Title 20 — Insurance

The director may suspend the license of any rating organization or the certificate of authority of any insurer which fails to comply with an order of the director made pursuant to this article within the time limited by the order, or any extension thereof which may be granted by …

A. Every title insurer that shall make its own rates, and every title insurance rating organization, shall make rates that are not excessive nor inadequate for the safety and soundness of any title insurer, that do not unfairly discriminate between risks in this state which invol…

A. Every title insurer shall file with the director its schedules of fees, every manual of classifications, rules and plans pertaining thereto, and every modification of any of the foregoing that it proposes to use concerning its title insurance forms and products in this state. …

A. A title insurance filing shall be accompanied by a statement of the title insurer, title insurance agent, or title insurance rating organization making the filing, setting forth the basis upon which the rate was fixed, and the manner in which fees are to be computed. Any filin…

A. Before issuing an order of disapproval of a title insurance filing, the director shall hold a hearing upon not less than ten days' written notice, specifying in reasonable detail the matters to be considered at such hearing. Such notice shall be sent to every title insurer, ti…

A. No title insurer or title insurance agent may deviate from its rates that are in effect for the title insurer or title insurance agent pursuant to section 20-376. B. If the director finds that a title insurer or title insurance agent has charged rates that deviate from its rat…

In this article, unless the context otherwise requires: 1. "Advisory organization": (a) Means any person other than a single insurer who assists two or more insurers or rate service organizations in the making of rates by compiling and furnishing loss or expense statistics or oth…

A. This article applies to all insurance on risks or on operations in this state, except: 1. Reinsurance, other than joint reinsurance to the extent stated in section 20-391. 2. Any policy of insurance against loss or damage to or legal liability in connection with property locat…

A. An insurer shall not charge rates that are excessive, inadequate or unfairly discriminatory. An insurer shall not charge any rate which if continued will have or tend to have the effect of destroying competition or establishing a monopoly. B. Rates are excessive if they are li…

A. In setting rates, an insurer shall apply the criteria prescribed in this section. B. An insurer shall give due consideration to past and prospective loss and expense experience within and outside this state, to catastrophe hazards, to a reasonable margin for underwriting profi…

A. Except as to marine, inland marine and transportation risks, which by general custom of the business are not written according to manual rates and rating plans, and except as provided in subsection F of this section or section 20-400.10, every authorized insurer and every rate…

The director shall open to public inspection at any reasonable time each filing and supporting information filed pursuant to this article except information in a filing or supporting information that is a trade secret under title 44, chapter 4, article 1. The insurer or filer sha…

A. An insurer may establish rates and supplementary rate information based on the factors in section 20-384 using, if desired, the recommendations of an advisory organization, or rates and supplementary rate information prepared by a rate service organization, with average expens…

If the director finds that a rate is not in compliance with section 20-383, the director shall issue an order specifying in what respects it so fails and stating that, within thirty days after the order is issued, the rate is no longer effective. The order does not affect any con…

A. A rate service organization shall not provide any service relating to the rates of any insurance subject to this article nor may any insurer utilize the service of such organization for such purposes unless the organization has obtained a license from the director. B. No rate …

A. An advisory organization shall not conduct its operations in this state until it files with the director: 1. A copy of its constitution, charter, articles of organization, agreement, association or incorporation and a copy of its bylaws and any other rules or regulations gover…

A. Every group, association or other organization of insurers which engages in joint underwriting or joint reinsurance through such group, association or organization or by standing agreement among the members shall file with the director: 1. A copy of its constitution, articles …

A. Except with respect to apportionment agreements among insurers approved by the director pursuant to section 20-395, an insurer shall not assume any obligation to any person, other than a policyholder or other insurers which, with it, are under common control or management or a…

The director shall promulgate reasonable rules, including rules providing statistical plans, for use by all insurers in the recording and reporting of loss and expense experience, in order that the experience of such insurers may be made available to the director. No insurer may …

The director, as often as considered necessary, may examine each rate service organization, each advisory organization and each group, association or other organization filing pursuant to section 20-391. The director shall examine only those activities conducted pursuant to this …

Insurers may make agreements among themselves with respect to equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods, and such insurers may agree amon…

Any insurer, rate service organization or advisory organization to which the director has issued an order or decision may request a hearing pursuant to title 41, chapter 6, article 10 and, except as provided in section 41-1092.08, subsection H, seek judicial review pursuant to ti…

A. If the director finds that a person or organization has violated this article or any order of the director issued pursuant to this article after the effective date of such order, the director may, after a hearing, impose a civil penalty of not more than fifty dollars for each …

A. Except for fidelity, surety or guaranty bonds or industrial insurance as provided in section 20-400.10, except for any portion of a property insurance policy that contains wildfire protection services, and except as to inland marine risks that by general custom of the business…

This article does not prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. A plan for the payment of dividends, savings or unabsorbed premium deposits allowed or retur…

