AZ Regulatory Bulletin 2025-05: 2025 Arizona Insurance and Financial Institutions Laws

Arizona Department of Insurance and Financial Institutions

100 N 15th Avenue, Suite 261, Phoenix, Arizona 85007

(602) 364-3100 | difi.az.gov

Katie Hobbs

Governor

Maria Ailor

Interim Director

Regulatory Bulletin 2025-05 (DIFI)1

2025 Arizona Insurance and Financial Institutions Laws

Pursuant to Arizona Revised Statutes (“A.R.S.”) §§ 41-1001(24) and 41-1091, the Arizona

Department of Insurance and Financial Institutions (“Department”) occasionally issues

Substantive Policy Statements (“Bulletins”) to express the Department’s position on current

industry practices and to provide the Department’s interpretation of Arizona law. The Department’s

Bulletins are intended to promote a level playing field and uniform application of statutory

provisions to consumers and industry.

I. Purpose

The purpose of this Bulletin is to summarize the major, newly enacted legislation affecting the

Department, its licensees and consumers.

II. Scope

This Bulletin is not meant as an exhaustive list or a detailed analysis of all Department-related bills.

It generally describes the substantive content but does not capture all details or necessarily cover

all bills that may be of interest to a particular reader. The Department may follow this Bulletin with

more detailed bulletins related to the implementation of specific legislation. Regulated entities are

responsible for reviewing all newly enacted legislation and ensuring compliance with Arizona laws

and regulations.

III. Background

Arizona’s Fifty-seventh Legislature, First Regular Session, adjourned sine die on June 27, 2025.

All legislation becomes effective on the general effective date of September 26, 2025, except as

otherwise noted. The following 25 bills passed during the 2025 Legislative Session.

IV. Department Position

Note: Unless otherwise stated, “Director” means the Director of the Department.

1 This Substantive Policy Statement is advisory only

All legislation becomes effective on the general effective date of September 26, 2025, except as

otherwise noted. The following 25 bills passed during the 2025 Legislative Session.

IV. Department Position

Note: Unless otherwise stated, “Director” means the Director of the Department.

1 This Substantive Policy Statement is advisory only. A Substantive Policy Statement does not include

internal procedural documents that only affect the internal procedures of the agency and does not impose

additional requirements or penalties on regulated parties or include confidential information or rules made in

accordance with the Arizona Administrative Procedure Act. If you believe that this Substantive Policy

Statement does impose additional requirements or penalties on regulated parties you may petition the

agency under section 41-1033, Arizona Revised Statutes, for a review of the Statement.

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Laws 2025, Chapter 5 (S. B. 1102) – pharmacy benefits; prescribing; exemption

Adds A.R.S. §§ 20-3335 and 20-3336

Prescription Drug Coverage – Prohibits a pharmacy benefit manager (PBM) that enters

into an agreement with a health care insurer to provide pharmacy benefit management services to

covered individuals on behalf of the PBM or the insurer from limiting or excluding coverage of a

prescription drug for any covered individual who is on a specific prescription drug if the outlined

criteria applies. The drug coverage, if applicable, must continue for a covered individual's specific

prescription drug through the last day of the covered individual's health care plan year

vices to

covered individuals on behalf of the PBM or the insurer from limiting or excluding coverage of a

prescription drug for any covered individual who is on a specific prescription drug if the outlined

criteria applies. The drug coverage, if applicable, must continue for a covered individual's specific

prescription drug through the last day of the covered individual's health care plan year. A PBM or

health care insurer may not change a covered individual from the previously covered prescription

drug if the covered individual's prescribing health care provider provides electronic or written notice

to the PBM or health care insurer notifying the PBM or health care insurer that the covered

individual will continue on the current prescription drug. If a PBM or health care insurer makes any

formulary change that limits or excludes coverage of a prescription drug, the PBM or health care

insurer must provide electronic or written notice of the removal of or change for any prescription

drug on the drug formulary that contains the prescribed information to each impacted covered

individual and the impacted covered individual's prescribing health care provider at least 60 days

before the formulary change.

Formulary Exception Requests – Requires, on renewal of a health care plan, a health

care insurer, PBM or utilization review agent (URA) to provide a covered individual and prescribing

health care provider with access to a clear and convenient process to request a formulary

exception. The health care insurer, PBM or URA may use its existing formulary exception process

to satisfy the requirement if the process is consistent with the prescribed requirements

h care plan, a health

care insurer, PBM or utilization review agent (URA) to provide a covered individual and prescribing

health care provider with access to a clear and convenient process to request a formulary

exception. The health care insurer, PBM or URA may use its existing formulary exception process

to satisfy the requirement if the process is consistent with the prescribed requirements. A health

care insurer, PBM or URA must respond to a formulary exception request within 72 hours or, in

cases where exigent circumstances exist and the covered individual or the covered individual's

prescribing health care provider requests an expedited review, 24 hours after receiving the

formulary exception request and relevant clinical documentation. For a covered individual who

renews the same health care plan, a health care insurer, PBM or URA must approve a formulary

exception for the covered individual if the covered individual has been previously approved to

receive the nonformulary prescription drug under the same health care plan and the prescribing

health care provider uses the formulary exception process and provides relevant clinical

documentation to certify all of the outlined criteria. If the covered individual does not otherwise

qualify for a formulary exception through renewal of a health care plan, the covered individual may

still apply for a formulary exception and the health care insurer, PBM or URA must consider the

outlined factors when evaluating whether a covered individual should qualify for a formulary

exception. A formulary exception for a covered individual that is authorized by a health care insurer,

PBM or URA must: 1) be in writing and delivered to the covered individual and the covered

individual's treating health care provider; and 2) be in effect until the end of the covered individual's

plan year

ned factors when evaluating whether a covered individual should qualify for a formulary

exception. A formulary exception for a covered individual that is authorized by a health care insurer,

PBM or URA must: 1) be in writing and delivered to the covered individual and the covered

individual's treating health care provider; and 2) be in effect until the end of the covered individual's

plan year.

Formulary Exception Denials – Requires a health care insurer's or PBM’s denial of

coverage for a nonformulary prescription drug to be made in writing to the covered individual by a

licensed pharmacist or medical director who made the decision to deny coverage and include the

prescribed information. The health care insurer, PBM or URA must: 1) send a copy of the written

denial to the covered individual's treating health care provider who requested the formulary

exception; 2) maintain copies of all written denials; and 3) make the copies available to the

Department for inspection.

