HB 2005
Initials PRB/LM Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: COM DP 9-1-0-0
HB2005: foreign captive insurers; definition
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Allows a foreign captive insurer to form a branch captive office in Arizona.
History
A captive insurer is any pure, agency or group captive insurer or protected cell captive insurer
that is domiciled in this state and that is statutorily formed and licensed. An alien captive insurer
is any insurer formed to write insurance business for its affiliates and that is licensed pursuant to
the laws of an alien jurisdiction that imposes statutory or regulatory standards acceptable to the
director on companies transacting the business of insurance in such a jurisdiction. A branch
captive insurer is an alien captive insurer that is licensed to transact the business of insurance
through a business unit with a principal place of business in this state (A.R.S. § 20-1098).
Statute requires alien branch captive insurers to file with the director of the Department of
Insurance and Financial Institutions a copy of all reports and statements that are required to be
filed under the laws of the jurisdiction in which the alien captive insurer is formed and that are
verified by oath of two of its executive officers (A.R.S. § 20-1098.21).
Provisions
1. Modifies the definition of branch captive insurer to mean an alien captive insurer or a foreign
captive insurer that establishes a business unit with a principal place of business in this State.
(Sec. 1)
2. Defines foreign captive insurer as any captive insurer that is domiciled in and licensed under
the laws of another state that imposes statutory or regulatory standards on captive insurance
companies in that state that are acceptable to the director. (Sec. 1)
3. Removes the specification that consenting to examination is a condition of licensure. (Sec. 3)
4. Applies the same examination requires for alien captive insurers to foreign captive insurers.
(Sec. 3)
5. Allows a domestic captive insurer to merge or consolidate with any other domestic, foreign or
alien captive insurer regardless of the captive insurer being formed as a limited liability
company or a stock corporation. (Sec. 4)
6. Clarifies an alien captive insurer or foreign captive insurer may establish a business unit in
this State and become licensed as a branch captive insurer. (Sec. 5)
7. Applies the same reporting requirements for an alien captive insurer to a foreign captive
insurer. (Sec. 6)
8. Clarifies the process of service for captive insurers. (Sec. 2)
9. Makes technical changes. (Sec. 1, 5)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note