Arizona Laws 20-1092. Control of assets; definition
A. The director may require that a domestic life and disability stock reinsurer designate and comply with either or a combination of the following:
Terms Used In Arizona Laws 20-1092
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
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.