reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-488.09 - Foreign insurers

20-488.09.
Foreign insurers
A. On request of the director,  a foreign insurer shall submit an RBC report to the director as of the end of the previous calendar year within the later of:
1. The date that an RBC report would be required to be filed by a domestic insurer.
2. Fifteen days after the foreign insurer receives the request.
B. On the written request of the director,  a foreign insurer shall submit to the director a copy of any RBC plan that is filed with the insurance director in any other state.
C. The director may require a foreign insurer to file an RBC plan if under the RBC laws applicable in the insurer's domiciliary state or if the domiciliary state does not have any applicable RBC laws,  as determined under this article,  both:
1. A company action level event occurs with respect to the foreign insurer.
2. The insurance director in the domiciliary state fails to require the foreign insurer to file an RBC plan.
D. If the director requires a foreign insurer to file an RBC plan pursuant to subsection C of this section,  the failure of the foreign insurer to file an RBC plan with the director is grounds for the director to suspend the foreign insurer's certificate of authority.
E. The director may apply to the superior court pursuant to chapter 1,  article 2 and chapter 3,  article 4 of this title for the liquidation of the property of a foreign insurer found in this state if a mandatory control level event occurs with respect to a foreign insurer and if a domiciliary receiver has not been appointed with respect to the foreign insurer under the rehabilitation and liquidation laws applicable in the foreign insurer's domiciliary state. The occurrence of the mandatory control level event shall be considered to be adequate grounds for the application.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-489 - Violent crime control and law enforcement act; insurance business; rules

20-489.
Violent crime control and law enforcement act;  insurance business;  rules
A. The department shall enforce sections 1033 and 1034 of the violent crime control and law enforcement act of 1994 (P.L. 103-322;  18 United States Code sections 1033 and 1034) relating to crimes by or affecting persons who are engaged in the business of insurance and whose activities affect interstate commerce.
B. The director may adopt rules pursuant to title 41,  chapter 6 to carry out this section.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-490 - Definitions

20-490.
Definitions
In this article,  unless the context otherwise requires:
1. " Holocaust victim"  means a person who was killed or injured or who lost real or personal property or financial assets as the result of discriminatory laws,  policies or actions directed against a discrete group of which the person was a member,  during the period beginning in 1920 through 1945,  in Germany,  areas occupied by Germany or countries allied with Germany.
2. " Insurance policy"  includes a life insurance policy,  an annuity,  a property insurance policy,  a casualty insurance policy,  a liability insurance policy and reinsurance on a risk covered under such a policy.
3. " Insurer" :
(a) Means an insurance company or other entity engaged in the business of insurance or reinsurance in this state.
(b) Includes a capital stock company,  a mutual company or a Lloyd's association and any parent,  subsidiary or affiliated company in which at least fifty per cent of the stock is in common ownership with an insurer engaged in the business of insurance in this state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-490.01 - Suspension of limitations period

20-490.01.
Suspension of limitations period
A. Notwithstanding any other law,  a holocaust victim or the heir,  assignee,  beneficiary or successor of a holocaust victim who resides in this state and who has a claim arising out of an insurance policy that was purchased or in effect in Europe before 1946 and that was delivered,  issued for delivery or renewed by an insurer may bring an action against an insurer to recover on that claim in a court of competent jurisdiction in this state.
B. A court shall not dismiss an action brought under subsection A for failure to comply with any applicable limitations period if the action is brought on or before December 31,  2012.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-490.02 - Enforcement; civil penalty

20-490.02.
Enforcement;  civil penalty
A. An insurer that fails to comply with a claim brought pursuant to this article by denying the claim on the grounds that the claim is not timely or by asserting a statute of limitations defense violates this article.
B. If the director considers it necessary,  the director may initiate an examination under section 20-156.
C. If the director believes that an insurer has violated or is violating this article the director may:
1. Issue a cease and desist order.
2. Assess a civil penalty of not more than one thousand dollars for each act or violation but not to exceed an aggregate civil penalty of ten thousand dollars.
3. Refer the matter to the attorney general for appropriate enforcement.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491 - Definitions

