Sections
Article 1 Domestic Stock and Mutual Insurers 20-701 – 20-736
Article 2 Reciprocal Insurers 20-761 – 20-792
Article 3 Hospital, Medical, Dental and Optometric Service Corporations 20-821 – 20-848
Article 4 Fraternal Benefit Societies 20-861 – 20-893
Article 7 Prepaid Dental Plan Organizations 20-1001 – 20-1019
Article 8 Lloyd’s Associations 20-1021 – 20-1033
Article 9 Health Care Services Organizations 20-1051 – 20-1079
Article 10 Domestic Life and Disability Reinsurer 20-1081 – 20-1094.01
Article 11 Service Companies 20-1095 – 20-1095.10
Article 12 Mechanical Reimbursement Reinsurers 20-1096 – 20-1096.11
Article 13 Prepaid Legal Insurance 20-1097 – 20-1097.13
Article 14 Captive Insurers 20-1098 – 20-1098.23
Article 15 Vehicle Protection Products 20-1099 – 20-1099.02

Terms Used In Arizona Laws > Title 20 > Chapter 4

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Administrative fee: means a fixed amount paid by a corporation on a periodic basis to a contracted attorney for the contracted attorney's overhead and administrative costs. See Arizona Laws 20-1097
  • 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.
  • Agency captive insurer: means a captive insurer that is owned by one or more business entities that are licensed in any state as insurance producers or managing general agents and that only insure risks on policies placed through their owners. See Arizona Laws 20-1098
  • Alien captive insurer: means any insurer that is formed to write insurance business for its affiliates and that is licensed pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards that are acceptable to the director on companies transacting the business of insurance in such a jurisdiction. See Arizona Laws 20-1098
  • 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.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Association: means any lawfully formed association of individuals or business entities that has been in existence for at least one year and that is organized for a primary purpose other than procuring or providing insurance for its members. See Arizona Laws 20-1098
  • Association captive insurer: means a captive insurer that is completely under the direct or indirect voting control of an association. See Arizona Laws 20-1098
  • Association or order: means any association or order that is a nonprofit military mutual aid association, whose members are officers or enlisted, regular or reserve, active, retired or honorably discharged members of the armed forces or sea services of the United States, and whose principal purpose is to provide life insurance and annuities to its members and their dependents or beneficiaries. See Arizona Laws 20-861
  • Attorney: as used in this article refers to the attorney-in-fact of a reciprocal insurer. See Arizona Laws 20-767
  • 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 delegate: means a person designated by the licensee under section 6-1208. See Arizona Laws 6-1201
  • Balanced budget: A budget in which receipts equal outlays.
  • Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
  • Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
  • 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
  • Benefit contract: means an agreement for the provision of benefits. See Arizona Laws 20-861
  • Benefit member: means an adult who is a member of a fraternal benefit society and who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Arizona Laws 20-861
  • Branch: means any banking office other than the principal banking office. See Arizona Laws 6-101
  • Branch business: means any insurance business that is transacted by a branch captive insurer in this state. See Arizona Laws 20-1098
  • Branch captive insurer: means an alien captive insurer that is licensed pursuant to this chapter to transact the business of insurance through a business unit with a principal place of business in this state. See Arizona Laws 20-1098
  • Branch operations: means any business operations of a branch captive insurer in this state. See Arizona Laws 20-1098
  • Business entity: means any legal entity other than an individual or sole proprietorship. See Arizona Laws 20-1098
  • Captive insurer: means any pure captive insurer, agency captive insurer, group captive insurer or protected cell captive insurer that is domiciled in this state and that is formed and licensed under this article. See Arizona Laws 20-1098
  • Certificate: means a document that is issued as written evidence of the benefit contract. See Arizona Laws 20-861
  • Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
  • 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
  • commission: means the department of insurance. See Arizona Laws 20-101
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Consumer: means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or service company the obligations of the warranty or service contract. See Arizona Laws 20-1095
  • Consumer: means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or issuer of the service contract the obligations of the warranty or service contract. See Arizona Laws 20-1096
  • Consumer product: means any tangible personal property that is distributed in commerce and that is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed. See Arizona Laws 20-1095
  • Consumer product: means any tangible personal property which is distributed in commerce and which is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed. See Arizona Laws 20-1096
  • Control: means ownership of fifteen per cent or more of a licensee or controlling person, or the power to vote fifteen per cent or more of the outstanding voting securities of a licensee or controlling person. See Arizona Laws 6-1201
  • Controlled unaffiliated business: means an individual or business entity that satisfies all of the following:

