annual report
The fund is subject to examination by the director. The fund shall annually report its financial condition for the preceding year to the legislature,  member insurers and the director. At the conclusion of the fund's handling of each insolvency,  an audit of the financial transactions relating to such insolvency shall be made by the director or an independent accounting firm.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-679 - Limitations on filing of creditor's claims

20-679.
Limitations on filing of creditor's claims
A. Notwithstanding any other provision of this article,  a covered claim shall not include a claim filed with the fund after the earlier of:
1. Eighteen months after the date of the order of liquidation.
2. The final date set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer.
B. Notwithstanding subsection A of this section,  a covered claim for workers' compensation shall include claims filed that meet the requirements of section 20-667,  subsection A and the statutory filing requirements of section 23-1061.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-680 - Exempt types of insurance

20-680.
Exempt types of insurance
A. This article applies to all kinds of insurance except:
1. Life.
2. Title.
3. Surety.
4. Disability.
5. Credit.
6. Mortgage guarantee.
7. Ocean marine insurance.
8. Insurance of warranties or service contracts,  including insurance that provides for the repair,  replacement or service of goods or property,  or indemnification for repair,  replacement or service,  for the operational or structural failure of the goods or property due to a defect in materials,  workmanship or normal wear and tear,  or reimbursement for the liability incurred by the issuer of agreements or service contracts that provide these benefits.
9. Any kind of surplus lines insurance.
10. Any policy of insurance issued to an industrial insured pursuant to section 20-400.10.
11. Any new types of coverages approved or permitted after August 27,  1977.
B. The exemptions prescribed in this section do not restrict any of the fund's rights or defenses permitted under this article,  including the application of any credit or offset prescribed in section 20-673 for payments made under any policy of insurance,  including any policy of insurance that is exempt from this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-683 - Life and disability insurance guaranty fund

20-683.
Life and disability insurance guaranty fund
A. The life and disability insurance guaranty fund is established in the department. The fund shall be deposited in a depository designated by the director. All member insurers shall be members of the fund as a condition of their authority to transact insurance or a health care services organization business in this state. For the purposes of administration and assessment,  the fund shall maintain three accounts:
1. The disability account.
2. The life insurance account.
3. The annuity account.
B. The fund is under the immediate supervision of the director and is subject to the applicable provisions of the insurance laws of this state.
C. All costs,  expenses and liabilities of the fund shall be paid by the fund and shall not be a general obligation of the state.
D. All monies placed in the accounts of the fund may be expended for the purposes of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-684 - Life and disability insurance guaranty fund board; composition; compensation

20-684.
Life and disability insurance guaranty fund board;  composition;  compensation
A. Subject to the powers of the director,  the life and disability insurance guaranty fund shall be administered by a board of eleven members. Each member of the board shall serve for a term of three years. Of the members first appointed,  three shall serve for terms of one year,  three shall serve for terms of two years and three shall serve for terms of three years.
B. The members of the board shall be appointed by the governor from a list of persons submitted to the governor by the director of the department of insurance and financial institutions. In submitting selections for the board,  the director shall consider whether all member insurers are fairly represented.
C. Members of the board are not entitled to receive compensation and travel expenses as authorized by title 38,  chapter 4,  article 2 but are entitled to be reimbursed for expenses incurred by them as members of the board from the assets of the fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-687 - Plan of operation

