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Arizona Revised Statutes Title 20. Insurance § 20-562. Insurer investments; partnerships; limited liability companies; limitations

Current as of January 01, 2025 | Updated by Findlaw Staff

A. An insurer that meets the standards prescribed in subsection B may invest in a partnership or limited liability company interest if the investments held by the partnership or limited liability company, if added to the assets of the insurer in the same proportion as the interests in the partnership or limited liability company held by all other partners or members, would not cause the insurer to exceed the limitations prescribed in this article.

B. To be eligible to make any investment provided in this section, an insurer shall possess surplus as regards policyholders of at least:

1. Seven million dollars if the surplus is at least seven per cent of the insurer's admitted assets.

2. One hundred million dollars if the surplus is at least six per cent of the insurer's admitted assets.

3. Two hundred fifty million dollars if the surplus is at least five per cent of the insurer's admitted assets.

C. Except with the director's consent, the eligible insurer investments pursuant to this section are subject to the following limitations:

1. An insurer's investment in a partnership or limited liability company shall not exceed two per cent of the insurer's admitted assets.

2. An insurer's total investments in partnerships and limited liability companies shall not exceed ten per cent of the insurer's admitted assets.

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Cite this article: FindLaw.com - Arizona Revised Statutes Title 20. Insurance § 20-562. Insurer investments; partnerships; limited liability companies; limitations - last updated January 01, 2025 | https://codes.findlaw.com/az/title-20-insurance/az-rev-st-sect-20-562/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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