Arizona Revised Statutes

Ariz. Rev. Stat. § 20-106 (2026)

Acts constituting the transaction of business; definition

✓ current as of May 2026

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A. "Transact" with respect to insurance includes any of the following:

1. Solicitation and inducement.

2. Preliminary negotiations.

3. Effectuation of a contract of insurance.

4. Transaction of matters subsequent to effectuation of the contract and arising out of it.

B. Any of the following acts in this state effected by mail or otherwise, by or on behalf of an unauthorized insurer, is deemed to constitute the transaction of an insurance business in this state:

1. The making of or proposing to make, as an insurer, an insurance contract.

2. The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety.

3. The taking or receiving of any application for insurance.

4. The receiving or collection of any premium, commission, membership fees, assessments, dues or other consideration for any insurance or any part thereof.

5. The issuance or delivery of contracts of insurance to residents of this state or to persons authorized to do business in this state.

6. Directly or indirectly acting as an insurance producer or agent for or otherwise representing or aiding on behalf of another any person or insurer in the solicitation, negotiation, procurement or effectuation of insurance or renewals thereof or in the dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, a fixing of rates or investigation or adjustment of claims or losses or in the transaction of matters subsequent to effectuation of the contract and arising out of it, or in any other manner representing or assisting a person or insurer in the transaction of insurance with respect to subjects of insurance resident, located or to be performed in this state. The provisions of this paragraph shall not operate to prohibit full-time salaried employees of a corporate insured from acting in the capacity of an insurance manager or buyer in placing insurance in behalf of such employer.

7. The transaction of any kind of insurance business specifically recognized as transacting an insurance business within the meaning of the statutes relating to insurance.

8. The transacting or proposing to transact any insurance business in substance equivalent to any provisions as provided in paragraphs 1 through 7 of this subsection in a manner designed to evade the laws of this state.

C. In this section, unless the context otherwise requires, "insurer" includes all corporations, associations, partnerships and individuals engaged as principals in the business of insurance and also includes interinsurance exchanges and mutual benefit societies.

Notes of Decisions

Cited in 6 cases, 1982–1989 · leading case: Batton v. Tennessee Farmers Mut. Ins., 736 P.2d 2 (Ariz. 1987).

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Batton v. Tennessee Farmers Mut. Ins., 736 P.2d 2 (Ariz. 1987). · cites it 2× “That rule authorizes jurisdiction over Arizona residents, persons “doing business in this state,” and persons who have “caused an event to occur in this state out of which the claim which is the subject of the complaint arose____” According to Batton, by adjusting,…”

Dodge v. Fid. & Deposit Co. of Md., 778 P.2d 1240 (Ariz. 1989). · cites it 2× “Additionally, A.R.S. § 20-106(B)(2) provides that “transaction of an insurance business in this state” includes: The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate…”

Taylor v. Fireman's Fund Ins., 778 P.2d 1328 (Ariz. Ct. App. 1989). · cites it 3× “This court in Batton, supra, found that to the extent § 20-106 could be read to confer jurisdiction, it is unconstitutional as applied to the facts in Batton .”

State v. Arizona Pension Plan., 739 P.2d 1373 (Ariz. 1987). · cites it 2× “The clear objective is to allow insureds every opportunity to recover valid claims on policies sold by unauthorized insurers.”

Batton v. Tennessee Farmers Mut. Ins., 736 P.2d 1 (Ariz. Ct. App. 1986). · cites it 2× “To the extent A.R.S. §§ 20-106, 403 can be read to confer jurisdiction on the facts of this case, they are unconstitutional.”

Smith v. Those Certain Ins. Companies Subscribing to Aircraft Hull Ins. Policy No. Reinco 57, 645 P.2d 1285 (Ariz. Ct. App. 1982). “The transaction of an insurance business in this state, as provided in § 20-106, by, or on behalf of, an unauthorized nonresident insurer shall be deemed to constitute an appointment by the insurer of the director and his successors in office as its attorney, upon whom may be…”

— Ariz. Rev. Stat. § 20-106(B)(2) — 1 case

Dodge v. Fid. & Deposit Co. of Md., 778 P.2d 1240 (Ariz. 1989). “Additionally, A.R.S. § 20-106(B)(2) provides that “transaction of an insurance business in this state” includes: The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate…”

— Ariz. Rev. Stat. § 20-106(B)(5) — 1 case

Batton v. Tennessee Farmers Mut. Ins., 736 P.2d 2 (Ariz. 1987). “That rule authorizes jurisdiction over Arizona residents, persons “doing business in this state,” and persons who have “caused an event to occur in this state out of which the claim which is the subject of the complaint arose____” According to Batton, by adjusting,…”

— Ariz. Rev. Stat. § 20-106(B)(6) — 1 case

Taylor v. Fireman's Fund Ins., 778 P.2d 1328 (Ariz. Ct. App. 1989). “This court in Batton, supra, found that to the extent § 20-106 could be read to confer jurisdiction, it is unconstitutional as applied to the facts in Batton .”

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