20-217. Certificate of authority; term; termination; delivery upon termination or revocation

324 words·~1 min read·/az/title-20/20-217

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The certificate of authority issued by the director to an insurer is evidence of its authority to transact in this state the kind of insurance specified in the certificate.

B. A certificate of authority remains in effect until terminated at the request of the insurer or suspended or revoked by the director.

C. A certificate of authority remains the property of this state. Upon termination at the request of the insurer or revocation by the director, the insurer shall immediately deliver the certificate of authority to the director.

D. The director shall not grant the request of an insurer to terminate its certificate of authority if the insurer has any outstanding obligations under a policy of insurance to policyholders or claimants who are residents of this state. This subsection does not apply if the insurer has deposited with the state treasurer securities acceptable to the director in an amount equal to its liabilities, as computed by the director, including its reserves as required by this title in respect to its business in this state for the sole benefit of its policyholders and creditors who are residents of this state.

The state treasurer shall hold and administer the deposits pursuant to chapter 3, article 3 of this title. This subsection does not apply if the insurer has fully reinsured such outstanding obligations with a reinsurer under an agreement filed with and approved in writing by the director pursuant to section 20-261. This subsection does not apply when the termination of the insurer's certificate of authority is the result of a merger or consolidation if the emerging or surviving insurer is or becomes authorized to transact business in this state and assumes such outstanding obligations of the terminating insurer.

E. The certificate of authority shall be suspended or revoked if the insurer fails to pay the annual certificate of authority fee denominated a renewal fee in section 20-167 at the time provided in section 20-223.