insurance; financial and
accounting standards
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Committee on Financial Institutions and Insurance |
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DP |
Committee on Commerce and Economic Development |
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DP |
Caucus and COW |
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DP |
Third Read |
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DP |
As Passed the House |
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X |
As Transmitted to the Governor |
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Currently in Arizona, hospital, medical, dental and optometry service corporations, HMOs and prepaid dental plans have different financial accounting and reporting procedures. Some insurance companies have different licensing timelines and have different reinsurance requirements than similar insurers. The proposed legislation would bring these insurance organizations into conformance with other insurers.
§ Adds health care service organizations, pre-paid dental plans, and domestic life and disability insurers to the licensing fee schedule as other insurers. The bill repeals statute to readjust insurance categories for the fee schedule.
§ Establishes December 1 as the annual reporting deadline for DOI to revise its fee schedule that reflects the 95-110 percent annual budget recoupment mandate.
§ Removes the premium tax credit for life and disability reinsurers.
§ Clarifies that the appropriated budget does not apply to the captive insurance program. Captive insurers must pay issuance and renewal fees as prescribed in rule by the director.
§ Changes the examination schedule for nonprofit service organizations from three to five years.
§ States that any corporation failing to file their annual statement or to provide required information are subject to penalties. The bill conforms all insurance corporations to the same reporting requirements.
§ Allows the director to suspend or revoke the license of a corporation for non-compliance with state law, questionable business practice, false advertising and unstable conditions that are a detriment to subscribers.
§ Establishes a hearing process for adverse licensing actions.
§ Imposes penalties for unintentional violations of $1000 for each violation not to exceed $10,000 in any six month period. Intentional violations result in penalties of $5,000 for each violation not to exceed $50,000 in any six month period.
§ Contains numerous technical and conforming changes.
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45th Legislature
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Second Regular Session 3 May
2, 2002
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