20-491.
Definitions
In this article,  unless the context other requires:
1. " Insurance group"  means for the purposes of conducting an ORSA those insurers and affiliates that are included within an insurance holding company system as defined in section 20-481.
2. " Insurer" :
(a) Means every person engaged in the business of making contracts of insurance.
(b) Does not include agencies,  authorities or instrumentalities of the United States,  its possessions and territories,  the Commonwealth of Puerto Rico,  the District of Columbia or a state or political subdivision of a state.
3. " ORSA guidance manual"  means the own risk and solvency assessment guidance manual that is developed and adopted by the national association of insurance commissioners.
4. " ORSA summary report"  means a confidential high-level ORSA summary of an insurer or insurance group.
5. " Own risk and solvency assessment"  or " ORSA"  means a confidential internal assessment,  appropriate to the nature,  scale and complexity of an insurer or insurance group,  that is conducted by that insurer or insurance group of the material and relevant risks associated with the insurer's or insurance group's current business plan and the sufficiency of capital resources to support those risks.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491.01 - Risk management framework required

20-491.01.
Risk management framework required
An insurer shall maintain a risk management framework to assist the insurer with identifying,  assessing,  monitoring,  managing and reporting on its material and relevant risks. This requirement is satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491.02 - ORSA requirement

20-491.02.
ORSA requirement
Subject to section 20-491.04,  an insurer or the insurance group of which the insurer is a member shall regularly conduct an ORSA consistent with a process comparable to the ORSA guidance manual. The ORSA shall be conducted annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491.03 - Submission of ORSA summary report; requirements

20-491.03.
Submission of ORSA summary report;  requirements
A. On the director's request,  and not more than once each year,  an insurer shall submit to the director an ORSA summary report,  or any combination of reports that together contain the information described in the ORSA guidance manual,  applicable to the insurer or the insurance group of which the insurer is a member. Notwithstanding any request from the director,  if the insurer is a member of an insurance group,  the insurer shall submit the report or set of reports required by this subsection if the director is the lead state director or commissioner of the insurance group as determined by the procedures within the financial analysis handbook adopted by the national association of insurance commissioners.
B. The report shall include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of that person's belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA summary report and that a copy of the report has been provided to the insurer's board of directors or the appropriate governing committee.
C. An insurer may comply with subsection A of this section by providing the most recent and substantially similar report or reports provided by the insurer or another member of an insurance group of which the insurer is a member to the director or commissioner of another state or to a supervisor or regulator of a foreign jurisdiction if that report provides information that is comparable to the information described in the ORSA guidance manual. Any such report in a language other than English shall be accompanied by a translation of that report into the English language.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491.05 - ORSA summary report

20-491.05.
ORSA summary report
A. Subject to the requirements of subsection B of this section,  the ORSA summary report shall be prepared consistent with the ORSA guidance manual. Documentation and supporting information shall be maintained and made available on examination or on the request of the director.
B. The review of the ORSA summary report and any additional requests for information shall be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-491.07 - Civil penalties

20-491.07.
Civil penalties
An insurer who fails to file without just cause the ORSA summary report required by this article after notice and a hearing shall pay a penalty of five hundred dollars for each day's delay in filing,  not to exceed one hundred thousand dollars. The director may reduce the penalty if the insurer demonstrates that the imposition of the penalty would constitute a financial hardship to the insurer. The director shall deposit,  pursuant to sections 35-146 and 35-147,  the penalties collected in the state general fund.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-492 - Definitions

20-492.
Definitions
In this article,  unless the context otherwise requires:
1. " Corporate governance annual disclosure"  or " CGAD"  means a confidential report that is filed by the insurer or insurance group and that is made in accordance with the requirements of this article.
2. " Insurance group"  means those insurers and affiliates included within an insurance holding company system as defined in section 20-481.
3. " Insurer" :
(a) Means a domestic insurer as defined in section 20-203.
(b) Does not include:
(i) An agency,  authority or instrumentality of the United States and its possessions and territories,  the Commonwealth of Puerto Rico or the District of Columbia.
(ii) A state.
(iii) A political subdivision of a state.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-492.01 - Disclosure requirements