20-687.
Plan of operation
A. The board shall submit to the director a plan of operation and any amendments necessary to assure the fair,  reasonable and equitable administration of the fund. The plan of operation and any amendments shall become effective on approval in writing by the director. If the board fails to submit a plan of operation or if at any time the board fails to submit suitable amendments to the plan,  the director shall adopt any plan or amendment that is necessary or advisable to effectuate the provisions of this article and the plan or amendment shall continue in force until modified by the director or superseded by a plan submitted by the board and approved by the director.
B. All member insurers shall comply with the plan of operation.
C. The plan of operation,  in addition to all other requirements,  shall:
1. Establish procedures for handling the assets of the fund and claims against the fund.
2. Establish the amount and method of reimbursing members of the board of directors pursuant to section 20-684.
3. Establish regular places and times for meetings of the board of directors.
4. Establish procedures for records to be kept of all financial transactions of the fund,  its agents and the board of directors.
5. Establish the procedures for selecting the board of directors and submitting such selections to the director.
6. Establish any additional procedures for assessments required pursuant to section 20-686.
7. Contain additional provisions necessary for the execution of the powers and duties of the board.
D. The plan of operation may provide that any or all powers and duties of the board,  except those in section 20-685,  subsection H,  paragraph 3 and section 20-686,  are delegated to any corporation,  association or other organization that performs or will perform functions similar to those of this fund in two or more states. Such a corporation,  association or organization shall be reimbursed for any payments made on behalf of the fund and shall be paid for its performance of any function of the fund. A delegation pursuant to this subsection shall take effect only with the approval of both the board of directors and the director and may be made only to a corporation,  association or organization that extends protection not substantially less favorable and effective than that provided by this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-688 - Duties and powers of the director

20-688.
Duties and powers of the director
A. In addition to all other duties and powers enumerated in this article,  the director shall:
1. Notify the board of directors of the existence of an impaired insurer or insolvent insurer not later than three days after a determination of impairment or insolvency or the director receives notice of impairment or insolvency.
2. On request of the board of directors,  provide the board with a statement of the premiums in the appropriate states for each member insurer.
3. When an impairment is declared and the amount of the impairment is determined,  serve a demand on the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders. The failure of the impaired insurer to promptly comply with such demand shall not excuse the board from the performance of its duties pursuant to this article.
B. The director may suspend or revoke,  after notice and a hearing pursuant to title 41,  chapter 6,  article 10,  the certificate of authority to transact business in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative the director may levy a forfeiture on any member insurer that fails to pay an assessment when due. Such forfeiture shall not exceed five percent of the unpaid assessment per month,  but no forfeiture may be less than one hundred dollars per month.
C. Any action of the board of directors may be appealed to the director by any member insurer within thirty days. Except as provided in section 41-1092.08,  subsection H,  any final action or order of the director is subject to judicial review pursuant to title 12,  chapter 7,  article 6.
D. The liquidator,  rehabilitator or conservator of any impaired insurer or insolvent insurer may notify all interested persons of the effect of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-689 - Prevention of impairments

20-689.
Prevention of impairments
To aid in the detection and prevention of member insurer impairments and insolvencies:
1. The board of directors,  on majority vote,  shall notify the director of any information indicating that any member insurer may be unable or potentially unable to fulfill its contractual obligations.
2. The board of directors,  on majority vote,  may request that the director order an examination of any member insurer which the board in good faith believes may be unable or potentially unable to fulfill its contractual obligations. The director may conduct such examination. The examination may be conducted as a national association of insurance commissioners examination or may be conducted by such persons as the director designates. The cost of such examination shall be paid by the fund and the examination report shall be treated as are other examination reports. The examination report shall not be released to the board of directors of the fund before its release to the public,  but this shall not excuse the director from the obligation to comply with paragraph 3. The director shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the director but it shall not be open to the public and shall be released only if the examination discloses that the examined insurer is unable or potentially unable to meet its contractual obligations.
3. The director shall report to the board of directors when the director has reasonable cause to believe that any member insurer examined at the request of the board of directors may be unable or potentially unable to fulfill its contractual obligations.
4. The board of directors,  on majority vote,  may make reports and recommendations to the director on any matter germane to the solvency,  liquidation,  rehabilitation or conservation of any member insurer. Such reports and recommendations shall not be considered public documents.
5. The board of directors,  on majority vote,  may make recommendations to the director for the detection and prevention of member insurer impairments and insolvencies.
6. The board of directors,  at the conclusion of any insurer impairment or insolvency in which the fund carried out its duties,  shall prepare a report on the history and causes of such impairment or insolvency based on the information available to the fund and submit such report to the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-691 - Examination of the fund; annual report

20-691.
Examination of the fund;  annual report
The fund shall be subject to examination and regulation by the director. The board of directors shall submit to the director,  not later than May 1 of each year,  a financial report for the preceding calendar year in a form approved by the director and a report of its activities during the preceding calendar year.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-692 - Premium tax offset