Applicability and Enforcement – Applies the requirements to contracts, policies or

evidences of coverage that are entered into, amended, extended or renewed on or after December

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31, 2025. The requirements do not: 1) prevent a health care provider from prescribing another

prescription drug that is covered by the health care insurer or the PBM if the health care provider

deems the prescription drug medically necessary for the covered individual; 2) prevent a health

care insurer or PBM that is contracted to provide pharmacy benefit management services from

managing its formulary in compliance with the requirements; or 3) apply to a limited benefit

coverage policy that is issued or renewed by a disability insurer or to PBMs that are not required to

obtain a certificate of authority (COA) from the Department

y for the covered individual; 2) prevent a health

care insurer or PBM that is contracted to provide pharmacy benefit management services from

managing its formulary in compliance with the requirements; or 3) apply to a limited benefit

coverage policy that is issued or renewed by a disability insurer or to PBMs that are not required to

obtain a certificate of authority (COA) from the Department. The Director may enforce the

requirements pursuant to PBM COA or utilization review laws.

Laws 2025, Chapter 25 (H. B. 2173) – mental health inquiry; prohibition

Adds A.R.S. §§ 32-3223.01 and 32-4821

Prohibits a health professional regulatory board and a licensing authority from including

any question on an application for a license, permit, certificate or registration that requests

information about whether the applicant has sought mental health assistance or received a mental

health diagnosis or treatment. The licensing authority may ask if the applicant is currently under a

regulatory entity’s order in another state for the monitoring of a health condition, including

substance abuse, except that the applicant is not required to respond if the monitoring is part of a

confidential program.

Laws 2025, Chapter 28 (H. B. 2345) – loan agreements; escrow

Adds A.R.S. § 6-834.01

Clarifies that an escrow agent may use monies in an escrow account only to make a one-

time payment or multiple payments pursuant to a loan agreement, except if: 1) the loan agreement

specifically states that the monies may be used for another purpose and that purpose is expressly

stated in the loan agreement; 2) a deed in lieu of foreclosure agreement specifically states that the

monies may be used for another purpose and that purpose is stated in the deed in lieu of

foreclosure agreement; 3) an agreement is entered into by the parties to negotiate a settlement of

the loan and that agreement includes a provision for the use of the monies; or 4) an agreement is

entered into by the parties that provides for a portion of the es

osure agreement specifically states that the

monies may be used for another purpose and that purpose is stated in the deed in lieu of

foreclosure agreement; 3) an agreement is entered into by the parties to negotiate a settlement of

the loan and that agreement includes a provision for the use of the monies; or 4) an agreement is

entered into by the parties that provides for a portion of the escrow account to be used to bring an

account that is in arrears to a current status.

Laws 2025, Chapter 63 (S. B. 1206) – NOW: banks; special deposits; requirements

Adds A.R.S. Title 6, Chapter 2, Article 5.1

Permissible Purpose and Termination – Designates the legislation as the Uniform

Special Deposits Act (Act). Stipulates that a deposit is a special deposit if it is: 1) a deposit of funds

in a bank under an account agreement; 2) for the benefit of at least two beneficiaries, one or more

of which may be a depositor; 3) denominated in a medium of exchange that is currently authorized

or adopted by a domestic or foreign government; 4) for a permissible purpose as stated in the

account agreement; and; 5) subject to a contingency. A special deposit must serve at least one

permissible purpose stated in the account agreement from the time the special deposit is created

in the account agreement until termination of the special deposit. If, before termination of the

special deposit the bank or a court determines the special deposit no longer serves at least one

permissible purpose, certain requirements of the Act cease to apply to any funds deposited in the

st one

permissible purpose stated in the account agreement from the time the special deposit is created

in the account agreement until termination of the special deposit. If, before termination of the

special deposit the bank or a court determines the special deposit no longer serves at least one

permissible purpose, certain requirements of the Act cease to apply to any funds deposited in the

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special deposit after the special deposit ceases to serve at least one permissible purpose and, if

determined by the bank, the bank is authorized to take action it believes is necessary under the

circumstances, including terminating the special deposit.

Terminates a special deposit within five years after the date the special deposit was first

funded unless otherwise provided in the account agreement. If the bank cannot identify or locate a

beneficiary entitled to payment when the special deposit is terminated and a balance remains in

the special deposit, the bank must pay the balance to the depositor or depositors as a beneficiary

or beneficiaries unless otherwise provided in the account agreement. A bank that pays the

remaining balance as prescribed has no further obligation to the special deposit.

Payment to Beneficiary – Obligates, unless the account agreement states otherwise, the

bank to pay a beneficiary if there are sufficient actually and finally collected funds in the special

deposit, except if the funds available in the special deposit are insufficient to cover such payments.

The obligation of the bank to pay a beneficiary is immediately due and payable unless the account

agreement provides otherwise

– Obligates, unless the account agreement states otherwise, the

bank to pay a beneficiary if there are sufficient actually and finally collected funds in the special

deposit, except if the funds available in the special deposit are insufficient to cover such payments.

The obligation of the bank to pay a beneficiary is immediately due and payable unless the account

agreement provides otherwise. If the funds available in the special deposit are insufficient to cover

an obligation to pay a beneficiary, unless the account agreement provides otherwise, a beneficiary

may elect to be paid the funds that are available or, if there is more than one beneficiary, a pro rata

share of the funds available. A payment to a beneficiary who elects to be paid the funds available,

or a pro rate share of the funds available, discharges the bank’s obligation to pay a beneficiary and

does not constitute an accord and satisfaction with respect to another person obligated to the

beneficiary. The bank may discharge its obligation to pay a beneficiary as prescribed. If the bank

obligated to pay a beneficiary has incurred an obligation to discharge the obligation of another

person, the obligation of the other person is discharged if action by the bank to discharge its

obligation to pay a beneficiary would constitute a discharge of the obligation of the other person

under law that determines whether an obligation is satisfied.

Creditor Process – States that creditor process is not enforceable against a bank holding

the special deposit with respect to a special deposit, except that creditor process is enforceable

against the bank holding a special deposit with respect to an amount the bank is obligated to pay a

beneficiary or a depositor if the process is performed as outlined. Creditor process served on a

bank before it is enforceable against the bank does not create a right of the creditor against the

bank or a duty of the bank to the creditor

cial deposit, except that creditor process is enforceable

against the bank holding a special deposit with respect to an amount the bank is obligated to pay a

beneficiary or a depositor if the process is performed as outlined. Creditor process served on a

bank before it is enforceable against the bank does not create a right of the creditor against the

bank or a duty of the bank to the creditor. Other law determines whether creditor process creates

a lien enforceable against the beneficiary on a contingent interest of a beneficiary, including a

depositor as a beneficiary, even if not enforceable against the bank.

