 |
ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
insurance and financial institutions; continuation
Purpose
Continues the Arizona Department of Insurance and Financial Institutions for five years.
Background
The Arizona Department of Insurance (DOI) regulates and monitors insurance companies and professionals operating in Arizona to protect the public and help ensure that these entities follow Arizona and federal laws (Ariz. Const. art. 15 § 5). DOI is responsible for: 1) licensing qualified insurance professionals and companies; 2) investigating consumer complaints and suspected fraud; 3) overseeing insurance companies’ financial solvency; 4) reviewing insurance policies, rates and products; and 5) administering funds (A.R.S. §§ 20-285; 20-376; 20-466; 20‑491.03; 20-662; and 20-683).
The Department of Financial Institutions (DFI) executes the laws of Arizona relating to financial institutions and enterprises (A.R.S. § 6-110). DFI licenses, supervises and regulates state‑chartered financial institutions and enterprises and is responsible for annual assessments of the financial institutions and enterprises to ensure the safety and stability of the financial services industry (A.R.S. § 6-121).
The Automobile Theft Authority (ATA) was created to determine the scope of the problem of motor vehicle theft including particular areas of Arizona where the problem is greatest and to develop and implement a plan of operation and a financial plan (A.R.S. § 41-3451).
Laws 2019, Chapter 252 absorbed DFI and ATA into DOI and renamed DOI the Arizona Department of Insurance and Financial Institutions (DIFI), effective July 1, 2020. DIFI assumes the responsibilities that are prescribed to DFI, ATA and DOI.
The Senate Finance Committee of Reference (COR) conducted a public meeting on December 17, 2019, to consider DOI's response to the sunset factors and receive public testimony. The COR recommended that the Legislature continue DIFI for five years (COR Final Report). DOI terminates on July 1, 2020, unless continued by the Legislature (A.R.S. § 41-3020.17).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Continues, retroactive to July 1, 2020, DIFI until July 1, 2025.
2. Repeals, subject to voter approval, DIFI on January 1, 2026.
3. Contains a purpose statement.
4. Becomes effective on the general effective date, with a retroactive provision as noted.
Prepared by Senate Research
February 7, 2020
MG/AJS/gs