Terms Used In Arizona Laws > Title 20 > Chapter 4 > Article 14 - Captive Insurers

• Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
• 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
• 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
• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• 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
• Association captive insurer: means a captive insurer that is completely under the direct or indirect voting control of an association. See Arizona Laws 20-1098
• Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
• Branch business: means any insurance business that is transacted by a branch captive insurer in this state. See Arizona Laws 20-1098
• Branch captive insurer: means an alien captive insurer or a foreign captive insurer that establishes a business unit with a principal place of business in this state and that is licensed pursuant to this chapter to transact the business of insurance through the business unit. See Arizona Laws 20-1098
• Branch operations: means any business operations of a branch captive insurer in this state. See Arizona Laws 20-1098
• Business entity: means any legal entity other than an individual or sole proprietorship. 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
• Contract: A legal written agreement that becomes binding when signed.
• Controlled unaffiliated business: means an individual or business entity that satisfies all of the following:

  (a) Is not an affiliate of the captive insurer providing coverage or reinsurance. 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.
• Deductible reimbursement: means insurance coverage that reimburses the insured for the deductible it paid under a separate commercial insurance policy issued to the same insured, without other conditions related to the underlying loss. See Arizona Laws 20-1098
• department: means the department of insurance and financial institutions. See Arizona Laws 20-101
• 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.
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• 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
• Group captive insurer: means any of the following:

  (a) A risk retention group. See Arizona Laws 20-1098

• including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
• Industry group: means two or more business entities or persons that are engaged in businesses or activities similar or related with respect to the liability that they are exposed to by virtue of any related, similar or common business, trade, product, services, premises or operations. See Arizona Laws 20-1098
• 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.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Manager: means a person who is experienced in the field of captive insurance and who maintains all documents relating to a captive insurer's operations, transactions and affairs in this state and assists the captive insurer in its management and compliance with this article. See Arizona Laws 20-1098
• Member: means any individual or business entity that belongs to a group captive insurer. See Arizona Laws 20-1098
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Oath: includes an affirmation or declaration. See Arizona Laws 1-215
• Oath: A promise to tell the truth.
• 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.
• Participant: means an entity and any affiliates of the entity that are insured by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
• Participant contract: means a contract by which a protected cell captive insurer insures risks of one or more participants and limits losses under the contract to the assets of a protected cell. See Arizona Laws 20-1098
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
• Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. ^{Source: OCC}
• Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
• 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
• Protected cell captive insurer: means a captive insurer:

  (a) In which the minimum capital and surplus required by applicable law is provided by one or more sponsors. 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
• Quorum: The number of legislators that must be present to do business.
• 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
• Service of process: The service of writs or summonses to the appropriate party.
• Sponsor: means an entity that meets the requirements of Section 20-1098. See Arizona Laws 20-1098
• Subpoena: A command to a witness to appear and give testimony.
• Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
• United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
• Writing: includes printing. See Arizona Laws 1-215