Recoupment or Setoff – Prohibits a bank from exercising a right of recoupment or setoff

against a special deposit, except that a bank holding a special deposit may exercise a right of

recoupment or setoff against an obligation to pay a beneficiary, even if the bank funds payment

from the special deposit. An account agreement may authorize a bank to debit the special deposit

for the outlined circumstances.

Bank Duties and Liabilities – States that a bank does not have a fiduciary responsibility

to any person with respect to a special deposit. When a bank holding a special deposit becomes

obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and

beneficiary. A bank holding a special deposit has a duty to a beneficiary to comply with the account

agreement and requirements of the Act. If the bank holding a special deposit does not comply with

the account agreement or the Act, the bank is liable to a depositor or beneficiary only for damages

proximately caused by the noncompliance. The bank is not liable for consequential, special, or

punitive damages, except as provided under other Arizona law. The bank holding a special deposit

may rely on records presented in compliance with the account agreement to determine whether

the bank is obligated to pay a beneficiary

ct, the bank is liable to a depositor or beneficiary only for damages

proximately caused by the noncompliance. The bank is not liable for consequential, special, or

punitive damages, except as provided under other Arizona law. The bank holding a special deposit

may rely on records presented in compliance with the account agreement to determine whether

the bank is obligated to pay a beneficiary. If the account agreement requires payment on

presentation of a record, the bank must determine within a reasonable time whether the record is

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sufficient to require payment. If the agreement requires action by the bank on presentation of a

record, the bank is not liable for relying in good faith on the genuineness of the record if the record

appears on its face to be genuine. The bank is not required to determine whether a permissible

purpose stated in the agreement continues to exist.

Account Agreement Amendments – Allows, if a beneficiary is a party to an account

agreement, the bank and the depositor to amend the agreement without the consent of the

beneficiary only if the agreement expressly permits the amendment. If a beneficiary is not a party

to an account agreement and the bank and the depositor know the beneficiary has knowledge of

the agreement's terms, the bank and the depositor may amend the agreement without the consent

of the beneficiary only if the amendment does not adversely and materially affect a payment right

of the beneficiary. If a beneficiary is not a party to an account agreement and the bank and the

depositor do not know whether the beneficiary has knowledge of the agreement's terms, the bank

and the depositor may amend the agreement without the consent of the beneficiary only if the

amendment is made in good faith

only if the amendment does not adversely and materially affect a payment right

of the beneficiary. If a beneficiary is not a party to an account agreement and the bank and the

depositor do not know whether the beneficiary has knowledge of the agreement's terms, the bank

and the depositor may amend the agreement without the consent of the beneficiary only if the

amendment is made in good faith.

Applicability and Scope – Applies the Act to: 1) a special deposit made under an account

agreement executed on or after September 26, 2025; and 2) a deposit made under an agreement

executed before September 26, 2025 if all parties entitled to amend the agreement agree to make

the deposit a special deposit governed by the Act and the special deposit referenced in the

amended agreement satisfies the requirements for a special deposit. The act applies to a special

deposit under an account agreement that states the intention of the parties to establish a special

deposit governed by the Act, regardless of whether a party to the account agreement or a

transaction related to the special deposit, or the special deposit itself, has a reasonable relation to

Arizona. The parties to an account agreement may choose a forum in Arizona for settling a dispute

arising out of the special deposit, regardless of whether a party to the account agreement or a

transaction related to the special deposit, or the special deposit itself, has a reasonable relation to

Arizona.

Excludes from the requirements of the Act: 1) a right or obligation relating to a deposit other

than a special deposit under the Act; and 2) the voidability of a deposit or transfer that is fraudulent

or voidable under other law.

Miscellaneous – States that neither a depositor nor a beneficiary has a property interest in

a special deposit. Any property interest with respect to a special deposit is only in the right to

receive payment if the bank is obligated to pay a beneficiary and not in the special deposit itself

the Act; and 2) the voidability of a deposit or transfer that is fraudulent

or voidable under other law.

Miscellaneous – States that neither a depositor nor a beneficiary has a property interest in

a special deposit. Any property interest with respect to a special deposit is only in the right to

receive payment if the bank is obligated to pay a beneficiary and not in the special deposit itself.

Any property interest in the special deposit is determined under other law.

Prohibits the effect of the specified requirements of the Act from being varied by agreement

except as provided in the Act. Allows certain requirements of the Act to be varied by agreement,

subject to the stipulation that a provision in an account agreement or other record that substantially

excuses liability or substantially limits remedies for failure to perform an obligation under the Act is

not sufficient to vary the effect of the Act.

Allows a court to enjoin, or grant similar relief that would have the effect of enjoining, a bank

from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate

a material fraud with respect to a special deposit. In applying and construing the Act, a court must

consider the promotion of uniformity of the law among jurisdictions that enact it. Specifies that the

Uniform Commercial Code, consumer protection law, law governing deposits generally, law

related to escheat and abandoned or unclaimed property, and the principles of law and equity,

including law related to capacity to contract, principal and agent, estoppel, fraud,

misrepresentation, duress, coercion, mistake, and bankruptcy, supplement the Act except to the

extent inconsistent with the Act. Contains a severability clause.

r protection law, law governing deposits generally, law

related to escheat and abandoned or unclaimed property, and the principles of law and equity,

including law related to capacity to contract, principal and agent, estoppel, fraud,

misrepresentation, duress, coercion, mistake, and bankruptcy, supplement the Act except to the

extent inconsistent with the Act. Contains a severability clause.

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Laws 2025, Chapter 73 (S. B. 1551) – workers' compensation; disability; definitions

Amends A.R.S. § 23-901, 23-908 and 23-1045

Increases, from $25 to $100, the monthly dependent allowance in addition to the required

employee compensation for a temporary total disability for claims that are filed on or after

September 26, 2025.

Adds, to the definition of interested party, a third-party administrator or an authorized

representative if the employee is deceased. Modifies the definition of serve or service to include

transmitting by electronic transmission in a manner reasonably calculated to achieve effective

notice unless the receiving party opts out by providing written notice to the other party, rather than

transmitting by other means, including electronic transmission, with the written consent of the

receiving party.

Modifies requirements for the Industrial Commission of Arizona to fix a schedule of fees to

be charged by health care providers for injured employees under workers’ compensation.

Laws 2025, Chapter 97 (S. B. 1291) – NOW: health insurers; provider credentialing; claims

Amends A.R.S. §§ 20-3451, 20-3453, 20-3454 and 20-3459; Repeals A.R.S. § 20-3456; Adds

A.R.S

sent of the

receiving party.

Modifies requirements for the Industrial Commission of Arizona to fix a schedule of fees to

be charged by health care providers for injured employees under workers’ compensation.

