Arizona Laws 20-1568. Unearned premium reserve
A. Every title insurer shall, in addition to other reserves, establish and maintain a reserve to be known as the "unearned premium reserve" for title insurance on real estate, which shall, at all times and for all purposes, be deemed and shall constitute the unearned portions of premiums due or received on account of such insurance and shall be charged as a reserve liability of such title insurer in determining its financial condition. A foreign title insurer doing business in this state may establish an unearned premium reserve for title insurance on real estate in accordance with the laws of its domiciliary state, provided an unearned premium reserve is mandatory under the law of its domiciliary state and such law is substantially equivalent to the requirements of this title.
Terms Used In Arizona Laws 20-1568
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Property: includes both real and personal property. See Arizona Laws 1-215
- Title insurance: means insuring, guaranteeing or indemnifying owners of real property or others interested therein against loss or damage suffered by reason of liens, encumbrances upon, defects in or the unmarketability of the title to such property, guaranteeing, warranting or otherwise insuring the correctness of searches relating to the title to real property, or doing any business in substance equivalent to any of the foregoing. See Arizona Laws 20-1562
- Title insurer: means any domestic company organized under the provisions of this title for the purpose of insuring titles to real property, any title insurance company organized under the laws of another state and licensed to insure titles to real estate within this state pursuant to the provisions of this article, and any domestic or foreign company having the power and authorized to insure titles to real estate within this state as of January 1, 1968 which meet the requirements of this article. See Arizona Laws 20-1562
B. The unearned premium reserve for title insurance on real estate shall be retained and held by such title insurer for the protection of the policyholders’ interest in policies on real estate which have not expired. Except as provided in section 20-1571, assets equal to the amount of such reserve shall not be subject to distribution among other creditors or stockholders of such title insurer until all claims of policyholders or holders of title insurance contracts or agreements of such title insurer have been paid in full and all liability on the policies or title insurance contracts or agreements, whether contingent or actual, has been discharged or lawfully reinsured. Income from the investment of the amount of such reserve shall be the unrestricted property of the title insurer.