20-1092. Control of assets; definition
183 words·~1 min read·
/az/title-20/20-1092A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The director may require that a domestic life and disability stock reinsurer designate and comply with either or a combination of the following:
1. That pursuant to all written agreements with ceding insurers, assets in an amount up to the net reserves established by such reinsurer be deposited by or withheld from such reinsurer as security for the payment of obligations under any reinsurance agreement if such assets are held subject to withdrawal by, and under the control of, any ceding insurer.
2. That pursuant to all written agreements, assets in an amount up to the net reserves established by the reinsurer be placed in a trust account or custodial account with a bank which is a member of the federal reserve system located in the United States or in any bank located in this state.
B. For the purposes of this section, "net reserves" means the gross policy and claim reserves established by the reinsurer less policy and claim reserves retroceded and, on risks retained by the reinsurer, less policy loans, net deferred and uncollected premiums, and premiums due and unpaid.