Laws 2025, Chapter 97 (S. B. 1291) – NOW: health insurers; provider credentialing; claims

Amends A.R.S. §§ 20-3451, 20-3453, 20-3454 and 20-3459; Repeals A.R.S. § 20-3456; Adds

A.R.S. § 20-3456

Credentialing Process – Effective April 1, 2026, modifies the time period within which a

health insurer must conclude the process of credentialing and loading the applicant’s information

into the health insurer’s billing system from within 100 calendar days after the date the health care

receives a complete credentialing application to: 1) 60 calendar days to conclude the process of

credentialing; and 2) 30 days to load the applicant’s information into the health insurer’s billing

system after the date the health care insurer receives a complete credentialing application. A

health insurer must contact an applicant in writing or by electronic means within seven days after

receipt of a credentialing application to acknowledge receipt of the application and inform the

applicant whether the application is a complete credentialing application. Specifies that the

applicant must include the outlined contact information of an individual who can address

discrepancies in the application.

Requires, within seven days after the applicant submits information to complete an

application, the health insurer to contact the applicant to acknowledge receipt of the additional

information and inform the applicant whether the application is a complete credentialing

application. Specifies that, if a health insurer deems an application withdrawn as prescribed, the

health insurer must communicate the withdrawal of the application to the applicant within seven

calendar days

application, the health insurer to contact the applicant to acknowledge receipt of the additional

information and inform the applicant whether the application is a complete credentialing

application. Specifies that, if a health insurer deems an application withdrawn as prescribed, the

health insurer must communicate the withdrawal of the application to the applicant within seven

calendar days.

Requires, if at any time during the application process the health insurer tolls the time

period while waiting for additional information from the applicant, the health insurer to

acknowledge receipt of additional information in writing or by electronic means within seven

calendar days after the health insurer receives the additional information. A health insurer may not

toll the time period more than three times. If, after the third toll, a health insurer has not received a

response from the applicant that includes the requested information within 30 calendar days, the

health insurer may deem the application withdrawn and must inform the applicant of the withdrawal

within seven calendar days.

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Payment for Covered Services – Allows a provider to receive payment from a health

insurer for services that were provided from the date that was included on the notice of complete

credentialing application to the date the provider’s network participation contract is executed. A

health insurer must process a provider’s claim as an in-network claim and pay the claim if all of the

outlined criteria apply. A health insurer may not deny a provider’s claim that is submitted as

prescribed on the basis that the claim was not submitted within the contractually required time

period if the claim is submitted within one year after the date of service

tion contract is executed. A

health insurer must process a provider’s claim as an in-network claim and pay the claim if all of the

outlined criteria apply. A health insurer may not deny a provider’s claim that is submitted as

prescribed on the basis that the claim was not submitted within the contractually required time

period if the claim is submitted within one year after the date of service.

Specifies that a health insurer is not required to reimburse an applicant at the in-network

rate for any covered medical services provided by the applicant if the applicant’s credentialing

application is not approved or the health care provider is unwilling to contract with the insurer on

mutually acceptable terms. A health care provider or the health care provider’s representative must

provide a written, dated disclosure that informs the patient of the outlined information within a

reasonable period before the health care provider provides services to a patient in a network

facility. A health care insurer that does not credential a provider is not subject to civil liability for any

act or omission of the provider in rendering services to a health insurer’s member.

Definitions – Replaces the definition of credentialing with complete credentialing

application which means an application that includes all the information, any required supporting

documentation and a current authorization to access electronic documentation that a health

insurer needs in order to process the credentialing request through a credentialing system that is

developed by a nationally recognized, nonprofit alliance of health plans and trade associations,

including a nonprofit organization that is incorporated as a mutual health corporation and that is

working to streamline the business of health care and a credentialing system that is operated by a

dental services corporation

process the credentialing request through a credentialing system that is

developed by a nationally recognized, nonprofit alliance of health plans and trade associations,

including a nonprofit organization that is incorporated as a mutual health corporation and that is

working to streamline the business of health care and a credentialing system that is operated by a

dental services corporation.

Specifies, in the definition of participating provider, that the provider has been contracted

by a health insurer to provide health care items or services to subscribers.

Laws 2025, Chapter 102 (S. B. 1372) – public records; notification; commercial purpose

Amends A.R.S. § 39-121.01

Requires, at the time of a public records request, the requesting person to affirm that the

public record is not for a commercial purpose or, if the public record is for a commercial purpose,

that the requesting person will provide a statement that explains the intended use pursuant to the

statutory requirements for the use of a public record for a commercial purpose.

Laws 2025, Chapter 114 (S. B. 1626) – health insurance; surprise billing; disputes

Amends A.R.S. § 20-3117

Specifies that the requirement for a health insurer to include a notice outlining an enrollee’s

rights to dispute surprise out-of-network bills in each explanation of benefits or other similar claim

adjudication notice issued to enrollees that involves covered services provided by a noncontracted

health care provider applies only to claims that are not subject to an independent dispute resolution

pursuant to the federal No Surprises Act.

to include a notice outlining an enrollee’s

rights to dispute surprise out-of-network bills in each explanation of benefits or other similar claim

adjudication notice issued to enrollees that involves covered services provided by a noncontracted

health care provider applies only to claims that are not subject to an independent dispute resolution

pursuant to the federal No Surprises Act.

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Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

Laws 2025, Chapter 120 (H. B. 2032) – workers' compensation; assigned risk plan

Amends A.R.S. § 23-1091

Specifies that an employer may be excluded from the workers’ compensation assigned risk

plan (ARP) if any of the following factors exist when the employer submits an application for the

ARP: 1) on a current or previous workers’ compensation policy the employer either knowingly does

not meet reasonable health and safety requirements or audit or loss prevention requirements or

does not allow any insurance carrier or assigned insurance carrier reasonable access to the

employer’s records for audit or inspection purposes under the policy; 2) the employer has an

outstanding premium that is due on a workers’ compensation policy that is not subject to a bona

fide dispute; or 3) the employer or the employer’s representative knowingly fails to comply with the

ARP’s application procedures or knowingly makes a material misrepresentation on the

application.

Specifies that an employer may be removed from the ARP subject to the statutory

requirements for cancellation and nonrenewal of a workers’ compensation policy.

Laws 2025, Chapter 121 (H. B. 2076) – life insurance; illustrations

Adds A.R.S. Title 20, Chapter 2, Article 5.1; Amends A.R.S

th the

ARP’s application procedures or knowingly makes a material misrepresentation on the

application.

Specifies that an employer may be removed from the ARP subject to the statutory

requirements for cancellation and nonrenewal of a workers’ compensation policy.

