20-1097. Definitions 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 does not include payment of an administrative fee only. […]
20-1097.01. Exceptions 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. 3. The furnishing of legal assistance […]
20-1097.02. Certificate of authority; requirements; issuance 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 application for a certificate […]
20-1097.03. Deposit required 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 20-213. B. The deposit prescribed by subsection A of this […]
20-1097.04. Prepaid legal insurance contract provisions 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, blanket or franchise […]
20-1097.05. Prepaid legal insurance contracts; rates 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.
20-1097.06. Contracts for underwriting 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 prepaid legal insurance contracts issued by the corporation upon […]
20-1097.07. Fees and taxes 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 credit pursuant to section 20-224.03.
20-1097.08. Advertising and solicitation of legal services 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 the […]
20-1097.09. Liability of corporation; civil penalty 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 on the prepaid legal insurance corporation of not more […]
20-1097.10. Capital, surplus and reserve requirements 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 insurance contracts that only provide legal services plans […]
20-1097.11. Assets; valuation; reporting 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 thereof and shall be borne […]
20-1097.12. Annual statement and information; penalty 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.
20-1097.13. Suspension or revocation of authorization or registration; appeal; civil penalty; rules 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 […]
