Arizona HB 2174: eligibility determinations; developmental disabilities

Bill Text

Chapter 0247 - 572R - S Ver of HB2174 

 Senate Engrossed 
 House Bill

 insurance; 
 modeling organizations; predictive models

 (now: insurance; 
 modeling and data organizations)

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 CHAPTER 247

 HOUSE BILL 2174

AN 
ACT

amending sections 20-235, 
20-341, 20-368, 20-370, 20-381, 20-387, 20-388, 
20-390, 20-392, 20-393, 20-394, 20-396, 20-409 
and 20-3604, arizona revised statutes; RELATING to transaction of 
insurance business. 

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona: 

Section 1. Section 20-235, Arizona Revised 
Statutes, is amended to read:

START_STATUTE20-235. Insurers; financial disclosure; requirements

A. The director may adopt rules which require each 
insurer licensed to write property or casualty insurance in this state to 
report its loss and expense experience, investment income, administrative 
expenses and other data, as he may require, for classes of risks which he may 
designate. Such reports shall be in addition to the annual statement 
required by section 20-223.

B. The department may designate one or more rate 
service organizations or advisory organizations modeling and data organizations to gather and compile the 
experience and data.

C. The director by order may require an insurer 
authorized to transact insurance in this state to submit statistical and other 
financial data including the information prescribed in subsection A of this 
section in a form and content consistent with rules adopted pursuant to 
subsection A, with any model guideline, regulation, rule or act adopted by the 
national association of insurance commissioners or with the classification 
basis used by the insurer. The director shall prescribe the time 
period and form in which the data shall be submitted.

D. An insurer who fails to provide the information required 
under subsection C of this section is subject to payment of a late fee of not 
more than one hundred dollars for each day of delinquency. The 
director shall notify an insurer of late fees that it will incur as a result of 
noncompliance with this section at least ten days prior to the date any such 
late fees become due.END_STATUTE

Sec. 2. Section 20-341, Arizona Revised 
Statutes, is amended to read:

START_STATUTE20-341. Purpose of insurance rate regulation

A. The purpose of this article is to promote the 
public welfare by regulating insurance rates to the end that they shall not be 
excessive, inadequate or unfairly discriminatory, and to authorize and regulate 
cooperative action among insurers in rate making and in other matters within 
the scope of this article. Nothing in this article is intended to 
prohibit or discourage reasonable competition, or to prohibit or encourage, 
except to the extent necessary to accomplish the purpose stated in this 
section, uniformity in insurance rates, rating systems, rating plans or 
practices. This article shall be liberally interpreted to carry into 
effect the provisions of this section.

B. Where the rules and regulations of a rating 
bureau or advisory organization modeling 
and data organization conflict with the law, the rules and regulations 
do not apply. END_STATUTE

Sec. 3. Section 20-368, Arizona Revised Statutes, is amended to read:

START_STATUTE20-368. Modeling and data organizations

A. Every group, association or other organization of 
insurers, whether located within or outside this state, which assists insurers 
which make their own filings or rating organizations in rate making, by the 
collection and furnishing of loss or expense statistics, or by the submission 
of recommendations, but which does not make filings under this article, shall 
be known as an advisory organization a 
modeling and data organization.

B. Every advisory organization modeling and data organization shall file with the director:

1. A copy of its constitution, its articles of 
agreement or association or its certificate of incorporation and a copy of its 
bylaws, rules and regulations governing its activities.

2. A list of its insurer 
members, if applicable.

3. The name and address of a resident of this state 
upon whom notices or orders of the director or process affecting the advisory organization modeling and data 
organization may be served.

4. An agreement that the director may 
examine the advisory organization in accordance with the provisions of section 
20-370.

C. If, after a hearing, the director finds that the 
furnishing of such information or assistance involves any act or practice which 
is unfair or unreasonable or otherwise inconsistent with the provisions of this 
article, he may issue a written order specifying in what respects such act or 
practice is unfair or unreasonable or otherwise inconsistent, and requiring the 
discontinuance of such act or practice.

D. No insurer which makes its own filings nor any 
rating organiza