Arizona Department of Insurance, General Insurance

The mission of the Arizona Department of Insurance is to implement and enforce state insurance laws to protect consumer rights of the residents of the state and foster economic development.

Arizona Department of Insurance: Primary Functions

Several Federal and State laws are applicable to operations in the insurance sector. However, Arizona Revised Statutes (A.R.S.) Title 20 is the primary law for the insurance sector in the state. This law details the functioning and responsibilities of the Arizona Department of Insurance. The primary functions of the insurance department are:

The enforcement of state insurance laws through regulatory orders and legal proceedings.

Monitoring the functioning of general insurance companies, agents and brokers and regulating their conduct to the best of the practices.

Ensuring that the insurance market functions in an open, fair and competitive manner.

Reviewing applications from prospective insurers.

Issuing licenses to insurance service providers.

Reviewing and regulating the rates of insurance products.

Educating consumers to make informed decisions while buying insurance.

Arizona Department of Insurance: Fraud Unit

Rising incidents of insurance fraud causes the loss of millions of dollars every year. Both consumers and insurers are involved in insurance frauds of different kinds. The types of insurance fraud as stated in the Arizonian law are:

Staged auto accident fraud by the consumer to get insurance claims.

Medical provider fraud by health practitioners. Some doctors charge excessively for even a simple muscle sprain. Also, consumer bills are added with medical costs for treatments that are not provided.

Workers’ compensation fraud. Some people falsely claim to have been injured in the workplace in order to receive workers compensation benefits.

Agent fraud occurs when insurance agents collect premiums from the policyholder and do not forward them to the insurance company. It causes the insurance cover to cease following default on payment.

Policy misinterpretation. Some insurance companies and agents misinterpret the policy cover so as to prevent paying claims.

State law authorizes the director of the Arizona Department of Insurance to formulate rules and procedures to contain insurance frauds. The department conducts a surveillance of insurance business operations to prevent insurance fraud. It also investigates consumer complaints for the nonpayment or low-payment of insurance claims.

Thus, the Arizona Department of Insurance works to foster a healthy business environment in the insurance sector.