Official Summary Text
HB2091 - 572R - Senate Fact Sheet
Assigned to
FIN������������������������������������������������������������������������������������������������� AS
PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
REVISED
AMENDED
FACT SHEET FOR
H.B. 2091
financial
surveillance fund; insurer examinations
Purpose
Retroactive to January 1, 2026, increases the maximum annual assessment
amounts that the Director of the
Department
of Insurance and Financial Institutions (DIFI) may collect
from a
domestic insurer for financial surveillance purposes. Contains requirements for
enactment and becomes effective on signature of the Governor (Proposition 108).
Background
The
Director must annually assess and
collect from each domestic insurer, excluding specified reinsurers and service
companies, an amount within statutorily prescribed ranges to pay the costs of
employing financial analysts who must assist DIFI in conducting financial
surveillance of domestic insurers. The Director must deposit the collected fees
in the Financial Surveillance Fund and base the amount of each insurer's
assessment on the total admitted assets of the insurer as follows:
Insurers with Total
Admitted Assets of:
Minimum Assessment Amount
Maximum Assessment Amount
Greater
than $1,000,000,000
$15,000
$22,500
Between $200,000,000 and $1,000,000,000
$5,000
$7,500
Between $100,000,000 and $199,999,999
$3,000
$4,500
Between $50,000,000 and $99,999,999
$1,500
$2,250
Between $25,000,000 and $49,999,999
$500
$750
Less than $25,000,000
$250
$375
(
A.R.S. � 20-156
).
There is no anticipated fiscal impact to the state
General Fund associated with H.B. 2091, as all assessment revenues are
statutorily deposited into the Financial Surveillance Fund. The Joint
Legislative Budget Committee fiscal note estimates that H.B. 2091 would
increase Financial Surveillance Fund revenue by up to $500,000 annually,
beginning in FY 2026 (
JLBC Fiscal Note
).
Provisions
1.
Increases the maximum annual assessment amounts that may be collected by
the Director from each domestic insurer for paying DIFI's financial analysts as
follows:
Insurers with Total
Admitted Assets of:
Maximum Assessment Amount
Greater
than $1,000,000,000
$39,375
Between $200,000,000 and $1,000,000,000
$13,125
Between $100,000,000 and $199,999,999
$7,875
Between $50,000,000 and $99,999,999
$3,940
Between $25,000,000 and $49,999,999
$1,315
Less than $25,000,000
$655
2.
Requires for enactment the affirmative vote of at least two-thirds of
the members of each house of the Legislature (Proposition 108).
3.
Becomes effective on the signature of the Governor, retroactive to
January 1, 2026.
Amendments
Adopted by Committee
�
Removes the requirement for the Director to annually adjust the
maximum assessment amounts.
Revisions
�
Updates the fiscal impact statement.
House Action
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Senate
Action
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Prepared by Senate Research
April 8, 2026
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Current Bill Text
Read the full stored bill text
HB2091 - 572R - H Ver
House Engrossed
financial
surveillance fund; insurer examinations
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2091
AN
ACT
amending section 20-156, arizona
revised statutes; RELATING to insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-156, Arizona Revised
Statutes, is amended to read:
START_STATUTE
20-156.
Examination of insurers; financial surveillance fund; definition
A. The director shall examine the affairs,
transactions, accounts, records and assets of each authorized insurer as often
as the director deems advisable. The director shall so examine each
domestic insurer at least once every five years. Examination of an
alien insurer shall be limited to its insurance transactions in the United
States.� The director may examine the business transactions and affairs of each
domestic life and disability reinsurer as defined in section 20-1082,
service company as defined in section 20-1095 and mechanical
reimbursement reinsurer as defined in section 20-1096.
B. The director shall in like manner examine each
insurer applying for an initial certificate of authority to do business in this
state.
C. In lieu of making an examination, the director
may accept a full report of the last recent examination of a foreign or alien
insurer, certified to by the insurance supervisory official of another state,
territory, commonwealth or district of the United States.
D. The expenses of the examinations conducted under
this section shall be paid by the insurance examiners' revolving fund as
provided in section 20-159. Such expenses shall be limited to
preexamination selection and preparation costs, examination costs,
postexamination costs and other such costs of evaluations of compliance
required by law.
E. The financial surveillance fund is established
consisting of monies collected pursuant to subsection F of this section.� The
fund is a special state fund pursuant to section 35-142, subsection A,
paragraph 8.� The department shall administer the fund. Monies in
the fund are continuously appropriated and are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.
F. The director shall annually assess and collect
from each domestic insurer, other than a domestic life and disability reinsurer
as defined in section 20-1082, a service company as defined in section 20-1095,
and a mechanical reimbursement reinsurer as defined in section 20-1096,
an amount within the ranges provided in this subsection and on a uniform
percentage basis among all fee categories, to pay the costs of employing
financial analysts who shall assist the department in conducting financial
surveillance of domestic insurers.� The director shall deposit all collected
monies in the financial surveillance fund.� The director shall base the amount
of each insurer's assessment on the total admitted assets of the insurer as
shown in its annual statement for the calendar year preceding the year in which
the assessment is made, according to the following schedule:
����������������������������������� Minimum���������� Maximum
����������� Assessment
Amount �� Assessment Amount
Insurers with total admitted
assets of greater than
$1,000,000,000������������������������� $15,000��������
$22,500
$39,375
Insurers with total admitted
assets of at least $200,000,000
but not more than $1,000,000,000������� $ 5,000��������
$ 7,500
$13,125
Insurers with total admitted
assets of at least $100,000,000
but not more than $199,999,999��������� $ 3,000��������
$ 4,500
$7,875
Insurers with total admitted assets
of at least $50,000,000 but not
more than $99,999,999������������������ $ 1,500��������
$ 2,250
$3,940
Insurers with total admitted assets
of at least $25,000,000 but not
more than $49,999,999������������������ $�� 500��������
$�� 750
$1,315
Insurers with total admitted
assets of not more than
$24,999,999���������������������������� $�� 250��������
$�� 375
$655
G. Beginning from and after June 30,
2027 and each fiscal year thereafter, the director shall adjust the maximum
assessment amounts for each range of total admitted assets prescribed in
subsection F of this section by the lesser of two and one half percent or the
average annual change in the metropolitan phoenix consumer price index
published by the united states department of labor, bureau of labor statistics,
except that the maximum assessment amounts may not be revised below the amounts
prescribed in the prior fiscal year.� The revised maximum assessment amounts
shall be raised to the nearest whole dollar.
G.
H.
For
the purposes of this section, "insurer" includes health care services
organizations, prepaid dental plan organizations, hospital service
corporations, medical service corporations, dental service corporations and
hospital, medical, dental and optometric service corporations incorporated in
this state.
END_STATUTE
Sec. 2.
Retroactivity
This act applies retroactively to from
and after December 31, 2025.
Sec. 3.
Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22,
Constitution of Arizona, this act is effective only on the affirmative vote of
at least two-thirds of the members of each house of the legislature and is
effective immediately on the signature of the governor or, if the governor
vetoes this act, on the subsequent affirmative vote of at least three-fourths
of the members of each house of the legislature.