Arizona Laws 20-485.06. Charges or premiums collected held in fiduciary capacity; establishment of account; disbursements
A. All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and return premiums received from such insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled to such funds or shall be deposited promptly in a fiduciary bank account established and maintained by the administrator.
Terms Used In Arizona Laws 20-485.06
- Administrator: means any person who collects charges or premiums from or paid on behalf of, or who adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuities other than any of the following:
(a) An employer on behalf of the employer's employees or the employees of one or more subsidiary or affiliated corporations of the employer. See Arizona Laws 20-485
- Charges: means cost sharing requirements, including applicable coinsurance, copayments, deductibles or other amounts payable by an insured under the terms of an insurance contract. See Arizona Laws 20-485
- Fiduciary: A trustee, executor, or administrator.
- Insurer: means any person who provides life or health insurance coverage in this state or who transacts annuity business in this state. See Arizona Laws 20-485
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
B. If charges or premiums deposited in a fiduciary account have been collected on behalf of or for more than one insurer, the administrator shall keep records clearly recording the deposits in and withdrawals from such account on behalf of or for each insurer. The administrator shall, upon request of an insurer, furnish such insurer with copies of such records pertaining to deposits and withdrawals on behalf of or for such insurer.
C. The administrator shall not pay any claim by withdrawals from a fiduciary account. Withdrawals from such account shall be made, as provided in the written agreement between the administrator and the insurer required by Section 20-485.01, for any of the following:
1. Remittance to an insurer entitled to such remittance.
2. Deposit in an account maintained in the name of such insurer.
3. Transfer to and deposit in a claims-paying account, with claims to be paid as provided by Section 20-485.07.
4. Payment to a group policyholder for remittance to the insurer entitled to such remittance.
5. Payment to the administrator of such administrator’s commission, fees or charges.
6. Remittance of return premiums to the person or persons entitled to such return premiums.