House of Representatives

H.B. 2118

insurers; examination; five years

Sponsors: Representative Carpenter

DPA	Committee on Financial Institutions and Insurance
X	Committee on Appropriations
	Caucus and COW	This bill as introduced contains an Appropriation clause.
	As Passed the House

HB 2118 requires the Director of the Department of Insurance (Department) to examine the financial condition of each domestic insurer licensed to conduct business in this state at least once every five years. The bill appropriates $250,000 in FY 2001-2002 and 2002-2003 from the state general fund to the Department for hiring financial analysts.

History

A.R.S. 20-156 authorizes the Director to examine the financial condition of insurers authorized to conduct business in this state as often as the Director deems necessary. Currently, the Director is required to examine the financial solvency of domestic insurers at least once every three years, except that domestic life and disability insurers, service companies and mechanical reimbursement reinsurers must be examined at least once every five years.

Provisions

· Requires the Director to examine each domestic insurer licensed to transact business in this state at least once every five years.

· Appropriates $250,000 in FY 2001-2002 and FY 2002-2003 to the Department for hiring financial analysts to assist in conducting examinations of domestic insurers.

HB 2118 was amended in the Financial Institutions and Insurance Committee as follows:

· Clarifies that the appropriation shall be used by the Department to hire four FTE’s.

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· 44th Legislature

· Second Regular Session 2 January 18, 2001

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