Arizona Laws 20-485.09. Adjustment or settlement of claims or charges; compensation
A. Compensation to an administrator for any policies where such administrator adjusts or settles claims shall not be contingent on claim experience. This subsection does not prevent the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed.
Terms Used In Arizona Laws 20-485.09
- 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
- 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
B. An administrator may collect charges in accordance with the written agreement between the administrator and the insurer. The written agreement must prescribe the applicable standards for the permissible collection of charges by the administrator. Unless the administrator is licensed as a collection agency pursuant to Title 32, Chapter 9, the administrator may not collect charges that have remained unpaid on an account that has been inactive for more than twelve months.