Title 20 — Insurance

A. The statement to be filed with the director as provided in section 20-481.02 shall be made under oath or affirmation and shall contain the following: 1. The name and address of each person by whom or on whose behalf the tender offer, merger or other acquisition of control refe…

A. If the person required to file the statement referred to in section 20-481.02 is a partnership, limited partnership, syndicate or other group, the director may require that the information required pursuant to section 20-481.03 shall be given with respect to each partner of su…

If any material change occurs in the facts set forth in the statement filed with the director and sent to such insurer pursuant to sections 20-481.02 and 20-481.03, an amendment setting forth such change, together with copies of all documents and other material relevant to such c…

If any offer, request, invitation, agreement or acquisition referred to in section 20-481.02 is proposed to be made by means of a registration statement under the securities act of 1933 or in circumstances requiring the disclosure of similar information under the securities excha…

A. The director shall approve any merger or other acquisition of control described in section 20-481.02 unless the director finds that: 1. The merger or other acquisition of control: (a) Is contrary to law. (b) Is inequitable to the shareholders of any domestic insurer involved. …

Any person who is not a resident, domiciled in this state, or authorized to do business in this state and who files a statement as required by section 20-481.02 shall be deemed to have: 1. Consented to the jurisdiction of the courts of this state for all actions arising under thi…

A. Every insurer that is authorized to do business in this state and that is a member of an insurance holding company system shall register with the director, except a foreign insurer subject to registration requirements and standards adopted by statute or regulation in the juris…

A. Every insurer subject to registration shall file a registration statement on a form provided by the director, which shall contain current information concerning: 1. The capital structure, general financial condition, ownership and management of the insurer and identity of any …

A. No information need be disclosed on the registration statement filed under section 20-481.10 if such information is not material. B. Unless otherwise prescribed by the director, sales, purchases, exchanges, loans or extensions of credit, or investments, involving one-half of o…

A. Transactions within an insurance holding company system to which an insurer subject to registration is a party are subject to the following standards: 1. The terms are fair and reasonable. 2. Agreements for cost sharing or management services and management must include provis…

A. Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on amendment forms provided by the director within fifteen days after the end of each month in which it learns of ea…

The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system.

The director may require or allow two or more affiliated insurers subject to registration to file a consolidated registration statement or consolidated reports amending their consolidated registration statement or their individual registration statements.

The director may allow an insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under section 20-481.09 and to file all information and materi…

The provisions of sections 20-481.09 to 20-481.16, inclusive, relating to registration, shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation or order shall exempt the insurer, information or transaction.

A. Any person may file with the director a disclaimer of affiliation or control with any authorized insurer or such a disclaimer may be filed by such insurer or any member of an insurance holding company system. B. The disclaimer shall fully disclose all material relationships an…

A. No insurer subject to registration under section 20-481.09 shall pay an extraordinary dividend or make any other extraordinary distribution to its shareholders until thirty days after the director has received notice of the declaration thereof and has not within such period di…

A. In addition to the powers that the director has under sections 20-156 to 20-160, inclusive, relating to the examination of insurers, the director shall also have the power to examine any insurer registered under section 20-481.09 and its affiliates to ascertain the financial c…

A. All documents, materials or other information that is in the possession or control of the department and that is obtained by or disclosed to the director or any other person in the course of a filing, an examination or an investigation made pursuant to sections 20-481.03, 20-4…

The director may, upon notice and opportunity for all interested persons to be heard, issue such rules and orders as shall be necessary to carry out the provisions of this article, subject to title 41, chapter 6.

The following acts or omissions shall be deemed to be violations of this article: 1. The intentional failure to file or make any statement, amendment or other material required to be filed pursuant to sections 20-481.02, 20-481.03, 20-481.04 and 20-481.05. 2. The effectuation or …

For purposes of this article, in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors shall be considered: 1. The size of the insurer as meas…

A. Except as provided in subsection B of this section, this section applies to any acquisition in which there is a change in control of an insurer authorized to do business in this state. B. This section does not apply to the following, except as provided under subsections C and …

A. An insurer failing to file without just cause a registration statement required by this article after notice and a hearing shall pay a penalty of two hundred fifty dollars for each day's delay in filing, not to exceed fifty thousand dollars. The director may reduce the penalty…

A. If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under that order has a right to recover on behalf of the insurer from any parent corporation, holding company or person or affiliate that otherwise controlled the insur…

If it appears to the director that a person has committed a violation of this article which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director, after giving notice and an opportunity to be heard, may suspend, revoke …