20-692.
Premium tax offset
A. The board shall issue to each member insurer paying an assessment pursuant to this article a certificate of contribution,  in a form prescribed by the director for the amount paid. All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue.
B. A certificate of contribution issued to a member insurer shall be offset against its premium tax liability to this state in the amount of twenty percent of the assessment for the year of assessment and twenty percent of the assessment per year for each of the succeeding four years.
C. Notwithstanding subsection B of this section,  the total amount a member insurer may offset against its premium tax liability pursuant to a certificate of contribution that is issued from 1987 through 1994 shall not exceed the following percentage amounts for each certificate of contribution,  except that in no event may the total amount of the offset exceed one hundred percent of each assessment:
1. For 1991,  seven percent.
2. For 1992,  nine percent.
3. For 1993,  eleven percent.
4. For 1994,  thirteen percent.
D. A member insurer may not offset its premium tax liability by any amount unless the assessment for which the first year credit is claimed was collected by the guaranty fund in the calendar year for which the insurer seeks to offset its taxes.
E. Beginning in 1995,  the total amount that a member insurer may offset against its premium tax liability pursuant to a certificate of contribution shall be as provided in subsection B of this section,  except that in no event shall the total amount of the offset exceed one hundred percent of the assessment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-694 - Stay of proceedings; reopening default judgments

20-694.
Stay of proceedings;  reopening default judgments
A. All proceedings in which the impaired insurer or insolvent insurer or the impaired insurer's or insolvent insurer's insured is a party in any court in this state shall be stayed sixty days from the date an order of liquidation,  rehabilitation or conservation is final to permit proper legal action by the board on any matters germane to its powers or duties. At the request of the board and on a showing of good cause,  the court may lengthen the stay prescribed in this section. As to a judgment under any decision,  order,  verdict or finding based on default,  the board may apply to have such judgment set aside by the same court that made such judgment and shall be permitted to defend against such suit on the merits.
B. Notwithstanding subsection A of this section or any other provision of this chapter,  a receiver,  rehabilitator,  liquidator or conservator may not void any transfer of,  or any obligation to transfer,  money or other property arising under or in connection with any federal home loan bank security agreement with an insurer member,  or any pledge,  security,  collateral or guarantee agreement or any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement with an insurer member unless the transfer was made with actual intent to hinder,  delay or defraud either existing or future creditors.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-696 - Scope of article

20-696.
Scope of article
A. This article applies to all life insurance companies and fraternal benefit societies that are doing business in this state or that are authorized to reinsure life insurance,  annuities or accident and health insurance business in this state.
B. This article applies to all annual statements that are filed with the director after the effective date of this article. All insurers shall file the following with the director each year:
1. A statement of opinion on the adequacy of the reserves and related actuarial items based on an asset adequacy analysis that is conducted pursuant to section 20-696.03.
2. A memorandum in support of the opinion pursuant to section 20-696.04.
C. If a foreign company is required to submit a statement of actuarial opinion,  the director may accept the statement of actuarial opinion that is filed by the company with the insurance supervisory regulator of another state if the director determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state.
D. The director,  by order,  may adopt methods of actuarial analysis and actuarial assumptions that are necessary for an acceptable opinion and memorandum consistent with this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-696.01 - Definitions

20-696.01.
Definitions
In this article,  unless the context otherwise requires:
1. " Actuarial opinion"  means the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items that is based on an asset adequacy analysis conducted pursuant to section 20-696.03 and that is based on presently accepted actuarial standards of practice.
2. " Actuarial standards board"  means the board that is established by the American academy of actuaries to develop and promulgate actuarial standards of practice.
3. " Annual statement"  means the statement that an insurer annually files with the director pursuant to section 20-223.
4. " Appointed actuary"  means an individual who is appointed or retained pursuant to section 20-696.02,  subsection D to provide the actuarial opinion and supporting memorandum prescribed by section 20-510,  subsection E or F.
5. " Asset adequacy analysis"  means an analysis that meets the standards and other requirements prescribed pursuant to section 20-696.02,  subsection E.
6. " Company"  means an insurer,  fraternal benefit society or reinsurer that is subject to this article pursuant to section 20-696.
7. " Qualified actuary"  means any individual who meets the requirements prescribed in section 20-696.02,  subsection B.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-696.03 - Statement of actuarial opinion based on an asset adequacy analysis

