{"data":{"id":"us-az/a.r.s.-20-1098.04","jurisdiction":"us-az","citation":"A.R.S. § 20-1098.04","heading":"Formation of captive insurers; redomestication","body":"A. An agency captive insurer or protected cell captive insurer shall be incorporated as a stock insurer with its capital divided into shares and held by the stockholders. Each owner of an agency captive insurer shall be licensed as an insurance producer.\n\nB. A group captive insurer may be formed in any of the following ways:\n\n1. Incorporated as a stock insurer with its capital divided into shares and held by the stockholders.\n\n2. Incorporated as a mutual insurer without capital stock, the governing body of which is elected by the member organizations of its association.\n\n3. Organized as a reciprocal insurer pursuant to article 2 of this chapter.\n\n4. Incorporated as a nonprofit corporation pursuant to title 10, chapter 25.\n\nC. A pure captive insurer may be formed in any of the following ways:\n\n1. Incorporated as a stock insurer with its capital divided into shares and held by the stockholders.\n\n2. Incorporated as a nonprofit corporation pursuant to title 10, chapter 25.\n\n3. Incorporated as a limited liability company that is manager-managed pursuant to title 29.\n\nD. The capital stock of a captive insurer that is incorporated as a stock insurer may be authorized with no par value.\n\nE. A captive insurer that is formed as a corporation shall have at least three incorporators, at least one of whom shall be a resident of this state. Notwithstanding subsection B, paragraph 3 of this section, a captive insurer that is formed as a reciprocal insurer may be organized by three or more subscribers, none of whom shall be required to be a resident of this state.\n\nF. A pure captive insurer shall have at least one director. Any other kind of corporate captive insurer shall have at least three directors. Any group captive insurer formed as a reciprocal insurer shall have at least three subscribers' advisory committee members. In addition to independent directors, a group captive insurer may have as many directors as it has members.\n\nG. A captive insurer that is formed as a corporation shall have at least one member of the board of directors who is a resident of this state. A captive insurer that is formed as a limited liability company shall have at least one member of its board of managers who is a resident of this state. A captive insurer that is formed as a reciprocal insurer shall have at least one member of the subscribers' advisory committee who is a resident of this state.\n\nH. The articles of incorporation or bylaws of a captive insurer that is formed as a corporation with more than one director may authorize a quorum of a board of directors to consist of at least one-third of the fixed or prescribed number of directors, but at least two directors. The subscribers' agreement or other organizing document of a captive insurer formed as a reciprocal insurer may authorize a quorum of a subscribers' advisory committee to consist of at least one-third of the number of its members, but at least two members.\n\nI. Any foreign or alien insurer may become a domestic captive insurer by complying with the requirements of this article relating to the licensing of a domestic captive insurer and by complying with all applicable requirements of the laws of this state relating to the domestication of a corporation to this state. The effective date of a license that is issued to a foreign or alien insurer domesticated to this state shall be the date of filing its articles of domestication with the corporation commission.","path":["Title 20 Insurance"],"source_url":"https://www.azleg.gov/ars/20/01098-04.htm","current_through":"2026-09-04","vintage":"2026-08-09","retrieved_at":"2026-09-04T00:49:56Z","sha256":"a202f8711354abb9de5727f3558efdbe0ed185b55c603e561ac2d126d2b2aa9f","source_id":"us-az","stale":true,"prev":"us-az/a.r.s.-20-1098.03","next":"us-az/a.r.s.-20-1098.05"},"notice":"GroundRules: Original legal text. Not legal advice."}