Chapter 6. DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION

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Historical Note Adopted effective September 13, 1978, except that it shall apply to the accounting treatment for unearned premium reserves and reinsurance premium receivables for credit life disability insurance on January 1, 1979, and all annual statements filed for periods on o…

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A. Scope. This rule applies to all domestic life and disability insurers and reinsurers, and to all other licensed life and disability insurers and accredited resinsurers that are not subject to a substantially similar rule in their jurisdictions of domicile. This rule applies to…

Historical Note Adopted effective March 22, 1993 (Supp. 93-1). R20-6-308 recodified from R4-14-308 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3374, effective May 31, 2016 (Supp. 16-4). AUTHORITY: A.R.S. § 41-1056

Historical Note New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1). AUTHORITY: A.R.S. § 41-1056

Historical Note New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1). AUTHORITY: A.R.S. § 41-1056

Historical Note New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1). AUTHORITY: A.R.S. § 41-1056

Historical Note New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1). AUTHORITY: A.R.S. § 41-1056

Historical Note New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1). AUTHORITY: A.R.S. § 41-1056

The purpose of Sections R20-6-310.01 through R20-6-310.03 is to set forth procedures for filing and the required contents of the Corporate Governance Annual Disclosure (CGAD) deemed necessary by the Director to carry out the provisions of Title 20, Chapter 2, Article 16 on Corpor…

The definitions in A.R.S. § 20-492 and this Section apply to Sections R20-6-310.02 through R20-6-310.04. “CGAD” means Corporate Governance Annual Disclosure. “NAIC” means National Association of Insurance Commissioners. “Senior Management” means any corporate officer responsible …

A. Deadline to file. An insurer, or the insurance group of which the insurer is a member, required to file a CGAD by A.A.C. Title 20, Chapter 2, Article 16 shall, no later than June 1 of each calendar year, submit to the Director a CGAD that contains the information described in …

A. Inclusion of attachments. The insurer or insurance group shall be as descriptive as possible in completing the CGAD, with inclusion of attachments or example documents that are used in the governance process, since these may provide a means to demonstrate the strengths of thei…

If any provision of this Section, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this Section which can be given effect without the invalid provision or application, and to that en…

A. The Department incorporates by reference National Association of Insurance Commissioners Model Laws, Regulations and Guidelines, Volume III, pp. 490-1 through 490-33, Regulation Regarding Proxies, Consents, and Authorization of Domestic Stock Insurers, April 1995 (and no futur…

Historical Note Former General Rule 69-19. R20-6-402 recodified from R4-14-402 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3). Exhibit A. Expired Historical Note Former General Rule 69-19. R20-6-…

Historical Note Former General Rule 69-21. R20-6-403 recodified from R4-14-403 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3). Appendix A. Expired Historical Note R20-6-403, Appendix A recodified…

A. Scope 1. The scope of this Section is the scope of A.R.S. Title 20 as it relates to Insurers or Hospital or Medical Service Corporations. As it relates to Health Care Services Organizations, the scope of this Section is the scope of Title 20, Chapter 1 and Title 20, Chapter 4,…

Historical Note Adopted effective May 18, 1978 (Supp. 78-3). R20-6-406 recodified from R4-14-406 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3). AUTHORITY: A.R.S. § 41-1056

A. Scope. This rule shall apply to all service companies except those that are exempt under A.R.S. § 20-1095.02. B. Definitions. The definitions in A.R.S. § 20-1095 apply to this rule. 1. “Contract Holder” has the same meaning as “consumer” as defined in A.R.S. § 20-1095(1). 2. “…

Historical Note Former Section R4-14-408 renumbered as Section R4-14-409; a new Section R4-14-408 adopted effective July 15, 1987 (Supp. 87-3). R20-6-408 recodified from R4-14-408 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 24 A.A.R. 3106, effective October 9, 2018…

A. Applicability. This rule applies to all subscription contracts issued by hospital, medical, dental and optometric service corporations. B. Subscription contract provision. Subscription contracts of hospital, medical, dental and optometric service corporations subject to the pr…

For the purpose of implementing A.R.S. §§ 20-442, 20-443, 20-826, 20-1111 and 20-1113 and to make more specific the regulation therein provided relative to policies of individual disability insurance (accident and sickness, hospitalization, medical, surgical and loss of time) iss…

A. General provisions 1. Effective date a. On and after, the effective date of this Section, all bail transactions shall be conducted, directly or indirectly in full conformity with this Section. b. No surety insurer shall furnish for use and no bail bond agent shall use any form…

A. Applicability. This rule applies to risks and coverages which may be classified or identified as Marine, Inland Marine or Transportation insurance but shall not be construed to mean that the kinds of risks and coverages are solely Marine, Inland Marine or Transportation insura…

