Arizona Laws 20-1098.08. Examinations
A. Whenever the director determines it to be prudent, the director may examine the business, transactions and affairs of each captive insurer to ascertain the captive insurer’s financial condition and ability to fulfill its obligations and whether the captive insurer has complied with this article.
Terms Used In Arizona Laws 20-1098.08
- Alien captive insurer: means any insurer that is formed to write insurance business for its affiliates and that is licensed pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards that are acceptable to the director on companies transacting the business of insurance in such a jurisdiction. See Arizona Laws 20-1098
- Branch business: means any insurance business that is transacted by a branch captive insurer in this state. See Arizona Laws 20-1098
- Branch captive insurer: means an alien captive insurer or a foreign captive insurer that establishes a business unit with a principal place of business in this state and that is licensed pursuant to this chapter to transact the business of insurance through the business unit. See Arizona Laws 20-1098
- Branch operations: means any business operations of a branch captive insurer in this state. 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
- Foreign captive insurer: means any captive insurer that is domiciled in and licensed under the laws of another state that imposes statutory or regulatory standards on captive insurance companies in that state that are acceptable to the director. See Arizona Laws 20-1098
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
B. Section 20-1098.23 applies to all examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of any of those reports, results, papers, information or documents produced by, obtained by or disclosed to the director in the course of an examination made under this section.
C. The director may use independent contractor examiners pursuant to sections 20-148 and 20-159 to conduct examinations pursuant to this section. All examinations and examination related expenses shall be borne by the captive insurer and shall be paid by the insurance examiners’ revolving fund pursuant to section 20-159.
D. An alien captive insurer or foreign captive insurer that establishes a business unit in this state and that is licensed as a branch captive insurer shall consent to the examination by the director of the affairs of the alien captive insurer or foreign captive insurer in the jurisdiction in which the alien captive insurer or foreign captive insurer is formed. The examination of a branch captive insurer shall be of branch business and branch operations only, during the period the branch captive insurer is formed, and must demonstrate to the director’s satisfaction that the alien captive insurer or foreign captive insurer is operating in a sound financial condition pursuant to all the applicable laws and regulations of the jurisdiction.