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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
financial surveillance fund; insurer examinations
Purpose
Retroactive to January 1, 2026, increases the maximum annual assessment amounts that the Director of the Department of Insurance and Financial Institutions (DIFI) may collect from a domestic insurer for financial surveillance purposes and requires the Director of DIFI (Director) to increase the maximum assessment amounts each fiscal year beginning July 1, 2027, as prescribed. Contains requirements for enactment and becomes effective on signature of the Governor (Proposition 108).
Background
The Director must annually assess and collect from each domestic insurer, excluding specified reinsurers and service companies, an amount within statutorily prescribed ranges to pay the costs of employing financial analysts who must assist DIFI in conducting financial surveillance of domestic insurers. The Director must deposit the collected fees in the Financial Surveillance Fund and base the amount of each insurer's assessment on the total admitted assets of the insurer as follows:
|
Insurers with Total Admitted Assets of: |
Minimum Assessment Amount |
Maximum Assessment Amount |
|
Greater than $1,000,000,000 |
$15,000 |
$22,500 |
|
Between $200,000,000 and $1,000,000,000 |
$5,000 |
$7,500 |
|
Between $100,000,000 and $199,999,999 |
$3,000 |
$4,500 |
|
Between $50,000,000 and $99,999,999 |
$1,500 |
$2,250 |
|
Between $25,000,000 and $49,999,999 |
$500 |
$750 |
|
Less than $25,000,000 |
$250 |
$375 |
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases the maximum annual assessment amounts that may be collected by the Director from each domestic insurer for paying DIFI's financial analysts as follows:
|
Insurers with Total Admitted Assets of: |
Maximum Assessment Amount |
|
Greater than $1,000,000,000 |
$39,375 |
|
Between $200,000,000 and $1,000,000,000 |
$13,125 |
|
Between $100,000,000 and $199,999,999 |
$7,875 |
|
Between $50,000,000 and $99,999,999 |
$3,940 |
|
Between $25,000,000 and $49,999,999 |
$1,315 |
|
Less than $25,000,000 |
$655 |
2. Requires the Director, beginning July 1, 2027, and each fiscal year thereafter, to adjust the maximum assessment amounts by the lesser of 2.5 percent or the average annual change in the metropolitan Phoenix Consumer Price Index published by the U.S. Department of Labor, Bureau of Labor Statistics.
3. Specifies that the maximum assessment amounts may not be revised below the amounts prescribed in the prior fiscal year and the revised maximum assessment amounts must be raised to the nearest whole dollar.
4. Make a conforming change.
5. Requires for enactment the affirmative vote of at least two-thirds of the members of each house of the Legislature (Proposition 108).
6. Becomes effective on the signature of the Governor, retroactive to January 1, 2026.
House Action
COM 1/20/26 DP 11-0-0-0
3rd Read 2/3/26 47-11-2
Prepared by Senate Research
March 18, 2026
MG/SJ/hk