20-492.01.
Disclosure requirements
A. By June 1 of each calendar year,  an insurer,  or the insurance group of which the insurer is a member,  shall submit to the director a corporate governance annual disclosure that contains the information described in section 20-492.03. Notwithstanding any request from the director made pursuant to subsection C of this section,  if the insurer is a member of an insurance group,  the insurer shall submit the report required by this section to the chief regulatory official of the lead state for the insurance group,  in accordance with the laws of the lead state,  as determined by the procedures outlined in the most recent financial analysis handbook that is adopted by the national association of insurance commissioners.
B. The CGAD must include a signature of the insurer or insurance group's chief executive officer or corporate secretary attesting to the best of that individual's belief and knowledge that the insurer has implemented the corporate governance practices and that a copy of the disclosure has been provided to the insurer's board of directors or the appropriate committee of the board.
C. An insurer that is not required to submit a CGAD under this section shall do so on the director's request.
D. For the purposes of completing the CGAD,  the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level,  an intermediate holding company level or the individual legal entity level,  depending on how the insurer or insurance group has structured its system of corporate governance. The insurer or insurance group is encouraged to make the CGAD at the level at which the insurer's or insurance group's risk appetite is determined,  the level at which the earnings,  capital,  liquidity,  operations and reputation of the insurer are overseen collectively and at which the supervision of those factors are coordinated and exercised or the level at which legal liability for failure of general corporate governance duties would be placed. If the insurer or insurance group determines the level of reporting based on these criteria,  it shall indicate which of the three criterion was used to determine the level of reporting and explain any subsequent changes in level of reporting.
E. The review of the CGAD and any additional requests for information shall be made through the lead state as determined by the procedures within the most recent financial analysis handbook that is adopted by the national association of insurance commissioners.
F. Insurers that provide information that is substantially similar to the information required by this article in other documents that are provided to the director,  including proxy statements that are filed in conjunction with form B requirements,  or other state or federal filings that are provided to the department are not required to duplicate that information in the CGAD but are required to cross-reference the document in which the information is included.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-492.03 - Contents of corporate governance annual disclosure

20-492.03.
Contents of corporate governance annual disclosure
A. The insurer or insurance group has discretion over the responses to the CGAD inquiries,  if the CGAD contains the material information necessary to allow the director to gain an understanding of the insurer's or insurance group's corporate governance structure,  policies and practices. The director may request additional information that the director deems material and necessary to provide the director with a clear understanding of the corporate governance policies,  the reporting or information system or the controls implementing those policies.
B. Notwithstanding subsection A of this section,  the insurer or insurance group shall prepare the CGAD consistent with rules adopted by the department. Documentation and supporting information shall be maintained and made available on examination or on the request of the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-492.06 - Civil penalties

20-492.06.
Civil penalties
If an insurer fails without just cause to timely file the CGAD as required in this article,  after notice and a hearing,  the director may impose a civil penalty of $20 for each day's delay not to exceed $2, 500. The director shall collect the civil penalty and deposit the monies in the state general fund. The director may reduce the penalty if the insurer demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the insurer.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-502 - Assets as deductions from liabilities

20-502.
Assets as deductions from liabilities
Assets may be allowed as deductions from corresponding liabilities,  and liabilities may be charged as deductions from assets,  and deductions from assets may be charged as liabilities,  in accordance with the form of annual statement applicable to such insurer as prescribed by the director,  or otherwise in his discretion.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-503 - Assets not allowed as deductions from liabilities

