Title 20, Insurance

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…

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…

In this article, unless the context otherwise requires: 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…

A. This article applies to all group and individual life insurance policies and certificates except: 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 ex…

A. Each insurer that markets policies shall notify the director whether a policy form will be marketed with or without an illustration. For all policy forms that are actively marketed on January 1, 2026, the insurer shall identify those policy forms and whether an illustration wi…

A. An illustration that is used in the sale of a life insurance policy shall be clearly labeled life insurance illustration and shall contain all of the following: 1. The name of the insurer that issued the policy. 2. The name and business address of the producer or the insurer's…

A. The format of a basic illustration shall conform with the following requirements: 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 s…

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…