- 1. “Book net worth” means the net difference between total assets and total liabilities.
- 2. “Face amount” means the total amount the insurer is obligated to pay under the policy.
- 3. “Net working capital” means current assets minus current liabilities.
- 4. “Substantial business relationship” means a pattern of recent or ongoing business transactions to the extent that a guaranty contract issued incident to that relationship is valid and enforceable.
- 5. “Tangible net worth” means an owner or operator’s book net worth, plus subordinated debts, less goodwill, patent rights, royalties, and assets and receivables due from affiliates or shareholders.
Historical Note
New Section made by final rulemaking at 31 A.A.R. 1363 (April 25, 2025), effective date June 1, 2025 (Supp. 25-2).