Arizona § 20-1097.13 Suspension or revocation of authorization or registration; appeal; civil penalty; rules

Arizona Statutes

§ 20-1097.13 — Suspension or revocation of authorization or registration; appeal; civil penalty; rules

Arizona § 20-1097.13

Title 20Arizona Revised Statutes

Ch. 4PARTICULAR TYPES OF INSURERS

Art. 13Prepaid Legal Insurance

This text of Arizona § 20-1097.13 (Suspension or revocation of authorization or registration; appeal; civil penalty; rules) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 20-1097.13 (2026).

Text

A.The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes:

1.Material misstatement, misrepresentation or fraud in registration.

2.Any wilful attempt to circumvent the requirements of this article.

3.Wilful misrepresentation or wilful deception with regard to any contract issued or sold under this article.

4.Any material misrepresentation to a contract holder or other interested party regarding the adjustment of the claim or the payment of a claim under the provisions of a contract issued or sold under the terms of this article, if the misrepresentation is made with the intent and for the purpose of affecting settlement of such claim on less favorable terms

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A. The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes:

1. Material misstatement, misrepresentation or fraud in registration.

2. Any wilful attempt to circumvent the requirements of this article.

3. Wilful misrepresentation or wilful deception with regard to any contract issued or sold under this article.

4. Any material misrepresentation to a contract holder or other interested party regarding the adjustment of the claim or the payment of a claim under the provisions of a contract issued or sold under the terms of this article, if the misrepresentation is made with the intent and for the purpose of affecting settlement of such claim on less favorable terms than those provided in and contemplated by the contract.

5. Fraudulent or dishonest practices in the conduct of its business.

6. Misappropriation, conversion or unlawful withholding of monies belonging to a legal services corporation or to others received in the conduct of business under this article.

7. Failure to comply with or wilful violation of any provision of this article, or order or rule of the department adopted pursuant to this article.

B. Any corporation or insurance producer of a corporation whose certificate or license has been suspended or revoked by the director for cause under this section may request a hearing pursuant to title 41, chapter 6, article 10.

C. The director may impose a civil penalty in an amount not to exceed two thousand five hundred dollars for an insurance producer or ten thousand dollars for a corporation in lieu of suspension or revocation of authorization or registration if under this article the director deems the civil penalty in lieu of suspension or revocation to be a satisfactory means of fulfilling the intent of this article. A civil penalty imposed under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

D. The director shall adopt rules not inconsistent with the provisions of this article, as the director deems advisable for effectuating its orderly administration.