# A.R.S. § 20-503: 20-503 Assets not allowed as deductions from liabilities

> Arizona · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S503

## Section

- **Citation:** A.R.S. § 20-503
- **Heading:** 20-503 Assets not allowed as deductions from liabilities
- **Jurisdiction:** Arizona
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Arizona Code / Title 20 / Chapter 3 / Article 1 / Section 503

## Text

20-503. Assets not allowed as deductions from liabilities

In addition to assets impliedly excluded by section 20-501, the department shall not allow the following as assets in any determination of the financial condition of an insurer:

1. Advances to officers, other than policy loans, whether secured or not, and advances to employees, agents and other persons on personal security only.

2. Stock of the insurer that is owned by the insurer or any equity in the stock, any loans secured by the stock or any proportionate interest in the stock acquired or held through the insurer's ownership of an interest in another firm, corporation or business unit.

3. Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature and supplies, except in the case of title insurers materials and plants as the insurer is expressly authorized to invest in under chapter 6, article 9 of this title and except, in the case of any insurer, personal property as the insurer is permitted to hold pursuant to chapter 3, article 2 of this title, or that is acquired through foreclosure of chattel mortgages acquired pursuant to section 20-555, or that is reasonably necessary for the maintenance and operation of real estate lawfully acquired and held by the insurer other than real estate the insurer uses for home office, branch office and similar purposes.

4. The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value as determined under this title.

## Nearby sections

- [A.R.S. § 20-501 20-501 Eligible assets](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S501.md)
- [A.R.S. § 20-502 20-502 Assets as deductions from liabilities](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S502.md)
- [A.R.S. § 20-503 20-503 Assets not allowed as deductions from liabilities](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S503.md)
- [A.R.S. § 20-504 20-504 Reporting assets not allowed](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S504.md)
- [A.R.S. § 20-505 20-505 Liabilities](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S505.md)
- [A.R.S. § 20-506 20-506 Unearned premium reserve](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S506.md)
- [A.R.S. § 20-507 20-507 Unearned premium reserve for marine insurance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S507.md)
- [A.R.S. § 20-508 20-508 Reserves for disability insurance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S508.md)
- [A.R.S. § 20-509 20-509 Increase of inadequate reserves](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S509.md)
- [A.R.S. § 20-510 20-510 Standard valuation law; operative date; definitions](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S510.md)
- [A.R.S. § 20-511 20-511 Valuation of bonds; limitation](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S511.md)
- [A.R.S. § 20-512 20-512 Valuation of other securities](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S512.md)
- [A.R.S. § 20-512.01 20-512.01 Valuation of joint ventures, partnerships and limited liability companies](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S512.01.md)
- [A.R.S. § 20-513 20-513 Valuation of real and personal property](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S513.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AZ_T20_C3_A1_S503. Check the current official text before relying on it. Not legal advice.