Pioneer Annuity Life Insurance v. Rich

OPINION

McGREGOR, Judge.

The Arizona Constitution makes shareholders of banking or insurance corporations individually responsible for all contracts, debts, and engagements of the corporation to the extent of the par value of their stock, in addition to the amount invested in the shares. Ariz. Const, art. XIV, § 11 (section 11). In this appeal, we consider whether section 11 is self-executing. If it is, we must decide when a cause of action accrues and whether the receiver for an insolvent insurance company may bring an action on behalf of the company’s creditors.

I

In 1974, appellant Jack Rich…