Laws 2025, Chapter 121 (H. B. 2076) – life insurance; illustrations

Adds A.R.S. Title 20, Chapter 2, Article 5.1; Amends A.R.S. § 20-1241

Effective January 1, 2026, adopts the National Association of Insurance Commissioners’

(NAIC) Life Insurance Illustrations Model Regulation (Model #582). Specifies that an insurer is not

required to provide a policy summary to an applicant or a policyowner, as otherwise required

pursuant to administrative rule, if the insurer markets a policy form with an illustration that is subject

to the requirements for life insurance illustrations.

Laws 2025, Chapter 127 (H. B. 2451) – administrative hearings; change of judge

Amends A.R.S. § 41-1092.07

Entitles a party to a contested case or appealable agency action to one peremptory change

of administrative law judge. Adds conflict of interest and being a material witness in the action as

reasons for which a party to a contested case or appealable agency action is authorized to file a

non-peremptory motion with the Director of the Office of Administrative Hearings to disqualify an

administrative law judge from conducting a hearing.

Laws 2025, Chapter 130 (H. B. 2109) – forced organ harvesting; insurance; prohibition

Adds A.R.S. §§ 20-826.05, 20-1057.20, 20-1342.08, 20-1404.06 and 36-2907.16

Authorizes a subscription contract, evidence of coverage, a disability insurance policy, a

group or blanket disability insurance policy and, subject to the approval of the U.S

an

administrative law judge from conducting a hearing.

Laws 2025, Chapter 130 (H. B. 2109) – forced organ harvesting; insurance; prohibition

Adds A.R.S. §§ 20-826.05, 20-1057.20, 20-1342.08, 20-1404.06 and 36-2907.16

Authorizes a subscription contract, evidence of coverage, a disability insurance policy, a

group or blanket disability insurance policy and, subject to the approval of the U.S. Centers for

Medicare and Medicaid Services, the Arizona Health Care Cost Containment System (AHCCCS)

to limit coverage for a human organ transplant or post-transplant care if the transplant operation is

performed in the People’s Republic of China or the Hong Kong Special Administrative Region or

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Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

the human organ to be transplanted was procured by a sale or donation originating in the People’s

Republic of China or the Hong Kong Special Administrative Region.

Specifies that the authorization to limit coverage for a human organ transplant or post-

transplant care does not require coverage for human organ transplants or limit a health care insurer

from denying coverage for any valid reason.

Laws 2025, Chapter 133 (H. B. 2368) – auditor general; records; financial institutions

Amends A.R.S.§ 41-1279.04

Authorizes the Office of the Auditor General (OAG) or the OAG’s authorized

representatives, in the performance of official duties, to have access to financial institutions’ or

financial

enterprises’

information,

accounts,

books,

records,

statements,

reports,

communications, transactions or any other information relating to any state agency, board,

commission, department, institution, program, advisory council or committee or political

subdivision, whether created by the Arizona Constitution or otherwise

ial duties, to have access to financial institutions’ or

financial

enterprises’

information,

accounts,

books,

records,

statements,

reports,

communications, transactions or any other information relating to any state agency, board,

commission, department, institution, program, advisory council or committee or political

subdivision, whether created by the Arizona Constitution or otherwise. The financial institution or

financial enterprise must provide all requested information on request of the OAG or the OAG's

representatives and in the form and at the time prescribed by the OAG. An authorized

representative of the financial institution or financial enterprise must certify all information provided

to the OAG or OAG's authorized representatives. Costs or fees associated with producing the

information requested by the OAG or OAG's authorized representatives must be paid by the state

agency, board, commission, department, institution, program, advisory council or committee or

political subdivision.

Exempts a financial institution or financial enterprise from liability to the state agency,

board, commission, department, institution, program, advisory council or committee or political

subdivision for providing requested information to the OAG or OAG's authorized representatives.

Laws 2025, Chapter 142 (S. B. 1590) – mental health; autism; insurance coverage

Amends A.R.S. §§ 20-826.04, 20-1057.11, 20-1402.03 and 20-1404.03

Eliminates the behavioral therapy benefit annual maximums for eligible persons 16 years

of age and younger.

Redefines autism spectrum disorder as a pervasive, developmental disorder than meets

the criteria for autism spectrum disorder as defined in the most recent edition of the Diagnostic and

Statistical Manual of Mental Disorders of the American Psychiatric Association.

Laws 2025, Chapter 145 (H. B. 2193) – captive insurers; certificate of dormancy

Amends A.R.S. §§ 20-1098, 20-1098.01, 20-1098.03 and 20-1098.04; Adds A.R.S

order as a pervasive, developmental disorder than meets

the criteria for autism spectrum disorder as defined in the most recent edition of the Diagnostic and

Statistical Manual of Mental Disorders of the American Psychiatric Association.

Laws 2025, Chapter 145 (H. B. 2193) – captive insurers; certificate of dormancy

Amends A.R.S. §§ 20-1098, 20-1098.01, 20-1098.03 and 20-1098.04; Adds A.R.S. § 20-1098.24

Dormant Captive Insurers – Authorizes a captive insurer that is domiciled in Arizona and

that meets the definition of dormant captive insurer to apply for a certificate of dormancy by

submitting an application to the Director on a Director-prescribed form. A captive insurer that is

issued a certificate of dormancy must: 1) possess and thereafter maintain a minimum unimpaired,

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Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

pain-in capital and surplus of $125,000; 2) within 90 days after the end of the captive insurer’s fiscal

year, submit to the Director a report of its financial condition that is verified by oath of two of its

executive officers; and 3) pay the certificate renewal fee. A certificate of dormancy is subject to

renewal every five years and expires unless otherwise renewed. The Director may adopt

guidelines, procedures and rules to implement the dormant captive insurer certification

requirements.

Allows a dormant captive insurer to surrender its certificate of dormancy by submitting an

application to surrender to the Director. The dormant captive insurer may not issue insurance

policies or conduct the business of insurance until the Director approves the application to

surrender. The Director must revoke a certificate of dormancy if a dormant captive insurer no

longer meets the definition of a dormant captive insurer

to surrender its certificate of dormancy by submitting an

application to surrender to the Director. The dormant captive insurer may not issue insurance

policies or conduct the business of insurance until the Director approves the application to

surrender. The Director must revoke a certificate of dormancy if a dormant captive insurer no

longer meets the definition of a dormant captive insurer. A dormant captive insurer is a captive

insurer that has ceased transacting the business of insurance, including issuing insurance

policies, and has no outstanding liabilities associated with the business of insurance or has not

issued any insurance policy before filing an application for a certificate of dormancy, excluding a

captive risk retention group.

