Title 20 — Insurance

A. If after a hearing the director finds that a particular insurance coverage or type, class or kind of coverage is not readily procurable from authorized insurers, the director may by order declare such coverage or coverages to be recognized surplus lines until the director's fu…

A. Insurance contracts procured as surplus lines coverage are fully valid and enforceable as to all parties and shall be recognized in all matters in the same manner as like contracts issued by authorized insurers. B. Any policy and any evidence of surplus lines coverage that are…

A. A person shall not act as a surplus lines broker in this state on behalf of an insured whose home state is Arizona unless the person has a current surplus lines broker license issued by the director. B. Any individual who is a resident of this state and who is licensed as a re…

A. Any resident or nonresident licensed insurance producer that maintains an office in this state may be licensed as a Mexican insurance surplus lines broker to transact insurance business as prescribed in section 20-422 if the director determines that the insurance producer is c…

A. The director shall license a nonresident person as a surplus lines broker in accordance with section 20-287. B. Except as otherwise provided, a nonresident surplus lines broker is subject to this title as if the broker were licensed as a resident. C. A license from this state …

A licensed surplus lines broker may accept or place surplus lines business from any insurance producer licensed in this state for the kind of insurance involved and may compensate the insurance producer therefor. The broker shall have the right to receive from the insurer the cus…

A. A surplus lines broker shall not knowingly place any surplus lines coverage on behalf of an insured whose home state is Arizona with an unauthorized insurer, Lloyd's association, insurance exchange or syndicate of an insurance exchange that does not meet the minimum financial …

Each surplus lines broker shall keep in the broker's principal place of business a full and true record of each surplus lines contract procured by the broker under the license issued pursuant to this article. The director may examine the record at any time within three years afte…

A. Each surplus lines broker shall file with the director a statement of all surplus lines insurance business covering Arizona risks transacted by the broker during the period for which the statement is being filed. The statement shall be on a form prescribed by the director and …

A. On or before the due date prescribed in section 20-415, each surplus lines broker shall remit to the state treasurer through the director a tax on the premiums, exclusive of sums collected to cover federal and state taxes, examination fees and stamping fees collected pursuant …

A. In accordance with the nonadmitted and reinsurance reform act of 2010, the director may enter into a compact or multistate agreement to provide for the reporting, payment, collection and allocation of taxes imposed pursuant to sections 20-401.07 and 20-416 on surplus lines ins…

A. If any surplus lines broker fails to remit the surplus lines tax provided for by section 20-416, the broker is liable for a civil penalty of not more than $25 for each additional day of delinquency. The director may collect the tax by distraint and may recover the civil penalt…

A. The director may deny or suspend for not more than twelve months, revoke or refuse to renew any surplus lines broker's license and, in addition or in lieu thereof, may levy a civil penalty and order restitution to any injured party: 1. If the broker fails to comply with any re…

A. Every unauthorized nonresident insurer issuing or delivering a surplus lines policy through a surplus lines broker in this state is conclusively deemed to have irrevocably appointed the director as its agent for acceptance of service of all legal process issued in this state i…

A. The sections of this article relating to surplus lines coverages do not apply to reinsurance or to the following classes of insurance placed by licensed insurance producers of this state: 1. Ocean marine and foreign trade insurance. 2. Insurance on subjects that are located, r…

Upon the director's request any person in this state who is the insured under any policy issued by an unauthorized insurer upon a subject of insurance resident, located or to be performed in this state at the time the policy was issued, shall produce for examination all policies …

A. A person shall not solicit or accept applications in this state for insurance or collect a commission on a policy that is to be effective in Mexico and only outside the geographical limits of this state and that is to be issued by an alien insurer or insurers not authorized to…

A. A voluntary domestic organization of surplus lines brokers that contracts with the director pursuant to section 20-167, subsection E shall be incorporated in this state as a nonprofit corporation. A surplus lines broker who is licensed and in good standing in this state may be…

1. "Actuarial standards board" means the board that is established by the American academy of actuaries to develop and adopt standards of actuarial practice. 2. "Basic illustration" means a ledger or proposal that is used in the sale of a life insurance policy and that shows both…

1. Variable life insurance. 2. Individual and group annuity contracts. 3. Credit life insurance. 4. Life insurance policies with no illustrated death benefits on any individual exceeding $10,000. B. If an insurer markets a policy form with an illustration that is subject to the r…

B. If the insurer identifies a policy form as one to be marketed without an illustration, any use of an illustration for any policy using that form before the first policy anniversary is prohibited. C. If the insurer identifies a policy form as one to be marketed with an illustra…

1. The name of the insurer that issued the policy. 2. The name and business address of the producer or the insurer's authorized representative, if any. 3. The name, age and sex of the proposed insured, unless a composite illustration is allowed under this article. 4. The underwri…

