The Arizona Revised Statutes have been updated to include the revised sections from the 54th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 55th Legislature, 1st Regular Session, which convenes in January 2021.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
20-311. Definition of managing general agent; exceptions; adjustment or payment of claims
A. In this article, unless the context otherwise requires, "managing general agent" means any person, firm, association or corporation that manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office, and that, with or without authority and either separately or together with affiliates, directly or indirectly produces and underwrites an amount of gross direct written premium that is at least five per cent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year and that either:
1. Engages in the adjustment or payment of claims in excess of ten thousand dollars per claim.
2. Negotiates reinsurance on behalf of the insurer.
B. Notwithstanding subsection A of this section, for the purposes of this article the following persons are not managing general agents:
1. An employee of the insurer.
2. A United States manager of the United States branch of an alien insurer.
3. An underwriting manager who, pursuant to contract, manages all of the insurance operations of the insurer other than those operations that are managed by the insurer, who is under common control with the insurer, subject to the holding company regulatory act, and whose compensation is not based on the volume of premiums written.
4. The attorney-in-fact who is authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.
5. A reinsurance intermediary broker or a reinsurance intermediary manager as defined in section 20-486, who provides administrative services for an insurer and whose compensation consists only of remuneration not related directly or indirectly to direct written premium. For the purposes of this paragraph, reinsurance commissions shall not be considered remuneration related to direct written premium.
C. The director shall establish by rule the dollar amount of adjusted or paid claims that constitutes engaging in the adjustment or payment of claims.