Arizona Laws 20-1098.15. Applicability
A. Chapter 2, article 6 of this title relating to unfair trade practices and frauds applies to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of chapter 2, article 6 of this title inappropriate.
Terms Used In Arizona Laws 20-1098.15
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Alien captive insurer: means any insurer that is formed to write insurance business for its affiliates and that is licensed pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards that are acceptable to the director on companies transacting the business of insurance in such a jurisdiction. See Arizona Laws 20-1098
- Association: means any lawfully formed association of individuals or business entities that has been in existence for at least one year and that is organized for a primary purpose other than procuring or providing insurance for its members. 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
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Foreign captive insurer: means any captive insurer that is domiciled in and licensed under the laws of another state that imposes statutory or regulatory standards on captive insurance companies in that state that are acceptable to the director. See Arizona Laws 20-1098
- Risk retention group: means a captive insurer that is organized pursuant to the liability risk retention act of 1986 (15 United States Code §§ 3901 and 3902) and chapter 14 of this title. See Arizona Laws 20-1098
B. All other provisions of this title that are not inconsistent with this article apply to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of this title inappropriate.
C. A captive insurer that is formed as a corporation is subject to the applicable provisions of title 10, except as otherwise prescribed in this article.
D. A captive insurer that is formed as a limited liability company is subject to the applicable provisions of title 29, except as otherwise prescribed in this article.
E. The provisions of article 1 of this chapter relating to mergers, consolidations, conversions, mutualizations and redomestications apply in determining the procedures to be followed by captive insurers in carrying out those transactions, except that the director may waive or modify the requirements for a public notice and hearing prescribed in section 20-731. Notwithstanding section 20-731, a domestic captive insurer may merge or consolidate with any other domestic captive insurer, foreign captive insurer or alien captive insurer even if the domestic captive insurer, foreign captive insurer or alien captive insurer was formed as a limited liability company or a stock corporation.
F. Chapter 2, article 8 of this title relating to insurance holding company systems applies to risk retention groups as defined in section 20-1098 or 20-2401.
G. Chapter 2, article 12 of this title relating to risk-based capital, as modified by the national association of insurance commissioners for risk retention groups, applies to risk retention groups as defined in section 20-1098 or 20-2401. If a risk retention group is subject to regulatory action as prescribed in Section 20-488.02, 20-488.03, 20-488.04 or 20-488.05, the regulatory action shall be at the discretion of the director.
H. Unless otherwise prescribed by the director based on a risk retention group’s business plan, remoteness of the risk and claim frequency, section 20-260, subsection A, relating to individual risk limitation, applies to risk retention groups as defined in section 20-1098 or 20-2401.