Sections
Article 1 Authorization of Insurers and General Requirements 20-201 – 20-240
Article 2 Kinds of Insurance; Reinsurance; Limits of Risk 20-251 – 20-271
Article 3 Insurance Producer Licensing 20-281 – 20-302
Article 3.1 Managing General Agents 20-311 – 20-311.02
Article 3.2 Adjusters 20-321 – 20-321.02
Article 3.3 Other Insurance Professionals 20-331 – 20-333
Article 3.4 Navigators and Certified Application Counselors 20-336 – 20-336.06
Article 3.5 Bail Bond Agents and Bail Recovery Agents 20-340 – 20-340.06
Article 4 Rates and Rating Organizations 20-341 – 20-379
Article 4.1 Open Competition Rates and Rating Organizations 20-381 – 20-399
Article 4.2 Compliance With Filed Rates 20-400 – 20-400.10
Article 5 Unauthorized Insurers 20-401 – 20-423
Article 6 Unfair Practices and Frauds 20-441 – 20-469.01
Article 7 Insurance on Collateral Security 20-471 – 20-476
Article 8 Insurance Holding Company Systems 20-481 – 20-481.32
Article 8.1 Mutual Holding Company Reorganization 20-482 – 20-482.07
Article 9 Insurance Administrators 20-485 – 20-485.12
Article 10 Reinsurance Intermediaries 20-486 – 20-486.11
Article 11 Producer Controlled Property and Casualty Insurance 20-487 – 20-487.04
Article 12 Risk-Based Capital for Insurers 20-488 – 20-488.11
Article 13 Violent Crime Control and Law Enforcement Act 20-489 – 20-489.01
Article 14 Enforcement of Insurance Policies Affecting Certain Holocaust Victims 20-490 – 20-490.02
Article 15 Risk Management and Solvency Assessment 20-491 – 20-491.07

Terms Used In Arizona Laws > Title 20 > Chapter 2

  • Accredited state: means a state in which the insurance department or other regulatory agency has qualified as meeting the minimum financial regulatory standards that are adopted and established by the national association of insurance commissioners. See Arizona Laws 20-487
  • Acquisition of control: means a transaction by which a person obtains, directly or indirectly, control of a financial institution. See Arizona Laws 6-1101
  • Actuary: means a person who is a member in good standing of the American academy of actuaries. See Arizona Laws 20-486
  • Adjusted RBC report: means a report that has been adjusted by the director in accordance with section 20-488. See Arizona Laws 20-488
  • Administrator: means any person who collects charges or premiums from or paid on behalf of, or who adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuities other than any of the following:

    (a) An employer on behalf of such employer's employees or the employees of one or more subsidiary or affiliated corporations of such employer. See Arizona Laws 20-485

  • Advisory organization: means any person other than a single insurer who assists insurers or rate service organizations in the making of rates by compiling and furnishing loss or expense statistics or other statistical information and data, or by the submission of recommendations as to rates, forms or supplementary rate information. See Arizona Laws 20-381
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Affiliated: means , with respect to an insured, any entity that controls, is controlled by or is under common control with the insured. See Arizona Laws 20-401
  • affiliated: means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a specified person. See Arizona Laws 20-485
  • Affiliated group: means any group of entities that are affiliated. See Arizona Laws 20-401
  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • 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.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • 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.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Application: means an application which is made pursuant to this article for approval of the superintendent to become a financial institution holding company. See Arizona Laws 6-1101
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
  • Authorized control level event: means any of the following events:

    (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its mandatory control level RBC but less than its authorized control level RBC. See Arizona Laws 20-488