20-696.03.
Statement of actuarial opinion based on an asset adequacy analysis
A. The statement of actuarial opinion submitted pursuant to this section consists of:
1. A paragraph identifying the appointed actuary and the actuary's qualifications pursuant to section 20-696.02,  subsection B.
2. A scope paragraph that identifies the subjects on which an opinion is to be expressed,  that describes the scope of the appointed actuary's work,  including a table of reserves and related actuarial items that have been analyzed for asset adequacy and the method of analysis,  and that identifies the reserves and related actuarial items covered by the opinion that have not been analyzed for asset adequacy.
3. A reliance paragraph that describes those areas,  if any,  in which the appointed actuary who issues the opinion pursuant to this section has deferred to other experts to develop data,  procedures or assumptions and that is supported by a statement of each expert in the form prescribed by the director.
4. An opinion paragraph expressing the appointed actuary's opinion with respect to the adequacy of the supporting assets to mature the liabilities.
5. One or more additional paragraphs as required in individual company cases as follows:
(a) The appointed actuary considers it necessary to state a qualification of the appointed actuary's opinion.
(b) The appointed actuary must disclose an inconsistency in the method of analysis or basis of asset allocation used at the prior opinion date with that used for this opinion.
(c) The appointed actuary must disclose whether additional reserves as of the prior opinion date are released as of this opinion date and the extent of the release.
(d) The appointed actuary chooses to add a paragraph briefly describing the assumptions that form the basis for the actuarial opinion.
B. If the appointed actuary is unable to form an opinion,  the appointed actuary shall refuse to issue a statement of actuarial opinion. If the appointed actuary s opinion is adverse or qualified,  the appointed actuary shall issue an adverse or qualified actuarial opinion explicitly stating the reasons for the opinion.
C. If the appointed actuary relies on the certification of others on matters concerning the accuracy or completeness of any data underlying the actuarial opinion or the appropriateness of any other information used by the appointed actuary in forming the actuarial opinion,  the actuarial opinion should indicate the persons the actuary is relying on and a precise identification of the items that are subject to reliance. In addition,  the persons on whom the appointed actuary relies shall provide a certification that precisely identifies the items on which the person is providing information and a statement as to the accuracy,  completeness or reasonableness,  as applicable,  of the items. This certification shall include the signature,  title,  company,  address and telephone number of the person who is rendering the certification and the date on which it is signed.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-697 - Property and casualty actuarial opinions; limitation of liability

20-697.
Property and casualty actuarial opinions;  limitation of liability
A. Every property and casualty insurance company doing business in this state annually shall file a statement of actuarial opinion that is made by an appointed actuary. The statement of actuarial opinion shall be filed with the annual financial statement required by section 20-223 in accordance with the appropriate national association of insurance commissioners property and casualty annual statement instructions. The statement of actuarial opinion is a public document.
B. Every property and casualty insurance company that is domiciled in this state and that is required to submit a statement of actuarial opinion annually shall submit an actuarial opinion summary that is written by the company's appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate national association of insurance commissioners property and casualty annual statement instructions and shall be considered a document supporting the actuarial opinion required by subsection A of this section. A company that is licensed but not domiciled in this state shall provide the actuarial opinion summary on the director's request.
C. Every property and casualty insurance company that is domiciled in this state and that is required to submit a statement of actuarial opinion annually shall require its appointed actuary to prepare an actuarial report in support of the actuarial opinion that is in compliance with the requirements contained in the national association of insurance commissioners property and casualty annual statement instructions. If the insurance company fails to provide a supporting actuarial report or work papers at the request of the director or the director determines that the supporting actuarial report or work papers are otherwise unacceptable,  the director may engage a qualified actuary at the company's expense to review the opinion and the basis for the opinion and to prepare the supporting actuarial report or work papers.
D. The appointed actuary is not liable for damages to any person other than the insurance company and the director for any act,  error,  omission,  decision or conduct with respect to the actuary's opinion,  unless the actuary engaged in fraud or wilful misconduct.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-698 - Annual audited financial reports