Miscellaneous – Reduces, from $500,000 to $250,000, the minimum unimpaired paid-in

capital and surplus required for a protected cell captive insurer license. A captive insurer that is

formed as a limited liability company must have at least one member of its board of managers who

is a resident of Arizona. A captive insurer must pay the license renewal fee not earlier than July 1

and not later than September 1 of each year, rather than when the captive insurer files the annual

report.

Laws 2025, Chapter 165 (H. B. 2175) – NOW: prior authorization; claims

Adds A.R.S. §§ 20-3103 and 20-3407

Effective July 1, 2026, requires a medical director to individually review the denial before a

health care insurer may deny a claim that was submitted by a provider on the basis of, or issue a

direct denial of a prior authorization of a service that was requested by a provider that involves

medical necessity. During each individual review, the medical director must exercise independent

medical judgment and may not rely solely on recommendations from any other source.

Laws 2025, Chapter 170 (H. B. 2380) – rare disease advisory council

Adds A.R.S

ovider on the basis of, or issue a

direct denial of a prior authorization of a service that was requested by a provider that involves

medical necessity. During each individual review, the medical director must exercise independent

medical judgment and may not rely solely on recommendations from any other source.

Laws 2025, Chapter 170 (H. B. 2380) – rare disease advisory council

Adds A.R.S. § 36-142.01

Establishes the Arizona Rare Disease Advisory Council (Council) in the Arizona

Department of Health Services (DHS). The Council must provide guidance and recommendations

to educate the public, the Legislature and other government agencies and departments, as

appropriate, on the needs of individuals living in Arizona who have rare diseases. Outlines Council

membership and membership requirements, including one Governor-appointed representative

from the Department, and meeting requirements. Prescribes Council powers, including evaluating

and making recommendations to improve AHCCCS and state-regulated private health insurance

coverage of drugs for rare disease patients, including engaging with the Pharmacy and

Therapeutics Committee, to improve coverage of diagnostics and facilitate access to necessary

health care providers with expertise in treating rare diseases. By December 1 of each year the

Council must submit a report to the Governor and the chairpersons and ranking members of the

Senate and the House of Representatives Health and Human Services Committees as outlined.

g with the Pharmacy and

Therapeutics Committee, to improve coverage of diagnostics and facilitate access to necessary

health care providers with expertise in treating rare diseases. By December 1 of each year the

Council must submit a report to the Governor and the chairpersons and ranking members of the

Senate and the House of Representatives Health and Human Services Committees as outlined.

11

Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

Laws 2025, Chapter 171 (H. B. 2387) – cryptocurrency kiosk; license; fraud prevention

Adds A.R.S. § 6-1236

Fraud Disclosures, Detection and Prevention – Requires a cryptocurrency kiosk (kiosk)

operator (operator) to disclose in a clear, conspicuous and easily readable and understandable

manner in the chosen language of the customer all relevant terms and conditions that are generally

associated with the products, services and activities of the operator and virtual currency. The

operator must receive an acknowledgement of receipt of all required disclosures from a customer

through a confirmation or consent. An operator must provide the prescribed disclosures separately

in a font that contrasts with the background where the written warning appears and the customer

must accept the two separate disclosures before executing a kiosk transaction. On the completion

of each kiosk transaction, the operator must provide the individual who made the transaction at the

kiosk with a physical or digital receipt in the language chosen by the individual that contains the

outlined information.

Requires an operator to use blockchain analytics and tracing software to help prevent fraud

by not sending purchased virtual currency from an operator to a virtual wallet known to be affiliated

with fraud at the time of a transaction

vidual who made the transaction at the

kiosk with a physical or digital receipt in the language chosen by the individual that contains the

outlined information.

Requires an operator to use blockchain analytics and tracing software to help prevent fraud

by not sending purchased virtual currency from an operator to a virtual wallet known to be affiliated

with fraud at the time of a transaction. A relevant government authority may request evidence from

any operator of current use of blockchain analytics. Operators must take reasonable steps to

detect and prevent fraud, including establishing and maintaining a written anti-fraud policy and

conforming to federal Know Your Consumer and anti-money laundering laws.

Transaction Limits – Prohibits an operator from accepting transactions of more than

$2,000 in cash or the equivalent in virtual currency in one day from a new customer in Arizona

through one or more kiosks. For existing customers, an operator must ensure that the kiosk does

not, in connection with cryptocurrency services for a single person in Arizona using one or more

kiosks, accept or dispense in a single day more than $10,500.

Refunds and Customer Service – Requires, if a new consumer has been fraudulently

induced to engage in a kiosk transaction, the operator to issue a full refund for the fraudulently

induced kiosk transaction, including any fees charged in association with the transaction if the new

customer takes the outlined actions. A victim of fraud is eligible to receive a refund even if an

operator provides the required disclosures and receipt.

Requires all operators performing business in Arizona to provide live customer services at

a minimum of 24 hours a day, 7 days per week. The customer service toll-free number must be

prominently displayed on the kiosk or the kiosk screens.

Enforcement – Requires the Attorney General to enforce the operator and kiosk

transaction requirements

tor provides the required disclosures and receipt.

Requires all operators performing business in Arizona to provide live customer services at

a minimum of 24 hours a day, 7 days per week. The customer service toll-free number must be

prominently displayed on the kiosk or the kiosk screens.

Enforcement – Requires the Attorney General to enforce the operator and kiosk

transaction requirements. Any act or practice that violates the requirements is an unlawful practice

under consumer fraud laws.

Classifies all individuals or entities subject to the requirements as a new customer for the

purposes of compliance on September 26, 2025. A new customer automatically converts to an

existing customer within 10 days after becoming a new customer and an existing customer is

subject to the prescribed transaction limits.

Definitions – Defines operator as an individual or entity that: 1) engages in virtual currency

business activity through a money transmission kiosk in Arizona; or 2) operates or manages a

money transmission kiosk where virtual currency business activity is offered in Arizona. A kiosk is

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Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

a physical, electronic terminal that is a mechanical agent of the operator and that enables an

operator to facilitate the purchase, sale or exchange of cryptocurrency for money, bank credit or

any other virtual currency, including a virtual currency exchange, which performs the actual virtual

currency transmission or drawing on the virtual currency that is in the possession of the electronic

terminal operator.

Laws 2025, Chapter 200 (H. B. 2303) – total loss vehicle; electronic signatures

Amends A.R.S

tate the purchase, sale or exchange of cryptocurrency for money, bank credit or

any other virtual currency, including a virtual currency exchange, which performs the actual virtual

currency transmission or drawing on the virtual currency that is in the possession of the electronic

terminal operator.

