Arizona Laws 20-2411. Duty of insurance producer to obtain license
A. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state from a risk retention group unless the person, firm, association or corporation is licensed as an insurance producer in accordance with this title.
Terms Used In Arizona Laws 20-2411
- 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.
- Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state. See Arizona Laws 20-2401
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Purchasing group: means a group which meets all of the following criteria:
(a) Has as one of its purposes the purchase of liability insurance on a group basis. See Arizona Laws 20-2401
- Risk retention group: means a corporation or other limited liability association formed under the laws of any state which meets all of the following criteria:
(a) Its primary activity consists of assuming and spreading all or any portion of the liability exposure of its group members. See Arizona Laws 20-2401
- State: means any state of the United States or the District of Columbia. See Arizona Laws 20-2401
B. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state for a purchasing group or any of its members from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association or corporation is licensed as an insurance producer in accordance with this title.
C. No person, firm, association or corporation may act or aid in any manner in soliciting, negotiating or procuring liability insurance from an insurer that is not authorized to do business in this state on behalf of a purchasing group which is located in this state unless the person, firm, association or corporation is licensed as a surplus lines broker or excess line broker in accordance with this title.
D. For purposes of acting as an insurance producer or surplus lines broker for a risk retention group or purchasing group pursuant to subsections A, B and C of this section, the requirement of residence in this state does not apply.
E. Every person, firm, association or corporation that is licensed pursuant to this title, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by section 20-2403, subsection G in the case of a risk retention group and section 20-2408, subsection C in the case of a purchasing group.