A. This article applies to all insurers having a certificate of authority issued by the director to transact insurance in this state except: 1. Reinsurance. 2. Annuities. 3. Title insurance. 4. Mortgage guaranty insurance. 5. Disability or life insurance. 6. Risks subject to sect…

A. No insurer may issue a policy of insurance subject to this article with a premium developed in a manner which is not consistent with a filing made pursuant to sections 20-357 and 20-385. B. No insurer may make any adjustment to the full manual premium developed for any risk wi…

On the request of the director, each insurer authorized to write any insurance in this state to which this article applies shall submit data to the director establishing the relationship of the aggregate premiums actually charged policyholders by the insurer for each line of insu…

If the director finds after a hearing that the insurer has knowingly, or with such frequency as to indicate a general business practice, violated the provisions of section 20-400.01 with respect to a particular class or that an insurer examined under section 20-400.02 has not com…

The director may examine each insurer authorized to write any insurance to which this article applies to determine whether such insurer has complied with sections 20-400.01 and 20-400.02.

A. The director shall utilize independent contractor examiners pursuant to section 20-148, subsection B and section 20-159 to perform the examinations required under sections 20-400.01 and 20-400.02. B. All examination and examination related expenses shall be borne by the insure…

The director shall make a full written report of each examination under this article in accordance with section 20-158.

The director may promulgate rules necessary to implement the provisions of this article.

A. An industrial insured as defined in section 20-401.07 may purchase and an admitted insurer may sell to an industrial insured a policy of insurance that is subject to article 4.1 of this chapter and that is on a form that has not been filed for review or approval by the directo…

In this article, unless the context otherwise requires: 1. "Affiliated" means, with respect to an insured, any entity that controls, is controlled by or is under common control with the insured. For the purposes of this paragraph, "control" means either: (a) Directly or indirectl…

A. It is unlawful for any insurer to transact insurance business, as provided by section 20-106, in this state without a certificate of authority from the director. B. The provisions of subsection A of this section do not apply to: 1. The lawful transaction of surplus lines insur…

A. If the director has cause to believe that any insurer is violating or about to violate section 20-401.01, the director may order the insurer to cease and desist and, through the attorney general, may cause a complaint to be filed in the superior court in Maricopa county to enj…

A. Any act of transacting an insurance business in violation of section 20-401.01 by any unauthorized insurer is equivalent to and constitutes an irrevocable appointment by such insurer, binding on the insurer, the insurer's executor or administrator, or successor in interest if …

A. The attorney general, on request of the director, may proceed in the courts of this state or any reciprocal state to enforce an order or decision in any court proceeding or any administrative proceeding before the director or any foreign decree. B. The director shall determine…

A. On July 1 of each year, the director shall grant a certificate of exemption to any insurer, employee benefit trust or voluntary employees' beneficiary association transacting life insurance, disability insurance or annuity business, or providing other health or welfare benefit…

Any unauthorized insurer who knowingly transacts any unauthorized act of an insurance business is guilty of a class 5 felony.

A. Every industrial insured under a contract procured from an unauthorized insurer shall pay to the director for coverage on Arizona single-state risks or to the clearinghouse for coverage on multistate risks on or before the dates prescribed by in section 20-415 a premium receip…

A. The transaction of business in violation of section 20-401.01 by an insurer does not impair the validity of any act or contract of the insurer and does not prevent the insurer from defending any action at law or suit in equity in any court of this state, except that no insurer…

A. The transaction of an insurance business in this state, as provided in section 20-106, by, or on behalf of, an unauthorized nonresident insurer shall be deemed to constitute an appointment by the insurer of the director and the director's successors in office as its attorney, …

Sections 20-403, 20-405 and 20-406 shall not apply to such transactions as are prescribed in section 20-401.01, paragraphs 1, 2, 3, 4, 5, 7 and 8, nor to any action or proceeding against an unauthorized insurer arising out of the following types of insurance where the policy or c…

Before an unauthorized insurer may initiate any action or proceeding in this state, the insurer shall procure a certificate of authority to transact insurance in this state, or deposit with the clerk of the court in which the action or proceeding is pending cash or securities, or…

In any action against an unauthorized insurer pursuant to section 20-403, if the insurer has failed for thirty days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract of insurance, and it appears to the court that the…

A. Any portion or all of an insurance coverage designated in this article as "surplus lines" may be procured from unauthorized insurers subject to the following conditions: 1. The insurance is procured through a surplus lines broker licensed in this state, referred to in this art…

A. Notwithstanding any other law, a domestic insurer possessing minimum capital and surplus of at least fifteen million dollars, pursuant to a resolution by its board of directors and on the written approval of the director, may be designated as a domestic surplus lines insurer. …

A. A broker procuring surplus lines insurance on behalf of an insured whose home state is Arizona shall file with the director on or before the date specified in section 20-415, subsection B a verified report setting forth facts from which it may be determined whether the require…