ARS § 20-261, 20-3601, 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.