20-401. Definitions In this article, unless the context otherwise requires: 1. " Affiliated" means, with respect to an insured, any entity that controls, is controlled by or is under common control with the insured. For the purposes of this paragraph, " control" means either: (a) Directly or indirectly acting through one or more other persons […]
20-401.01. Unlawful transaction of insurance business; exemptions A. It is unlawful for any insurer to transact insurance business, as provided by section 20-106, in this state without a certificate of authority from the director. B. The provisions of subsection A of this section do not apply to: 1. The lawful transaction of surplus lines insurance. […]
20-401.02. Violation; cease and desist orders; injunctive relief A. If the director has cause to believe that any insurer is violating or about to violate section 20-401.01, the director may order the insurer to cease and desist and, through the attorney general, may cause a complaint to be filed in the superior court in Maricopa […]
20-401.03. Service of process in an action by the director 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 corporation, of […]
20-401.04. Action by attorney general to enforce order or decision of court or director; foreign decrees 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 […]
20-401.05. Certificate of exemption; definitions 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 benefits, under the laws of its domicile that: 1. Is […]
20-401.06. Unauthorized transactions; classification Any unauthorized insurer who knowingly transacts any unauthorized act of an insurance business is guilty of a class 5 felony.
20-401.07. Premium receipts tax on industrial insureds contracting with unauthorized insurer; definitions 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 […]
20-402. Validity of contracts 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 […]
20-403. Service of process in an action by someone other than the director 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 […]
20-404. Exemptions 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 contract contains a provision designating […]
20-405. Prerequisites for participating in court action 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 file […]
20-406. Attorneys’ fees in action against insurer 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 […]
20-407. Surplus lines; brokers 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 article as the " broker" […]
20-407.01. Designation as a domestic surplus lines insurer; requirements; scope of business activity permitted 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 […]
20-408. Report of broker; civil penalty 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 requirements of […]
20-409. Recognized surplus lines 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 further order. B. The order is […]
20-410. Validity of surplus lines insurance; disclosure; policy fees 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 […]
20-411. Licensing of surplus lines broker; examination 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 […]
20-411.01. Licensing of Mexican insurance surplus lines broker 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 competent and the insurance […]
