20-1098.15. Applicability

371 words·~2 min read·/az/title-20/20-1098-15

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Chapter 2, article 6 of this title relating to unfair trade practices and frauds applies to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of chapter 2, article 6 of this title inappropriate.

B. All other provisions of this title that are not inconsistent with this article apply to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of this title inappropriate.

C. A captive insurer that is formed as a corporation is subject to the applicable provisions of title 10, except as otherwise prescribed in this article.

D. A captive insurer that is formed as a limited liability company is subject to the applicable provisions of title 29, except as otherwise prescribed in this article.

E. The provisions of article 1 of this chapter relating to mergers, consolidations, conversions, mutualizations and redomestications apply in determining the procedures to be followed by captive insurers in carrying out those transactions, except that the director may waive or modify the requirements for a public notice and hearing prescribed in section 20-731. Notwithstanding section 20-731, a domestic captive insurer may merge or consolidate with any other domestic captive insurer, foreign captive insurer or alien captive insurer even if the domestic captive insurer, foreign captive insurer or alien captive insurer was formed as a limited liability company or a stock corporation.

F. Chapter 2, article 8 of this title relating to insurance holding company systems applies to risk retention groups as defined in section 20-1098 or 20-2401.

G. Chapter 2, article 12 of this title relating to risk-based capital, as modified by the national association of insurance commissioners for risk retention groups, applies to risk retention groups as defined in section 20-1098 or 20-2401. If a risk retention group is subject to regulatory action as prescribed in section 20-488.02, 20-488.03, 20-488.04 or 20-488.05, the regulatory action shall be at the discretion of the director.

H. Unless otherwise prescribed by the director based on a risk retention group's business plan, remoteness of the risk and claim frequency, section 20-260, subsection A, relating to individual risk limitation, applies to risk retention groups as defined in section 20-1098 or 20-2401.