The proposed bill would amend existing statutes related to captive insurers in Arizona by introducing a new classification for "dormant captive insurers." This classification would allow these insurers, which have ceased transacting insurance business and have no outstanding liabilities, to apply for a certificate of dormancy. The bill specifies that this certificate must be renewed every five years and outlines the requirements for maintaining it, including possessing a minimum capital and surplus of $125,000, submitting annual financial reports, and paying a renewal fee. Additionally, it prohibits dormant captive insurers from conducting any insurance business until they have surrendered their dormancy certificate and received approval from the Director of the Department of Insurance and Financial Institutions (DIFI).

Furthermore, the bill modifies existing requirements for captive insurers, such as 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 timeline for license renewal fees, requiring payment between July 1 and September 1 each year, rather than upon filing the annual report. Overall, the bill aims to streamline the administrative processes for captive insurers while ensuring compliance with new dormancy regulations.

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
Chaptered 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