20-503.
Assets not allowed as deductions from liabilities
In addition to assets impliedly excluded by section 20-501,  the department shall not allow the following as assets in any determination of the financial condition of an insurer:
1. Advances to officers,  other than policy loans,  whether secured or not,  and advances to employees,  agents and other persons on personal security only.
2. Stock of the insurer that is owned by the insurer or any equity in the stock,  any loans secured by the stock or any proportionate interest in the stock acquired or held through the insurer's ownership of an interest in another firm,  corporation or business unit.
3. Furniture,  fixtures,  furnishings,  safes,  vehicles,  libraries,  stationery,  literature and supplies,  except in the case of title insurers materials and plants as the insurer is expressly authorized to invest in under chapter 6,  article 9 of this title and except,  in the case of any insurer,  personal property as the insurer is permitted to hold pursuant to chapter 3,  article 2 of this title,  or that is acquired through foreclosure of chattel mortgages acquired pursuant to section 20-555,  or that is reasonably necessary for the maintenance and operation of real estate lawfully acquired and held by the insurer other than real estate the insurer uses for home office,  branch office and similar purposes.
4. The amount,  if any,  by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value as determined under this title.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-504 - Reporting assets not allowed

20-504.
Reporting assets not allowed
All assets not allowed and all other assets of doubtful value or character included as assets in any statement by an insurer to the director,  or in any examiner's report to him,  shall also be reported,  to the extent of the value disallowed,  as deductions from the gross assets of the insurer except where the director permits a reserve to be carried among the liabilities of the insurer in lieu of any such deduction.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-505 - Liabilities

20-505.
Liabilities
In any determination of the financial condition of an insurer,  capital stock and liabilities to be charged against its assets shall include:
1. The amount of its capital stock outstanding,  if any.
2. The amount,  estimated consistent with the provisions of this title,  necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement,  whether reported or unreported,  together with the expenses of adjustment or settlement thereof.
3. With reference to life and disability insurance and annuity contracts:
(a) The amount of reserves on life insurance policies and annuity contracts in force,  including disability benefits for both active lives and lives with disabilities and accidental death benefits,  in or supplementary thereto,  and disability insurance,  valued according to the tables of mortality,  tables of morbidity,  rates of interest,  and methods adopted pursuant to this title which are applicable thereto.
(b) Any additional reserves which may be required by the director consistent with practice formulated or approved by the national association of insurance commissioners,  on account of such insurance.
4. With reference to insurance other than specified in paragraph 3 of this section,  and other than title insurance,  the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force,  computed in accordance with this article.
5. Taxes,  expenses and other obligations due or accrued at the date of the statement.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-506 - Unearned premium reserve

20-506.
Unearned premium reserve
A. With reference to insurance against loss or damage to property,  except as provided in section 20-507,  and with reference to all general casualty insurance and surety insurance,  every insurer shall maintain an unearned premium reserve on all policies in force.
B. The director may require that the reserves be equal to the unearned portions of the gross premiums in force after deducting reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. The portions of the gross premiums in force,  less reinsurance in solvent insurers to be held as a premium reserve,  shall be computed according to the accounting practices and procedures manual adopted by the national association of insurance commissioners.
C. This section does not apply to title insurance.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-507 - Unearned premium reserve for marine insurance

20-507.
Unearned premium reserve for marine insurance
With reference to marine insurance,  premiums on trip risks not terminated shall be deemed unearned,  and the director may require the insurer to carry a reserve thereon equal to one hundred per cent on trip risks written during the month ended as of the date of statement.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-508 - Reserves for disability insurance

20-508.
Reserves for disability insurance
For all disability insurance policies the insurer,  in addition to claim reserves,  shall maintain an active life reserve which shall place a sound value on its liabilities under such policies and be not less than the amounts that are necessary to assure payment of its policyholder obligations including reserves for unearned premiums.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-509 - Increase of inadequate reserves

20-509.
Increase of inadequate reserves
A. If the director determines that an insurer's unearned premium reserve,  however computed,  is inadequate,  the director may require the insurer to compute the reserve or any part of the reserve according to methods prescribed in this article.
B. If the loss experience of an insurer shows that its loss reserves,  however estimated,  are inadequate,  the director shall require the insurer to maintain loss reserves in an increased amount as needed to make the loss reserves adequate.
C. If the insurer's anticipated losses,  loss adjustment expenses,  commissions and other acquisition costs and maintenance costs are more than the recorded unearned premium reserve and any future installment premiums on existing policies,  the insurer shall establish a premium deficiency reserve by recording an additional liability for the deficiency according to the accounting practices and procedures manual adopted by the national association of insurance commissioners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-511 - Valuation of bonds; limitation

