ARIZONA HOUSE OF REPRESENTATIVES

SB 1112: insurance; surplus lines; exemption

PRIME SPONSOR: Senator Fann, LD 1

BILL STATUS: Chaptered

Abstract

Relating to surplus lines insurance.

Provisions

1. Includes insurance for federally recognized Indian tribes and their members on subjects of insurance located on federally recognized Indian reservations to the insurance types exempt from surplus lines requirements. (Sec. 1)

2. Makes technical and conforming changes. (Sec. 1)

Current Law

An insurance coverage or type that is not readily procurable from authorized insurers is recognized as surplus lines (A.R.S. § 20-409). Surplus lines insurance may be procured from an unauthorized insurer through a licensed surplus lines broker (A.R.S. § 20-407). Insurance obtained through a surplus lines broker is not protected under the Insurance Guaranty Fund (A.R.S. § 20-410).

Statutory requirements for surplus lines do not apply to reinsurance or to the following insurance classes:

1. Ocean marine and foreign trade insurance;

2. Insurance on subjects that are located, resident or to be performed wholly outside of Arizona;

3. Insurance on vehicles or aircrafts owned and principally garaged outside Arizona; and

4. Insurance on property or operations of railroads engaged in interstate commerce (A.R.S. § 20-420).

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Fifty-third Legislature                  SB 1112

Second Regular Session                               Version 4: Chaptered

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