Laws 2025, Chapter 200 (H. B. 2303) – total loss vehicle; electronic signatures

Amends A.R.S. §§ 28-370 and 28-2060

Adds that, for the purposes of executing a power of attorney (POA) in the performance of

vehicle title and registration activities, the POA is not required to be notarized if it is involving a total

loss vehicle settlement and an agent submits it electronically to the Arizona Department of

Transportation (ADOT) in a manner approved by the Director of ADOT. The POA may be signed

electronically and printed on hard copy by using a commercial product that validates a person's

identity by using the National Institute of Standards and Technology's identity assurance level 2 or

higher authorization without biometrics. A notation directly associated with the electronic signature

at or near the signature line on the form must indicate that the electronic signature was obtained

as prescribed. Sign electronically means to attach to or logically associate with an electronic record

an electronic sound, symbol or process that is used by a person to execute or adopt the electronic

record with the intent to sign the electronic record without the requirement of a physical touch.

Specifies that a lienholder of record who is licensed in Arizona as a financial institution

must electronically submit a repossession affidavit to ADOT.

Laws 2025, Chapter 201 (H. B. 2332) – NOW: postpartum health; education; advisory

committee

Adds A.R.S

to execute or adopt the electronic

record with the intent to sign the electronic record without the requirement of a physical touch.

Specifies that a lienholder of record who is licensed in Arizona as a financial institution

must electronically submit a repossession affidavit to ADOT.

Laws 2025, Chapter 201 (H. B. 2332) – NOW: postpartum health; education; advisory

committee

Adds A.R.S. § 36-503.04

Requires DHS to identify and compile relevant educational materials and information for

health care professionals and patients regarding maternal mental health conditions, including

postpartum depression, that have been developed by organizations with expertise in maternal

mental health conditions. Prescribes information that must be included in the materials. DHS must

develop written education materials and information as outlined if DHS is unable to identify existing

materials that comply with the requirements. DHS must: 1) post the materials and information on

its public website; 2) make available or distribute the materials and information in physical form on

request; and 3) periodically review the materials and information to determine their accuracy and

ensure that they reflect the most current and accurate information.

Requires a health care institution to provide each departing new parent and other family

members, as appropriate, with the DHS-compiled or -developed written materials and information

on the new parent’s discharge from the health care institution. Each health care institution, primary

care physician and primary care practitioner, or any other health professional who renders prenatal

or postnatal care or who provides pediatric infant care must provide the materials and information

to any woman on learning of a pregnancy or who presents with signs of a maternal mental health

disorder at any time during a pregnancy or postpartum period

on. Each health care institution, primary

care physician and primary care practitioner, or any other health professional who renders prenatal

or postnatal care or who provides pediatric infant care must provide the materials and information

to any woman on learning of a pregnancy or who presents with signs of a maternal mental health

disorder at any time during a pregnancy or postpartum period.

Requires DHS to establish the Advisory Committee on Obstetrics, Gynecology and

Maternal Mental Health in Rural Communities (Committee) to develop recommendations to

13

Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

ensure the availability of obstetrics, gynecology and maternal mental heath services in low-

volume, high-risk rural communities. Outlines Committee membership, which includes two

members appointed by the Director of DHS who are representatives of different Department-

licensed health care insurers that offer insurance products that include coverage for obstetrics,

gynecology and maternal mental health services and, as a nonvoting member, the Director of the

Department or the Director’s designee. Prescribes Committee duties, including developing

recommendations to enhance the delivery of and access to evidenced-based postpartum

depression screening and referrals for treatments and recommendations that consider public and

private insurance coverage, provider reimbursement incentives and pharmacological treatment

options. Repeals the Committee on July 1, 2027.

Laws 2025, Chapter 215 (H. B. 2370) – entrance fee; refunds; time frame

Amends A.R.S

ions to enhance the delivery of and access to evidenced-based postpartum

depression screening and referrals for treatments and recommendations that consider public and

private insurance coverage, provider reimbursement incentives and pharmacological treatment

options. Repeals the Committee on July 1, 2027.

Laws 2025, Chapter 215 (H. B. 2370) – entrance fee; refunds; time frame

Amends A.R.S. § 20-1804

Effective, and applicable to contracts entered into on or after, January 1, 2026, requires,

within 60 days after a life care contract provider receives a resident’s notice to vacate, the provider

to assign the vacated unit a sequential refund number among all the available units with refundable

entrance fees and provide refunds in order based on the sequential refund number, except if either:

1) the life care contract is executed before January 1, 2026; or 2) the life care contract provides for

the payment of a refundable portion of the entrance fee within three years after the resident vacates

the unit. A provider that is required to pay a refundable entrance fee must pay the refund to the

resident, the resident’s estate, other institutional or personal payees designated by the resident or

other payees as per applicable law in connection with the resident vacating the residential unit if all

of the following are satisfied: 1) the refund is owed pursuant to the contract between the provider

and the resident; 2) the resident’s residential unit is next in line based on the sequential numbering

system to receive a refund; and 3) sufficient monies are available from new resident entrance fees

to provide the full amount of the refund.

Laws 2025, Chapter 222 (H. B. 2054) – DIFI; financial enterprises; insurance; compact

Amends A.R.S. §§ 6-604, 6-707, 6-815, 6-1203, 6-1305, 20-108.01, 20-211, 20-235, 20-2414, 20-

2510, 20-2904, 20-3251 and 44-282; Adds §§ 20-123, 20-127 and 20-269; Repeals A.R.S

receive a refund; and 3) sufficient monies are available from new resident entrance fees

to provide the full amount of the refund.

Laws 2025, Chapter 222 (H. B. 2054) – DIFI; financial enterprises; insurance; compact

Amends A.R.S. §§ 6-604, 6-707, 6-815, 6-1203, 6-1305, 20-108.01, 20-211, 20-235, 20-2414, 20-

2510, 20-2904, 20-3251 and 44-282; Adds §§ 20-123, 20-127 and 20-269; Repeals A.R.S. §§ 20-

123 and 20-127

Financial Enterprise Licensing – Retroactive to January 1, 2024, adjusts the licensing

renewal date for a consumer lender, a debt management company, an escrow agent, an advance

fee loan broker and a sales finance company to December 31 of each year. For each day after

December 31 that the Department has not received a renewal application and fee for a consumer

lender, escrow agent or sales finance company license, the applicant must pay $25 in addition to

the renewal fee. If the Department does not receive a license renewal application and fee by

January 31 for a consumer lender, escrow agent or advance fee loan broker license, the license

expires. The holder of a current, active consumer lender, debt management company, escrow

agent, advance fee loan broker or sales finance company license does not have to renew the

license until December 31, 2025.