  • Authorized delegate: means a person designated by the licensee under section 6-1208. See Arizona Laws 6-1201
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bail bond: means any contract that is executed by a surety insurer for the release of a person who is arrested or confined for any actual or alleged violation of any federal, state or local criminal law where the released person's attendance in court when required by law and obedience to orders and judgment of any court is guaranteed. See Arizona Laws 20-340
  • Bail bond agent: means an individual who is appointed by an insurer through a power of attorney to execute or countersign bail bonds in connection with judicial proceedings and who receives or is promised monies or other things of value for that service. See Arizona Laws 20-340
  • Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Board: means the workers' compensation appeals board established by section 20-367. See Arizona Laws 20-343
  • Board: means the board of directors of a converting mutual insurer. See Arizona Laws 20-482
  • Branch: means any banking office other than the principal banking office. See Arizona Laws 6-101
  • Business entity: means any corporation, association, partnership, limited liability company, limited liability partnership or other legal entity except an individual or sole proprietorship. See Arizona Laws 20-281
  • Certified application counselor: means an individual who is licensed pursuant to this article and who is authorized by the United States department of health and human services to perform the activities and duties of a certified application counselor as described by 45 Code of Federal Regulations section 155. See Arizona Laws 20-336
  • Check cashing: means exchanging for compensation a check, debit card payment order, draft, money order, traveler's check or payment instrument of a licensee for money delivered to the presenter at the time and place of the presentation. See Arizona Laws 6-1201
  • Classification plan: means the plan or system that groups industries, occupations or operations with a similar exposure to loss into rate classifications for workers' compensation rating, rate making and statistical reporting purposes. See Arizona Laws 20-343
  • Clearinghouse: means the mechanism or entity established pursuant to a multistate agreement or compact for the receipt and distribution of premium taxes and transaction data related to the sale of unauthorized insurance. See Arizona Laws 20-401
  • commission: means the department of insurance. See Arizona Laws 20-101
  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Company action level event: means any of the following:

    (a) The filing of an RBC report by an insurer indicating either that:

    (i) The insurer's total adjusted capital is more than or equal to its regulatory action level RBC but less than its company action level RBC. See Arizona Laws 20-488