20-698.
Annual audited financial reports
A. For the year ending December 31,  2010 and for each year thereafter,  every insurer is subject to the requirements of the national association of insurance commissioners annual financial reporting model regulation for that calendar year. Only insurers having direct premiums written of less than one million dollars nationwide in any calendar year and less than one thousand policyholders or certificate holders of direct written policies nationwide at the end of the calendar year are exempt from the requirements of the national association of insurance commissioners annual financial reporting model regulation for that calendar year,  unless the director makes a specific finding that compliance is necessary for the director to carry out statutory responsibilities. Insurers that assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars or more are not exempt.
B. The director may determine whether,  consistent with the requirements of the national association of insurance commissioners annual financial reporting model regulation:
1. A foreign or alien insurer may be exempt from compliance with any or all of the annual financial reporting requirements if the director finds its domiciliary jurisdiction has a substantially similar law in effect and the insurer has filed its audited financial report and other required communications with the director as otherwise required by this article.
2. An insurer is required to file an audited financial report earlier than June 1,  with ninety days' advanced notice to the insurer.
3. An extension of the June 1 filing date will be granted for thirty-day periods.
4. An exception will be granted to the rotation requirement for a lead audit partner for an insurer.
5. An individual meets the qualifications as an independent certified public accountant for the purposes of this article.
6. A financial or organizational hardship exemption will be granted to allow a qualified independent certified public accountant to perform nonaudit services for an insurer having direct written and assumed premiums of less than one hundred million dollars in any calendar year.
7. An insurer may file consolidated or combined audited financial statements in lieu of a separate annual audited financial statement if the insurer is part of a group of insurance companies that uses a pooling or one hundred per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer cedes all of its direct and assumed business to the pool.
8. An insurer will be granted a hardship waiver of the audit committee requirements regarding independent audit committee members.
9. An insurer will be granted a financial or organizational hardship exemption from compliance with any or all of the annual financial reporting requirements.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-698.01 - Rule making; exemption from rule making procedures

20-698.01.
Rule making;  exemption from rule making procedures
A. The director may adopt rules to implement this article.
B. The department is exempt from title 41,  chapter 6 for the purposes of adopting rules relating to requirements of the national association of insurance commissioners annual financial reporting model regulation and the director's authority to grant extensions,  exemptions and waivers consistent with those provisions and prescribed in section 20-698.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-701 - Scope of article

20-701.
Scope of article
A. This article shall apply to domestic stock insurers and domestic mutual insurers only,  except that subsection B of section 20-715 and subsection C of section 20-719 shall apply also to foreign and alien mutual insurers.
B. Any domestic stock or mutual insurer which as of September 1,  1954,  had duly filed its articles of incorporation and was lawfully in process of completing its organization,  shall complete its organization according to such procedures as were provided by laws in force immediately prior to January 1,  1955. Any other domestic stock or mutual insurer in process of organization on January 1,  1955 shall be governed by such provisions of this article as the director deems to be practicably applicable,  and otherwise according to laws in force immediately prior to January 1,  1955.
C. Existing domestic stock and mutual insurers are governed by the applicable provisions of this article.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-705 - Articles of incorporation

