The proposed bill, if enacted, would amend current statutes regarding the maximum annual assessment amounts that the Director of the Department of Insurance and Financial Institutions (DIFI) can collect from domestic insurers for financial surveillance purposes. Specifically, it would increase the maximum assessment amounts for various ranges of total admitted assets, replacing the current maximums with new figures: for insurers with assets over $1 billion, the maximum would rise from $22,500 to $39,375; for those between $200 million and $1 billion, from $7,500 to $13,125; for those between $100 million and $199,999,999, from $4,500 to $7,875; for those between $50 million and $99,999,999, from $2,250 to $3,940; for those between $25 million and $49,999,999, from $750 to $1,315; and for those with less than $25 million, from $375 to $655.

Additionally, the bill introduces a provision requiring the Director to adjust these maximum assessment amounts annually based on the lesser of 2.5% or the average annual change in the metropolitan Phoenix consumer price index, ensuring that the amounts do not fall below the previous fiscal year's levels. The act would apply retroactively to January 1, 2026, and would require a two-thirds majority vote in both houses of the legislature for enactment, becoming effective immediately upon the Governor's signature.

Statutes affected:
Introduced Version: 20-156
House Engrossed Version: 20-156