Arizona Laws 20-667. Obligations of the fund
A. The fund is obligated solely to the extent of the covered claims existing during any of the following periods:
Terms Used In Arizona Laws 20-667
- 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.
- 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
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- 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
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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. Before the determination of insolvency and arising within thirty days after the determination of insolvency.
2. Before the policy expiration date if less than thirty days after the determination of insolvency.
3. Before the insured replaces the policy or on request effects cancellation, if the insured does so within thirty days of the determination of insolvency.
B. Except for obligations arising out of a covered workers’ compensation claim for benefits under Title 23, Chapter 6, such obligation shall include only that amount of each covered claim that is more than one hundred dollars and that is less than three hundred thousand dollars or an amount of more than twenty-five dollars but not exceeding ten thousand dollars for a covered claim for the return of unearned premiums. In no event shall the fund be obligated to a policyholder or claimant in any amount in excess of the face amount of the policy from which the claim arises.
C. The fund is deemed the insurer to the extent of its obligation on the covered claims and to such extent shall have all rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent. Notwithstanding any other law, the fund is not obligated to pay any amount that does not constitute a payment of a covered claim, including taxable costs, attorney fees or interest that could be awarded or any additional liabilities or obligations that might otherwise exist or accrue against the insolvent insurer if the insurer had not become insolvent.
D. Any settlement of a covered claim that is entered into with any insured or claimant within four months before the determination of insolvency and that has not been paid is voidable by the fund for six months after the determination of the insolvency or six months after the fund discovers or should have discovered the settlement, whichever is later.
E. Notwithstanding subsection D of this section, a settlement or commutation of a workers’ compensation claim approved by an award of the industrial commission that has become final pursuant to section 23-942 or 23-943 is not voidable.
F. The fund is not bound by any settlement that is more than the fund’s limits of liability established by this article.
G. Beginning on the effective date of this amendment to this section, the fund shall assume all contractual rights and obligations of the industrial commission regarding the administration of workers’ compensation insolvent carrier claims if the industrial commission has contracted with a third-party processor to administer claims.