20-705.
Articles of incorporation
A. The articles of incorporation shall state:
1. The name of the corporation. If a mutual,  the word " mutual"  shall be a part of the name.
2. The duration of its existence,  which may be perpetual.
3. The kinds of insurance the corporation is formed to transact,  according to the definitions thereof in this title. If the corporation is to be a limited stock insurer,  the articles shall provide for limitations on the insuring powers of the corporation consistent with section 20-708.
4. If a stock corporation,  its authorized capital,  the classes and number of shares into which divided,  the par value of each such share and the respective rights of each such class. Shares without par value shall not be authorized.
5. If a mutual corporation,  the maximum contingent liability of its members,  other than as to nonassessible policies,  for payment of losses and expenses incurred,  which liability shall be as stated in the articles of incorporation but not less than one nor more than six times the premium for the member's policy at the annual premium rate for a term of one year.
6. 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.
7. The time of the annual meeting of stockholders or members.
8. 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.
9. The limitations,  if any,  on the corporation's indebtedness.
10. If a stock corporation,  the extent,  if any,  to which stock of the corporation shall be liable to assessment.
11. Such other provisions,  not inconsistent with law,  as deemed appropriate by the incorporators.
12. The names and addresses of the incorporators.
B. This section applies to stock and mutual insurers incorporated in this state after January 1,  1955.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-706 - Filing and publication of articles; appointment of agent to receive process; issuance of certificate

20-706.
Filing and publication of articles;  appointment of agent to receive process;  issuance of certificate
A. The articles of incorporation shall be filed in the office of the corporation commission and certified copies of the articles of incorporation shall be filed with the director of the department of insurance and financial institutions.
B. The articles of incorporation shall be published as required by title 10.
C. The corporation shall appoint a statutory agent located in this state on whom all process in any action or proceeding may be served and shall file originals of the appointment in the director's office and in the corporation commission's office. Any termination of the statutory agent shall not take effect until the corporation has appointed a new,  valid statutory agent.
D. The corporation shall not transact business as an insurer until it has applied for and received from the director a certificate of authority as provided by this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-707 - Amendment of articles

20-707.
Amendment of articles
A. The articles of incorporation of a stock insurer increasing or reducing authorized capital or for other purposes may be amended in accordance with the general laws of this state applying to corporations formed for profit. No amendment shall reduce authorized capital below the amount required by this title for the kinds of insurance thereafter to be transacted.
B. The articles of incorporation of a mutual insurer may be amended by the affirmative vote of two thirds of its members present in person or by proxy at a regular or special meeting of members of which notice in writing setting forth the proposed amendment was mailed to all members at least thirty days in advance. A certificate of the amendments,  signed and acknowledged by the president and attested by the secretary of the corporation,  shall be filed,  recorded and published,  as required of the original articles of incorporation.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-708 - Limited stock insurers

20-708.
Limited stock insurers
A. Domestic limited stock insurers may be formed,  with capital and surplus as specified in sections 20-210 and 20-211,  to transact life and disability insurance only or both,  except as provided in subsection B of this section,  but such an insurer may not:
1. Issue any policy or policies or combination of policies of life or disability insurance whether individual or group as a direct writer.
2. 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 exceed five thousand dollars nor without reinsuring the excess over three thousand dollars by noncancellable reinsurance authorized under section 20-261. Any risk accepted as a reinsurer under this paragraph shall be a risk under which the ceding life or disability insurer remains liable for the payment of all policyholder claims.
B. Prior to,  but not after January 31,  1980,  any domestic limited stock insurer that on January 31,  1969 was the holder of a valid certificate of authority and that on or before such date had policy forms approved as provided by this title and had sold and issued any such policies shall continue to have the right and privilege to issue life and disability policies direct without regard to the prohibition prescribed in subsection A of this section,  but such company shall not:
1. Issue any policy or combination of life insurance policies or accept any risk direct under which the maximum possible benefits payable on the death of any one insured shall exceed five thousand dollars nor without reinsuring the excess over three thousand dollars by noncancellable reinsurance authorized under section 20-261.
2. Issue any policy or combination of disability insurance policies,  or accept any disability risk direct under which the maximum possible benefits payable to or on account of any one insured shall exceed five thousand dollars.
3. Issue pure endowment policies or annuity contracts,  but this paragraph does not prohibit the insurer from issuing life insurance endowment policies,  limited payment life and other standard plans of life insurance policies,  nor from providing therein standard settlement options.
C. With appropriate powers in its articles of incorporation by increase of its authorized and paid-in capital and its surplus funds to the minimum amount required by this title as for an insurer newly formed and on application to the director,  a domestic limited stock insurer may become a domestic stock insurer free from the restrictions otherwise imposed by this section.
D. A domestic limited stock insurer may accept reinsurance of risks of life or disability stock insurers or stock reinsurers,  subject to limits as to amount of insurance as to anyone insured as set forth in this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-709 - Formation of mutual insurer; applications for insurance

