20-2201. Voluntary plans; assessments; fund

281 words·~1 min read·/az/title-20/20-2201

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

A. If the director finds after a hearing that in any part of this state any liability insurance coverage is not readily available in the voluntary insurance market and that the public interest requires such availability, the director may authorize the formation of voluntary plans to provide the coverage for any class or classes of risk in this state which are entitled to but otherwise unable to obtain the coverage. The director may request insurers, agents and brokers to prepare the plans or assist as needed in the preparation and administration of the plans.

B. A plan formulated pursuant to this section shall give consideration to all of the following:

1. The need for adequate and readily accessible coverage.

2. Alternative methods of improving the market affected.

3. Inherent limitations of providing coverage.

4. The need for reasonable underwriting standards.

5. The requirement of reasonable loss prevention measures.

C. The plans shall establish procedures that will encourage use of the voluntary insurance market as a condition of placement of coverage through the plan.

D. The director may annually assess each insurer authorized to transact liability insurance in this state up to two hundred dollars for the costs of administering the plan. Monies collected from assessments shall be deposited in the assessment fund for voluntary plans established by subsection E of this section.

E. An assessment fund for voluntary plans is established consisting of the monies that are deposited pursuant to subsection D of this section. The director shall administer the fund monies as a continuing appropriation for the purposes provided for in this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.