    (a) Is not an affiliate of the captive insurer providing coverage or reinsurance. See Arizona Laws 20-1098

  • Controlling person: means a person directly or indirectly in control of a licensee. See Arizona Laws 6-1201
  • 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
  • Credit life and disability reinsurer: means a domestic life and disability reinsurer that reinsures only credit life insurance or credit disability insurance that is issued according to chapter 6, article 10 of this title by an insurer that is authorized to transact insurance in this state, as certified in a form prescribed by the director and reaffirmed annually in conjunction with the annual statement filed pursuant to section 20-223. See Arizona Laws 20-1082
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Deductible reimbursement: means insurance coverage that reimburses the insured for the deductible it paid under a separate commercial insurance policy issued to the same insured, without other conditions related to the underlying loss. See Arizona Laws 20-1098
  • Department: means the department of insurance. See Arizona Laws 20-822
  • Department: means the department of financial institutions. See Arizona Laws 6-101
  • Dependent: A person dependent for support upon another.
  • Director: means the director of the department of insurance. See Arizona Laws 20-822
  • Director: means the director of the department of insurance. See Arizona Laws 20-1051
  • Domestic life and disability reinsurer: means an incorporated stock reinsurer holding a certificate of authority to accept insurance ceded by any domestic insurer or foreign insurer. See Arizona Laws 20-1082
  • 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
  • Enrollee: means an individual who has been enrolled in a health care plan. See Arizona Laws 20-1051
  • Enterprise: means any person under the jurisdiction of the department other than a financial institution. See Arizona Laws 6-101
  • 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
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Evidence of coverage: means any certificate, agreement or contract issued to an enrollee and setting out the coverage to which the enrollee is entitled. See Arizona Laws 20-1051
  • 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 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, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. See Arizona Laws 6-101
  • 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
  • Fraternal benefit society: means a society, order or supreme lodge without capital stock, including an incorporated or unincorporated society that is exempt under section 20-893, that is conducted solely for the benefit of its members and their beneficiaries, is not for profit, operates on a lodge system with a ritualistic form of work, has a representative form of government and provides benefits according to this article. See Arizona Laws 20-861
  • Fraud: Intentional deception resulting in injury to another.
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Genetic information: means information about genes, gene products and inherited characteristics that may derive from the individual or a family member, including information regarding carrier status and information derived from laboratory tests that identify mutations in specific genes or chromosomes, physical medical examinations, family histories and direct analysis of genes or chromosomes. See Arizona Laws 20-1051
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
  • Group captive insurer: means any of the following:

    (a) A risk retention group. See Arizona Laws 20-1098

  • 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 care plan: means any contractual arrangement whereby any health care services organization undertakes to provide directly or to arrange for all or a portion of contractually covered health care services and to pay or make reimbursement for any remaining portion of the health care services on a prepaid basis through insurance or otherwise. See Arizona Laws 20-1051
  • Health care services: means services for the purpose of diagnosing, preventing, alleviating, curing or healing human illness or injury. See Arizona Laws 20-1051
  • Health care services organization: means any person that undertakes to conduct one or more health care plans. See Arizona Laws 20-1051
  • Health status-related factor: means any factor in relation to the health of the individual or a dependent of the individual enrolled or to be enrolled in a health care services organization including:

