Title 20 — Insurance

Any service company contract issued in violation of this article is an enforceable and valid contract unless invalidated for other reasons.

A. Each service company holding a service company permit shall submit all service contract forms to the director for approval at least thirty days before the proposed effective date of the form. A form may not be used until it is approved by the director or has been on file with …

A. A person who sells an unapproved service contract is guilty of a class 2 misdemeanor. B. A service contract is not invalid solely by reason of not being approved as required by this article.

The director may refuse to renew or may revoke or suspend any permit issued to a service company pursuant to this article if, after notice and a hearing, the director finds any of the following: 1. Any judgment in favor of a contract holder or his heir or assignees has become fin…

A. The director may order any service company, its agents, officials and representatives, a motor vehicle dealer or an administrator to cease and desist from engaging in any unfair trade practices if upon notice and a hearing it is determined that the person has engaged in such p…

A. This article applies to any home warranty or home protection contract, and to service contracts covering motor vehicles. B. This article does not alter or diminish any right, privilege or authority granted to any insurer under any section of this title. C. All service companie…

In this article, unless the context otherwise requires: 1. "Consumer" means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the…

A. Five or more individuals who are eighteen years of age or older may incorporate as a mechanical reimbursement reinsurer. Not less than two-thirds of the incorporators shall be citizens of the United States residing in this state. B. In addition to the requirements of title 10,…

To qualify for its initial authority to transact business and to qualify for renewal of its authority to transact business, a mechanical reimbursement reinsurer is required to possess and thereafter maintain minimum required capital stock in an amount of one hundred thousand doll…

A mechanical reimbursement reinsurer is required to have upon organization initial surplus in an amount not less than one-half of its minimum required capital stock and shall thereafter maintain one-half of the initial surplus.

The director shall not issue a certificate of authority to a mechanical reimbursement reinsurer unless all of the following conditions are met: 1. The applicant is a corporation incorporated under the laws of this state. 2. The applicant furnishes such proof as necessary to the d…

A. No later than April 1 of each year, a mechanical reimbursement reinsurer shall submit to the director a report written in a form designated by the director and signed by the president and secretary of the reinsurer that clearly indicates the method being used to determine poli…

A. To assure faithful performance of its reinsurance obligations each mechanical reimbursement reinsurer shall, prior to the issuance of a certificate of authority, file with or for the benefit of the director cash or alternatives to cash which at all times have a value of at lea…

Each mechanical reimbursement reinsurer shall maintain policy and loss reserves in those amounts as the director deems sufficient.

The director may refuse to renew or may revoke or suspend any certificate of authority issued to a mechanical reimbursement reinsurer pursuant to this article if, after notice and a hearing, the director finds any of the following: 1. In the opinion of the director the policy and…

If a hearing is held pursuant to the provisions of this title, and if the director determines that the provisions of this article have been violated, the director shall, in addition to the authority to revoke or suspend a certificate of authority, issue an order requiring the per…

The director may adopt those rules as are necessary to implement the provisions of this article.

A. This article does not alter or diminish any right, privilege or authority granted to any insurer under any section of this title. B. All mechanical reimbursement reinsurers operating pursuant to a certificate of authority as required by this article are exempt from the applica…

In this article, unless the context otherwise requires: 1. "Administrative fee" means a fixed amount paid by a corporation on a periodic basis to a contracted attorney for the contracted attorney's overhead and administrative costs. 2. Pay or reimburse for specific legal services…

This article does not apply to: 1. Any lawyer referral services authorized by the state bar of Arizona. 2. Retainer contracts made by attorneys-at-law with individual or group clients with fees based on estimates of the nature and the amount of the legal services to be provided. …

A. No person may enter into any contract with any other person in which the contract purports to extend certain prepaid legal insurance without the person having first obtained a certificate of authority from the director. B. An applicant shall file with the department an applica…

A. A prepaid legal insurance corporation shall maintain on deposit with the state treasurer through the director's office a surety bond, guaranteeing services under its contracts, or cash or securities eligible for investment of capital funds in the amount required by section 20-…

A. A corporation may not issue a contract or certificate of prepaid legal insurance in this state unless a copy of the form has been filed with and approved by the department. B. A corporation may write prepaid legal insurance contracts as individual, group, payroll deduction, bl…

Rates shall not be considered unfairly discriminatory when they are averaged broadly among persons covered under group, blanket or franchise contracts. Rates for legal insurance shall be established consistent with the requirements of title 20, chapter 2, article 4.1.