1. The basic illustration shall be labeled with the date on which the illustration was prepared. 2. Each page, including any explanatory notes or pages, shall be numbered. The page numbers must show the relationship to the total number of pages in the illustration. 3. The assumed…

A. A supplemental illustration may be provided if: 1. The supplemental illustration is appended to, accompanied by or preceded by a basic illustration that complies with this article. 2. The nonguaranteed elements shown are not more favorable to the policyowner than the correspon…

A. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this article, shall be submitt…

A. If a policy is designated as one that will use illustrations, the insurer shall provide each policyowner with an annual report on the status of the policy as follows: 1. For universal life policies, the annual report shall include: (a) The beginning date and end date of the cu…

A. The board of directors of each insurer shall appoint one or more illustration actuaries. B. The illustration actuary shall certify that the disciplined current scale that is used in illustrations conforms with the actuarial standard of practice for compliance with the national…

In addition to any other penalties provided by law, an insurer or producer that violates this article commits an unfair trade practice in violation of section 20-442.

A. Among the purposes of this article is the regulation of trade practices in the business of insurance in accordance with the intent of Congress as expressed in the act of Congress of March 9, 1945, 59 Stat. 33, by defining, or providing for the determination of, all such practi…

No person shall engage in this state in any trade practice which is prohibited by this article, or defined in this article as, or determined pursuant to this article to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.

A. A person shall not make, issue or circulate, or cause to be made, issued or circulated, any estimate, illustration, circular, sales material or statement: 1. Misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised or the dividends …

A. It is unlawful for a person to knowingly make any misrepresentation as proscribed by section 20-443 in the sale of insurance. B. A person who violates this section is guilty of a class 5 felony.

A. Intentionally practicing or planning to initiate a life insurance policy for the benefit of a person or entity that lacks an insurable interest and that, at the time of policy origination, has no insurable interest in the insured is a violation of section 20-1104. Stranger ori…

A. No person shall make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular,…

No person shall make, publish, disseminate or circulate, directly or indirectly, or aid, abet or encourage the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article, sales material or literature which is false or mali…

No person shall enter into any agreement to commit, or by any concerted action commit, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.

A. No person shall file with any public official, or make, publish, disseminate, circulate or deliver to any person, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or delivered to any person, or placed before the publ…

A. A person shall not make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable or in any other of the terms…

A. In this section unless the context otherwise requires: 1. "Confidential HIV-related information" means information concerning whether a person has had an HIV-related test or has HIV infection, HIV-related illness or acquired immune deficiency syndrome and includes information …

A. Except as otherwise specifically authorized or required by this state or by federal law, a person shall not order or require the performance of a genetic test without first receiving the specific written informed consent of the subject of the test who has the capacity to conse…

A. Except as otherwise expressly provided by law, no person shall knowingly permit or offer to make or make any contract of life insurance, life annuity or disability insurance, or agreement as to such contract other than as plainly expressed in the contract issued thereon, or pa…

A. Section 20-448 or 20-449 does not include within the definition of discrimination or rebates any of the following practices: 1. In the case of any contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating policyholders' premiums in whole …

B. An insurer, its employees, insurance producers and representatives may offer or provide products or services that are ancillary or related to any policy of insurance, other than life or disability insurance, that are intended to minimize or prevent claims-related losses or exp…

A. Except as allowed in subsection B of this section and sections 20-453 and 20-454, any insurer, insurance producer or other person, as an inducement to insurance or in connection with any insurance transaction, shall not provide in any policy for or offer, sell, buy or offer or…

No person engaged in the business of financing the purchase of real or personal property or of lending money on the security of real or personal property, and no trustee, director, officer, agent or other employee, or affiliate of, any such person shall require, as a condition pr…

Section 20-452.01 shall not prevent: 1. The exercise by any person engaged in such business of his right to approve or disapprove of the insurer selected to underwrite the insurance, nor of his right to furnish such insurance or to renew any insurance required by the contract of …

In any trial, hearing or proceeding to determine a violation of section 20-452.01, a written statement or authorization signed by the person for whom any purchase is financed, to whom any money is loaned or for whom any extension, renewal or other act in connection with a loan is…

The director may investigate any person, whether licensed or not, for the purpose of determining if there has been any violation of section 20-452.01; however, if such investigation be upon a complaint, the complainant must be party to the contract of sale, trust deed, mortgage, …

Notwithstanding the provisions of section 20-452 and notwithstanding any other provision of law, domestic life insurers, whether of the stock, mutual, fraternal or limited capital stock type, shall not be prohibited from engaging in a program whereby the holders of their life ins…

Notwithstanding the provisions of section 20-452 and notwithstanding any other provision of law, domestic life insurers, whether of the stock, mutual, fraternal or limited capital stock type that on January 1, 1955 are engaged pursuant to the requirements of title 44, chapter 12 …