2005 Arizona Revised Statutes - Revised Statutes §20-1098.11  Reinsurance

A. Except with the approval of the director, a captive insurer may only provide reinsurance on risks ceded by any other insurer in accordance with the limitations prescribed in section 20-1098.01 and as otherwise allowed under this article.

B. A captive insurer may take credit for reserves on risks or portions of risks ceded to a reinsurer that is in compliance with sections 20-261 and 20-261.01 through 20-261.04. Prior approval of the director shall be required for ceding or taking credit for the reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with sections 20-261 and 20-261.01 through 20-261.04.

C. Notwithstanding this article, a pure captive insurer may cede to and assume risks from a pooling arrangement subject to the approval of the director.