Arizona Laws 20-1542. Capital and surplus
A. A mortgage guaranty insurance company shall not transact the business of mortgage guaranty insurance unless:
Terms Used In Arizona Laws 20-1542
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage guaranty insurance: means insurance against financial loss by reason of nonpayment of:
(a) Principal, interest or other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate if the improvement on such real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. See Arizona Laws 20-1541
1. If a stock insurance company, it has paid in capital of at least one million dollars and paid in surplus of at least one million dollars.
2. If a mutual insurance company, it has a minimum initial surplus of two million dollars.
B. A stock company or a mutual company shall at all times thereafter maintain a minimum policyholders’ surplus of at least one million five hundred thousand dollars.