20-1573. Net retained liability
343 words·~2 min read·
/az/title-20/20-1573A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The net retained liability of any title insurer under any single insurance risk as defined in section 20-1562, paragraphs 4 and 7 shall not exceed fifty per cent of the net amount remaining after deducting from the sum of its capital, surplus, unearned premium reserve and voluntary reserves the value, if any, assigned in such summation to its title insurance plants, all as shown in its most recent report on file with the director. The same limitation shall apply to any secondary risk assumed by means of reinsurance or coinsurance except, whenever the primary retained liability of a ceding company shall equal or exceed ten per cent of the single insurance risk liability, the net retained or assumed liability limit of this section may be increased by an additional two hundred fifty thousand dollars, but in no event above one hundred per cent of the net amount remaining after deducting from the sum of its capital and surplus the value, if any, assigned in such summation to its title insurance plants, all as shown by its most recent report on file with the director.
B. Nothing in this section is intended to limit the amount of a single insurance risk, as defined in section 20-1562, paragraph 7, that may be written or assumed by a title insurer, provided, however, that every title insurer shall cede, to one or more other title insurers, on or before the effective date of such writing or assumption, such portion, or portions, of any risk as shall be sufficient to bring its net retained liability thereunder within the limits set forth in this section; and provided further that each such cession of risk shall also be within the limits of this section as applied to the sum of the capital, surplus, unearned premium reserve and voluntary reserves, less the value, if any, assigned in such summation to the title insurance plants of the assuming and reinsuring title insurer, as shown by its most recent report on file with the supervisory agency in the state of its domicile.