Title 20 — Insurance

A. An insurer, directly or indirectly through an investment subsidiary, may use derivative instruments to engage in hedging transactions, income generation transactions and replication transactions pursuant to this section. B. An insurer may enter into hedging transactions if, af…

A. An insurer may lend its funds in negotiable promissory notes on the pledge of any investment that qualifies under this article, other than real property. The insurer shall not make a loan that is more than seventy-five per cent of the market value of the collateral pledged. Th…

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 interes…

The state treasurer shall accept and hold in trust, when made through the director, deposits of securities or funds by insurers as follows: 1. Deposits required for authority to transact insurance in this state. 2. Deposits of domestic, foreign or alien insurers when made pursuan…

Deposits made under the provisions of section 20-581, shall be held for purposes as follows: 1. When the deposit is required for authority to transact insurance in this state the deposit shall be held for the protection of all the insurer's policyholders within the United States.…

A. All deposits required for authority to transact insurance in this state shall consist of cash or any combination of the securities described in the following sections: section 20-537, section 20-538 and section 20-551, subsection A. The deposits by domestic stock life and disa…

Upon request of the insurer, the state treasurer may designate any solvent trust company or other solvent financial institution having trust powers domiciled in this state as the treasurer's depositary to receive and hold any such deposit. Any such deposit so held shall be at the…

The state shall be responsible for the safekeeping and return of all funds and securities deposited pursuant to this title with the state treasurer or in any depositary so designated by him.

As long as the insurer remains solvent and complies with this title it may: 1. Demand, receive, sue for and recover the income from the securities or cash deposited. 2. Exchange and substitute for the deposited cash or securities, or any part of the cash or securities, cash or el…

An insurer may so deposit cash or eligible securities in an amount exceeding its deposit required or otherwise permitted under this title by not more than one hundred thousand dollars, for the purpose of absorbing fluctuations in the value of securities held in its deposit, and t…

A. Any deposit made in this state under this title shall be released and returned: 1. To the insurer upon extinguishment by reinsurance or otherwise of substantially all liability of the insurer for the security of which the deposit is held. 2. To the insurer to the extent such d…

No judgment creditor or other claimant of an insurer shall levy upon any deposit held pursuant to this title, or upon any part thereof, but such levy may be permitted if so specified in the director's order requiring the deposit pursuant to the retaliatory provision set forth in …

In this article, unless the context otherwise requires: 1. "Ancillary state" means any state other than a domiciliary state. 2. "Commodity exchange act" means the federal commodity exchange act (7 United States Code chapter 1). 3. "Court" means, unless the context otherwise requi…

A. The superior court is vested with exclusive original jurisdiction of delinquency proceedings under this article and is authorized to make all necessary and proper orders to carry out the purposes of this article. B. The venue of delinquency proceedings against a domestic, fore…

A. The director shall commence any delinquency proceeding, the attorney general representing the director, by an application to the court for an order directing the insurer to show cause why the director should not have the relief prayed for. On the return of the order to show ca…

A. On application by the director for an order to show cause, or at any time thereafter, the court may without notice issue an injunction restraining the insurer, its officers, directors, stockholders, members, subscribers and agents and all other persons from the transaction of …

The director may apply to the court for an order appointing the director as receiver of and directing the director to rehabilitate a domestic insurer upon one or more of the following grounds: 1. That the insurer is impaired or insolvent. 2. That the insurer has refused to submit…

The director may apply to the court for an order appointing him as receiver, if his appointment as receiver is not then in effect, and directing him to liquidate the business of a domestic insurer or of the United States branch of an alien insurer having trusteed assets in this s…

The director may apply to the court for an order appointing him as receiver or ancillary receiver, and directing him to conserve the assets within this state, of a foreign insurer upon any of the following grounds: 1. Upon any of the grounds specified in sections 20-615 or 20-616…

The director may apply to the court for an order appointing him as receiver or ancillary receiver, and directing him to conserve the assets within this state, of any alien insurer upon any of the following grounds: 1. Upon any of the grounds specified in sections 20-615 or 20-616…

The director may apply to the court for an order appointing the director as ancillary receiver of and directing the director to liquidate the business of a foreign insurer having assets, business or claims in this state upon the occurrence of either: 1. The appointment in the dom…

A. An order to rehabilitate a domestic insurer shall direct the receiver to take immediate possession of the property of the insurer, to conduct its business and to take such steps toward removal of the causes and conditions which have made rehabilitation necessary as the court m…

A. An order to liquidate the business of a domestic insurer shall direct the receiver to take immediate possession of the property of the insurer, to liquidate its business, to deal with the insurer's property and business in the receiver's own name as receiver or in the name of …

An order to liquidate the business of a United States branch of an alien insurer having trusteed assets in this state shall be in the same terms as those prescribed for domestic insurers, except that the assets of the business of such United States branch shall be the only assets…

