Bill > HB2193

This bill addresses captive insurers in Arizona by introducing a new category called "dormant captive insurers" and making several modifications to existing insurance regulations. Specifically, the bill defines a "dormant captive insurer" as a captive insurance company that has ceased transacting insurance business and has no outstanding liabilities. The new provisions allow such insurers to apply for a certificate of dormancy, which must be renewed every five years and requires maintaining a minimum capital of $125,000. To maintain the dormancy status, these insurers must submit an annual financial report to the insurance director and pay a renewal fee. The bill also reduces the minimum capital requirement for protected cell captive insurers from $500,000 to $250,000 and makes minor technical changes to definitions and organizational requirements for different types of captive insurers, such as allowing limited liability companies to be pure captive insurers and mandating at least one resident director or manager. The changes aim to provide more flexibility for captive insurers while maintaining regulatory oversight, particularly for insurers that are temporarily not active but wish to maintain their legal status.

Budget and Finance, Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/81901