20-711. Initial qualification of domestic mutual insurers
436 words·~2 min read·
/az/title-20/20-711A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. When newly organized a domestic mutual insurer may be authorized to transact any one kind of insurance other than title insurance.
B. When applying for an original certificate of authority as an insurer, a domestic mutual insurer shall be otherwise qualified under this title, and shall have received and accepted bona fide applications with respect to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, shall have collected in full and in cash the proper premium at a rate not less than that usually charged by stock insurers for comparable coverages, shall have surplus funds on hand as at completion of issuance of all such policies so applied for, or, in lieu of such applications, premiums and surplus, may deposit surplus, all in accordance with that portion of the following schedule which applies to the one kind of insurance the insurer then proposes to transact:
Minimum Minimum Minimum Maximum
number number amount of amount of
of of Minimum insurance insurance
Kind of applicants subjects premium each each
insurance accepted covered collected subject subject
______
Life
(i)300 300 Annual $1,000 $20,000
Disability
(ii)300 300 Quarter 100 monthly 200 monthly
indemnity indemnity
Property
(iii)100 250 Annual 1,000 30,000
Marine and
Transportation 100 250 Annual 1,000 30,000
Vehicle
(iv)100 250 Annual 15,000 30,000
Casualty
(iv)100 250 Annual 15,000 30,000
Surety 100 250 Annual 1,000 50,000
C. The following provisions in the schedule shall govern as to the one kind of insurance the insurer then proposes to transact:
1. Under (i). No group insurance, nor term policies for terms of less than ten years shall be included.
2. Under (ii). No group or blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed two thousand dollars.
3. Under (iii). Only insurance of the owner's interest in real property may be included, and all such coverages shall be in compliance with the provisions of subsection E of section 20-260 (two properties reasonably subject to loss from the same fire may not be insured by the same insurer if results in excess of limit of risk).
4. Under (iv). Shall include insurance of legal liability for bodily injury and property damage to which the maximum and minimum insured amounts apply.
5. Under (v). The deposit in the amount specified shall thereafter be maintained. The deposit is subject to the provisions of this title governing deposits of insurers in general.