Arizona § 20-2212 Deficits; equitable assessments; premium tax credits

Arizona Statutes

§ 20-2212 — Deficits; equitable assessments; premium tax credits

Arizona § 20-2212

Title 20Arizona Revised Statutes

Ch. 12JOINT UNDERWRITING ASSOCIATION

Art. 1General Provisions

This text of Arizona § 20-2212 (Deficits; equitable assessments; premium tax credits) 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. § 20-2212 (2026).

Text

A.On a determination that within the next one hundred eighty days thereafter the association will be unable to pay its outstanding lawful obligations as they mature in the regular course of business as shown by an excess of such lawful obligations over admitted assets, the association shall certify to the director the existence of this condition.

B.At the time of certification, the association shall submit a schedule of policyholder surcharges and a plan of member assessments which, in combination, are sufficient to assure the continued sound financial operation of the association. The surcharge may not exceed ten per cent of the total premium paid for a policy or policies obtained through the association. Member assessments shall not exceed one per cent of each member's net direct prem

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A. On a determination that within the next one hundred eighty days thereafter the association will be unable to pay its outstanding lawful obligations as they mature in the regular course of business as shown by an excess of such lawful obligations over admitted assets, the association shall certify to the director the existence of this condition.

B. At the time of certification, the association shall submit a schedule of policyholder surcharges and a plan of member assessments which, in combination, are sufficient to assure the continued sound financial operation of the association. The surcharge may not exceed ten per cent of the total premium paid for a policy or policies obtained through the association. Member assessments shall not exceed one per cent of each member's net direct premium in this state attributable to the line of insurance, the writing of which requires it to be a member of the association.

C. Any member of the association subject to an assessment in any one calendar year shall be allowed a premium tax credit beginning in the following calendar year, at the rate of twenty per cent per year for five years.

D. The association shall certify to the director the estimated amount of any deficit remaining after the termination of all underwriting activities of the association. Policyholder surcharges are limited to ten per cent of the annual premium.