§ 20-485.06 — Charges or premiums collected held in fiduciary capacity; establishment of account; disbursements

Arizona § 20-485.06

• Jurisdiction: Arizona
• Title 20: Arizona Revised Statutes
• Ch. 2: TRANSACTION OF INSURANCE BUSINESS
• Art. 9: Insurance Administrators

Text

A. All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and return premiums received from such insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled to such funds or shall be deposited promptly in a fiduciary bank account established and maintained by the administrator.

B. If charges or premiums deposited in a fiduciary account have been collected on behalf of or for more than one insurer, the administrator shall keep records clearly recording the deposits in and withdrawals from such account on behalf of or for each insurer. The administrator shall, upon request of an insurer, furnish such insurer with copies of such records pertaining to deposits and withdrawals on behalf of or for such insurer.

C. The administrator shall not pay any claim by withdrawals from a fiduciary account. Withdrawals from such account shall be made, as provided in the written agreement between the administrator and the insurer required by section 20-485.01, for any of the following:

1. Remittance to an insurer entitled to such remittance.

2. Deposit in an account maintained in the name of such insurer.

3. Transfer to and deposit in a claims-paying account, with claims to be paid as provided by section 20-485.07.

4. Payment to a group policyholder for remittance to the insurer entitled to such remittance.

5. Payment to the administrator of such administrator's commission, fees or charges.

6. Remittance of return premiums to the person or persons entitled to such return premiums.