A. An order to conserve the assets of a foreign or alien insurer shall require the director as ancillary receiver to take immediate possession of the property of the insurer within this state and to conserve it, subject to the further direction of the court. B. An order to liquid…

A. In any delinquency proceeding, the receiver may appoint one or more special deputy receivers to act for the receiver and may employ, as the receiver deems necessary, counsel, clerks and assistants. Subject to the approval of the court, the receiver shall fix the compensation o…

A. If under this article a receiver is to be appointed in delinquency proceedings for a domestic or alien insurer, the court shall appoint the director as receiver. The court shall order the receiver to take immediate possession of the assets of the insurer and to administer them…

A. If under this article an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the court shall appoint the director as ancillary receiver. The director shall file a petition requesting the appointment on the grounds set fo…

A. In a delinquency proceeding begun in this state against a domestic insurer, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All such claims shall be filed on or b…

A. In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within this state may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All s…

A. All claims against an insurer against which delinquency proceedings have been begun shall set forth in reasonable detail the amount of the claim, or the basis upon which such amount can be ascertained, the facts upon which the claim is based and the priorities asserted, if any…

A. In a delinquency proceeding against an insurer domiciled in this state, the priority of distribution of claims from the general assets of the insurer shall be determined pursuant to this section. Every claim in each class shall be paid in full or adequate funds shall be reserv…

A. During the pendency of delinquency proceedings in this or any reciprocal state, an action or proceeding in the nature of an attachment, garnishment or execution may not be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lie…

A. Section 20-611, paragraphs 1, 4, 5, 7, 8, 10, 13, 15, 16, 17, 18 and 19 and sections 20-613, 20-614, 20-624, 20-625, 20-626, 20-627, 20-628, 20-629 and 20-630 are and may be cited as the uniform insurers liquidation act. B. The uniform insurers liquidation act shall be so inte…

The monies collected by the receiver in a proceeding under this article shall be from time to time deposited in one or more state or national banks, savings banks or trust companies, and in the case of the insolvency or voluntary or involuntary liquidation of any such depositary …

For the purpose of facilitating the rehabilitation, liquidation, conservation or dissolution of an insurer pursuant to this article, the receiver may, subject to the approval of the court, borrow money and execute, acknowledge and deliver notes or other evidences of indebtedness …

The rights and liabilities of the insurer and of its creditors, policyholders, stockholders, members, subscribers and all other persons interested in its estate shall, unless otherwise directed by the court, be fixed as of the date on which the order directing the liquidation of …

A. Any transfer of, or lien on, the property of an insurer that is made or created within four months before the granting of an order to show cause under this article with the intent of giving to any creditor or of enabling such creditor to obtain a greater percentage of the cred…

A. Notwithstanding any other provision of this article, a person shall not be enjoined or prohibited from exercising: 1. A contractual right to cause the termination, liquidation, acceleration or close out of obligations under or in connection with any netting agreement or qualif…

A. In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this article, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection B of th…

A. No contingent claim shall share in a distribution of the assets of an insurer which has been adjudicated to be insolvent by an order made pursuant to this article, except that such claim shall be considered, if properly presented, and may be allowed to share where either: 1. S…

A. If, upon the granting of an order of liquidation under this article or at any time thereafter during the liquidation proceeding, the insurer is not clearly solvent, the court shall, after such notice and hearing as it deems proper, make an order declaring the insurer to be ins…

Within three years from the date an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer was filed in the office of the clerk of the court by which the order was made, the receiver may make a report to the court setting forth: 1. Th…

A. Upon the basis of the report provided for in section 20-641, including any amendments thereof, the court, ex parte, may levy one or more assessments against all members of the insurer who, as shown by the records of the insurer, were members, if a mutual insurer, or subscriber…

After levy of an assessment as provided in section 20-642, upon the filing of a further detailed report by the receiver the court shall issue an order directing each member, if a mutual insurer, or each subscriber, if a reciprocal insurer, if the member or subscriber has not paid…

The receiver shall cause a notice of the assessment order, setting forth a brief summary of the contents of the order, to be published in such manner as shall be directed by the court, and enclosed in a sealed envelope, addressed and mailed postage prepaid, to each member or subs…

A. Upon the return day of the order to show cause provided for in section 20-643, if the member or subscriber does not appear and serve duly verified objections upon the receiver, the court shall make an order adjudging that the member or subscriber is liable for the amount of th…

The provisions of this article shall be construed to permit the orderly and effective payment of claims by the Arizona property and casualty insurance guaranty fund established pursuant to article 6 of this chapter and the life and disability insurance guaranty fund established p…

A. As soon as practicable after a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the receiver may make application to the court for approval of a proposal to distribute assets out of such company's marshaled assets, from time t…

A. The director shall appoint a deputy receiver to administer the conservation, rehabilitation or liquidation of an insurer pursuant to this article. B. A receivership liquidation fund is established. The deputy receiver shall file a petition with the court authorizing the deputy…