What type of insurance is primarily regulated by Arizona's Excess and Surplus Lines law?

Arizona's Excess and Surplus Lines law primarily regulates non-admitted insurance. This type of insurance is provided by insurers that are not licensed (or admitted) in the state of Arizona but are legally allowed to write insurance coverage under specific conditions. Non-admitted insurance is often utilized for risks that are too high for standard licensed insurers to cover, providing essential options for unique or complex insurable risks.

The law ensures that these non-admitted insurers meet certain requirements and standards, giving additional protections to policyholders against potential insolvencies. Arizona has specific processes in place to facilitate transactions involving non-admitted insurance, such as requiring surplus lines brokers to be licensed and ensuring that they conduct business in compliance with state regulations.

In contrast, admitted insurance involves insurers that are licensed and regulated by the state, and health and life insurance fall under various regulations that do not specifically relate to the surplus lines market. Thus, the focus of the Excess and Surplus Lines law on non-admitted insurance establishes a clear regulatory framework that addresses the unique needs associated with this segment of the insurance market.