20-709.
Formation of mutual insurer;  applications for insurance
A. Upon issuance of its certificate of incorporation by the corporation commission,  the directors and officers of a domestic mutual corporation formed for the purpose of becoming a mutual insurer may open books for the registration of such requisite applications for insurance policies as they may accept,  and may receive deposits of premiums thereon.
B. All such applications shall be in writing signed by the applicant,  covering subjects of insurance resident,  located or to be performed in this state.
C. All such applications shall provide that:
1. Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a proper certificate of authority.
2. No insurance is provided until the certificate of authority has been so issued.
3. The prepaid premium or deposit,  and membership or policy fee,  if any,  shall be refunded in full to the applicant if the organization is not completed and the certificate of authority issued before a specified reasonable date,  which date shall be not later than one year following date of issuance of the certificate of incorporation.
D. All qualifying premiums collected shall be in cash.
E. Solicitation for qualifying applications for insurance shall be by licensed agents of the corporation,  and the director shall upon application therefor issue temporary agent's licenses expiring on the date specified pursuant to paragraph 3 of subsection C of this section to individuals appointed by the corporation and qualified as for a resident agent's license except as to the taking of an examination. The director may suspend or revoke any such license for the same causes and pursuant to the same procedures applicable to suspension or revocation of licenses of agents in general under article 3 of chapter 2 of this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-710 - Formation of mutuals; trust deposit of premiums; issuance of policies

20-710.
Formation of mutuals;  trust deposit of premiums;  issuance of policies
A. All sums collected by a domestic mutual corporation as premiums and fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company of this state under a written trust agreement consistent with this section and with paragraph 3 of subsection C of section 20-709. The corporation shall file an executed copy of the trust agreement with the director.
B. Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which the applications were solicited,  all funds so held in trust shall become the funds of the insurer,  and the insurer shall forthwith issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-711 - Initial qualification of domestic mutual insurers

20-711.
Initial qualification of domestic mutual insurers
A. When newly organized a domestic mutual insurer may be authorized to transact any one kind of insurance other than title insurance.
B. When applying for an original certificate of authority as an insurer,  a domestic mutual insurer shall be otherwise qualified under this title,  and shall have received and accepted bona fide applications with respect to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted,  shall have collected in full and in cash the proper premium at a rate not less than that usually charged by stock insurers for comparable coverages,  shall have surplus funds on hand as at completion of issuance of all such policies so applied for,  or,  in lieu of such applications,  premiums and surplus,  may deposit surplus,  all in accordance with that portion of the following schedule which applies to the one kind of insurance the insurer then proposes to transact:
Minimum Minimum Minimum Maximum
number number amount of amount of
of of Minimum insurance insurance
Kind of applicants subjects premium each each
insurance accepted covered collected subject subject
______
Life (i) 300 300 Annual $1, 000 $20, 000
Disability (ii) 300 300 Quarter 100 monthly 200 monthly
indemnity indemnity
Property (iii) 100 250 Annual 1, 000 30, 000
Marine and
Transportation 100 250 Annual 1, 000 30, 000
Vehicle (iv) 100 250 Annual 15, 000 30, 000
Casualty (iv) 100 250 Annual 15, 000 30, 000
Surety 100 250 Annual 1, 000 50, 000
C. The following provisions in the schedule shall govern as to the one kind of insurance the insurer then proposes to transact:
1. Under (i). No group insurance,  nor term policies for terms of less than ten years shall be included.
2. Under (ii). No group or blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical,  surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed two thousand dollars.
3. Under (iii). Only insurance of the owner's interest in real property may be included,  and all such coverages shall be in compliance with the provisions of subsection E of section 20-260 (two properties reasonably subject to loss from the same fire may not be insured by the same insurer if results in excess of limit of risk).
4. Under (iv). Shall include insurance of legal liability for bodily injury and property damage to which the maximum and minimum insured amounts apply.
5. Under (v). The deposit in the amount specified shall thereafter be maintained. The deposit is subject to the provisions of this title governing deposits of insurers in general.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-712 - Additional kinds of insurance authorized to be issued by mutual insurer