A corporation may contract with any company licensed to transact insurance in this state or any corporation organized pursuant to this title, under which contracts such company agrees, for consideration consisting of a specified premium, to assume the monetary obligations of the …

A. Any prepaid legal insurance corporation licensed pursuant to this article shall pay those fees prescribed by section 20-167 and those taxes prescribed by section 20-224. B. A prepaid legal insurance corporation may claim a premium tax credit if the corporation qualifies for a …

The director may require that any advertising or sales material for use in the sale or the presentation for sale of any legal insurance contract be approved by him. Ten days after written demand from the director, the corporation shall provide the advertising or sales material to…

A. Notwithstanding section 20-1097.13, subsection C, if after a hearing the director finds that an insurance producer or salesperson of a corporation authorized to sell prepaid legal insurance contracts has made wilful misrepresentations, the director may impose a civil penalty o…

The director shall not authorize an applicant to sell prepaid legal insurance contracts within this state unless the applicant: 1. Possesses and thereafter maintains unimpaired capital of at least six hundred thousand dollars, except that an applicant to sell prepaid legal insura…

A. The assets of a prepaid legal insurance corporation shall be reported at values determined pursuant to sections 20-511 through 20-515. If the director deems it necessary to value any real estate, he may employ one or more appraisers for that purpose, and the reasonable expense…

Any corporation licensed pursuant to this article shall file an annual statement and information and shall be subject to the same administrative action and civil and criminal penalties as prescribed by sections 20-223 and 20-233.

A. The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes: 1. Material misstatement, misrepresentation or fraud in registration. 2. Any wilful attempt t…

In this article, unless the context otherwise requires: 1. "Affiliate" has the same meaning prescribed in section 20-481. 2. "Agency captive insurer" means a captive insurer that is owned by one or more business entities that are licensed in any state as insurance producers or ma…

A. If allowed by its articles of incorporation, bylaws or other organizational document, an applicant may apply to the director for a license to transact captive insurance, except that: 1. A pure captive insurer shall not insure risks other than the risks of its affiliates and co…

A. A captive insurer shall not adopt a name that is the same, deceptively similar to or likely to be confused with or mistaken for any other existing business name registered in this state. B. The name of a captive insurer that is a mutual company shall contain the word "mutual".…

A. The director shall not issue a license to a captive insurer unless the insurer possesses and thereafter maintains minimum unimpaired paid-in capital and surplus in combination as follows: 1. In the case of a pure captive insurer, at least $250,000. 2. In the case of a group ca…

A. An agency captive insurer or protected cell captive insurer shall be incorporated as a stock insurer with its capital divided into shares and held by the stockholders. Each owner of an agency captive insurer shall be licensed as an insurance producer. B. A group captive insure…

A. One or more sponsors may form a protected cell captive insurer as prescribed in this article. B. A protected cell captive insurer may establish and maintain one or more protected cells to insure the risks of one or more participants, subject to the following conditions: 1. A p…

A. A risk retention group shall not be either a sponsor or a participant in a protected cell captive insurer. B. An association, corporation, limited liability company, partnership, trust or any other business entity may be a participant in any protected cell captive insurer form…

A. Not later than ninety days after the end of the captive insurer's fiscal year, the captive insurer shall submit to the director a report of its financial condition that is verified by oath of two of its executive officers and that is supplemented by additional information as r…

A. Whenever the director determines it to be prudent, the director may examine the business, transactions and affairs of each captive insurer to ascertain the captive insurer's financial condition and ability to fulfill its obligations and whether the captive insurer has complied…

The director may suspend, revoke or refuse to renew the license of a captive insurer to transact insurance business in this state for any of the following reasons: 1. Insolvency or impairment of capital and surplus. 2. Refusal or failure to submit an annual report as prescribed i…

A. A group captive insurer, an agency captive insurer and a protected cell captive insurer shall comply with the investment requirements prescribed in chapter 3, article 2 of this title. Notwithstanding any other provision of this title, the director may approve the use of altern…

A. Except as provided in subsection C of this section or otherwise with the approval of the director, a captive insurer may reinsure risks only pursuant to the limitations prescribed in section 20-1098.01, subsection A. B. A captive insurer may take credit for reserves on risks o…

A captive insurer is not required to join a rating organization.

Except as otherwise provided in section 20-1098.01, subsection B for a self-insurance program approved under section 23-961, a captive insurer shall not join or contribute financially to any plan, pool, association or guaranty or insolvency fund in this state. A captive insurer o…

The director may adopt rules pursuant to title 41, chapter 6 to carry out this article.

A. Chapter 2, article 6 of this title relating to unfair trade practices and frauds applies to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of chapter 2, article 6 of this title inappropriate. B. All …

A captive insurer shall engage a manager who shall maintain the books and records of the captive insurer’s business, transactions and affairs at a location that is in this state and that is accessible to the director. The captive manager shall promptly notify the director of any …

A. The fees paid by a captive insurer pursuant to section 20-167, subsection F are payment in full and in lieu of all other demands for all state, county, district, municipal and school taxes, licenses and excises of whatever kind or character, except for: 1. A tax on real and ta…