House of Representatives

H.B. 2119

insurers; acquisition; discretionary hearing

Sponsors: Representative Carpenter

X	Committee on Financial Institutions and Insurance
	Caucus and COW
	As Passed the House

HB 2119 gives the Director of the Department of Insurance the discretion to conduct a formal hearing on the acquisition or merger of an Arizona domestic insurer.

History

A.R.S. 20-161 authorizes the Director of the Department of Insurance to conduct hearings that are deemed necessary by the Director and within the scope of Title 20. Currently, change of control or merger of a domestic insurer requires both a public hearing and approval of the transaction by the Director. As of December 31, 2000, there were 444 Arizona domestic insurers.

Provisions

· Provides the Director the discretionary authority to conduct a formal hearing on the acquisition or merger of an Arizona domestic insurer.

· Requires the Director to provide written notice at least 20 days prior to conducting a formal hearing.

· In the event that the Director does not give notice of a hearing, the person filing the change of control or merger statement shall give written notice of the filing to the insurer, its security holders and any other persons designated by the Director.

· Authorizes any person whose interests may be affected by the filing to request a hearing from the Director. The request must be made within ten days from the date of the written notice.

· Requires the Director to issue a notice of hearing to all interested parties in the event that a hearing was granted. The hearing shall be held no earlier than 20 days from the date of the notice.

· Makes technical and conforming changes.

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44th Legislature

Second Regular Session 2 January 16, 2001

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