A. If it appears to the director that an insurer or a director, officer, employee or agent has committed or is about to commit a violation of this article or of a rule adopted or order issued by the director, the director may apply to the superior court in the county in which the…

A. Notwithstanding section 20-166, any person aggrieved by any act, determination, rule, regulation or order or any other action of the director pursuant to this article may appeal to the superior court in Maricopa county. The court shall conduct its review without a jury and by …

A. With respect to any insurer registered under section 20-481.09 and in accordance with subsection C of this section, in order to determine compliance by the insurer with this title, the director may participate in a supervisory college for any domestic insurer that is part of a…

A. Notwithstanding the control of a domestic insurer by any person, the officers and directors of an insurer may not be relieved of any obligation or liability to which they are subject by law and the insurer shall be managed so as to assure its separate operating identity consis…

A. The director may act as the group-wide supervisor for any internationally active insurance group in accordance with this section. However, the director may otherwise acknowledge another regulatory official as the group-wide supervisor where the internationally active insurance…

In this article, unless the context otherwise requires: 1. "Board" means the board of directors of a converting mutual insurer. 2. "Conversion" means a process by which a domestic mutual insurer is converted to a domestic stock insurer as part of a reorganization. 3. "Converted s…

A. On the effective date of a plan of reorganization, all of the following occur: 1. The converting mutual insurer becomes a converted stock insurer. The amended or restated articles of incorporation and bylaws of the converting mutual insurer shall be filed with the director as …

A. A domestic mutual insurer may engage in a conversion as part of a reorganization as a mutual holding company, only if the board passes a resolution that the reorganization is fair and equitable to the policyholders and adopts a plan that meets the requirements of this article.…

A plan of reorganization of a domestic mutual insurer shall include all of the following: 1. A statement of the reasons for the proposed action. 2. A description of how the plan will be carried out, including any transaction included within the plan and a description of any mutua…

A. The director shall review a plan of reorganization that is submitted to the director. On review, the director shall approve the plan if the director finds all of the following: 1. The applicable provisions of this article, and other applicable provisions of law, have been full…

A. A mutual holding company is not an insurer for the purposes of this title, except that sections 20-704, 20-713, 20-713.01, 20-714, 20-716, 20-723, 20-730, 20-733 and 20-735 apply to a mutual holding company as if the mutual holding company were a domestic mutual insurer. B. A …

The concurrent reorganization of a domestic mutual insurer with one or more mutual insurers, domestic or foreign, into a single mutual insurance holding company, whether domestic or foreign, may be accomplished by a joint application and a joint plan of reorganization and may be …

A. A foreign mutual insurer organized under the laws of any other state, that, if a domestic corporation, would be organized under section 20-709, may reorganize by merging its policyholders' membership interests into an existing domestic mutual holding company in accordance with…

A. In this article, unless the context otherwise requires: 1. "Administrator" means any person who collects charges or premiums from or paid on behalf of, or who adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuitie…

A. No person may act as an administrator and no administrator may collect a premium without a written agreement between the person as administrator and the insurer for whom the services are rendered. Such written agreement shall be retained as part of the official records of both…

If an insurer utilizes the services of an administrator under the terms of a written agreement as required in section 20-485.01, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the i…

A. Every administrator shall maintain at the administrator's principal administrative office for the duration of the written agreement required by section 20-485.01 and for five years thereafter adequate books and records of all transactions among the administrator, insurers and …

An administrator may use only such advertising pertaining to the business underwritten by an insurer as has been approved by such insurer in advance of its use.

The agreement required in section 20-485.01 shall make provision with respect to the underwriting or other standards pertaining to the business underwritten by such insurer.

A. All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and return premiums received from such insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the p…

All claims paid by the administrator from funds collected on behalf of the insurer shall be paid only on drafts of and as authorized by such insurer.

Any policies, certificates, booklets, termination notices or other written communications delivered by the insurer to the administrator for delivery to its policyholders shall be delivered by the administrator promptly after receipt of instructions from the insurer to do so.

A. Compensation to an administrator for any policies where such administrator adjusts or settles claims shall not be contingent on claim experience. This subsection does not prevent the compensation of an administrator from being based on premiums or charges collected or number o…

Every administrator shall possess and maintain a deposit in favor of this state to be held in trust for the benefit and protection of insureds and insurers whose monies the administrator handles consisting of cash, securities eligible for investment pursuant to chapter 3, article…