ARIZONA STATE SENATE
Phoenix, Arizona
acquisition; discretionary
hearing
Authorizes a hearing regarding an acquisition
or merger of an Arizona domestic insurer by the Director of the Department of
Insurance (DOI).
Background
The Director of the
Department of Insurance oversees hearings that assess the validity of an
insurer acquisition or merger according to A.RS. § 20-161. Currently,
acquisitions or merger of a state insurer requires both a public hearing and
approval of the transaction by the Director.
H.B. 2119 removes both the requirements on DOI and authorizes Director
to hold a hearing if it is considered necessary. There are 444 Arizona domestic
insurers as of December 31, 2000.
There is no fiscal impact
associated with H.B. 2119 according to the Joint Legislative Budget Committee
staff.
Provisions
1. Authorizes the Director to conduct a formal hearing on the acquisition or merger of an Arizona domestic insurer, at his discretion.
2. Requires written notice be provided at least 20 days prior to conducting a formal hearing.
3. Authorizes affected parties to request a hearing within ten days from the date of the written notice from the Director.
4. Makes technical and conforming changes.
5. Provides for a general effective date.
House
Action
FII 1/17/01 DPA 9-0-1
3rd Read 1/30/01 59-0-1
Prepared by Senate Staff
February
13, 2001