  • Continuance: Putting off of a hearing ot trial until a later time.
  • Control: means direct or indirect ownership or power to vote twenty-five per cent or more of the outstanding voting securities of a financial institution or controlling person or to control in any manner the election of a majority of the directors of a financial institution or controlling person. See Arizona Laws 6-1101
  • Control: means the direct or ultimate possession of the power to direct or cause the direction of the management and policies of a person whether through voting rights, contracts, other than commercial contracts for goods or nonmanagement services, or otherwise, unless the power is the result of an official position or corporate office. See Arizona Laws 20-485
  • Controlled insurer: means a licensed insurer who is controlled by a producer. See Arizona Laws 20-487
  • controlling: means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. See Arizona Laws 20-481
  • Controlling person: means a person who is directly or indirectly in control of a financial institution. See Arizona Laws 6-1101
  • Controlling person: means a person directly or indirectly in control of a licensee. See Arizona Laws 6-1201
  • Controlling person: means a person, firm, association or corporation that directly or indirectly has the power to direct or cause to be directed the management, control or activities of the reinsurance intermediary. See Arizona Laws 20-486
  • Controlling producer: means a producer who controls, directly or indirectly, an insurer. See Arizona Laws 20-487
  • Conversion: means a process by which a domestic mutual insurer is converted to a domestic stock insurer as part of a reorganization. See Arizona Laws 20-482
  • Converted stock insurer: means a domestic stock insurer into which a domestic mutual insurer is converted as part of a reorganization. See Arizona Laws 20-482
  • Converting mutual insurer: means a domestic mutual insurer that is converting to a domestic stock insurer as part of a reorganization. See Arizona Laws 20-482
  • Conviction: A judgement of guilt against a criminal defendant.
  • 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.
  • Corrective order: means an order that is issued by the director and that specifies corrective actions that the director has determined are required. See Arizona Laws 20-488
  • Cross examine: Questioning of a witness by the attorney for the other side.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Department: means the department of financial institutions. See Arizona Laws 6-101
  • Designated producer: means the individual insurance producer that a business entity designates pursuant to section 20-285, subsection C, paragraph 3 as the individual responsible for the business entity's compliance with the insurance laws of this state. See Arizona Laws 20-281
  • Designated rating organization: means the rating organization selected by the director pursuant to section 20-371, subsection F. See Arizona Laws 20-343
  • Designated statistical agent: means the organization designated by the director under section 20-371, subsection D. See Arizona Laws 20-343
  • Devise: To gift property by will.
  • Diligent effort: means having sought insurance for the same risk from at least three insurers authorized in this state to write the particular insurance coverage or type, class or kind of insurance. See Arizona Laws 20-401
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Docket: A log containing brief entries of court proceedings.
  • Domestic insurer: means a life or health insurer, or both, a property or casualty insurer, or both, or a health organization that is authorized to transact insurance business in this state and that is organized in this state. See Arizona Laws 20-488
  • Domestic surplus lines insurer: means an insurer that is domiciled in and authorized to transact insurance in this state and that has received approval from the department pursuant to section 20-407. See Arizona Laws 20-401
  • Effective date: means , with respect to a plan, the date on which the plan or a part of the plan becomes effective as set forth in an order of the director. See Arizona Laws 20-482
  • Eligible member: means a member of the converting mutual insurer whose insurance policy is in force as of the date on which the board adopts the plan of reorganization or on some other date that the plan specifies as the record date and that the director approves. See Arizona Laws 20-482
  • Engage in the business: means conducting activities regulated under this chapter more than ten times in any calendar year for compensation or in the expectation of compensation. See Arizona Laws 6-1201
