Arizona Laws 20-1098.06. Protected cell captive insurers; sponsors; participants
A. A risk retention group shall not be either a sponsor or a participant in a protected cell captive insurer.
Terms Used In Arizona Laws 20-1098.06
- Association: means any lawfully formed association of individuals or business entities that has been in existence for at least one year and that is organized for a primary purpose other than procuring or providing insurance for its members. See Arizona Laws 20-1098
- Business entity: means any legal entity other than an individual or sole proprietorship. See Arizona Laws 20-1098
- Captive insurer: means any pure captive insurer, agency captive insurer, group captive insurer or protected cell captive insurer that is domiciled in this state and that is formed and licensed under this article. See Arizona Laws 20-1098
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Participant: means an entity and any affiliates of the entity that are insured by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Protected cell: means a separate account that is established and maintained by a protected cell captive insurer pursuant to a participant contract. See Arizona Laws 20-1098
- Protected cell captive insurer: means a captive insurer:
(a) In which the minimum capital and surplus required by applicable law is provided by one or more sponsors. See Arizona Laws 20-1098
- Risk retention group: means a captive insurer that is organized pursuant to the liability risk retention act of 1986 (15 United States Code §§ 3901 and 3902) and chapter 14 of this title. See Arizona Laws 20-1098
- Sponsor: means an entity that meets the requirements of Section 20-1098. See Arizona Laws 20-1098
B. An association, corporation, limited liability company, partnership, trust or any other business entity may be a participant in any protected cell captive insurer formed or licensed under this article.
C. A sponsor may be a participant in a protected cell captive insurer.
D. A participant need not be a shareholder of a protected cell captive insurer or any affiliate of a protected cell captive insurer.
E. Each protected cell shall comply with the restrictions prescribed in Section 20-1098.01, subsection A with respect to the risks insured through the protected cell.