Opinion ID: 1304571
Heading Depth: 2
Heading Rank: 2

Heading: Claims Action

Text: When the Director filed the unpaid claims action, A.R.S. § 20-402(B) provided: In the event of failure of any such unauthorized insurer to pay any claim or loss within the provisions of such insurance contract, any person who acted directly or indirectly as an agent for or otherwise represented or aided the insurer in the solicitation, negotiation, procurement or effectuation of such insurance contract or renewal thereof shall be liable to the insured for the full amount of the claim or loss in the manner provided by the provisions of such insurance contract. (emphasis added). As the court of appeals acknowledged, § 20-402(B) makes the agents liable to their insureds for the full amount of any unpaid claims. 154 Ariz. at 55, 739 P.2d at 1372. See generally 16A J. APPLEMAN, INSURANCE LAW AND PRACTICE § 8834, at 50-60 (1982).