AZ HB2352

Amends Arizona insurance law to establish criteria for domestic ceding insurers to receive credit for reinsurance ceded to assuming insurers, replacing previous requirements with a tiered system based on insurer licensing and accreditation status.

Allows full credit for reinsurance ceded to licensed insurers in Arizona, accredited reinsurers, reinsurers in states with substantially similar standards maintaining $20 million surplus, and assuming insurers maintaining trust funds with qualified financial institutions.

Establishes certification process for assuming insurers domiciled in qualified jurisdictions with requirements including capital and surplus standards, financial strength ratings from multiple agencies, and agreement to submit to Arizona jurisdiction.

Requires certified reinsurers to secure obligations at levels consistent with their assigned ratings and permits multibeneficiary trusts with reduced security requirements if maintaining minimum $10 million trusteed surplus.

Applies to all reinsurance agreements with inception, anniversary or renewal dates at least six months after the effective date; director exempted from standard rulemaking requirements for two years to implement the law.