The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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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.
20-717 - Contingent liability of mutual insurer members
20-717. Contingent liability of mutual insurer members
A. Each member of a domestic mutual insurer shall, except as otherwise provided in this article with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be in such maximum amount as it stated in the insurer's articles of incorporation.
B. Each policy issued by the insurer shall contain a statement of the contingent liability, if any, of its members.
C. Termination of the policy of any such member shall not relieve the member of contingent liability for his proportion, if any, of the obligations of the insurer which accrued while the policy was in force.
D. Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.