Arizona Laws 20-487.04. Penalties
A. If the director believes that a controlling producer or other person has not materially complied with this article or any rule adopted under this article, after notice and an opportunity for a hearing, the director may order the controlling producer to cease placing business with the controlled insurer.
Terms Used In Arizona Laws 20-487.04
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Controlled insurer: means a licensed insurer who is controlled by a producer. See Arizona Laws 20-487
- Controlling producer: means a producer who controls, directly or indirectly, an insurer. See Arizona Laws 20-487
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- insurer: means a person, firm, association or corporation that is duly licensed to transact property or casualty insurance business in this state. See Arizona Laws 20-487
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Producer: means an insurance producer or any other person, firm, association or corporation when, for any compensation, commission or other thing of value, the person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of an insurance contract on behalf of an insured other than the person, firm, association or corporation. See Arizona Laws 20-487
B. If the director finds that due to material noncompliance a controlled insurer or policyholder of the controlled insurer has suffered loss or damage, the director may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for the recovery of compensatory damages or other appropriate relief for the benefit of the insurer or policyholder.
C. If an order for the liquidation or rehabilitation of the controlled insurer is entered pursuant to chapter 3, article 4 of this title and a receiver who is appointed under that order believes that the controlling producer or other person has not materially complied with this article or rules adopted under this article and that the insurer suffered loss or damage, the receiver may maintain a civil action for the recovery of damages or other appropriate relief for the benefit of the insurer.
D. This section does not affect the right of the director to impose any other penalty provided for by law.
E. This section does not alter or affect the rights of policyholders, claimants, creditors or other third parties.