Licensing/Registration: Reinsurer

ARS § 20-26120-3601, 20-3602, 20-3603, 20-3604 and 20-3605 set forth requirements for reinsuring risks and for being able to reflect reinsurance as an asset or a reduction of liability.  

A domestic insurer that intends to be a party to reinsurance (either ceding or assuming risk) must file the reinsurance agreement with the Department of Insurance and Financial Institutions and receive the Department's written approval prior to executing a reinsurance agreement except for:

  • Reinsurance of ocean marine or marine protection and indemnity risks;
  • Assumption reinsurance contracts for an assuming insurer that has fulfilled Arizona's most recent requirement to file a financial statement with the Department, and the financial statement shows the assuming insurer has a policyholder surplus of at least $50 million.

ARS § 41-1030(G) requires most Arizona government agencies to prominently print the provisions of ARS § 41-1030(B), (D), (E) and (F) on all license applications.  The following is the language in ARS § 41-1030(B), (D), (E) and (F):

B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.

D. This section may be enforced in a private civil action and relief may be awarded against the state.  The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against the state for a violation of this section.

E. A state employee may not intentionally or knowingly violate this section.  A violation of this section is cause for disciplinary action or dismissal pursuant to the agency’s adopted personnel policy.

F. This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.

Licensing/Registration: Reinsurer