Terms Used In Arizona Laws > Title 20 > Chapter 4 - Particular Types of Insurers

• 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. See Arizona Laws 20-1097
• Adult: means a person who has attained eighteen years of age. See Arizona Laws 1-215
• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Agency captive insurer: means a captive insurer that is owned by one or more business entities that are licensed in any state as insurance producers or managing general agents and that only insure risks on policies placed through their owners. See Arizona Laws 20-1098
• Alien captive insurer: means any insurer that is formed to write insurance business for its affiliates and that is licensed pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards that are acceptable to the director on companies transacting the business of insurance in such a jurisdiction. See Arizona Laws 20-1098
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Association: means any lawfully formed association of individuals or business entities that has been in existence for at least one year and that is organized for a primary purpose other than procuring or providing insurance for its members. See Arizona Laws 20-1098
• Association captive insurer: means a captive insurer that is completely under the direct or indirect voting control of an association. See Arizona Laws 20-1098
• Association or order: means any association or order that is a nonprofit military mutual aid association, whose members are officers or enlisted, regular or reserve, active, retired or honorably discharged members of the armed forces or sea services of the United States, and whose principal purpose is to provide life insurance and annuities to its members and their dependents or beneficiaries. See Arizona Laws 20-861
• Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
• Attorney: as used in this article refers to the attorney-in-fact of a reciprocal insurer. See Arizona Laws 20-767
• Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
• Balanced budget: A budget in which receipts equal outlays.
• Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Benefit contract: means an agreement for the provision of benefits. See Arizona Laws 20-861
• Benefit member: means an adult who is a member of a fraternal benefit society and who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Arizona Laws 20-861
• Branch: means any banking office other than the principal banking office. See Arizona Laws 6-101
• Branch business: means any insurance business that is transacted by a branch captive insurer in this state. See Arizona Laws 20-1098
• Branch captive insurer: means an alien captive insurer or a foreign captive insurer that establishes a business unit with a principal place of business in this state and that is licensed pursuant to this chapter to transact the business of insurance through the business unit. See Arizona Laws 20-1098
• Branch operations: means any business operations of a branch captive insurer in this state. See Arizona Laws 20-1098
• Business entity: means any legal entity other than an individual or sole proprietorship. See Arizona Laws 20-1098
• Captive insurer: means any pure captive insurer, agency captive insurer, group captive insurer or protected cell captive insurer that is domiciled in this state and that is formed and licensed under this article. See Arizona Laws 20-1098
• Certificate: means a document that is issued as written evidence of the benefit contract. See Arizona Laws 20-861
• Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
• Commercial mortgage banker: means a person who engages in the following:

  (a) Originating commercial mortgage loans. See Arizona Laws 6-971

• Commercial mortgage loan: means a loan that is directly or indirectly secured by a mortgage or deed of trust or any lien interest on commercial property and created with the consent of the owner of the commercial property. See Arizona Laws 6-971
• Commercial property: means real estate that is located in this state and that is not used for a one to four family residence. See Arizona Laws 6-971
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Consumer: means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or issuer of the service contract the obligations of the warranty or service contract. See Arizona Laws 20-1096
• Consumer product: means any property that is distributed in commerce, that is normally used for personal, family or household purposes, including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed, and that becomes part of the intended usefulness of real property or that is typically transferred with real property as an integral functioning utility appliance or system. See Arizona Laws 20-1095
• Consumer product: means any tangible personal property which is distributed in commerce and which is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed. See Arizona Laws 20-1096
• Controlled unaffiliated business: means an individual or business entity that satisfies all of the following:

  (a) Is not an affiliate of the captive insurer providing coverage or reinsurance. See Arizona Laws 20-1098

• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• corporation: means any corporation organized for the purpose of selling prepaid legal insurance contracts in this state or any insurer licensed pursuant to this title. See Arizona Laws 20-1097
• Credit life and disability reinsurer: means a domestic life and disability reinsurer that reinsures only credit life insurance or credit disability insurance that is issued according to chapter 6, article 10 of this title by an insurer that is authorized to transact insurance in this state, as certified in a form prescribed by the director and reaffirmed annually in conjunction with the annual statement filed pursuant to section 20-223. See Arizona Laws 20-1082
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Deductible reimbursement: means insurance coverage that reimburses the insured for the deductible it paid under a separate commercial insurance policy issued to the same insured, without other conditions related to the underlying loss. See Arizona Laws 20-1098
• Deed: The legal instrument used to transfer title in real property from one person to another.
• Department: means the department of insurance and financial institutions. See Arizona Laws 6-101
• department: means the department of insurance and financial institutions. See Arizona Laws 20-101
• Dependent: A person dependent for support upon another.
• Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
• Domestic life and disability reinsurer: means an incorporated stock reinsurer holding a certificate of authority to accept insurance ceded by any domestic insurer or foreign insurer. See Arizona Laws 20-1082
• Enrollee: means an individual who has been enrolled in a health care plan. See Arizona Laws 20-1051
• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Evidence of coverage: means any certificate, agreement or contract issued to an enrollee and setting out the coverage to which the enrollee is entitled. See Arizona Laws 20-1051
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Fiduciary: A trustee, executor, or administrator.
• Foreign captive insurer: means any captive insurer that is domiciled in and licensed under the laws of another state that imposes statutory or regulatory standards on captive insurance companies in that state that are acceptable to the director. See Arizona Laws 20-1098
• Fraternal benefit society: means a society, order or supreme lodge without capital stock, including an incorporated or unincorporated society that is exempt under section 20-893, that is conducted solely for the benefit of its members and their beneficiaries, is not for profit, operates on a lodge system with a ritualistic form of work, has a representative form of government and provides benefits according to this article. See Arizona Laws 20-861
• Fraud: Intentional deception resulting in injury to another.
• Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
• Generally accepted accounting principles: means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board. See Arizona Laws 6-971
• Genetic information: means information about genes, gene products and inherited characteristics that may derive from the individual or a family member, including information regarding carrier status and information derived from laboratory tests that identify mutations in specific genes or chromosomes, physical medical examinations, family histories and direct analysis of genes or chromosomes. See Arizona Laws 20-1051
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. ^{Source: Federal Reserve}
• Group captive insurer: means any of the following:

  (a) A risk retention group. See Arizona Laws 20-1098

• guaranteed investment contract: means any unallocated group contract, investment contract, funding agreement, guaranteed interest contract or other similar instrument by whatever name in which an insurance company agrees to guarantee a fixed or variable rate of interest or a future payment that is based on an index or any other similar criteria, that is payable at a predetermined date on monies that are deposited with the insurance company and that is not dependent on the continuance of human life. See Arizona Laws 20-208
• Health care plan: means any contractual arrangement whereby any health care services organization undertakes to provide directly or to arrange for all or a portion of contractually covered health care services and to pay or make reimbursement for any remaining portion of the health care services on a prepaid basis through insurance or otherwise. See Arizona Laws 20-1051
• Health care services: means services for the purpose of diagnosing, preventing, alleviating, curing or healing human illness or injury. See Arizona Laws 20-1051
• Health care services organization: means any person that undertakes to conduct one or more health care plans. See Arizona Laws 20-1051
• Health status-related factor: means any factor in relation to the health of the individual or a dependent of the individual enrolled or to be enrolled in a health care services organization including:

