Arizona Laws 20-664. Powers and duties of the board
A. The board shall:
Terms Used In Arizona Laws 20-664
- Account: means any one of the three accounts within the Arizona property and casualty insurance guaranty fund. See Arizona Laws 20-661
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- 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.
- Board: means the guaranty fund board. See Arizona Laws 20-661
- Covered claim: means an unpaid claim, including one for unearned premium, which arises out of and is within the coverage of an insurance policy to which this article applies issued by an insurer, if such insurer becomes an insolvent insurer after August 27, 1977 and the claimant or insured is a resident of this state at the time of the insured event or the property from which the claim arises is permanently located in this state. See Arizona Laws 20-661
- Fund: means the Arizona property and casualty insurance guaranty fund. See Arizona Laws 20-661
- Insolvent insurer: means an insurer that is licensed to transact insurance in this state either at the time the policy was issued or when the insured event occurred and against whom an order of liquidation with a finding of insolvency has been entered after September 19, 2007 by a court of competent jurisdiction in the insurer's state of domicile or by this state pursuant to section 20-623, and the order of liquidation has not been stayed or been the subject of a writ of supersedeas or other comparable order. See Arizona Laws 20-661
- Member insurer: means any person who writes any kind of insurance, unless such writing is restricted solely to life, title, surety, disability, credit, mortgage guaranty, ocean-marine or surplus lines insurance, including the exchange of reciprocal or inter-insurance contracts, and is licensed to transact insurance in this state. See Arizona Laws 20-661
- 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.
- 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.
1. Investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the fund’s obligation and deny all other claims. In regard to workers’ compensation claims, the board shall adjust, compromise, settle and pay compensable claims, and deny all other claims, subject to the regulatory and adjudicatory authority of the industrial commission over workers’ compensation claims pursuant to Title 23, Chapter 6.
2. Within six months after the determination of insolvency or six months after the fund discovers or should have discovered the settlement of a covered claim, whichever is later, deny and state the basis for the denial or pay any covered claim that was settled within four months before the determination of insolvency of the insolvent insurer. This paragraph does not apply to a settlement of a workers’ compensation claim or commutation of permanent disability benefits approved by the industrial commission unless the industrial commission award approving the settlement or commutation of benefits has not become final.
3. Allocate claims paid and expenses incurred among the three accounts of the fund separately.
4. Assess member insurers separately for each account of the fund and expend amounts assessed only for the purposes of the account into which the amounts assessed were placed.
5. Notify such persons as the director directs pursuant to section 20-668, subsection B, paragraph 1.
6. Handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility shall be subject to the approval of the director. Designation may be declined by a member insurer.
7. Reimburse each servicing facility for obligations of the fund paid by the facility and for expenses incurred by the facility while handling the claims on behalf of the fund and pay the other expenses of the fund authorized pursuant to this article.
B. The board may:
1. Appear in, defend and appeal any action on a claim that is brought against the fund.
2. Employ or retain such persons as are necessary to handle claims and perform other duties of the fund.
3. Borrow funds necessary to carry out the intent of this article pursuant to the plan of operation.
4. Sue and be sued.
5. Negotiate and become a party to such contracts as are necessary to carry out the intent of this article.
6. Perform such other acts as are necessary or proper to carry out the intent of this article.