  • Enterprise risk: means any activity, circumstance, event or series of events involving one or more affiliates of an insurer that if not remedied promptly is likely to have a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including causing the insurer's risk-based capital to decrease to or below a company action level under section 20-488. See Arizona Laws 20-481
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Exchange: means a health benefit exchange that is established or operated by the secretary of the United States department of health and human services pursuant to 42 United States Code section 18031. See Arizona Laws 20-336
  • Executor: A male person named in a will to carry out the decedent
  • Experience rating plan: means a mandatory rating plan for all eligible insureds that establishes a workers' compensation rating procedure that compares the actual loss experience of individual insureds to the industry average for the same classification with differences reflected in the insured's premium. See Arizona Laws 20-343
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Felony: A crime carrying a penalty of more than a year in prison.
  • Fiduciary: A trustee, executor, or administrator.
  • Financial institution: means banks, trust companies, savings and loan associations, international banking facilities, and holding companies of banks, trust companies, savings and loan associations and international banking facilities under the jurisdiction of the department. See Arizona Laws 6-1101
  • Financial institution: means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. See Arizona Laws 6-101
  • Financial institution holding company: means a corporation, trust, association, partnership or similar organization which directly or indirectly, acting through one or more persons, controls a financial institution or a controlling person. See Arizona Laws 6-1101
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Foreign decree: means any decree or order in equity of a court located in a reciprocal state, including a court of the United States located therein, obtained by a qualified party against any insurer incorporated or authorized to do business in this state. See Arizona Laws 20-401
  • Foreign insurer: means a life or health insurer, or both, a property or casualty insurer, or both, or a health organization that is authorized to transact insurance business in this state but that is not domiciled in this state. See Arizona Laws 20-488
  • Foreign money exchange: means exchanging for compensation money of the United States government or a foreign government to or from money of another government at a conspicuously posted exchange rate at the time and place of the presentation of the money to be exchanged. See Arizona Laws 6-1201
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Grantee: includes every person to whom an estate or interest in real property passes, in or by a deed. See Arizona Laws 1-215
  • Grantor: includes every person from or by whom an estate or interest in real property passes, in or by a deed. See Arizona Laws 1-215
  • guaranteed investment contract: means any unallocated group contract, investment contract, funding agreement, guaranteed interest contract or other similar instrument by whatever name in which an insurance company agrees to guarantee a fixed or variable rate of interest or a future payment that is based on an index or any other similar criteria, that is payable at a predetermined date on monies that are deposited with the insurance company and that is not dependent on the continuance of human life. See Arizona Laws 20-208
  • Health or sickness insurance: means disability insurance as defined in section 20-253. See Arizona Laws 20-281
  • Health organization: means a hospital service corporation, medical service corporation, dental service corporation or optometric service corporation or a hospital, medical, dental and optometric service corporation that has a certificate of authority pursuant to chapter 4, article 3 of this title, a prepaid dental plan organization that has a certificate of authority pursuant to chapter 4, article 7 of this title or a health care services organization that has a certificate of authority pursuant to chapter 4, article 9 of this title. See Arizona Laws 20-488
  • Holocaust victim: means a person who was killed or injured or who lost real or personal property or financial assets as the result of discriminatory laws, policies or actions directed against a discrete group of which the person was a member, during the period beginning in 1920 through 1945, in Germany, areas occupied by Germany or countries allied with Germany. See Arizona Laws 20-490
  • Home state: means the District of Columbia and any state or territory of the United States in which:

