Unauthorized Insurers, Surplus Lines and Producer Licensing, first half

What this document is

Arizona Revised Statutes Title 20, Secs. 20-400 through 20-488 - Unauthorized Insurers, Surplus Lines and Producer Licensing, first half is a state statute published by Arizona State Legislature (azleg.gov). It is one of the Arizona documents that insurance license exam questions are written from, including arizona life & health, arizona property & casualty, arizona personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• A.R.S. Title 20 § 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 with the...”

• A.R.S. Title 20 § 20-402(B) (Validity of contracts; producer liability)

  “If an insurer transacting business in violation of section 20-401.01 fails to pay any claim or loss within the provisions of the insurance contract, any person who acted directly or indirectly as an insurance producer for or otherwise represented or aided the insurer in the solicitation,...”

• A.R.S. Title 20 § 20-407(C) (Surplus lines; brokers)

  “This section does not prohibit a resident or nonresident insurance producer licensed in this state for property or casualty insurance from obtaining surplus lines insurance for policyholders through a surplus lines broker if the insurance producer uses a surplus lines broker licensed in this state...”

• A.R.S. Title 20 § 20-403(A) (Service of process on an unauthorized nonresident insurer)

  “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, on whom may be served...”

• A.R.S. Title 20 § 20-411(C) (Licensing of surplus lines broker; examination)

  “Each individual applicant for an original license as a resident surplus lines broker or for renewal of a resident surplus lines broker license who has not previously taken and passed a surplus lines broker license examination in this state shall take and pass to the director's satisfaction a...”

• A.R.S. Title 20 § 20-410(C) (Validity of surplus lines insurance; disclosure; policy fees)

  “A surplus lines broker may charge and receive a fee in addition to the premium for services provided in the transaction of surplus lines insurance if before effecting any coverage both of the following conditions are met: 1. The service fees and the specific services for which the fees are charged...”

• A.R.S. § 20-461(A) (Unfair claim settlement practices)

  “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

• A.R.S. § 20-462(A) (Timely payment of claims)

  “A. From and after July 15, 1986 any first party claim not paid within thirty days after the receipt of an acceptable proof of loss by the insurer which contains all information necessary for claim adjudication shall be required to pay interest at the legal rate from the date the claim is received...”

• A.R.S. § 20-407(C) (Surplus lines; brokers)

  “This section does not prohibit a resident or nonresident insurance producer licensed in this state for property or casualty insurance from obtaining surplus lines insurance for policyholders through a surplus lines broker if the insurance producer uses a surplus lines broker licensed in this state...”

• A.R.S. § 20-410(B)(1) (Validity of surplus lines insurance; disclosure; policy fees)

  “Pursuant to section 20-401.01, subsection B, paragraph 1, Arizona Revised Statutes, this policy is issued by an insurer that does not possess a certificate of authority from the director of the Arizona department of insurance and financial institutions. If the insurer that issued this policy...”

• A.R.S. § 20-410(C) (Validity of surplus lines insurance; disclosure; policy fees)

  “A surplus lines broker may charge and receive a fee in addition to the premium for services provided in the transaction of surplus lines insurance if before effecting any coverage both of the following conditions are met: 1. The service fees and the specific services for which the fees are charged...”

• A.R.S. § 20-448(C) (Unfair discrimination; definitions)

  “C. As to kinds of insurance other than life and disability, a person shall not make or permit any unfair discrimination in favor of particular persons or between insureds or subjects of insurance having substantially like insuring, risk and exposure factors, or expense elements, in the terms or...”

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More Arizona sources

• Ariz. Rev. Stat. s. 20-443: Misrepresentations and false advertising of policiesState statute
• Ariz. Rev. Stat. s. 20-295: License denial, suspension, or revocation; civil penaltyState statute
• Ariz. Rev. Stat. ss. 20-448, 20-452: Unfair discrimination and rebatesState statute
• Ariz. Rev. Stat. ss. 20-1203 to 20-1210: Standard life insurance policy provisionsState statute
• A.R.S. Title 20, Chapter 2, Article 2 - Unfair Trade Practices (Secs. 20-441 through 20-462)State statute
• Arizona Revised Statutes Title 20, Chapter 1 - General Provisions (Secs. 20-101 through 20-191)State statute
• Arizona Revised Statutes Title 20, Secs. 20-1001 onward - Prepaid Dental Plan Organizations and Related EntitiesState statute
• Arizona Revised Statutes Title 20, Secs. 20-1101 onward - The Insurance ContractState statute