The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
DISCLAIMER
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
A. The director may require that a domestic life and disability stock reinsurer designate and comply with either or a combination of the following:
1. That pursuant to all written agreements with ceding insurers, assets in an amount up to the net reserves established by such reinsurer be deposited by or withheld from such reinsurer as security for the payment of obligations under any reinsurance agreement if such assets are held subject to withdrawal by, and under the control of, any ceding insurer.
2. That pursuant to all written agreements, assets in an amount up to the net reserves established by the reinsurer be placed in a trust account or custodial account with a bank which is a member of the federal reserve system located in the United States or in any bank located in this state.
B. For the purposes of this section, "net reserves" means the gross policy and claim reserves established by the reinsurer less policy and claim reserves retroceded and, on risks retained by the reinsurer, less policy loans, net deferred and uncollected premiums, and premiums due and unpaid.