    (a) An individual insurance producer maintains a principal place of residence or principal place of business and is licensed to act as a resident insurance producer. See Arizona Laws 20-281

  • Home state: means one of the following:

    (a) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal place of residence. See Arizona Laws 20-401

  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Insurance holding company system: means two or more affiliated persons, one or more of whom is an insurer. See Arizona Laws 20-481
  • Insurance policy: includes a life insurance policy, an annuity, a property insurance policy, a casualty insurance policy, a liability insurance policy and reinsurance on a risk covered under such a policy. See Arizona Laws 20-490
  • Insurance producer: means a person required to be licensed under this article to sell, solicit or negotiate insurance. See Arizona Laws 20-281
  • Insurer: means every person engaged in the business of making contracts of insurance except:

    (a) Agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia or a state or political subdivision of a state. See Arizona Laws 20-481

  • Insurer: means any person who provides life or health insurance coverage in this state or who transacts annuity business in this state. See Arizona Laws 20-485
  • Insurer: means a person, firm, association or corporation licensed to transact insurance business in this state. See Arizona Laws 20-486
  • insurer: means a person, firm, association or corporation that is duly licensed to transact property or casualty insurance business in this state. See Arizona Laws 20-487
  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Intermediate stock holding company: means a corporation that satisfies all of the following:

    (a) The corporation was incorporated under title 10. See Arizona Laws 20-482

  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lessee: means a person contracting with a lessor for the use of a safe deposit repository. See Arizona Laws 6-1001
  • Lessor: means a corporation or association authorized under the laws of this state, any other state or the United States to do business as a bank, trust company, credit union or savings and loan association and maintaining safe deposit repositories for public use. See Arizona Laws 6-1001
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Licensed producer: means an insurance producer or reinsurance intermediary who is licensed pursuant to this title. See Arizona Laws 20-486
  • Licensee: means a person licensed under this chapter. See Arizona Laws 6-1201
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Life or health insurer: means an insurer authorized to transact life insurance, annuities or accident and health insurance in this state, a fraternal benefit society or an authorized property or casualty insurer writing only accident and health insurance, but does not include a health organization. See Arizona Laws 20-488
  • Limited line credit insurance: means any form of insurance that is offered in connection with an extension of credit and that is limited to partially or wholly extinguishing that credit obligation, including credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed asset or automobile protection insurance and any other form of insurance that is offered in connection with an extension of credit, that is limited to partially or wholly extinguishing that credit obligation and that the director determines should be designated a form of limited line credit insurance. See Arizona Laws 20-281
  • Limited line insurance: means limited line credit insurance, limited line crop insurance, limited lines travel insurance under section 20-333 and any other line of insurance that the director deems necessary to recognize for the purposes of complying with section 20-287, subsection C, paragraph 2. See Arizona Laws 20-281
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Location: means a place of business at which activity regulated by this chapter occurs. See Arizona Laws 6-1201
  • Loss cost adjustment: means that portion of a rate filed by an insurer with the director that includes the insurer's general expenses, total product expenses, taxes, licenses and fee expenses and underwriting profit and contingencies. See Arizona Laws 20-381
  • Loss cost modification factor: means that rating factor filed by an insurer with the director for the purpose of modifying the rate service organization's prospective loss cost filing. See Arizona Laws 20-381
  • Major line insurance: means life insurance, accident and health or sickness insurance, property insurance, casualty insurance, personal lines insurance and variable insurance contracts, as described in section 20-286. See Arizona Laws 20-281
  • managing general agent: means any person, firm, association or corporation that manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office, and that, with or without authority and either separately or together with affiliates, directly or indirectly produces and underwrites an amount of gross direct written premium that is at least five per cent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year and that either:

