ARIZONA STATE SENATE
Phoenix, Arizona
insurers; examination; five
years
Requires
the Director of the Department of Insurance (DOI) to examine the financial
condition of each domestic insurer licensed to conduct business in this state a
minimum of once every five years. Contains a Prooposition 108 clause.
Background
Currently,
the Director is authorized under A.R.S. §20-156 to examine the
financial condition of insurers that conduct business in this state as often as
the Director deems necessary and must examine the financial solvency of
domestic insurers at least once every three years. A five-year examination
period is sufficient, according to DOI, due to the small number of insolvency
cases among domestic insurers. Domestic life and disability insurers, service
companies and mechanical reimbursement reinsurers must be examined at least
once every five years.
H.B.
2118 changes the examination period of financial solvency of domestic insurers
by the Director from once every three years to once every five years.
Provisions
1. Requires the Director to examine each domestic insurer licensed to transact business in this state at least once every five years.
2. Levies an assessment whose funds are deposited into a non-appropriated Financial Surveillance Fund and are administered by the Director of DOI for the purpose of paying the costs of employing financial analysts to assist the Department in conducting financial surveillance of insurers.
3. Contains a Proposition 108 clause.
4. Provides for a general effective date.
House
Action
FII 1/1/701 DPA 9-0-0-1
3rd Read 2/26/01 DPA 56-1-3-0
Prepared by Senate Staff
March 14, 2001