20-562. Insurer investments; partnerships; limited liability companies; limitations

218 words·~1 min read·/az/title-20/20-562

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

A. An insurer that meets the standards prescribed in subsection B may invest in a partnership or limited liability company interest if the investments held by the partnership or limited liability company, if added to the assets of the insurer in the same proportion as the interests in the partnership or limited liability company held by all other partners or members, would not cause the insurer to exceed the limitations prescribed in this article.

B. To be eligible to make any investment provided in this section, an insurer shall possess surplus as regards policyholders of at least:

1. Seven million dollars if the surplus is at least seven per cent of the insurer's admitted assets.

2. One hundred million dollars if the surplus is at least six per cent of the insurer's admitted assets.

3. Two hundred fifty million dollars if the surplus is at least five per cent of the insurer's admitted assets.

C. Except with the director's consent, the eligible insurer investments pursuant to this section are subject to the following limitations:

1. An insurer's investment in a partnership or limited liability company shall not exceed two per cent of the insurer's admitted assets.

2. An insurer's total investments in partnerships and limited liability companies shall not exceed ten per cent of the insurer's admitted assets.