20-773. Bond of attorney

182 words·~1 min read·/az/title-20/20-773

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

A. Concurrently with the filing of the declaration provided for in section 20-769, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his bond as set forth in subsection B of this section. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director's approval.

B. The bond shall be in the penal sum of twenty-five thousand dollars, aggregate in form, conditioned that the attorney will faithfully account for all monies and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any monies or property to which he is not entitled under the power of attorney.

C. The bond shall provide that it is not subject to cancellation unless thirty days advance notice in writing of cancellation is given both the attorney and the director.