This bill proposes several updates to the current statutes governing captive insurers in Arizona. It introduces a new definition for "dormant captive insurer," which refers to a captive insurer that has ceased all insurance transactions and has no outstanding liabilities. The bill allows these dormant insurers to apply for a certificate of dormancy, which must be renewed every five years. Additionally, it establishes requirements for maintaining a minimum capital and surplus of $125,000, submitting annual financial reports, and paying a renewal fee. The bill also stipulates that dormant insurers cannot conduct insurance business until they have surrendered their dormancy certificate, which requires approval from the Director of the Department of Insurance and Financial Institutions (DIFI).

Furthermore, the bill modifies existing requirements for captive insurers, including reducing the minimum capital and surplus for protected cell captive insurers from $500,000 to $250,000, and mandates that captive insurers formed as limited liability companies must have at least one Arizona resident on their board of managers. It also changes the timing for license renewal fees, requiring payment between July 1 and September 1 each year, rather than upon filing the annual report. Overall, these changes aim to streamline the regulatory framework for captive insurers while ensuring compliance and oversight.

Statutes affected:
Introduced Version: 20-1098, 20-1098.01, 20-1098.03, 20-1098.04, 20-1098.24, 20-481, 20-1098.06, 20-822, 20-1051, 20-1001, 20-1097, 20-1562, 20-1541, 23-961, 20-1098.07, 20-1098.11, 20-167, 20-3601
House Engrossed Version: 20-1098, 20-1098.01, 20-1098.03, 20-1098.04, 20-1098.24, 20-481, 20-1098.06, 20-822, 20-1051, 20-1001, 20-1097, 20-1562, 20-1541, 23-961, 20-1098.07, 20-1098.11, 20-167, 20-3601