    1. See Arizona Laws 20-311

  • Mandatory control level event: means any of the following:

    (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is less than its mandatory control level RBC. See Arizona Laws 20-488

  • Member: means , if used in reference to a business entity, a person that holds an ownership interest in the business entity, excluding any interest in publicly traded securities and any interest of less than ten percent of the voting rights. See Arizona Laws 20-281
  • Member: means :

    (a) With respect to a domestic mutual insurer, a member as described in section 20-715. See Arizona Laws 20-482

  • Membership interest: means :

    (a) With respect to a converting mutual insurer, interest as set forth in section 20-716. See Arizona Laws 20-482

  • Money: means a medium of exchange that is authorized or adopted by a domestic or foreign government as a part of its currency and that is customarily used and accepted as a medium of exchange in the country of issuance. See Arizona Laws 6-1201
  • Money transmitter: means a person who is located or doing business in this state, including a check casher and a foreign money exchanger, and who does any of the following:

    (a) Sells or issues payment instruments. See Arizona Laws 6-1201

  • Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Multistate risk: means a risk covered by an unauthorized insurer with insured exposures in more than one state. See Arizona Laws 20-401
  • Mutual holding company: means a corporation that is formed and existing under the laws of this state and pursuant to the reorganization of a mutual insurance company. See Arizona Laws 20-482
  • Navigator: means a person who is licensed pursuant to this article and who is certified or compensated by the United States department of health and human services to perform the activities and duties described by 42 United States Code section 18031 and 45 Code of Federal Regulations section 155. See Arizona Laws 20-336
  • Negotiate: means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. See Arizona Laws 20-281
  • Nonresident: means a person whose home state is not Arizona. See Arizona Laws 20-281
  • 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.
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Payment instrument: means a check, draft, money order, traveler's check or other instrument or order for the transmission or payment of money sold to one or more persons whether or not that instrument or order is negotiable. See Arizona Laws 6-1201
  • Peace officers: means sheriffs of counties, constables, marshals, policemen of cities and towns, commissioned personnel of the department of public safety, personnel who are employed by the state department of corrections and the department of juvenile corrections and who have received a certificate from the Arizona peace officer standards and training board, peace officers who are appointed by a multicounty water conservation district and who have received a certificate from the Arizona peace officer standards and training board, police officers who are appointed by community college district governing boards and who have received a certificate from the Arizona peace officer standards and training board, police officers who are appointed by the Arizona board of regents and who have received a certificate from the Arizona peace officer standards and training board, police officers who are appointed by the governing body of a public airport pursuant to section 28-8426 and who have received a certificate from the Arizona peace officer standards and training board, peace officers who are appointed by a private postsecondary institution pursuant to section 15-1897 and who have received a certificate from the Arizona peace officer standards and training board and special agents from the office of the attorney general, or of a county attorney, and who have received a certificate from the Arizona peace officer standards and training board. See Arizona Laws 1-215
  • Person: means an individual or a business entity. See Arizona Laws 20-281
  • Person: means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization and any similar entity or any combination of the foregoing acting in concert but does not include any joint venture partnership exclusively engaged in owning, managing, leasing or developing real or tangible personal property. See Arizona Laws 20-481
  • Personal property: includes money, goods, chattels, things in action and evidences of debt. See Arizona Laws 1-215
  • Petty offense: A federal misdemeanor punishable by six months or less in prison. Source: U.S. Courts
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Plan: means a plan of reorganization. See Arizona Laws 20-482
  • Population: means the population according to the most recent United States decennial census. See Arizona Laws 1-215
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • Principal: means a person who has the authority to enter into written agreements on behalf of the administrator pursuant to section 20-485. See Arizona Laws 20-485
  • Private passenger motor vehicle: means any vehicle that is rated or insured under a family automobile policy, standard automobile policy, personal automobile policy or similar private passenger automobile policy written for personal use, including use by an insured of a motor vehicle in the course of the insured's volunteer work for a tax-exempt organization as described in section  501(c)(3) of the internal revenue code, as opposed to a motor vehicle rated or insured under a commercial automobile policy. See Arizona Laws 20-117
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
  • Producer: means an insurance producer or any other person, firm, association or corporation when, for any compensation, commission or other thing of value, the person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of an insurance contract on behalf of an insured other than the person, firm, association or corporation. See Arizona Laws 20-487
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Property or casualty insurer: means an insurer licensed to transact insurance as described in section 20-256 or 20-252, respectively, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Arizona Laws 20-488
  • Prospective loss costs: means the historical aggregate losses and loss adjustment expenses filed by a rate service organization with the director on which a portion of a rate is based, adjusted through actuarial trending to a future point in time and developed to their ultimate values. See Arizona Laws 20-381
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • Quorum: The number of legislators that must be present to do business.
  • Rate: means that cost of insurance per exposure unit whether expressed as a single number or as a prospective loss cost with an adjustment to account for the treatment of expenses, profit and individual insurer variation in loss experience before any application of individual risk variations based on loss or expense considerations. See Arizona Laws 20-381
  • Rate service organization: means any person other than a single insurer who assists insurers by compiling and furnishing loss or expense statistics and recommending, making or filing rates, forms or supplementary rate information. See Arizona Laws 20-381
  • RBC: means risk-based capital. See Arizona Laws 20-488
  • RBC instructions: means the RBC report, including risk-based capital instructions adopted by the national association of insurance commissioners. See Arizona Laws 20-488
  • RBC plan: means a comprehensive financial plan containing the elements specified in section 20-488. See Arizona Laws 20-488
  • RBC report: means the report required under section 20-488. See Arizona Laws 20-488
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Reciprocal state: means any state or territory of the United States the laws of which give to insurers organized under the laws of this state the same right to defend actions as that granted to foreign insurers under the laws of this state and the laws of which contain procedures substantially similar to those specified in this article for the enforcement of decrees or orders in equity issued by courts located in other states or territory of the United States against any insurer incorporated or authorized to do business in that state or territory. See Arizona Laws 20-401
  • Registered mail: includes certified mail. See Arizona Laws 1-215
  • Regulatory action level event: means , with respect to any insurer, any of the following events:

    (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its authorized control level RBC but less than its regulatory action level RBC. See Arizona Laws 20-488

