20-169. Supervision by director
264 words·~1 min read·
/az/title-20/20-169A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Notwithstanding any other law, if on examination pursuant to this article or at any other time it appears to or is in the opinion of the director that any insurance company is insolvent, or its condition is such as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or if the insurance company appears to have exceeded its powers or has failed to comply with the law, or if the insurance company gives its consent, the director, on the director's determination, shall do all of the following:
1. Notify the insurance company of the director's determination.
2. Furnish to the insurance company a written list of the director's requirements to abate the determination.
3. If the director makes a further determination to supervise, the director shall notify the insurance company that it is under the supervision of the department of insurance and financial institutions and that the director is applying and effecting the provisions of this article. The insurance company shall comply with the lawful requirements of the director and, if placed under supervision, shall under supervision have sixty days from the date of notice within which to comply with the requirements of the director, subject to the provisions of this article.
If the insurance company fails to comply within such time, the director, or a conservator appointed by the director for that purpose, shall immediately, after due and proper notice and hearing, take charge as conservator of the insurance company and all of the property and effects of the insurance company.