20-511.
Valuation of bonds;  limitation
A. All bonds or other evidences of debt having a fixed term and rate of interest and held by any insurer may,  if amply secured and not in default as to principal or interest,  be valued as follows:
1. If purchased at par,  at the par value.
2. If purchased above or below par,  on the basis of the purchase price adjusted so as to bring the value to par at the earliest date callable at par or at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made,  or in lieu of such method,  according to such accepted method of valuation as is approved by the director.
The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase,  plus actual brokerage,  transfer,  postage or express charges paid in the acquisition of the securities.
B. Unless otherwise provided by valuation established or approved by the national association of insurance commissioners,  no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called.
C. The director has full discretion in determining the method of calculating values of bonds as set forth in this section but shall not value bonds in a manner that is inconsistent with the standards promulgated by the securities valuation office of the national association of insurance commissioners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-512 - Valuation of other securities

20-512.
Valuation of other securities
A. Securities,  other than those referred to in section 20-511,  held by an insurer shall be valued,  in the discretion of the director,  at their market value,  or at their appraised value,  at prices determined by the director as representing their fair market value but shall not be valued in a manner that is inconsistent with the standards promulgated by the securities valuation office of the national association of insurance commissioners.
B. Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value,  at the discretion of the director and in accordance with such method of computation as the director may approve but shall not be valued in a manner that is inconsistent with the standards promulgated by the securities valuation office of the national association of insurance commissioners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-512.01 - Valuation of joint ventures, partnerships and limited liability companies

20-512.01.
Valuation of joint ventures,  partnerships and limited liability companies
Joint ventures,  partnerships and limited liability companies shall be valued based on the underlying equity reported in the entity's financial statements pursuant to the accounting practices and procedures manual adopted by the national association of insurance commissioners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-513 - Valuation of real and personal property

20-513.
Valuation of real and personal property
A. Real property acquired pursuant to a mortgage loan or contract for sale,  in the absence of a recent appraisal deemed by the director to be reliable,  shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract at the date of such acquisition,  together with any taxes and expenses paid or incurred in connection with such acquisition,  and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.
B. Other real property held by an insurer shall be valued at market value as determined by recent appraisal or cost plus capitalized improvements minus normal depreciation,  whichever is less. If valuation is based on an appraisal more than three years old,  the director may at his discretion call for and require a new appraisal in order to determine fair value.
C. Personal property acquired pursuant to chattel mortgages made in accordance with section 20-555 shall not be valued at an amount greater than the unpaid balance of principal on the defaulted loan at the date of acquisition,  together with taxes and expenses incurred in connection with the acquisition,  or the fair value of the property,  whichever amount is less.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-514 - Valuation of purchase money mortgages

20-514.
Valuation of purchase money mortgages
Purchase money mortgages on real property referred to in subsection A of section 20-513 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or ninety per cent of the fair value of such real property,  whichever is less.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-515 - Valuation of assets held in separate accounts

20-515.
Valuation of assets held in separate accounts
Assets,  unless otherwise approved by the director,  allocated to a separate account established pursuant to section 20-651 shall be valued at their market value on the date of valuation,  or if there is no readily available market,  then as provided under the terms of the contract or the rules or other written agreement applicable to such separate account,  provided that unless otherwise approved by the director,  the portion if any of the assets of such separate account equal to the company's reserve liability with regard to the guaranteed benefits and funds referred to in subsection C of section 20-651 shall be valued in accordance with the rules otherwise applicable to the company's assets.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-516 - Reserve standards

20-516.
Reserve standards
An insurer shall maintain reserves that place a sound value on its liabilities under its policies,  annuities and subscriber contracts. The reserves shall not be less than the amount,  estimated and consistent with the provisions of this title,  necessary to assure payment of the insurer's unpaid policyholder and contract holder obligations,  whether those obligations are reported or reported together with the expenses of adjustment or settlement of the obligations.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-517 - Report of acquisitions and dispositions

