20-230. Retaliation
A. When by or pursuant to the laws of any other state or foreign country any
premium or income or other taxes, or any fees, fines, penalties, licenses, deposit
requirements or other material obligations, prohibitions or restrictions are imposed upon
insurers of this state doing business, or that might seek to do business in such other
state or country, or upon the agents of such insurers, which in the aggregate are in
excess of such taxes, fees, fines, penalties, licenses, deposit requirements or other
obligations, prohibitions or restrictions directly imposed upon similar insurers of such
other state or foreign country under the statutes of this state, so long as such laws
continue in force or are so applied, the same obligations, prohibitions and restrictions
of whatever kind shall be imposed upon similar insurers of such other state or foreign
country doing business in Arizona. Any tax, license or other obligation imposed by any
city, county or other political subdivision of a state or foreign country on insurers of
this state or their agents shall be deemed to be imposed by such state or foreign country
within the meaning of this section. For the purpose of this section, the director shall
compute the burden of any tax, license or other obligation imposed by any city, county or
other political subdivision of a state or foreign country on insurers of this state or
their agents on an aggregate statewide or foreign countrywide basis as an addition to the
rate of tax payable by Arizona insurers in such state or foreign country. The addition
to the rate of tax payable by Arizona life insurers shall be calculated separately from
the addition to the rate of tax payable by other Arizona insurers. In each case, the
addition to the rate of tax payable by Arizona insurers shall be calculated by dividing
the aggregate of the tax obligations paid by Arizona insurers to any such city, county or
other political subdivision of such state or foreign country by the aggregate of their
taxable premiums under the premium taxing statute of such state or foreign country. The
director may issue rules to carry out the purpose of this section. The provisions of
this section shall not apply to ad valorem taxes on real or personal property or to
personal income taxes or to assessments on or credits to insurers for the payment of
claims of policyholders of insolvent insurers.
B. If an insurer domiciled in this state is refused authority to transact in
another state insurance upon a plan and in a manner which is permitted for domestic
insurers of such other state, notwithstanding that the insurer of this state is fully
qualified for such authority in accordance with the applicable laws of such other state,
and if such refusal is not accompanied by a written statement of the grounds therefor,
then and thereafter, and for so long as such refusal shall continue, the director may
refuse to grant an initial certificate of authority, but not a renewal of an existing
certificate of authority, to any insurer domiciled in such other state which may seek to
transact in this state a like kind or kinds of insurance.
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