Licensing/Registration: Surplus Lines Insurer

Initial Certification Required; Annual Recertification Unnecessary

Regulatory Bulletin 2017-05: Surplus lines brokers no longer need to annually recertify surplus lines insurers for retention on Arizona's List of Qualified Unauthorized Insurers ("White List").

While A.R.S. § 20-413 continues to require a surplus lines broker to file an initial certification to propose the addition of a foreign unauthorized insurer to Arizona's List of Qualified Unauthorized Insurers ("White List"), a broker no longer needs to annually recertify the insurer. A foreign surplus lines insurer shall remain on the White List unless the surplus lines insurer is removed from the list for the reasons set forth in Arizona law, including but not limited to those set forth in A.R.S. § 20-413(H).

ARS § 41-1030(G) requires most Arizona government agencies to prominently print the provisions of ARS § 41-1030(B), (D), (E) and (F) on all license applications.  The following is the language in ARS § 41-1030(B), (D), (E) and (F):

B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.

D. This section may be enforced in a private civil action and relief may be awarded against the state.  The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against the state for a violation of this section.

E. A state employee may not intentionally or knowingly violate this section.  A violation of this section is cause for disciplinary action or dismissal pursuant to the agency’s adopted personnel policy.

F. This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.

Licensing/Registration: Surplus Lines Insurer