Arizona Revised Statutes Title 20. Insurance § 20-1621.08. Claims

A. A creditor shall promptly report all claims to the insurer or its designated claim representative.

B. All claims shall be paid either by draft drawn on the insurer, by electronic funds transfer, by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions or on direction of the claimant to the party specified by the claimant.

C. A person shall not authorize a person, firm or corporation, other than the insurer or its designated claim representative, to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims, except that once the amount is determined, a group policyholder, by arrangement with the group insurer, may draw drafts, checks or electronic transfers in payment of claims due to the group policyholder subject to audit and review by the insurer.

D. A person shall not deny a claim because the debtor was ineligible for coverage later than ninety days after the initiation of coverage unless the debtor misrepresented a material fact. If a claim is denied because the debtor was ineligible for coverage within ninety days of initiation of coverage or because the debtor misrepresented a material fact for coverage, the insurer shall refund to the debtor all premiums paid and the creditor shall refund any finance charge paid on the premiums.