20-712.
Additional kinds of insurance authorized to be issued by mutual insurer
A domestic mutual insurer after being authorized to transact one kind of insurance shall be authorized by the director to transact such additional kinds of insurance as are authorized under section 20-209 and upon otherwise qualifying therefor and depositing and thereafter maintaining on deposit as required through the director unimpaired surplus funds in an amount not less than the amount of minimum required capital stock required of a domestic stock insurer transacting like kinds of insurance,  and subject further to the additional surplus requirements of section 20-211.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-713 - Bylaws of mutual insurer

20-713.
Bylaws of mutual insurer
A. The initial board of directors of a domestic mutual insurer shall adopt original bylaws for the government of the corporation and conduct of its business. The bylaws shall be subject to the approval of the insurer's members at the next succeeding annual meeting of members,  and no bylaw provision shall thereafter be effective that is not so approved. Bylaws shall be revoked or modified only by vote of the insurer's members at a meeting of which notice was given as provided in the bylaws.
B. The bylaws shall provide that each member of the insurer is entitled to one vote in the election of corporate directors and on all matters coming before membership meetings and that each vote may be exercised in person or by proxy.
C. The insurer shall promptly file with the director of the department of insurance and financial institutions a copy,  certified by the insurer's secretary,  of the bylaws and of every modification of or addition to the bylaws. The director shall disapprove any bylaw provision deemed by the director to be unlawful,  inadequate,  unfair or detrimental to the proper interests and protection of the insurer's members or any class of the insurer's members. The insurer shall not,  after receiving written notice of such disapproval and during the existence thereof,  effectuate any disapproved bylaw provision.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-713.01 - Directors; terms; staggered terms

20-713.01.
Directors;  terms;  staggered terms
The members of a domestic mutual insurer or mutual insurance holding company shall elect directors at the annual meeting of members. Directors may be elected for terms of not more than one year each and shall serve until their successors are elected and qualified unless,  notwithstanding any law to the contrary,  the insurer's articles of incorporation or bylaws provide for staggering the terms of directors by dividing the total number of directors into groups containing as equal a number of directors as is possible and providing an initial term of office for directors in each group that expires at succeeding annual meetings of members,  with at least one director elected each year. Such staggered terms may not exceed five years each.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-714 - Quorum of members of mutual insurer

20-714.
Quorum of members of mutual insurer
A domestic mutual insurer may in its bylaws adopt a reasonable provision for determining a quorum of members at any meeting of the insurer,  but no provision recognizing a quorum of fewer than a simple majority of all the insurer's members shall be effective unless approved as reasonable by the director of the department of insurance and financial institutions. This section does not affect any other law requiring a vote of a larger percentage of members for a specified purpose.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-715 - Membership in mutual insurer

20-715.
Membership in mutual insurer
A. Each holder of one or more insurance policies or contracts issued by a domestic mutual insurer,  other than a contract of reinsurance,  is a member of the insurer with all the rights and obligations of such membership,  and each such policy or contract so issued shall so specify.
B. Any person,  government or governmental agency,  state or political subdivision thereof,  public or private corporation,  board,  association,  firm,  estate,  trustee or fiduciary may be a member of a domestic,  foreign or alien mutual insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-717 - Contingent liability of mutual insurer members

20-717.
Contingent liability of mutual insurer members
A. Each member of a domestic mutual insurer shall,  except as otherwise provided in this article with respect to nonassessable policies,  have a contingent liability,  pro rata and not one for another,  for the discharge of its obligations,  which contingent liability shall be in such maximum amount as it stated in the insurer's articles of incorporation.
B. Each policy issued by the insurer shall contain a statement of the contingent liability,  if any,  of its members.
C. Termination of the policy of any such member shall not relieve the member of contingent liability for his proportion,  if any,  of the obligations of the insurer which accrued while the policy was in force.
D. Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.