    (a) Health status. See Arizona Laws 20-1051

  • Incidental costs: means expenses that are specified in the vehicle protection product warranty incurred by the warranty holder relating to the failure of the vehicle protection product to perform as provided in the warranty. See Arizona Laws 20-1099
  • 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
  • Industry group: means two or more business entities or persons that are engaged in businesses or activities similar or related with respect to the liability that they are exposed to by virtue of any related, similar or common business, trade, product, services, premises or operations. See Arizona Laws 20-1098
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Laws: means the articles of incorporation, constitution and bylaws of the society. See Arizona Laws 20-861
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • 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.
  • Location: means a place of business at which activity regulated by this chapter occurs. See Arizona Laws 6-1201
  • Lodge: means a subordinate member of the society, including any camp, court, council, branch or other designated unit. See Arizona Laws 20-861
  • Manager: means a person who is experienced in the field of captive insurance and who maintains all documents relating to a captive insurer's operations, transactions and affairs in this state and assists the captive insurer in its management and compliance with this article. See Arizona Laws 20-1098
  • Mechanical reimbursement insurance: means an insurance policy issued to an obligor to either provide reimbursement to the obligor under the terms of the insured service contracts issued or sold by the obligor or, in the event of the obligor's nonperformance, to pay on behalf of the obligor all covered contractual obligations incurred by the obligor under the terms of the insured service contracts issued or sold by the obligor. See Arizona Laws 20-1095
  • Mechanical reimbursement insurance: means an insurance policy issued to a motor vehicle dealer or to insure the performance of a service contract to a consumer if the motor vehicle dealer or the issuer of a service contract becomes insolvent or ceases to do business or, if approved by the director, similar such insurance. See Arizona Laws 20-1096
  • Member: means any individual or business entity that belongs to a group captive insurer. See Arizona Laws 20-1098
  • Member: means an individual who is enrolled in a group prepaid dental plan as a principal subscriber together with such person's dependents who are entitled to dental care services under the plan solely because of their status as dependents of the principal subscriber. See Arizona Laws 20-1001
  • Membership coverage: means any certificate or contract issued to a member setting out the dental coverage to which such member is entitled. See Arizona Laws 20-1001
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • 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
  • 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.
  • Network plan: means health care services that are provided by a health care services organization under which the financing and delivery of health care services are provided, in whole or in part, through a defined set of providers under contract with the health care services organization. See Arizona Laws 20-1051
  • Oath: includes an affirmation or declaration. See Arizona Laws 1-215
  • 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.
  • obligor: means any person that is contractually obligated to the contract holder under the terms of the service contract. See Arizona Laws 20-1095
  • Outstanding payment instruments: means unpaid payment instruments whose sale has been reported to a licensee. See Arizona Laws 6-1201
  • Participant: means an entity and any affiliates of the entity that are insured by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
  • Participant contract: means a contract by which a protected cell captive insurer insures risks of one or more participants and limits losses under the contract to the assets of a protected cell. See Arizona Laws 20-1098
  • 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
  • Permissible investment: means any of the following:

    (a) Money on hand or on deposit in the name of the licensee. See Arizona Laws 6-1201

  • Person: means any natural or artificial person including, but not limited to, individuals, partnerships, associations, providers of health care, trusts, insurers, hospital or medical service corporations or other corporations, prepaid group practice plans, foundations for medical care and health maintenance organizations. See Arizona Laws 20-1051
  • Personal property: includes money, goods, chattels, things in action and evidences of debt. See Arizona Laws 1-215
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
  • 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
  • Premiums: means rates, dues or other required contributions that are payable under the certificate. See Arizona Laws 20-861
  • Prepaid dental plan: means any contractual arrangement whereby any prepaid dental plan organization undertakes to provide directly or to arrange for prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise. See Arizona Laws 20-1001
  • Prepaid dental plan organization: means any person who undertakes to conduct one or more prepaid dental plans providing only dental services. See Arizona Laws 20-1001
  • Prepaid dental services: means services included in the practice of dentistry as described in section 32-1202. See Arizona Laws 20-1001
  • Prepaid legal insurance contract: means a contractual obligation to pay or reimburse for specific legal services rendered in the normal and ordinary course of business by an active member of the state bar of Arizona. See Arizona Laws 20-1097
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • Protected cell: means a separate account that is established and maintained by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
  • Protected cell captive insurer: means a captive insurer:

