|
Senate Engrossed |
|
State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
|
|
CHAPTER 55
|
|
SENATE BILL 1123 |
|
|
AN ACT
Amending sections 20‑408 and 20‑415, Arizona Revised Statutes; relating to surplus lines insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-408, Arizona Revised Statutes, is amended to read:
20-408. Report of broker; civil penalty
A. A broker procuring surplus lines insurance on behalf of an insured whose home state is Arizona shall execute and file with the director on or before the date specified in section 20‑415, subsection B a verified report setting forth facts from which it may be determined whether the requirements of section 20‑407 have been met. The report shall also contain or be accompanied by the following:
1. The name of the insurer and the identification number assigned to it by the national association of insurance commissioners.
2. The number of the policy issued.
3. The name and address of the insured.
4. The premium, including taxable policy fees.
5. The identity of the specific recognized surplus lines coverage written. or if the insurance coverage is not a recognized surplus line pursuant to section 20‑409, an affidavit executed by the surplus lines broker attesting to compliance with the requirements of section 20‑407, subsection A and confirming that evidence of compliance will be maintained in the broker's file for the duration of the insurance policy and for a period of six years after the expiration of the policy.
6. The policy effective dates that shall not be open to public inspection.
B. The director shall prescribe the required report form.
C. The director may direct a broker to file the broker's report required by this section with a voluntary domestic organization of surplus lines brokers with which the director has contracted to accept reports pursuant to section 20‑167.
D. A broker may collect from the insured the stamping fee prescribed in section 20‑167.
E. The director may impose and collect a civil penalty of not more than twenty‑five dollars against a broker for each day the report prescribed in subsection A of this section is late.
F. In addition to the requirements of subsection A, paragraph 5 of this section, if the insurance coverage is not a recognized surplus line pursuant to section 20‑409, a surplus lines broker shall maintain evidence of compliance with the requirements of section 20‑407, subsection A for the duration of the insurance policy and for a period of six years after the expiration of the policy.
Sec. 2. Section 20-415, Arizona Revised Statutes, is amended to read:
20-415. Statement of surplus lines insurance business transacted by broker; reporting periods
A. Each surplus lines broker shall file semiannually with the director a statement of all surplus lines insurance business covering Arizona single‑state risks transacted by the broker during the period for which the statement is being filed. The statement shall be on a form prescribed by the director and shall show:
1. Gross amount of each kind of insurance transacted.
2. Aggregate gross premiums charged.
3. Aggregate of return premiums paid to insureds.
4. Aggregate of net premiums.
5. Such additional information as may reasonably be required by the director.
B. The statement required by subsection A of this section is due on or before February 15 of each year for the preceding July through December and on or before August 15 of each year for the preceding January through June for business covering Arizona single‑state risks.
C. Each surplus lines broker shall file quarterly, with the clearinghouse responsible for administering the compact or multistate agreement entered into by the director pursuant to section 20‑416.01, a notarized statement of all surplus lines insurance business covering multistate risks transacted by the broker on behalf of insureds whose home state is Arizona during the calendar quarter for which the statement is being filed. The statement shall be on a form prescribed by the clearinghouse and shall include all information required by the clearinghouse. A facsimile of the original notarized statement may be submitted in lieu of the original notarized statement. The broker shall maintain the original notarized statement for a period of six years after the calendar year in which the statement was filed.
D. The statement required by subsection C of this section is due on or before February 15 for the quarter ending the preceding December 31, May 15 for the quarter ending the preceding March 31, August 15 for the quarter ending the preceding June 30 and November 15 for the quarter ending the preceding September 30.
APPROVED BY THE GOVERNOR MARCH 20, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 22, 2012.