20-517.
Report of acquisitions and dispositions
A. Each insurer that is domiciled in this state shall file with the director a report that discloses material acquisitions and dispositions of assets or material nonrenewals,  cancellations or revisions of ceded reinsurance agreements unless the insurer has submitted the acquisitions and dispositions of assets or material nonrenewals,  cancellations or revisions of ceded reinsurance agreements to the director for review,  approval or information purposes pursuant to any other law or rule.
B. The insurer shall file the report within fifteen days after the end of the calendar month in which any of the transactions listed in subsection A occur.
C. The insurer shall file a copy of the report,  including any exhibits or other attachments that are filed with the report,  with the national association of insurance commissioners.
D. All reports that are obtained by or disclosed to the director pursuant to this section are confidential and are not subject to subpoena. The director,  the national association of insurance commissioners and any other person may disclose a report to the insurance department of another state but may not make a report public without the prior written consent of the insurer unless the director,  after giving the insurer notice and an opportunity to be heard,  determines that the interests of the policyholders,  shareholders or public will be served by the publication of the report. If the director determines that publication is in the interests of the policyholders,  shareholders or public,  the director may publish part or all of the report in a manner that the director deems appropriate.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-518 - Acquisitions and dispositions of assets

20-518.
Acquisitions and dispositions of assets
A. An acquisition or disposition of assets that is not material does not have to be reported pursuant to section 20-517.
B. Asset acquisitions that are subject to section 20-517 and this section include every purchase,  lease,  exchange,  merger,  consolidation,  succession or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for these purposes.
C. Asset dispositions that are subject to section 20-517 and this section include every sale,  lease,  exchange,  merger,  consolidation,  mortgage,  hypothecation,  assignment,  abandonment,  destruction or other disposition.
D. A report of a material acquisition or disposition of assets pursuant to section 20-517 shall disclose the following information:
1. The date of the transaction.
2. The manner of acquisition or disposition.
3. A description of the assets involved.
4. The nature and amount of the consideration given or received.
5. The purpose of or reason for the transaction.
6. The manner by which the amount of consideration was determined.
7. The gain or loss that is recognized or realized as a result of the transaction.
8. The names of the persons from whom the assets were acquired or to whom the assets were disposed.
E. An insurer shall report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilized a pooling arrangement or one hundred per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five per cent of the insurer's capital and surplus.
F. For the purposes of this section and section 20-517,  a material acquisition,  including the aggregate of any series of acquisitions during any thirty day period,  or a material disposition,  including the aggregate of any series of related dispositions during any thirty day period,  is one that is nonrecurring,  that is not in the ordinary course of business and that involves more than five per cent of the reporting insurer's total admitted assets as reported in its most recent statutory statement that is filed with the director.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-532 - Eligible investments

20-532.
Eligible investments
A. Insurers shall invest in or loan their funds on the security of,  and shall hold as assets,  only eligible investments as prescribed in this article.
B. Any particular investment that was held by an insurer on January 1,  1955,  that was a legal investment at the time it was made and that the insurer was legally entitled to possess immediately before January 1,  1955 is an eligible investment.
C. The eligibility of an investment shall be determined as of the date of its making or acquisition.
D. Any investment limitation based on the amount of the insurer's assets or particular funds shall relate to assets or funds as shown by the insurer's annual statement as of the December 31 last preceding date of investment or on the insurer's most recently required statutory balance sheet filed with the director,  unless the accounting practices and procedures manual adopted by the national association of insurance commissioners prescribes the use of a different financial statement.
E. Any investment shall not be disqualified solely because it is held in a security depository if the director has approved the depository.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-533 - Qualification of securities or property as eligible investments

