Arizona Revised Statutes § 20-2213 Initial Assessment; Temporary Contribution By Members

20-2213. Initial assessment; temporary contribution by members

A. An initial assessment of up to five hundred dollars may be imposed by the director on every participating insurer of the association to defray the initial operating expenses of the plan. The initial assessment may be refunded by the association.

B. If sufficient monies are not available for the sound financial operation of the association as provided for in this chapter, all members shall contribute to the financial requirements of the association in the manner provided for in this chapter. Any such contributions shall not exceed one per cent annually of each member's net direct premium attributable to the liability insurance the member writes as a requirement for membership in the association pursuant to section 20-2202, subsection A.

C. If the association determines that the applicant meets the underwriting standards of the association, as prescribed in the plan of operation, the association, on receipt of the premium or the portion of the premium as is prescribed in the plan of operation, shall cause a policy of liability insurance to be issued.

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Last modified: October 13, 2016