A. Every extended warranty insurer shall deposit with the state treasurer and maintain on deposit for the benefit and protection of any person purchasing such extended warranty or guaranty in the event of insolvency of the extended warranty insurer under its contract with any such person either of the following:

Terms Used In Arizona Laws 20-108.01

  • Contract: A legal written agreement that becomes binding when signed.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215

1. A bond in the amount of $25,000 issued by an insurance company holding a current certificate of authority issued by the director.

2. Eligible securities as defined in section 20-583 having the lesser of par or market value of not less than $25,000.

B. The director shall adopt rules and regulations to enforce this section.

C. For the purposes of this section, "extended warranty insurer" has the same meaning prescribed in section 20-108.

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