20-533.
Qualification of securities or property as eligible investments
A. No security or investment,  other than real and personal property acquired pursuant to section 20-556,  shall be eligible for acquisition unless it is interest bearing or interest accruing or dividend or income paying,  is not then in default as to principal or interest and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing on the security or investment,  except as provided in subsection D of this section. Defaults in interest or income occurring subsequent to acquisition of an investment shall not affect allowance thereof as an asset.
B. No security or investment shall be eligible for purchase at a price above its market value.
C. No provision of this article shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets,  or if acquired pursuant to a lawful and bona fide agreement of bulk reinsurance,  merger or consolidation. Any investment so acquired through bulk reinsurance,  merger or consolidation,  which is not otherwise eligible under this article,  is subject to the following conditions:
1. The investment qualifies as an asset under the insurance laws of the jurisdiction of the insurer from which the investment was acquired.
2. The insurer shall dispose of the investment within three years after the date of acquisition unless within the period the security has attained the necessary standard of eligibility pursuant to this article.
D. An insurer may invest any of its monies in debt securities which are not interest bearing or interest accruing if,  after giving effect to the acquisition of the debt security,  the aggregate cost of the securities,  other than investments acquired pursuant to subsection C of this section,  does not exceed ten per cent of the insurer's total assets.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-534 - Approval of investment

20-534.
Approval of investment
No investment or loan shall be made by an insurer unless it has been authorized or approved by the insurer's board of directors or by a committee authorized thereby and charged with the duty of supervising or making such investment or loan. The minutes of any such committee shall be recorded and regular reports of the committee shall be submitted to the board of directors. This section does not apply to loans made by a life insurer on policies or annuity contracts.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-535 - Limitation on percentage of assets invested with single person; exception

20-535.
Limitation on percentage of assets invested with single person;  exception
An insurer shall not,  except with the consent of the director,  have at any one time any combination of investments in or loans upon the security of the obligations,  property or securities of any one person,  institution,  corporation or municipal corporation,  aggregating any amount exceeding ten per cent of the insurer's assets. This restriction shall not apply to investments in or loans upon the security of general obligations of the United States or any state of the United States or include policy loans made under section 20-550.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-536 - Investments; type; limitations

20-536.
Investments;  type;  limitations
A. Every insurer may invest and maintain invested funds in cash and in the securities and investments described in this article without limitation unless a limitation for the securities and investments is otherwise prescribed in this article.
B. Except with the director's consent,  an insurer shall not have invested at any one time more than twenty per cent of its assets in the classes of securities described in any one of the following sections of this article:
1. Section 20-546,  exclusive of common stocks of public utilities and common stocks acquired under section 20-481.01.
2. Section 20-557.
3. Section 20-552.
C. Except with the director's consent,  an insurer shall not have invested at any one time more than ten per cent of its assets in the classes of securities described in any one of the following sections of this article:
1. Section 20-548.
2. Section 20-547.
3. Section 20-543.
4. Section 20-555.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-537 - Investment of funds in United States obligations; accounting

20-537.
Investment of funds in United States obligations;  accounting
A. An insurer may invest any of its funds in:
1. Bonds or other evidences of indebtedness of the United States or any of its agencies or instrumentalities when such obligations are guaranteed as to principal and interest by the United States or any agency or instrumentality of the United States.
2. Bonds or other evidences of indebtedness which are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States.
3. Bonds,  debentures or other obligations issued by the federal land banks,  the federal intermediate credit banks or the banks for cooperatives and the federal farm credit banks consolidated systemwide bonds.
B. This title does not prohibit the acquisition by an insurer licensed in this state of United States government securities,  the purchase of which is permitted by statute,  in accordance with the federal reserve system program of book entry accounting.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-538 - Securities of states, territories, counties, municipalities, school districts, political subdivisions, public districts or civil divisions thereof

20-538.
Securities of states,  territories,  counties,  municipalities,  school districts,  political subdivisions,  public districts or civil divisions thereof
An insurer may invest any of its funds in bonds or other evidences of indebtedness not in default as to principal or interest,  which are valid and legally authorized securities or obligations issued,  assumed,  or guaranteed by the state of Arizona or any counties,  municipalities,  school districts,  or political subdivisions of any type organized pursuant to the Constitution or statutes of the state of Arizona,  or issued,  assumed,  or guaranteed by any other state or territory of the United States or by any counties,  incorporated cities,  towns,  villages,  municipalities,  school districts,  public districts of any type organized pursuant to statute or constitution in other states or territories where any of the foregoing political subdivisions are so designated,  or by a political subdivision thereof,  or by any civil division or public instrumentality of one or more of the foregoing,  if,  by statutory or other legal requirements applicable thereto,  such obligations are or may become payable,  as to both principal and interest,  from taxes levied or required to be levied upon all taxable property or all taxable income within the jurisdiction of such governmental unit. No investment authorized by this section shall include any security issued by any such governmental unit if any default on any other security issued by such governmental unit has occurred within five years of such investment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-540 - Governmental revenue bonds and obligations; limitation; definitions

