Arizona Laws 20-485.11. Notice to insureds; statement of charge or premium for coverage; conflict of interest prohibited
A. If the services of an administrator are utilized, such administrator shall provide a written notice approved by the insurer to insured individuals advising them of the identity of and relationship among the administrator, the policyholder and the insurer.
Terms Used In Arizona Laws 20-485.11
- 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
- affiliated: means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a specified person. See Arizona Laws 20-485
- Control: means the direct or ultimate possession of the power to direct or cause the direction of the management and policies of a person whether through voting rights, contracts, other than commercial contracts for goods or nonmanagement services, or otherwise, unless the power is the result of an official position or corporate office. See Arizona Laws 20-485
- Dependent: A person dependent for support upon another.
- 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
- Principal: means a person who has the authority to enter into written agreements on behalf of the administrator pursuant to Section 20-485. See Arizona Laws 20-485
- Writing: includes printing. See Arizona Laws 1-215
B. If an administrator collects monies, the administrator shall identify and state separately in writing to the person paying to the administrator any charge or premium for insurance coverage the amount of any such charge or premium specified by the insurer for such insurance coverage.
C. The administrator or any employee of the administrator shall not directly or through control of any other person have an ownership interest in any insurer except as a shareholder of less than one per cent of the shares of any publicly owned insurer. The administrator or a principal of the administrator may not receive from an insurer, for the placement of insurance administered by the administrator, a commission whether in monetary or nonmonetary form directly dependent upon the amount of such insurance.
D. Subject to subsection C of this section, before entering into a written agreement pursuant to Section 20-485.01 with an unaffiliated insurer, an administrator shall provide written notice to the unaffiliated insurer of the identity of each insurer with which the administrator is affiliated and the nature of the affiliation.
E. If an administrator or an employee of the administrator acts directly or indirectly as an insurance producer with respect to a policy it administers in this state, the administrator shall provide the policyholder and the person insured under that policy with written notice of that relationship.
F. If an administrator or an employee of the administrator acts directly or indirectly as an insurance producer with respect to an insurance policy available in this state that has substantially the same type of coverage as a policy it administers in this state, the administrator shall provide the insurer for which it acts with written notice of the identity of the other insurer and its relationship to it.