A. A group captive insurer, an agency captive insurer and a protected cell captive insurer shall comply with the investment requirements prescribed in chapter 3, article 2 of this title. Notwithstanding any other provision of this title, the director may approve the use of alternative reliable methods of valuation and rating.

Terms Used In Arizona Laws 20-1098.10

  • Agency captive insurer: means a captive insurer that is owned by one or more business entities that are licensed in any state as insurance producers or managing general agents and that only insure risks on policies placed through their owners. See Arizona Laws 20-1098
  • Captive insurer: means any pure captive insurer, agency captive insurer, group captive insurer or protected cell captive insurer that is domiciled in this state and that is formed and licensed under this article. See Arizona Laws 20-1098
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Protected cell: means a separate account that is established and maintained by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
  • Pure captive insurer: means a captive insurer that insures only the risks of its affiliates and controlled unaffiliated business. See Arizona Laws 20-1098

B. A pure captive insurer is not subject to restrictions on allowable investments, except that the director may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.

C. Only a pure captive insurer may make loans to its affiliates. A note shall evidence the loan. Before making any such loan, the pure captive insurer shall obtain the director’s written approval to make the loan and approval for the form of the note.

 

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