The definitions in A.R.S. § 20-1603 and this Section apply to R20-6-604 through R20-6-604.10. 1. “Actual loss ratio” means incurred claims divided by earned premiums at rates in use. 2. “Actuarially equivalent” means of equal actuarial present value determined as of a given date …

A. Creditor Obligations. 1. Multiple plans of insurance. If a creditor makes more than one plan of credit insurance available to debtors, the creditor shall inform each debtor of each plan for which the debtor is eligible and of the premium and charges for each plan. 2. Substitut…

A. An insurer shall comply with all requirements of A.R.S. § 20-1610 regarding premium and insurance charges. B. An insurer may satisfy the reasonableness standard in A.R.S. § 20-1610(B) if the insurer’s premium rate develops a loss ratio of not less than 50% for credit life insu…

A. The Director shall, by order, establish prima facie rates as prescribed in this Section. B. At least once every three years, the Director shall: 1. Determine the rate of expected claims on a statewide basis; 2. Compare the rate of expected claims with the rate of actual claims…

A. Under the process prescribed in R20-6-604.03, the Director shall issue an order establishing prima facie rates for credit life insurance. B. The Department shall presume that an insurer meets the loss ratios prescribed in R20-6-604.02(B) if the insurer uses the prima facie rat…

A. Under the process prescribed in R20-6-604.03, the Director shall issue an order establishing prima facie rates for credit disability insurance. B. The Department shall presume that an insurer meets the loss ratios prescribed in R20-6-604.02(B) if the insurer uses the prima fac…

A. When refunding premiums as prescribed in A.R.S. § 20-1611, an insurer shall use the following methods: 1. For insurance paid by a single premium, the Rule of Anticipation method; and 2. For insurance paid by other than a single premium, a method that refunds at least the pro r…

A. By April 1 of each year, an insurer that transacts credit insurance in this state shall file with the Director an experience report, on a form specified by the Director, for each class of business that the insurer transacts as provided in this Section. 1. In this Section, a “c…

A. Use of rates greater than prima facie rates. An insurer may file for approval and use of any deviated rates that are higher than the prima facie rates referred to in R20-6-604.04 and R20-6-604.05 as prescribed in A.R.S. § 20-1610. 1. The deviated rates shall meet the minimum l…

A. At least once every three years, an insurer transacting credit insurance in Arizona shall review the credit insurance operations of each creditor with whom the insurer does business to ensure that each creditor is complying with applicable credit insurance laws. The insurer sh…

A. The practices listed in this Section are deemed unfair trade practices under A.R.S. § 20-442. An insurer that commits any of the following practices is subject to penalties as prescribed in A.R.S. § 20-456: 1. Offering or providing a creditor with any special advantage or any …

Historical Note Former General Rule 72-26. Repealed effective December 4, 1986 (Supp. 86-6). Adopted as an emergency effective January 9, 1990, pursuant to A.R.S. § 41-1026 valid for only 90 days; re-adopted as an emergency with changes effective March 26, 1990, pursuant to A.R.S…

A. Applicability. This rule shall apply to individual disability insurance (as defined in A.R.S. § 20-253) policy forms and rates. B. When rate filing is required. Every individual policy form, rider or endorsement form affecting benefits which is submitted for approval shall be …

Historical Note Former General Rule 56-2. R20-6-702 recodified from R4-14-702 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2). AUTHORITY: A.R.S. § 41-1056

Historical Note Former General Rule 61-6. R20-6-703 recodified from R4-14-703 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2). AUTHORITY: A.R.S. § 41-1056

Historical Note Former General Rule 6-19. R20-6-704 recodified from R4-14-704 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2). AUTHORITY: A.R.S. § 41-1056

Historical Note Former General Rule 66-13. R20-6-705 recodified from R4-14-705 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2). AUTHORITY: A.R.S. § 41-1056

Historical Note Former General Rule 69-15; Repealed effective February 22, 1977 (Supp. 77-1). New Section R4-14-706 adopted effective November 5, 1980 (Supp. 80-5). R20-6-706 recodified from R4-14-706 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effec…

Historical Note Former General Rule 69-18; Amended effective March 17, 1981 (Supp. 81-2). R20-6-707 recodified from R4-14-707 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2). AUTHORITY: A.R.S. § 41-1056

A. Definitions. The definitions in A.R.S. § 41-1072 and the following definitions apply to this Article. 1. “Department” means the Insurance Division of the Department of Insurance and Financial Institutions. 2. “License” has the meaning prescribed in A.R.S. § 41-1001(13). B. The…

A. Applicability. This rule applies to all persons and to all insurance policies, insurance contracts and subscription contracts except policies of Worker’s Compensation and title insurance. This rule is not exclusive, and other acts not herein specified, may also be deemed to be…