Arizona § 20-728 Impairment of capital or assets

Arizona Statutes

§ 20-728 — Impairment of capital or assets

Arizona § 20-728

Title 20Arizona Revised Statutes

Ch. 4PARTICULAR TYPES OF INSURERS

Art. 1Domestic Stock and Mutual Insurers

This text of Arizona § 20-728 (Impairment of capital or assets) 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. § 20-728 (2026).

Text

A.If the capital stock of a stock insurer becomes impaired, or the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required of it by this title for authority to transact the kinds of insurance being transacted, the director shall at once determine the amount of the deficiency and serve notice upon the insurer to make good the deficiency within ninety days after service of such notice.

B.The deficiency may be made good in cash or in assets eligible under this title for the investment of the insurer's funds, or if a stock insurer, by reduction of the insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted, or if a mutual insurer, by amendment of its certificate of authority to cover onl

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A. If the capital stock of a stock insurer becomes impaired, or the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required of it by this title for authority to transact the kinds of insurance being transacted, the director shall at once determine the amount of the deficiency and serve notice upon the insurer to make good the deficiency within ninety days after service of such notice.

B. The deficiency may be made good in cash or in assets eligible under this title for the investment of the insurer's funds, or if a stock insurer, by reduction of the insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted, or if a mutual insurer, by amendment of its certificate of authority to cover only such kind or kinds of insurance for which the insurer has on deposit sufficient surplus.

C. If the deficiency is not made good and proof thereof filed with the director within the ninety day period, the insurer shall be deemed insolvent and the director shall institute delinquency proceedings against it as authorized by this title. If the deficiency exists because of increased loss reserves required by the director, or because of disallowance by the director of certain assets or reduction of the value at which carried in the insurer's accounts, the director may in his discretion and upon application and good cause shown, extend for not more than an additional ninety days the period within which the deficiency may be so made good and proof thereof so filed.