14.5 Fraud

• Jurisdiction: Arizona

14.5 Fraud. Arizona statutes prohibit fraudulent conduct. Violations of these statutes may result in civil and criminal liability for insurance producers. For example, under A.R.S. § 20-463, a person may not knowingly present or prepare for presentation an oral or written statement containing untrue statements of material fact or omitting material information about an insurance policy or its terms.⁹⁵ Insurance producers also may not solicit or accept “new or renewal insurance risks by or for any insolvent insurer, reinsurer or other entity licensed to transact insurance business in this state.”⁹⁶ Similar to making misrepresentations under A.R.S. § 20-443, “[a] person who violates A.R.S. § 20-463 . . . with the intent to injure, defraud or deceive an insurer” may also be subject to criminal prosecution as well as tort liability.⁹⁷ Insurance producers are also subject to tort liability for committing common-law fraud. ⁹⁸

Under A.R.S. § 44-1522, “[t]he act, use or employment by any...