Reference Title: resident agents or brokers; countersignature

AN ACT
AMENDING SECTIONS 20-229 AND 20-303, ARIZONA REVISED STATUTES; RELATING TO POLICIES OR CONTRACTS FOR INSURANCE.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 20-229, Arizona Revised Statutes, is amended to read:

20-229 . Countersignature of agent or broker; exceptions

A. No authorized insurer shall issue a policy covering a subject of insurance resident, located, or to be performed in this state unless the policy or countersignature endorsement attached thereto is countersigned by its licensed service representative, managing general agent or licensed agent , resident in this state .

B. A LICENSED AGENT, BROKER, SERVICE REPRESENTATIVE OR MANAGING GENERAL AGENT WHO IS A LEGAL RESIDENT OF THIS STATE SHALL COUNTERSIGN ALL POLICIES OR CONTRACTS FOR INSURANCE SOLICITED BY A NONRESIDENT AGENT OR BROKER IN THIS STATE IF THE STATE OF RESIDENCE OF THE NONRESIDENT AGENT OR BROKER REQUIRES A COUNTERSIGNATURE ON POLICIES OR CONTRACTS SOLICITED BY RESIDENTS OF THIS STATE.

B. C. Subsection SUBSECTIONS A AND B shall not apply to:

1. Reinsurance, or to life, disability or title insurances.

2. Insurance of the rolling stock, vessels or aircraft of any common carrier in interstate or foreign commerce, or of any vehicle principally garaged and used in another state or covering any liability or other risks incident to the ownership, maintenance or operation thereof.

3. Insurance of property in the course of transportation interstate or in foreign trade, or any liability or risk incident thereto.

4. Insurance of ocean marine risks.

5. Policies , with respect to countersignature, issued through salaried agents or issued by insurers not using agents in the general solicitation of business.

6. Bid bonds issued by any surety insurer in connection with any public or private contracts.

C. D. A violation of this section shall not invalidate the policy.

D. E. The countersignature that is required under subsection SUBSECTIONS A OR B may be made by a facsimile signature or other printed or reproduced signature and shall be presumed to be the authorized signature of the person.

Sec. 2. Section 20-303, Arizona Revised Statutes, is amended to read:

20-303 . Licensing of nonresident agents and brokers

A. The director may license as an agent or, with respect to other than life and disability insurers only or either, as broker an individual who is otherwise qualified therefor but who is not a resident of this state, if pursuant to the laws of the state of his residence or domicile a similar privilege is extended to individuals resident or domiciled in this state.

B. A nonresident licensee shall not have the right to solicit Arizona business in this state unless pursuant to reciprocal arrangements therefor made by the director with the insurance supervisory official of the licensee's state of residence or domicile. The license shall state the restrictions applicable thereto pursuant to this provision SUBSECTION .

C. By reciprocal agreement with the insurance supervisory official of such other state, the director may waive written examination of an applicant for such a license if such official certifies that the applicant is licensed in such state as such agent or broker, as the case may be, and has complied with its qualification standards therefor, except that no such waiver shall be made with respect to examination as to a license to cover only life and disability insurance or either, unless such official certifies that the applicant has passed a written examination for his license in such state, or held such license prior to the time a written examination was required.

D. A nonresident agent shall not sign or MAY countersign policies covering subjects of insurance located or to be performed in this state PURSUANT TO SECTION 20-229 .

E. Such a nonresident licensee shall be subject to this title as though licensed as a resident, except as otherwise provided.

F. With respect to other than life and disability insurers only or either, a nonresident licensee shall neither possess any direct or indirect pecuniary interest in any insurance agent, broker, insurance agency or solicitor having a resident license in this state nor shall a nonresident licensee establish or maintain any office or place of business in his home or with a resident agent, broker, agency or solicitor or otherwise in this state.

APPROVED BY THE GOVERNOR MARCH 28, 1996

FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 28, 1996