Homeowners Insurance – Requires, by April 1 of each year, each insurer that writes

homeowners insurance in Arizona to report to the Director in a manner and form prescribed by the

Director the outlined information on each homeowners insurance policy the insurer had in force

during the prior calendar year in the geographic areas of the state designated as heightened fire

December 31, 2025.

Homeowners Insurance – Requires, by April 1 of each year, each insurer that writes

homeowners insurance in Arizona to report to the Director in a manner and form prescribed by the

Director the outlined information on each homeowners insurance policy the insurer had in force

during the prior calendar year in the geographic areas of the state designated as heightened fire

14

Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

risk by the Director of the Arizona Department of Forestry and Fire Management for the prior

calendar year. The information reported to the Director is confidential and is not subject to

disclosure, except as prescribed. In any year in which the NAIC issues a data call on the residential

property insurance market, the Director may prescribe a due date other than April 1 for the report

that coincides with the due date for the data call. By December 31 of each year, the Director must

prepare a report that compiles, in an aggregated and anonymized manner, the information

submitted by insurers and submit the report to the Governor, the House Speaker, the Senate

President and the Secretary of State and make a copy of the report available on the Department’s

website. Repeals the homeowners insurance reporting requirements on January 1, 2028.

Fire Insurance Review Task Force (Task Force) – Establishes the Task Force and

prescribes meeting requirements, powers and membership. The Department must provide the

Task Force with: 1) the annual aggregated and deidentified insurance premium and policy

coverage data reported by insurers writing homeowners insurance in Arizona; and 2) the total

number of consumer complaints for the calendar year that are related to nonrenewal or

cancellation of homeowners policies due to risk of fire loss and increases in homeowners

insurance premiums

ent must provide the

Task Force with: 1) the annual aggregated and deidentified insurance premium and policy

coverage data reported by insurers writing homeowners insurance in Arizona; and 2) the total

number of consumer complaints for the calendar year that are related to nonrenewal or

cancellation of homeowners policies due to risk of fire loss and increases in homeowners

insurance premiums. The Task Force must: 1) review the data received from the Department; 2)

identify possible current and historic trends in homeowners coverage availability, insurance rates,

nonrenewal and cancellation; 3) review data related to fire risk mitigation science and make

recommendations related to building codes, defensible space requirements and ordinances that

reduce the risk of wildfire; and 4) by December 31 of each year, submit a report of its findings and

recommendations to the Governor, the House Speaker, the Senate President, the House and

Senate Minority Leaders, the Secretary of State and the Department. The Director must post the

report on the Department's website. Repeals the Task Force on January 1, 2028.

Motor Vehicle Insurance Policy Claims – Requires, for communications related to a

motor vehicle insurance policy's claims process and in addition to other forms of communication,

an insurer that conducts business in Arizona to accept electronic content submissions and

communications through a method that is designated by the insurer as an acceptable form of

communication between the insurer and the claimant or the claimant's authorized representative.

Electronic content submissions and communications may include time-sensitive documents and

demands. The insurer must respond with an acknowledgment of receipt within 10 business days.

A motor vehicle insurer may accept a fax as a form of communication if another form of electronic

communication is also available. Specifies that claimant includes a third-party claimant

uthorized representative.

Electronic content submissions and communications may include time-sensitive documents and

demands. The insurer must respond with an acknowledgment of receipt within 10 business days.

A motor vehicle insurer may accept a fax as a form of communication if another form of electronic

communication is also available. Specifies that claimant includes a third-party claimant.

Miscellaneous – Authorizes, rather than requires, the Director to adopt rules necessary to

enforce laws related to: 1) transmission of money; 2) extended warranty insurer deposits with the

State Treasurer; 3) insurer additional free surplus; and 4) property or casualty insurer financial

disclosures.

Removes the requirement for the medical director who made a direct denial of a prior

authorization for a service requested by a health care provider on the basis of medical necessity to

sign the written denial.

Eliminates Arizona’s opt out of all uniform standards adopted by the Interstate Insurance

Product Regulation Commission involving long-term care insurance products.

Removes, from the information required to be included in the risk retention group annual

report, information related private passenger automobile insurance policies.

Eliminates references to the repealed Continuing Education Review Committee.

15

Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

Laws 2025, Chapter 233 (S. B

eport, information related private passenger automobile insurance policies.

Eliminates references to the repealed Continuing Education Review Committee.

15

Arizona Department of Insurance and Financial Institutions

Protect consumers, provide certainty on regulatory matters, and perform with efficiency and integrity as good stewards of taxpayer resources.

Laws 2025, Chapter 233 (S. B. 1735) – 2025-2026; general appropriations act

Session Law

Requires monies in the Arizona Vehicle Theft Task Force (VTTF) line item appropriation to

be used by the Department to pay 75 percent of the personal services and employee-related

expenditures for city, town and county sworn officers who participate in the VTTF and Arizona

Automobile Theft Authority local grants to be awarded with consideration given to areas with

greater automobile theft problems and be used to combat economic automobile theft operations.

Laws 2025, Chapter 249 (H. B. 2313) – NOW: health boards; state agencies; continuations

Repeals A.R.S. § 41-3025.02; Adds A.R.S. § 41-3033.01

An emergency measure effective June 27, 2025, that continues the Department for eight

years until July 1, 2033.

Laws 2025, Chapter 253 (S. B. 1082) – NOW: land ownership; designated countries;

prohibition

Applicable to acquisitions that occur on or after September 26, 2025, prohibits a foreign

adversary nation or a foreign adversary agent, directly or indirectly, from purchasing, owning,

acquiring by grant or devise or otherwise obtaining an interest of 30 percent or more in real property

in Arizona, except as prescribed. A title insurer, title agent or escrow agent is exempt from being

held liable for a violation of the prohibition. A violation of the prohibition may not be the basis for a

title insurance claim for any title insurance policy issued for property in Arizona

ng,

acquiring by grant or devise or otherwise obtaining an interest of 30 percent or more in real property

in Arizona, except as prescribed. A title insurer, title agent or escrow agent is exempt from being

held liable for a violation of the prohibition. A violation of the prohibition may not be the basis for a

title insurance claim for any title insurance policy issued for property in Arizona.

All interested persons are encouraged to obtain copies of the enacted legislation from the Arizona

State Legislature’s website at azleg.gov or by contacting the Arizona Secretary of State’s Office at

(602) 542-4086. Please direct any questions regarding this Bulletin to Fausto Burruel, Legislative

Liaison at (602) 531-3069 or fausto.burruel@difi.az.gov.