Arizona Revised Statutes Title 20. Insurance § 20-3603. Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer

1. The valuation of assets or reserve credits.

2. The amount and forms of security supporting reinsurance arrangements described in subsection B of this section.

3. The circumstances pursuant to which credit will be reduced or eliminated.

1. Cash.

2. Securities listed by the securities valuation office of the national association of insurance commissioners, including those deemed exempt from filing as defined by the purposes and procedures manual of the securities valuation office, and qualifying as admitted assets.

3. Clean, irrevocable and unconditional letters of credit, issued or confirmed by a qualified United States financial institution, as defined in § 20-3601, subsection A, effective not later than December 31 of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement. Letters of credit that meet applicable standards of issuer acceptability as of the dates of their issuance or confirmation, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, shall continue to be acceptable as security until their expiration, extension, renewal, modification or amendment, whichever occurs first.

4. Any other form of security acceptable to the director.