20-1098.10. Legal investments
130 words·~1 min read·
/az/title-20/20-1098-10·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. A group captive insurer, an agency captive insurer and a protected cell captive insurer shall comply with the investment requirements prescribed in chapter 3, article 2 of this title. Notwithstanding any other provision of this title, the director may approve the use of alternative reliable methods of valuation and rating.
B. A pure captive insurer is not subject to restrictions on allowable investments, except that the director may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.
C. Only a pure captive insurer may make loans to its affiliates. A note shall evidence the loan. Before making any such loan, the pure captive insurer shall obtain the director's written approval to make the loan and approval for the form of the note.