Arizona Laws 20-1097.13. Suspension or revocation of authorization or registration; appeal; civil penalty; rules
A. The director may suspend or revoke the authorization of a corporation or insurance producer to engage in the sale of prepaid legal insurance contracts for any of the following causes:
Terms Used In Arizona Laws 20-1097.13
- 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
- Fraud: Intentional deception resulting in injury to another.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
1. Material misstatement, misrepresentation or fraud in registration.
2. Any wilful attempt to circumvent the requirements of this article.
3. Wilful misrepresentation or wilful deception with regard to any contract issued or sold under this article.
4. Any material misrepresentation to a contract holder or other interested party regarding the adjustment of the claim or the payment of a claim under the provisions of a contract issued or sold under the terms of this article, if the misrepresentation is made with the intent and for the purpose of affecting settlement of such claim on less favorable terms than those provided in and contemplated by the contract.
5. Fraudulent or dishonest practices in the conduct of its business.
6. Misappropriation, conversion or unlawful withholding of monies belonging to a legal services corporation or to others received in the conduct of business under this article.
7. Failure to comply with or wilful violation of any provision of this article, or order or rule of the department adopted pursuant to this article.
B. Any corporation or insurance producer of a corporation whose certificate or license has been suspended or revoked by the director for cause under this section may request a hearing pursuant to Title 41, Chapter 6, Article 10.
C. The director may impose a civil penalty in an amount not to exceed two thousand five hundred dollars for an insurance producer or ten thousand dollars for a corporation in lieu of suspension or revocation of authorization or registration if under this article the director deems the civil penalty in lieu of suspension or revocation to be a satisfactory means of fulfilling the intent of this article. A civil penalty imposed under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
D. The director shall adopt rules not inconsistent with the provisions of this article, as the director deems advisable for effectuating its orderly administration.