Arizona Laws 20-1095.03. Qualifications for permit
A. The director shall not issue a permit to a service company unless all of the following conditions are met:
Terms Used In Arizona Laws 20-1095.03
- 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.
- 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
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. The applicant is solvent and organized under the laws of this state or another state, district, territory or possession of the United States.
2. The applicant furnishes proof as necessary to the director that the directors and management of the service company are competent and are capable of successfully managing the service company’s affairs in compliance with law.
3. The applicant either:
(a) Files a surety bond or an alternative to a surety bond as required by Section 20-1095.04.
(b) Is insured by a mechanical reimbursement insurance policy issued by an insurer authorized to do business in this state and provides a copy of the policy to the director.
4. The applicant is in compliance and continues to be in compliance with all applicable laws.
5. The applicant pays the initial fee prescribed in section 20-167.
B. This article does not require the director to determine the actual financial condition or claims practices of any service company. The issuance of a service company permit indicates only that the entity appears to be financially sound and to have satisfactory claims practices and that the director has no credible evidence to the contrary.