    (a) In which the minimum capital and surplus required by applicable law is provided by one or more sponsors. See Arizona Laws 20-1098

  • Provider: means any physician, hospital or other person that is licensed or otherwise authorized to furnish health care services in this state. See Arizona Laws 20-1051
  • Provider sponsored health care services organization: means a provider sponsored organization that provides at least one health care plan only to medicare beneficiaries under the medicare-plus-choice program established under the balanced budget act of 1997 (42 United States Code sections 1395w-21 through 1395w-28 and title XVIII, part C of the social security act, sections 1851 through 1859). See Arizona Laws 20-1051
  • Provider sponsored organization: means an entity that:

    (a) Is a legal aggregation of providers that operate collectively to provide health care services to medicare beneficiaries under the medicare-plus-choice program established under the balanced budget act of 1997 (42 United States Code sections 1395w-21 through 1395w-28 and title XVIII, part C of the social security act, sections 1851 through 1859). See Arizona Laws 20-1051

  • Pure captive insurer: means a captive insurer that insures only the risks of its affiliates and controlled unaffiliated business. See Arizona Laws 20-1098
  • Quorum: The number of legislators that must be present to do business.
  • reinsurer: means a domestic reinsurer reinsuring mechanical reimbursement insurance. See Arizona Laws 20-1096
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Residential property: means a house, townhouse, condominium or other habitable structure that is used principally as a residence. See Arizona Laws 20-1095
  • Residential property: means a house, townhouse, condominium or other habitable structure consisting of no more than four units which is used principally as a residence. See Arizona Laws 20-1096
  • 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
  • Risk retention group: means a captive insurer that is organized pursuant to the liability risk retention act of 1986 (15 United States Code sections 3901 and 3902) and chapter 14 of this title. See Arizona Laws 20-1098
  • Rules: means the rules, regulations and resolutions that are adopted by the supreme governing body or board of directors and that are intended to apply to the members of the society. See Arizona Laws 20-861
  • Service contract: means a written contract for a prepaid separately stated consideration to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair, including replacement, of:

    (a) A consumer product. See Arizona Laws 20-1096

  • 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.
  • Society: means a fraternal benefit society. See Arizona Laws 20-861
  • Sponsor: means an entity that meets the requirements of section 20-1098. See Arizona Laws 20-1098
  • 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
  • Summons: Another word for subpoena used by the criminal justice system.
  • Superintendent: means the superintendent of financial institutions. See Arizona Laws 6-101
  • Testify: includes every manner of oral statement under oath or affirmation. See Arizona Laws 1-215
  • Title: includes this title, title 32, chapters 9 and 36 and title 44, chapter 2. See Arizona Laws 6-101
  • 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
  • Trustee: A person or institution holding and administering property in trust.
  • Unaffiliated: means not affiliated with another insurer as defined in section 20-104. See Arizona Laws 20-1082
  • Vehicle protection product: means a vehicle protection device, system or service that:

    (a) Is installed on or applied to a vehicle. See Arizona Laws 20-1099

  • warrantor: means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. See Arizona Laws 20-1099
  • Warranty: means :

    (a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product that relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time. See Arizona Laws 20-1095

  • Warranty: means :

    (a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time. See Arizona Laws 20-1096

  • Warranty reimbursement insurance policy: means a policy of insurance issued to the vehicle protection product warrantor to pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the vehicle protection product warranty. See Arizona Laws 20-1099
  • 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