  • Reinsurance intermediary: means a reinsurance intermediary broker or a reinsurance intermediary manager. See Arizona Laws 20-486
  • Reinsurance intermediary broker: means a person, other than an officer or employee of the ceding insurer, or a firm, association or corporation that solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer. See Arizona Laws 20-486
  • Reinsurance intermediary manager: means a person, firm, association or corporation that has authority to bind or manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and that acts as an agent for the reinsurer whether the reinsurer is known as a reinsurance intermediary manager, a manager or another similar term. See Arizona Laws 20-486
  • Reinsurer: means a person, firm, association or corporation licensed to transact reinsurance business in this state. See Arizona Laws 20-486
  • Reorganization: means a process by which a domestic mutual insurer is converted to a domestic stock insurer and a mutual holding company is organized. See Arizona Laws 20-482
  • repository: means a safe deposit box or any other safe deposit receptacle and includes the lessor's vault space made available for use by the lessee in common with others for the storage of property or documents. See Arizona Laws 6-1001
  • Resident: means a person whose home state is Arizona and who does not hold a resident insurance producer license in another state or territory of the United States or in the District of Columbia. See Arizona Laws 20-281
  • Responsible individual: means a person who is employed by a licensee and who has principal active management authority over the business of the licensee in this state that is regulated under this chapter. See Arizona Laws 6-1201
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Schedule rating plan: means a rating plan by which an insurer increases or decreases workers' compensation rates to reflect the individual risk characteristics or the loss ratios of the subject of insurance. See Arizona Laws 20-343
  • Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer. See Arizona Laws 20-281
  • Sequester: To separate. Sometimes juries are sequestered from outside influences during their deliberations.
  • Service of process: The service of writs or summonses to the appropriate party.
  • 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.
  • Solicit: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See Arizona Laws 20-281
  • Statistical plan: means the plan, system or arrangement used in collecting workers' compensation data. See Arizona Laws 20-343
  • Subpoena: A command to a witness to appear and give testimony.
  • subscription: includes a mark, if a person cannot write, with the person's name written near it and witnessed by a person who writes the person's own name as witness. See Arizona Laws 1-215
  • Superintendent: means the superintendent of financial institutions. See Arizona Laws 6-101
  • Supervisory college: means a temporary or permanent forum for communication and cooperation between regulators charged with the supervision of entities that belong to an insurance holding company system that has international operations. See Arizona Laws 20-481
  • Supplementary rate information: means any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, schedule of fees, including membership fees charged by a reciprocal or mutual insurer, rating rule, rate related underwriting rule and any other information used by an insurer in making rates. See Arizona Laws 20-381
  • Testify: includes every manner of oral statement under oath or affirmation. See Arizona Laws 1-215
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • Title: includes this title, title 32, chapters 9 and 36 and title 44, chapter 2. See Arizona Laws 6-101
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Total adjusted capital: means the sum of:

    (a) An insurer's statutory capital and surplus. See Arizona Laws 20-488

  • Transcript: A written, word-for-word record of what was said, either in a proceeding such as a trial or during some other conversation, as in a transcript of a hearing or oral deposition.
  • Transmitting money: means the transmission of money by any means including transmissions within this country or to or from locations abroad by payment instrument, wire, facsimile, internet or any other electronic transfer, courier or otherwise. See Arizona Laws 6-1201
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
  • Uniform rate filing: means the rate filing that is made by the designated rating organization and that includes all of the workers' compensation rates to which insurers transacting workers' compensation insurance in this state shall adhere except as provided in section 20-359, subsection A. See Arizona Laws 20-343
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
  • Violation: means the failure of the reinsurance intermediary, insurer or reinsurer for whom the reinsurance intermediary was acting to substantially comply with the provisions of this article. See Arizona Laws 20-486
  • Voting security: means any security presently entitling the owner or holder of the security to vote for the election of directors of a financial institution or controlling person, excluding, in the case of a savings and loan association, votes attributable to savings accounts. See Arizona Laws 6-1101
  • Voting security: means a security that carries with it a right to vote in decisions and also includes securities that are convertible into or evidence a right to acquire a security that includes such right to vote. See Arizona Laws 20-481
  • Wilfully: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 1-215
  • Writing: includes printing. See Arizona Laws 1-215