Arizona Laws 20-1573. Net retained liability
A. The net retained liability of any title insurer under any single insurance risk as defined in section 20-1562, paragraphs 4 and 7 shall not exceed fifty per cent of the net amount remaining after deducting from the sum of its capital, surplus, unearned premium reserve and voluntary reserves the value, if any, assigned in such summation to its title insurance plants, all as shown in its most recent report on file with the director. The same limitation shall apply to any secondary risk assumed by means of reinsurance or coinsurance except, whenever the primary retained liability of a ceding company shall equal or exceed ten per cent of the single insurance risk liability, the net retained or assumed liability limit of this section may be increased by an additional two hundred fifty thousand dollars, but in no event above one hundred per cent of the net amount remaining after deducting from the sum of its capital and surplus the value, if any, assigned in such summation to its title insurance plants, all as shown by its most recent report on file with the director.
Terms Used In Arizona Laws 20-1573
- Net retained liability: means the total liability retained by a title insurer under any policy or contract of insurance, or under a single insurance risk as defined in or computed in accordance with paragraph 7, after the purchase of reinsurance. See Arizona Laws 20-1562
- Single insurance risk: means the insured amount of any policy or contract of title insurance issued by a title insurer unless two or more policies or contracts are simultaneously issued on different estates in identical real property, in which event, it means the sum of the insured amounts of all such policies or contracts, except that any such policy or contract that insures a mortgage interest or a vendor's interest that is excepted in a fee or leasehold policy or contract, and which does not exceed the insured amount of such fee or leasehold policy or contract, shall be excluded in computing the amount of a single insurance risk. See Arizona Laws 20-1562
- 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
- Writing: includes printing. See Arizona Laws 1-215
B. Nothing in this section is intended to limit the amount of a single insurance risk, as defined in section 20-1562, paragraph 7, that may be written or assumed by a title insurer, provided, however, that every title insurer shall cede, to one or more other title insurers, on or before the effective date of such writing or assumption, such portion, or portions, of any risk as shall be sufficient to bring its net retained liability thereunder within the limits set forth in this section; and provided further that each such cession of risk shall also be within the limits of this section as applied to the sum of the capital, surplus, unearned premium reserve and voluntary reserves, less the value, if any, assigned in such summation to the title insurance plants of the assuming and reinsuring title insurer, as shown by its most recent report on file with the supervisory agency in the state of its domicile.