Title 20 — Insurance

In any determination of the financial condition of an insurer, the department shall allow only those assets that are owned by the insurer and that consist of: 1. Cash in the possession of the insurer, or in transit under its control, including the true balance of any deposit in a…

Assets may be allowed as deductions from corresponding liabilities, and liabilities may be charged as deductions from assets, and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to such insurer as prescribed by the …

In addition to assets impliedly excluded by section 20-501, the department shall not allow the following as assets in any determination of the financial condition of an insurer: 1. Advances to officers, other than policy loans, whether secured or not, and advances to employees, a…

All assets not allowed and all other assets of doubtful value or character included as assets in any statement by an insurer to the director, or in any examiner's report to him, shall also be reported, to the extent of the value disallowed, as deductions from the gross assets of …

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include: 1. The amount of its capital stock outstanding, if any. 2. The amount, estimated consistent with the provisions of this title, necessary to…

A. With reference to insurance against loss or damage to property, except as provided in section 20-507, and with reference to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force. B. The director m…

With reference to marine insurance, premiums on trip risks not terminated shall be deemed unearned, and the director may require the insurer to carry a reserve thereon equal to one hundred per cent on trip risks written during the month ended as of the date of statement.

For all disability insurance policies the insurer, in addition to claim reserves, shall maintain an active life reserve which shall place a sound value on its liabilities under such policies and be not less than the amounts that are necessary to assure payment of its policyholder…

A. If the director determines that an insurer's unearned premium reserve, however computed, is inadequate, the director may require the insurer to compute the reserve or any part of the reserve according to methods prescribed in this article. B. If the loss experience of an insur…

A. This section may be cited as the standard valuation law. B. For the purposes of this section, the following definitions apply on or after the operative date of the valuation manual: 1. "Accident and health insurance" means contracts that incorporate morbidity risk and provide …

A. All bonds or other evidences of debt having a fixed term and rate of interest and held by any insurer may, if amply secured and not in default as to principal or interest, be valued as follows: 1. If purchased at par, at the par value. 2. If purchased above or below par, on th…

A. Securities, other than those referred to in section 20-511, held by an insurer shall be valued, in the discretion of the director, at their market value, or at their appraised value, at prices determined by the director as representing their fair market value but shall not be …

Joint ventures, partnerships and limited liability companies shall be valued based on the underlying equity reported in the entity's financial statements pursuant to the accounting practices and procedures manual adopted by the national association of insurance commissioners.

A. Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the director to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract at the date of such acquisi…

Purchase money mortgages on real property referred to in subsection A of section 20-513 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or ninety per cent of the fair value of such real property, whichever is less.

Assets, unless otherwise approved by the director, allocated to a separate account established pursuant to section 20-651 shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract o…

An insurer shall maintain reserves that place a sound value on its liabilities under its policies, annuities and subscriber contracts. The reserves shall not be less than the amount, estimated and consistent with the provisions of this title, necessary to assure payment of the in…

A. Each insurer that is domiciled in this state shall file with the director a report that discloses material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements unless the insurer has submitted the acquisiti…

A. An acquisition or disposition of assets that is not material does not have to be reported pursuant to section 20-517. B. Asset acquisitions that are subject to section 20-517 and this section include every purchase, lease, exchange, merger, consolidation, succession or other a…

A. A nonrenewal, cancellation or revision of a ceded reinsurance agreement that is not material does not have to be reported pursuant to section 20-517. B. A report of a material nonrenewal, cancellation or revision of a ceded reinsurance agreement shall be reported, regardless o…

Except as to section 20-559, this article applies to domestic insurers only. This article shall apply to domestic title insurers except as provided in article 9 of chapter 6 of this title.

A. Insurers shall invest in or loan their funds on the security of, and shall hold as assets, only eligible investments as prescribed in this article. B. Any particular investment that was held by an insurer on January 1, 1955, that was a legal investment at the time it was made …

A. No security or investment, other than real and personal property acquired pursuant to section 20-556, shall be eligible for acquisition unless it is interest bearing or interest accruing or dividend or income paying, is not then in default as to principal or interest and the i…

No investment or loan shall be made by an insurer unless it has been authorized or approved by the insurer's board of directors or by a committee authorized thereby and charged with the duty of supervising or making such investment or loan. The minutes of any such committee shall…

An insurer shall not, except with the consent of the director, have at any one time any combination of investments in or loans upon the security of the obligations, property or securities of any one person, institution, corporation or municipal corporation, aggregating any amount…

A. Every insurer may invest and maintain invested funds in cash and in the securities and investments described in this article without limitation unless a limitation for the securities and investments is otherwise prescribed in this article. B. Except with the director's consent…

