Arizona Laws 20-1097.04. Prepaid legal insurance contract provisions
A. A corporation may not issue a contract or certificate of prepaid legal insurance in this state unless a copy of the form has been filed with and approved by the department.
Terms Used In Arizona Laws 20-1097.04
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: means any corporation organized for the purpose of selling prepaid legal insurance contracts in this state or any insurer licensed pursuant to this title. See Arizona Laws 20-1097
- department: means the department of insurance and financial institutions. See Arizona Laws 20-101
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
B. A corporation may write prepaid legal insurance contracts as individual, group, payroll deduction, blanket or franchise contracts. Each contractual obligation for prepaid legal insurance shall be evidenced by a contract. The corporation shall issue a certificate of the contract’s coverage to each person protected under a group policy.
C. The department shall approve a contract form which contains all of the following:
1. A list and description of the legal service payments promised or the legal matters for which expenses are to be reimbursed and any limits on the amounts to be paid or reimbursed.
2. A clear statement of the name of the corporation issuing the contract and the full address of its principal place of business.
3. A statement that the individual beneficiary may retain at his own expense, except if the policy provides otherwise, any attorney authorized to practice law in this state.
D. Contracts with certificates issued under group policies must contain a full statement of the benefits provided and exceptions to the benefits but may summarize the other terms of the master contract.
E. No contract, except a policy issued by a mutual or reciprocal insurance company, may provide for assessments on contract beneficiaries or policyholders or for reduction of benefits for the purpose of maintaining a corporation’s solvency.