The proposed bill would significantly update the current statutes governing residential property insurance in Arizona by introducing new requirements for transparency and accountability. It mandates the Arizona Department of Insurance and Financial Institutions (DIFI) to annually compile and publish a list of residential property insurance companies, detailing premiums, insured numbers, claims data, and other relevant statistics on its website. Additionally, residential property insurance companies would be required to file their underwriting guidelines with DIFI and update them whenever changes occur, ensuring that these guidelines are fair, actuarially justified, and reasonable, thus preventing unfair discrimination against applicants. Moreover, the bill establishes the Wildfire Insurance Review Task Force within DIFI to review insurance premiums and policies in wildfire-prone areas, analyze customer complaints, and submit annual reports to state officials. It also introduces requirements for insurers to file their underwriting guidelines related to fire loss risk within 30 days of any changes and clarifies that insurers are not required to provide explanations for policy cancellations or nonrenewals. The bill further stipulates that the information reported to DIFI is confidential and requires the Director to prepare an annual report in an aggregated and anonymized manner, enhancing the regulatory framework while ensuring the confidentiality of sensitive data.

Statutes affected:
Introduced Version: 20-123, 20-391.01