Arizona Laws 20-1557. Reinsurance
A. If a mortgage guaranty insurance company obtains reinsurance from an insurance company that is properly licensed to provide such reinsurance or from an appropriate governmental agency, the mortgage guaranty insurer and the reinsurer shall establish and maintain the reserves required in this article in appropriate proportions in relation to the risk retained by the original insurer and ceded to the assuming reinsurer so that the total reserves established shall not be less than the reserves required by this article.
Terms Used In Arizona Laws 20-1557
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- department: means the department of insurance and financial institutions. See Arizona Laws 20-101
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Subpoena: A command to a witness to appear and give testimony.
- Writing: includes printing. See Arizona Laws 1-215
B. Section 20-261, subsection D does not apply to a mortgage guaranty insurer.
C. Notwithstanding section 20-261, subsection A, a domestic mortgage guaranty insurer may reinsure its risks with a solvent insurer that has surplus to policyholders less than the minimum capital stock prescribed in section 20-1542 if the reinsurance agreement is approved by the director or the agreement both:
1. Cedes to a reinsurer that insures or reinsures only mortgage guaranty insurance.
2. Requires that reserves ceded to the reinsurer are secured in the manner prescribed in section 20-3603.
D. A mortgage guaranty insurer shall file a report with the director that includes all information regarding its reinsurance agreements as required by the director. The mortgage guaranty insurer shall file the report prescribed in this subsection with its annual and quarterly financial statements.
E. Except as provided in subsection B of this section, this section does not alter or diminish a domestic mortgage guaranty insurer’s obligation to report to the director, file documents with the director or obtain the director’s approval as prescribed in this title.
F. Notwithstanding Title 39, Chapter 1, the information submitted pursuant to subsection D of this section is confidential and proprietary and the director shall not make the information available for public inspection without the written consent of the domestic mortgage guaranty insurer, except that:
1. This subsection does not prevent the department‘s use of the information for any regulatory purpose, disciplinary action or hearing.
2. The director shall release the information if the information is required by a subpoena issued in connection with an administrative, civil or criminal investigation by a government agency.
3. In a civil action or contested case in which the domestic mortgage guaranty insurer that submitted the information is a party, any other party to the action or case may obtain the information if the party seeking to discover the information shows all of the following:
(a) The information sought is relevant to and necessary for the furtherance of the action or case.
(b) The information sought is not available from any other nonconfidential source.
(c) A subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the director.
4. The director may disclose the information to a public official who has jurisdiction over the regulation of insurance in another state if the public official agrees in writing to maintain the confidentiality of the information and the laws of the state in which the public official serves allow or require the information to be and remain confidential.