benefit insurers; repeal
DP |
Committee on Financial Institutions and Insurance |
|
|
DP |
Caucus and COW |
|
|
X |
As Transmitted to the Governor |
|
SB 1022 eliminates the statutes that authorize benefit insurers and benefit stock insurers to transact life and disability insurance policies in Arizona.
Benefit insurers began as the first type of health care organization. Benefit insurers had significantly lower capital requirements than present day health care organizations, and in result charged lower premiums while providing less coverage. Currently, statute allows benefit insurers and benefit stock insurers to transact life and disability insurance in Arizona. Benefit insurers are nonprofit corporations while benefit stock organizations are for-profit corporations.
Since January 1955, insurers cannot become or convert into a benefit stock insurer. Benefit stock insurers that existed prior to this time were allowed to remain in operation, however benefit stock insurers no longer exist in Arizona. Benefit insurers that existed before January 1, 1977 are allowed to continue to transact insurance. Currently, no benefit insurers or benefit stock insurers are licensed in Arizona.