Arizona § 20-481.24 Adequacy of surplus

Arizona Statutes

§ 20-481.24 — Adequacy of surplus

Arizona § 20-481.24

Title 20Arizona Revised Statutes

Ch. 2TRANSACTION OF INSURANCE BUSINESS

Art. 8Insurance Holding Company Systems

This text of Arizona § 20-481.24 (Adequacy of surplus) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 20-481.24 (2026).

Text

For purposes of this article, in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors shall be considered:

1.The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria.

2.The extent to which the insurer's business is diversified among the several lines of insurance.

3.The number and size of risks insured in each line of business.

4.The extent of the geographical dispersion of the insurer's insured risks.

5.The nature and extent of the insurer's reinsurance program.

6.The quality, diversification and liquidity of the insurer's investment portfolio.

7.

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For purposes of this article, in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors shall be considered:

1. The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria.

2. The extent to which the insurer's business is diversified among the several lines of insurance.

3. The number and size of risks insured in each line of business.

4. The extent of the geographical dispersion of the insurer's insured risks.

5. The nature and extent of the insurer's reinsurance program.

6. The quality, diversification and liquidity of the insurer's investment portfolio.

7. The recent past and projected future trend in the size of the insurer's investment portfolio.

8. The surplus as regards policyholders maintained by other comparable insurers.

9. The adequacy of the insurer's reserves.

10. The quality and liquidity of investments in affiliates. If in the judgment of the director the investment warrants it, the director may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders.