REFERENCE TITLE: insurance; surplus lines; exemption

 

 

 

 

State of Arizona

Senate

Fifty-third Legislature

Second Regular Session

2018

 

 

SB 1112

 

Introduced by

Senator Fann

 

 

AN ACT

 

Amending section 20‑420, Arizona Revised Statutes; relating to the transaction of insurance business.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 20-420, Arizona Revised Statutes, is amended to read:

START_STATUTE20-420.  Exemptions from surplus lines provisions

A.  The sections of this article relating to surplus lines coverages do not apply to reinsurance or to the following classes of insurance placed by licensed insurance producers of this state:

1.  Ocean marine and foreign trade insurance.

2.  Insurance on subjects that are located, resident or to be performed wholly outside this state, or on vehicles or aircraft owned and principally garaged outside this state.

3.  Insurance for an insured that is a federally recognized Indian tribe or who is a member of a federally recognized Indian tribe on subjects of insurance that are located, resident or to be performed wholly within the boundaries of a federally recognized Indian reservation.

3.  4.  Insurance on property or operations of railroads engaged in interstate commerce.

B.  Any insurance producer that places any of the classes of insurance prescribed in subsection A of this section with an unauthorized insurer shall keep a record of each coverage in detail as required of surplus lines insurance pursuant to section 20‑414.  The insurance producer shall preserve the record for not less than three years after the expiration or cancellation date of the insurance policy and shall make the record available in this state and open to the examination of the director. END_STATUTE