  (a) Health status. See Arizona Laws 20-1051

• Incidental costs: means expenses that are specified in the vehicle protection product warranty incurred by the warranty holder relating to the failure of the vehicle protection product to perform as provided in the warranty. See Arizona Laws 20-1099
• Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
• Industry group: means two or more business entities or persons that are engaged in businesses or activities similar or related with respect to the liability that they are exposed to by virtue of any related, similar or common business, trade, product, services, premises or operations. See Arizona Laws 20-1098
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Institutional investor: means a person who in the regular course of business makes commercial mortgage loans of more than two hundred fifty thousand dollars that are funded exclusively from the institutional investor's own resources. See Arizona Laws 6-971
• Investor: means a person who directly or indirectly provides monies to a commercial mortgage banker that are, or are intended to be, used to make a loan, and any person who purchases a loan, or any interest in a loan, from a commercial mortgage banker or in a transaction that has been directly or indirectly arranged or negotiated by a commercial mortgage banker. See Arizona Laws 6-971
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Laws: means the articles of incorporation, constitution and bylaws of the society. See Arizona Laws 20-861
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• License: means a license issued under this article. See Arizona Laws 6-941
• License: means a license issued under this article. See Arizona Laws 6-971
• Licensee: means a person licensed under this article. See Arizona Laws 6-941
• Licensee: means a person who is licensed under this article. See Arizona Laws 6-971
• Lien: A claim against real or personal property in satisfaction of a debt.
• Lodge: means a subordinate member of the society, including any camp, court, council, branch or other designated unit. See Arizona Laws 20-861
• Manager: means a person who is experienced in the field of captive insurance and who maintains all documents relating to a captive insurer's operations, transactions and affairs in this state and assists the captive insurer in its management and compliance with this article. See Arizona Laws 20-1098
• Mechanical reimbursement insurance: means an insurance policy issued to an obligor to either provide reimbursement to the obligor under the terms of the insured service contracts issued or sold by the obligor or, in the event of the obligor's nonperformance, to pay on behalf of the obligor all covered contractual obligations incurred by the obligor under the terms of the insured service contracts issued or sold by the obligor. See Arizona Laws 20-1095
• Mechanical reimbursement insurance: means an insurance policy issued to a motor vehicle dealer or to insure the performance of a service contract to a consumer if the motor vehicle dealer or the issuer of a service contract becomes insolvent or ceases to do business or, if approved by the director, similar such insurance. See Arizona Laws 20-1096
• Member: means an individual who is enrolled in a group prepaid dental plan as a principal subscriber together with such person's dependents who are entitled to dental care services under the plan solely because of their status as dependents of the principal subscriber. See Arizona Laws 20-1001
• Member: means any individual or business entity that belongs to a group captive insurer. See Arizona Laws 20-1098
• Membership coverage: means any certificate or contract issued to a member setting out the dental coverage to which such member is entitled. See Arizona Laws 20-1001
• Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Mortgage banking loan: means a loan which is funded exclusively from the mortgage banker's own resources, which is directly or indirectly secured by a mortgage or deed of trust or any lien interest on real estate located in this state and which is created with the consent of the owner of the real property. See Arizona Laws 6-941
• Mortgage loan: means any loan, other than a mortgage banking loan, secured by a mortgage or deed of trust or any lien interest on real estate located in this state and created with the consent of the owner of the real estate. See Arizona Laws 6-941
• Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}
• Mortgagee: The person to whom property is mortgaged and who has loaned the money.
• Network plan: means health care services that are provided by a health care services organization under which the financing and delivery of health care services are provided, in whole or in part, through a defined set of providers under contract with the health care services organization. See Arizona Laws 20-1051
• Oath: includes an affirmation or declaration. See Arizona Laws 1-215
• Oath: A promise to tell the truth.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• obligor: means any person that is contractually obligated to the contract holder under the terms of the service contract. See Arizona Laws 20-1095
• Own resources: means any of the following:

  (a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the person's financial statements. See Arizona Laws 6-971

• Participant: means an entity and any affiliates of the entity that are insured by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
• Participant contract: means a contract by which a protected cell captive insurer insures risks of one or more participants and limits losses under the contract to the assets of a protected cell. See Arizona Laws 20-1098
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: means any natural or artificial person including individuals, partnerships, associations, providers of health care, trusts, insurers, hospital or medical service corporations or other corporations, prepaid group practice plans, foundations for medical care and health maintenance organizations. See Arizona Laws 20-1051
• Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
• Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. ^{Source: OCC}
• Premiums: means rates, dues or other required contributions that are payable under the certificate. See Arizona Laws 20-861
• Prepaid dental plan: means any contractual arrangement whereby any prepaid dental plan organization undertakes to provide directly or to arrange for prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise. See Arizona Laws 20-1001
• Prepaid dental plan organization: means any person who undertakes to conduct one or more prepaid dental plans providing only dental services. See Arizona Laws 20-1001
• Prepaid dental services: means services included in the practice of dentistry as described in section 32-1202. See Arizona Laws 20-1001
• Prepaid legal insurance contract: means a contractual obligation to pay or reimburse for specific legal services rendered in the normal and ordinary course of business by an active member of the state bar of Arizona. See Arizona Laws 20-1097
• Property: includes both real and personal property. See Arizona Laws 1-215
• Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
• Protected cell: means a separate account that is established and maintained by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
• Protected cell captive insurer: means a captive insurer:

