Arizona Laws 20-773. Bond of attorney
A. Concurrently with the filing of the declaration provided for in section 20-769, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his bond as set forth in subsection B of this section. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director’s approval.
Terms Used In Arizona Laws 20-773
- Attorney: as used in this article refers to the attorney-in-fact of a reciprocal insurer. See Arizona Laws 20-767
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Property: includes both real and personal property. See Arizona Laws 1-215
- Writing: includes printing. See Arizona Laws 1-215
B. The bond shall be in the penal sum of twenty-five thousand dollars, aggregate in form, conditioned that the attorney will faithfully account for all monies and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any monies or property to which he is not entitled under the power of attorney.
C. The bond shall provide that it is not subject to cancellation unless thirty days advance notice in writing of cancellation is given both the attorney and the director.