National Securities, Inc. v. Johnson

In National Securities, Inc. v. Johnson, 14 Ariz. App. 31, 33, 480 P.2d 368, 370 (1971), the Court explained an agent is not a person "engaged in the business of making contracts of insurance." In that case, a lender offered its customers credit life and other insurance policies incidental to the loans it made to them. Id. at 32, 480 P.2d at 369. Other companies, however, actually issued the insurance policies. Id. The lender argued it was acting as an insurance agent, not an insurer. Id. at 33, 480 P.2d at 370. Relying on the same statutory definition of insurer that we have today as well as on other authorities, we held the lender "was not making, or a party to, contracts of insurance with the effect that it was not an insurer." Id. In so holding, the Court distinguished between "acting as an agent" and "making insurance," explaining the lender "was not bound to pay holders of the insurance contracts upon the occurrence of any specified events." Id.