  (a) In which the minimum capital and surplus required by applicable law is provided by one or more sponsors. See Arizona Laws 20-1098

• Provider: means any physician, hospital or other person that is licensed or otherwise authorized to furnish health care services in this state. See Arizona Laws 20-1051
• Provider sponsored health care services organization: means a provider sponsored organization that provides at least one health care plan only to medicare beneficiaries under the medicare-plus-choice program established under the balanced budget act of 1997 (42 United States Code §§ 1395w-21 through 1395w-28 and title XVIII, part C of the social security act, sections 1851 through 1859). See Arizona Laws 20-1051
• Provider sponsored organization: means an entity that:

  (a) Is a legal aggregation of providers that operate collectively to provide health care services to medicare beneficiaries under the medicare-plus-choice program established under the balanced budget act of 1997 (42 United States Code §§ 1395w-21 through 1395w-28 and title XVIII, part C of the social security act, sections 1851 through 1859). See Arizona Laws 20-1051

• Pure captive insurer: means a captive insurer that insures only the risks of its affiliates and controlled unaffiliated business. See Arizona Laws 20-1098
• Quorum: The number of legislators that must be present to do business.
• reinsurer: means a domestic reinsurer reinsuring mechanical reimbursement insurance. See Arizona Laws 20-1096
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Residential property: means a house, townhouse, condominium or other habitable structure that is used principally as a residence. See Arizona Laws 20-1095
• Residential property: means a house, townhouse, condominium or other habitable structure consisting of no more than four units which is used principally as a residence. See Arizona Laws 20-1096
• Risk retention group: means a captive insurer that is organized pursuant to the liability risk retention act of 1986 (15 United States Code §§ 3901 and 3902) and chapter 14 of this title. See Arizona Laws 20-1098
• Rules: means the rules, regulations and resolutions that are adopted by the supreme governing body or board of directors and that are intended to apply to the members of the society. See Arizona Laws 20-861
• sent: means to deliver by United States mail, personal delivery or fax or by electronic means consistent with the requirements of section 20-239. See Arizona Laws 20-117
• Service contract: means a written contract for a prepaid separately stated consideration to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair, including replacement, of:

  (a) A consumer product. See Arizona Laws 20-1096

• Service contract administrator: means a person who is responsible for the administration of the service contracts or the service contracts plan or who is responsible for any submission required under this article. See Arizona Laws 20-1095
• Service of process: The service of writs or summonses to the appropriate party.
• Servicing commercial mortgage loans: means collecting payments at a location in this state on commercial mortgage loans, including:

  (a) Principal. See Arizona Laws 6-971

• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Society: means a fraternal benefit society. See Arizona Laws 20-861
• Sponsor: means an entity that meets the requirements of Section 20-1098. See Arizona Laws 20-1098
• Subpoena: A command to a witness to appear and give testimony.
• subscription: includes a mark, if a person cannot write, with the person's name written near it and witnessed by a person who writes the person's own name as witness. See Arizona Laws 1-215
• Summons: Another word for subpoena used by the criminal justice system.
• Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
• Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
• Trustee: A person or institution holding and administering property in trust.
• Unaffiliated: means not affiliated with another insurer as defined in section 20-104. See Arizona Laws 20-1082
• United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
• Vehicle protection product: means a vehicle protection device, system or service that:

  (a) Is installed on or applied to a vehicle. See Arizona Laws 20-1099

• warrantor: means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. See Arizona Laws 20-1099
• Warranty: means :

  (a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product that relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time. See Arizona Laws 20-1095

• Warranty: means :

  (a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time. See Arizona Laws 20-1096

• Warranty reimbursement insurance policy: means a policy of insurance issued to the vehicle protection product warrantor to pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the vehicle protection product warranty. See Arizona Laws 20-1099
• Wilfully: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 1-215
• Writing: includes printing. See Arizona Laws 1-215