Arizona Laws 20-1097.03. Deposit required
A. A prepaid legal insurance corporation shall maintain on deposit with the state treasurer through the director’s office a surety bond, guaranteeing services under its contracts, or cash or securities eligible for investment of capital funds in the amount required by section 20-213.
Terms Used In Arizona Laws 20-1097.03
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- 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
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Lien: A claim against real or personal property in satisfaction of a debt.
B. The deposit prescribed by subsection A of this section shall be held by the state treasurer in trust for the benefit and protection of persons covered by a prepaid legal contract.
C. Any securities within the description of subsection A of this section, with the approval of the director, may be exchanged for similar securities or cash of equal value. Interest on securities deposited shall be payable to the prepaid legal insurance corporation depositing such securities.
D. An unpaid final judgment arising from a legal insurance contract shall be a lien on the deposit prescribed by subsection A of this section, subject to execution thirty days from the entry of final judgment. If the deposit is reduced, it shall be replenished within ninety days by the prepaid legal insurance corporation.
E. Upon liquidation or dissolution of a prepaid legal insurance corporation and satisfaction of all debts and liabilities, any balance remaining of the cash or securities deposit prescribed in subsection A of this section together with any other assets of the corporation shall be returned by the director to the corporation.
F. The director may at any time enter an order increasing the amount of the deposit required by this section if:
1. He finds there has been a substantial change in the facts, including an increase in the amount of premiums, membership fees or similar charges in force in this state, on which the original determination was based.
2. Other circumstances arise which lead the director to conclude that it is reasonably necessary in order to protect the purchasers of such contracts.