Ariz. Admin. Code § 20-6-A1603

Current through Register Vol. 30, No. 50, December 13, 2024

Section R20-6-A1603 - Credit for Reinsurance - Reinsurer Domiciled in Another State

A. Pursuant to A.R.S. § 20-261.05(D), A.R.S. § 20-3602(E) the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that as of any date on which statutory financial credit for reinsurance is claimed:

1. Is domiciled in (or, in the case of a U.S. branch of an alien assuming insurer, is entered through) a state that employs standards regarding credit for reinsurance substantially similar to those applicable under A.R.S. Title 20, Chapter 30 and this Part;

2. Maintains a surplus as regards policyholders in an amount not less than $20 million; and

3. Files a properly executed From AR-1 (Exhibit A) with the Director as evidence of the submission to the Director's authority to examine its books and records.

B. The provisions of this Section relating to surplus as regards policyholders shall not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system. As used in this Section, "substantially similar" standards means credit for reinsurance standards that the Director determines equal or exceed the standards of A.R.S. Title 20, Chapter 30 and this Part.

Ariz. Admin. Code § R20-6-A1603

Renumbered and amended from R20-6-1603 by final rulemaking at 28 A.A.R. 493, effective 4/9/2022.