REFERENCE TITLE: prepaid legal insurance; capital requirements

State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017

HB 2498

Introduced by Representative Livingston

 

AN ACT

 

Amending section 20‑1097.10, Arizona Revised Statutes; relating to prepaid legal insurance.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

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

Section 1.  Section 20-1097.10, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1097.10.  Capital, surplus and reserve requirements

The director shall not authorize an applicant to sell prepaid legal insurance contracts within this state unless the applicant:

1.  Possesses and thereafter maintains unimpaired capital of at least six hundred thousand dollars, except that an applicant to sell prepaid legal insurance contracts that offer legal services plans related to the lawful use of firearms shall possess and maintain unimpaired capital of at least fifty thousand dollars.

2.  Possesses and thereafter maintains surplus funds in an amount equal to at least fifty per cent percent of the capital requirement prescribed in paragraph 1 of this section.

3.  Possesses and thereafter maintains an unearned premium reserve which that meets the requirements prescribed in section 20‑506. END_STATUTE