20-661. Definitions In this article, unless the context otherwise requires: 1. " Account" means any one of the three accounts within the Arizona property and casualty insurance guaranty fund. 2. " Board" means the guaranty fund board. 3. " Covered claim" means an unpaid claim, including one for unearned premium, which arises out of and […]
20-662. Arizona property and casualty insurance guaranty fund A. The Arizona property and casualty insurance guaranty fund is established within the department. The fund shall be deposited in a depository designated by the director and shall exercise its powers through a board established pursuant to section 20-663. B. For the purpose of assessment, the fund […]
20-663. Guaranty fund board; composition; compensation A. The guaranty fund board is established within the department of insurance and financial institutions consisting of eleven members who are appointed by the governor. Membership on the board shall be for a term of three years. B. The members of the board shall be appointed from a list […]
20-664. Powers and duties of the board A. The board shall: 1. Investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the fund’s obligation and deny all other claims. In regard to workers’ compensation claims, the board shall adjust, compromise, settle and pay compensable claims, and […]
20-665. Plan of operation A. The board shall submit to the director a fund plan of operation and any amendments necessary or suitable to assure the fair, reasonable and equitable administration of the fund. The plan of operation and any amendments shall become effective upon approval in writing by the director. B. If the board […]
20-666. Assessments; notification; exemptions; setoffs; refunds A. The board shall assess each member insurer, as a condition of such insurer’s authority to transact insurance in this state, in such amounts as are necessary to pay the obligations of the fund pursuant to section 20-667 subsequent to an insolvency, the expenses of handling covered claims subsequent […]
20-667. Obligations of the fund A. The fund is obligated solely to the extent of the covered claims existing during any of the following periods: 1. Before the determination of insolvency and arising within thirty days after the determination of insolvency. 2. Before the policy expiration date if less than thirty days after the determination […]
20-668. Powers and duties of the director A. The director shall: 1. Report to the board when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board may be insolvent or in a financial condition hazardous to the policyholders or to the public. 2. […]
20-669. Examination of member insurer; costs; release of report A. Within thirty days of receipt by the director of a request from the board to examine any member insurer, the director shall begin such examination. The director may conduct the examination in any manner deemed appropriate. B. The cost of such examination shall be paid […]
20-670. Meetings; information; subpoena power; confidentiality A. Upon receipt of notification from the board that a member insurer may be unable to fulfill its contractual obligations, the director shall meet with the board. B. At such meeting, the director may divulge to the board any information in his possession and any records of his office, […]
20-671. Special meetings closed Notwithstanding any law to the contrary, special meetings of the board in which the financial condition of any member insurer is discussed shall not be open to the public and only members of the board, the director of the department of insurance and financial institutions and other persons specifically authorized by […]
20-672. Effect of paid claims A. Any person recovering pursuant to this article shall be deemed to have assigned his or her rights under the policy to the fund to the extent of his or her recovery from the fund. Every insured or claimant seeking the protection of this article shall cooperate with the fund […]
20-673. Nonduplication of recovery; exhausting all other applicable coverages; rights of fund and member insurer; definition A. Any person having a claim against an insurer under any provision in an insurance policy that is also a covered claim shall be required to exhaust first all rights under that policy. Any amount payable on a covered […]
20-674. Premium tax offset A. The fund shall issue to each insurer paying an assessment pursuant to this article a certificate of contribution, in a form prescribed by the director for the amount paid. All outstanding certificates shall be of equal priority without reference to amounts or dates of issue. B. Except for premium taxes […]
20-675. Immunity and indemnification A. There shall be no liability on the part of, and no cause of action shall rise against, the fund, any member insurer, the board or its agents or employees, the director or representatives of the director for any action taken in the performance of their powers and duties pursuant to […]
20-676. Stay of proceedings A. All proceedings in which the insolvent insurer or the insolvent insurer’s insured is a party in any court of this state shall be stayed for six months from the date the insolvency is determined or an ancillary proceeding is instituted in this state, whichever is later, to permit proper defense […]
20-677. Interest All interest earned on monies held and invested by the fund shall be credited to the account from which the funds were obtained. Investments by the board shall be restricted to those investments which are permitted by insurers for statutory deposits pursuant to section 20-583.
20-678. Examination of the fund; annual report The fund is subject to examination by the director. The fund shall annually report its financial condition for the preceding year to the legislature, member insurers and the director. At the conclusion of the fund’s handling of each insolvency, an audit of the financial transactions relating to such […]
20-679. Limitations on filing of creditor’s claims A. Notwithstanding any other provision of this article, a covered claim shall not include a claim filed with the fund after the earlier of: 1. Eighteen months after the date of the order of liquidation. 2. The final date set by the court for the filing of claims […]
20-680. Exempt types of insurance A. This article applies to all kinds of insurance except: 1. Life. 2. Title. 3. Surety. 4. Disability. 5. Credit. 6. Mortgage guarantee. 7. Ocean marine insurance. 8. Insurance of warranties or service contracts, including insurance that provides for the repair, replacement or service of goods or property, or indemnification […]
