The proposed bill updates current statutes regarding captive insurers by introducing a framework for a "certificate of dormancy." Under the new provisions, a captive insurer that is domiciled in Arizona and meets specific criteria can apply for this certificate. The definition of a "dormant captive insurer" is established, which includes insurers that have ceased transacting insurance business and have no outstanding liabilities. The bill also specifies that a dormant captive insurer must maintain a minimum unimpaired paid-in capital and surplus of $125,000 and submit an annual financial report to the director of the Department of Insurance and Financial Institutions (DIFI).

Additionally, the bill outlines the renewal process for the certificate of dormancy, which must occur every five years, and stipulates that the certificate will expire unless renewed. It allows for the surrender of the certificate and prohibits dormant insurers from conducting insurance business until the surrender is approved by DIFI. The bill also includes technical amendments, such as reducing the minimum capital requirement for protected cell captive insurers from $500,000 to $250,000 and requiring at least one board member of a limited liability company to be an Arizona resident. Overall, these changes aim to streamline the regulatory process for captive insurers in Arizona.

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