20-156. Examination of insurers; financial surveillance fund; definition
543 words·~2 min read·
/az/title-20/20-156A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The director shall examine the affairs, transactions, accounts, records and assets of each authorized insurer as often as the director deems advisable. The director shall so examine each domestic insurer at least once every five years. Examination of an alien insurer shall be limited to its insurance transactions in the United States. The director may examine the business transactions and affairs of each domestic life and disability reinsurer as defined in section 20-1082, service company as defined in section 20-1095 and mechanical reimbursement reinsurer as defined in section 20-1096.
B. The director shall in like manner examine each insurer applying for an initial certificate of authority to do business in this state.
C. In lieu of making an examination, the director may accept a full report of the last recent examination of a foreign or alien insurer, certified to by the insurance supervisory official of another state, territory, commonwealth or district of the United States.
D. The expenses of the examinations conducted under this section shall be paid by the insurance examiners' revolving fund as provided in section 20-159. Such expenses shall be limited to preexamination selection and preparation costs, examination costs, postexamination costs and other such costs of evaluations of compliance required by law.
E. The financial surveillance fund is established consisting of monies collected pursuant to subsection F of this section. The fund is a special state fund pursuant to section 35-142, subsection A, paragraph 8. The department shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
F. The director shall annually assess and collect from each domestic insurer, other than a domestic life and disability reinsurer as defined in section 20-1082, a service company as defined in section 20-1095, and a mechanical reimbursement reinsurer as defined in section 20-1096, an amount within the ranges provided in this subsection and on a uniform percentage basis among all fee categories, to pay the costs of employing financial analysts who shall assist the department in conducting financial surveillance of domestic insurers.
The director shall deposit all collected monies in the financial surveillance fund. The director shall base the amount of each insurer's assessment on the total admitted assets of the insurer as shown in its annual statement for the calendar year preceding the year in which the assessment is made, according to the following schedule:
Minimum Maximum
Assessment Amount Assessment Amount
Insurers with total admitted
assets of greater than
$1,000,000,000 $15,000 $22,500
Insurers with total admitted
assets of at least $200,000,000
but not more than $1,000,000,000 $ 5,000 $ 7,500
Insurers with total admitted
assets of at least $100,000,000
but not more than $199,999,999 $ 3,000 $ 4,500
Insurers with total admitted assets
of at least $50,000,000 but not
more than $99,999,999 $ 1,500 $ 2,250
Insurers with total admitted assets
of at least $25,000,000 but not
more than $49,999,999 $ 500 $ 750
Insurers with total admitted
assets of not more than
$24,999,999 $ 250 $ 375
G. For the purposes of this section, "insurer" includes health care services organizations, prepaid dental plan organizations, hospital service corporations, medical service corporations, dental service corporations and hospital, medical, dental and optometric service corporations incorporated in this state.