20-540.
Governmental revenue bonds and obligations;  limitation;  definitions
A. An insurer may invest in bonds,  notes or evidences of indebtedness of any state,  any political subdivision of a state or any political subdivision of the United States that are payable from revenues or earnings specifically pledged for the payment of the principal and interest on such obligations,  and for which a sinking fund or reserve fund has been established and is being maintained,  but only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of the investment,  or if such obligations were issued less than five years prior to the date of investment,  no default in payment of principal or interest has occurred on the obligations to be purchased nor on any other obligations of the issuer within five years of such investment.
B. An insurer shall not invest directly or indirectly in any medium grade or lower grade obligation pursuant to this section if after giving effect to that investment the aggregate amount of all medium grade and lower grade obligations held by the insurer exceeds twenty per cent of its admitted assets and if both of the following apply:
1. No more than ten per cent of the insurer's admitted assets consist of obligations that are rated as class 4,  5 or 6 by the securities valuation office of the national association of insurance commissioners.
2. No more than one per cent of the insurer's admitted assets consist of obligations that are rated as class 5 or 6 by the securities valuation office of the national association of insurance commissioners.
C. For purposes of this section:
1. " Lower grade obligation"  means any bond,  note or evidence of indebtedness that is rated as class 4,  5 or 6 by the securities valuation office of the national association of insurance commissioners.
2. " Medium grade obligation"  means any bond,  note or evidence of indebtedness that is rated as class 3 by the securities valuation office of the national association of insurance commissioners.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-541 - Improvement district obligations

20-541.
Improvement district obligations
An insurer may invest in bonds,  notes or evidences of indebtedness issued by any local improvement district in this or any other state to finance local improvements authorized by law,  if the principal and interest of such obligations is payable from assessments on real property within such local improvement district. No such investment shall be made unless the face value of all such obligations,  and similar obligations outstanding do not exceed fifty per cent of the market value of the real property and improvements upon which the bonds or the assessments for the payment of principal and interest thereon are liens inferior only to the liens for general ad valorem property taxes. No such investment shall be made unless no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment therein,  or if such obligations were issued less than five years prior to the date of investment,  no default in payment of principal or interest has occurred on the obligations to be purchased or on any other obligation of the issuer within five years of such investment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-544 - Corporate obligations

20-544.
Corporate obligations
An insurer may invest in bonds,  debentures,  notes,  commercial paper and other evidences of indebtedness issued,  assumed or guaranteed by any solvent institution created or existing under the laws of the United States or of any state,  district or territory of the United States,  which are not in default as to principal or interest and which have received an investment grade rating approved by the director. The director shall by order after a hearing prescribe the investment grade rating and the recognized rating agencies for the purposes of this section. Private placement obligations which have not received an investment grade rating may be eligible for investment if the issuer has comparable outstanding obligations which have received an investment grade rating approved by the director. The director shall prescribe standards by order after a hearing by which obligations of issuers which have not received an investment grade rating may be eligible for investment.
2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-545 - Preferred, guaranteed or preference stock

20-545.
Preferred,  guaranteed or preference stock
An insurer may invest in preferred,  guaranteed or preference stocks or shares of any solvent institution created or existing under the laws of the United States or of any state,  district or territory of the United States if those preferred,  preference or guaranteed stocks or shares have received an investment grade rating as approved by the director. The director shall by order after a hearing prescribe the investment grade ratings and the recognized rating agencies for the purposes of this section. Preferred,  guaranteed or preference stocks which have not received an investment grade rating may be eligible for investment if the issuer has issued comparable preferred,  guaranteed or preference stocks which have received an investment grade rating approved by the director. The director shall prescribe standards by order after a hearing by which preferred,  guaranteed or preference stocks which have not received an investment grade rating may be eligible for investment.