20-726. Prohibited interests of officers and directors in certain transactions

133 words·~1 min read·/az/title-20/20-726

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

A. No director or officer of an insurer shall accept, except for the insurer, or be the beneficiary of any fee, brokerage, gift or other emolument in addition to his fixed salary or compensation, because of any investment, loan, deposit, purchase, sale, exchange, reinsurance or other similar transaction made by or for the insurer, or be pecuniarily interested therein in any capacity except on behalf of the insurer.

B. No insurer shall guarantee the financial obligation of any of its officers or directors.

C. This section shall not prohibit such a director or officer from becoming a policyholder of the insurer and enjoying thereunder the rights customarily provided therein for holders of such policies.

D. This section shall not prohibit any transaction which meets the requirements of title 10, chapter 8, article 6.