A. Except as may be provided with respect to reserves for guaranteed benefits referred to in section 20-651, subsection C, amounts allocated to any separate account established pursuant to section 20-651 and accumulations thereon may be invested and reinvested in any class of inv…

A. An insurer may invest any of its funds in: 1. Bonds or other evidences of indebtedness of the United States or any of its agencies or instrumentalities when such obligations are guaranteed as to principal and interest by the United States or any agency or instrumentality of th…

An insurer may invest any of its funds in bonds or other evidences of indebtedness not in default as to principal or interest, which are valid and legally authorized securities or obligations issued, assumed, or guaranteed by the state of Arizona or any counties, municipalities, …

An insurer may invest any of its funds in loans guaranteed as to principal and interest by the United States or by any agency or instrumentality thereof, to the extent of such guaranty.

A. An insurer may invest in bonds, notes or evidences of indebtedness of any state, any political subdivision of a state or any political subdivision of the United States that are payable from revenues or earnings specifically pledged for the payment of the principal and interest…

An insurer may invest in bonds, notes or evidences of indebtedness issued by any local improvement district in this or any other state to finance local improvements authorized by law, if the principal and interest of such obligations is payable from assessments on real property w…

An insurer may invest in bank and bankers' acceptances and other bills of exchange of the kind and maturity made eligible pursuant to law for purchase in the open market by federal reserve banks.

An insurer may invest in bonds, debentures, notes, commercial paper and other evidences of indebtedness issued, assumed or guaranteed by any solvent institution created or existing under the laws of the United States or of any state, district or territory of the United States, wh…

An insurer may invest in preferred, guaranteed or preference stocks or shares of any solvent institution created or existing under the laws of the United States or of any state, district or territory of the United States if those preferred, preference or guaranteed stocks or shar…

An insurer may invest in nonassessable, except for taxes or wages, common stocks or shares of any solvent institution, created or existing under the laws of the United States or of any state, district or territory of the United States.

An insurer may invest in equipment trust obligations or certificates which in the opinion of the director are adequately secured, or other instruments so secured and evidencing an interest in transportation equipment, wholly or in part within the United States, which carry the ri…

An insurer may invest in certificates, notes or other obligations issued by trustees or receivers of any institution created or existing under the laws of the United States or of any state, district or territory thereof, which, or the assets of which, are being administered under…

A. An insurer may make loans or investments not otherwise qualifying or permitted under this article in an amount not exceeding in the aggregate ten per cent of the insurer's assets, and not exceeding two per cent of such assets as to any one such loan, investment or category of …

A life insurer may lend to its policyholder upon pledge of the policy as collateral security a sum not exceeding the applicable cash surrender value specified in the policy.

A. An insurer may invest or deposit any of its funds in share, checking or savings accounts, in certificates of deposit or in any other deposit or account in solvent banks or in foreign branches of such banks, credit unions or savings and loan associations which are insured by an…

A. An insurer may make investments in securities of or in a foreign country possessing characteristics and of a quality similar to those required pursuant to this article for investments in the United States. B. After giving effect to an investment in securities of or in a foreig…

A. An insurer may make investments in securities of or in Canada possessing characteristics and of a quality similar to those required pursuant to this article for investments in the United States. B. Subject to subsections C, D and E of this section, an insurer shall not acquire…

A. An insurer may invest any of its funds in bonds, notes or other evidences of indebtedness that are secured by first mortgages or deeds of trust on improved, unencumbered real property located in the United States, or that are secured by first mortgages or deeds of trust on lea…

An insurer may invest in purchase money mortgages or like securities, received by it upon the sale or exchange of real property theretofore owned by it.

A. In connection with a mortgage loan on the security of real property designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to section 20-553, an insurer may lend or invest an amount not exceeding twenty per cent of the amount loane…

An insurer, including for the purposes of this section a reciprocal insurer, may invest in real property only if acquired or used for the following purposes and in the following manner: 1. The land and the building thereon in which it has its principal office, and such other real…

A. An insurer may invest in bonds, notes or other evidences of indebtedness that are secured by second mortgages or deeds of trust on improved real property located in the United States. An insurer shall not make or acquire either: 1. A loan or investment if the total of the outs…

An insurer may invest in the securities of any open end management type investment company, investment trust or mutual fund registered with the United States securities and exchange commission or in a common trust fund of a bank regulated by a federal or state agency within the l…

A. Foreign and alien insurers transacting insurance in this state shall have assets of the same general character and quality, and have invested in home office real property as permitted under paragraph 1 of section 20-556, all as specified in this article for domestic insurers, …