# A.R.S. § 20-709: 20-709 Formation of mutual insurer; applications for insurance

> Arizona · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S709

## Section

- **Citation:** A.R.S. § 20-709
- **Heading:** 20-709 Formation of mutual insurer; applications for insurance
- **Jurisdiction:** Arizona
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Arizona Code / Title 20 / Chapter 4 / Article 1 / Section 709

## Text

20-709. Formation of mutual insurer; applications for insurance

A. Upon issuance of its certificate of incorporation by the corporation commission, the directors and officers of a domestic mutual corporation formed for the purpose of becoming a mutual insurer may open books for the registration of such requisite applications for insurance policies as they may accept, and may receive deposits of premiums thereon.

B. All such applications shall be in writing signed by the applicant, covering subjects of insurance resident, located or to be performed in this state.

C. All such applications shall provide that:

1. Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a proper certificate of authority.

2. No insurance is provided until the certificate of authority has been so issued.

3. The prepaid premium or deposit, and membership or policy fee, if any, shall be refunded in full to the applicant if the organization is not completed and the certificate of authority issued before a specified reasonable date, which date shall be not later than one year following date of issuance of the certificate of incorporation.

D. All qualifying premiums collected shall be in cash.

E. Solicitation for qualifying applications for insurance shall be by licensed agents of the corporation, and the director shall upon application therefor issue temporary agent's licenses expiring on the date specified pursuant to paragraph 3 of subsection C of this section to individuals appointed by the corporation and qualified as for a resident agent's license except as to the taking of an examination. The director may suspend or revoke any such license for the same causes and pursuant to the same procedures applicable to suspension or revocation of licenses of agents in general under article 3 of chapter 2 of this title.

## Nearby sections

- [A.R.S. § 20-701 20-701 Scope of article](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S701.md)
- [A.R.S. § 20-702 20-702 "Mutual" insurer defined](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S702.md)
- [A.R.S. § 20-703 20-703 "Stock" insurer defined](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S703.md)
- [A.R.S. § 20-704 20-704 Applicability of general corporation laws](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S704.md)
- [A.R.S. § 20-705 20-705 Articles of incorporation](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S705.md)
- [A.R.S. § 20-706 20-706 Filing and publication of articles; appointment of agent to receive process; issuance of certificate](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S706.md)
- [A.R.S. § 20-707 20-707 Amendment of articles](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S707.md)
- [A.R.S. § 20-708 20-708 Limited stock insurers](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S708.md)
- [A.R.S. § 20-709 20-709 Formation of mutual insurer; applications for insurance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S709.md)
- [A.R.S. § 20-710 20-710 Formation of mutuals; trust deposit of premiums; issuance of policies](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S710.md)
- [A.R.S. § 20-711 20-711 Initial qualification of domestic mutual insurers](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S711.md)
- [A.R.S. § 20-712 20-712 Additional kinds of insurance authorized to be issued by mutual insurer](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S712.md)
- [A.R.S. § 20-713 20-713 Bylaws of mutual insurer](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S713.md)
- [A.R.S. § 20-713.01 20-713.01 Directors; terms; staggered terms](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S713.01.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C4_A1_S709. Check the current official text before relying on it. Not legal advice.