§ 20-485.11 — Notice to insureds; statement of charge or premium for coverage; conflict of interest prohibited

Arizona § 20-485.11

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

Text

A. If the services of an administrator are utilized, such administrator shall provide a written notice approved by the insurer to insured individuals advising them of the identity of and relationship among the administrator, the policyholder and the insurer.

B. If an administrator collects monies, the administrator shall identify and state separately in writing to the person paying to the administrator any charge or premium for insurance coverage the amount of any such charge or premium specified by the insurer for such insurance coverage.

C. The administrator or any employee of the administrator shall not directly or through control of any other person have an ownership interest in any insurer except as a shareholder of less than one per cent of the shares of any publicly owned insurer. The administrator or a principal of the administrator may not receive from an insurer, for the placement of insurance administered by the administrator, a commission whether in monetary or nonmonetary form directly dependent upon the amount of such insurance.

D. Subject to subsection C of this section, before entering into a written agreement pursuant to section 20-485.01 with an unaffiliated insurer, an administrator shall provide written notice to the unaffiliated insurer of the identity of each insurer with which the administrator is affiliated and the nature of the affiliation.

E. If an administrator or an employee of the administrator acts directly or indirectly as an insurance producer with respect to a policy it administers in this state, the administrator shall provide the policyholder and the person insured under that policy with written notice of that relationship.

F. If an administrator or an employee of the administrator acts directly or indirectly as an insurance producer with respect to an insurance policy available in this state that has substantially the same type of coverage as a policy it administers in this state, the administrator shall provide the insurer for which it acts with written notice of the identity of the other insurer and its relationship to it.