A. An unaffiliated credit life and disability reinsurer shall secure liabilities that are assumed under a reinsurance agreement subject to approval pursuant to this article in any of the following:

Terms Used In Arizona Laws 20-1094.01

  • Credit life and disability reinsurer: means a domestic life and disability reinsurer that reinsures only credit life insurance or credit disability insurance that is issued according to chapter 6, article 10 of this title by an insurer that is authorized to transact insurance in this state, as certified in a form prescribed by the director and reaffirmed annually in conjunction with the annual statement filed pursuant to section 20-223. See Arizona Laws 20-1082
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Unaffiliated: means not affiliated with another insurer as defined in section 20-104. See Arizona Laws 20-1082

1. With funds withheld.

2. With funds that are maintained in a trust fund that complies with section 20-3603 and in an amount that is not less than one hundred ten percent of the amount of the liabilities assumed.

3. With clean, irrevocable and unconditional letters of credit that comply with section 20-3603, subsection B.

B. For the purposes of this section, the director shall value securities in the manner prescribed in sections 20-511 and 20-512.

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