AZ Regulatory Bulletin 2026-03: 2026 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

Charles Bassett

Director

Regulatory Bulletin 2026-03 (DIFI)1

2026 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, Second Regular Session, adjourned sine die on June 13,

2026. All legislation becomes effective on the general effective date of September 12, 2026,

except as otherwise noted. The following 16 bills passed during the 2026 Legislative Session.

IV. Legislative Summaries

1 This Substantive Policy Statement is advisory only

ws and regulations.

III.

Background

Arizona’s Fifty-seventh Legislature, Second Regular Session, adjourned sine die on June 13,

2026. All legislation becomes effective on the general effective date of September 12, 2026,

except as otherwise noted. The following 16 bills passed during the 2026 Legislative Session.

IV. Legislative Summaries

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.

2

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 2026, Chapter 11 (S. B. 1415) – insurance adjuster license; eligibility

Adds A.R.S. § 20-321.03

Allows a salaried employee of an insurer or of a managing general agent (MGA) to be

licensed as an adjuster without taking the Arizona adjuster examination if the employee: 1) is a

resident of Arizona and before January 1, 2026, held an active designated home state (DHS)

license in another state; 2) is currently in good standing in the other state; 3) submits an

application for licensure, application fee and fingerprints as required by law for an adjuster license

by June 30, 2027; and 4) qualified for a DHS license in the other state by passing a state-approved

examination

sident of Arizona and before January 1, 2026, held an active designated home state (DHS)

license in another state; 2) is currently in good standing in the other state; 3) submits an

application for licensure, application fee and fingerprints as required by law for an adjuster license

by June 30, 2027; and 4) qualified for a DHS license in the other state by passing a state-approved

examination. A person who is licensed as an adjuster without taking the Arizona adjuster

examination must only adjust claims as a salaried employee of an insurer or MGA and may not

adjust claims on behalf of an insured or an insurer in a capacity other than as a salaried employee

of the insurer or a MGA. An adjuster license issued as prescribed is valid and renewable only for

as long as and until the time the person ceases to adjust claims as a salaried employee of the

insurer or MGA. A person who wishes to act as or claim to be an adjuster, as defined in Arizona

law, must apply for and obtain a license as an adjuster.

Laws 2026, Chapter 47 (H. B. 2138) – firefighters; employment status

Amends A.R.S. § 23-1021.01

Defines firefighter for the purposes of eligibility for workers’ compensation benefits for a

firefighter who is injured or killed while commuting to or from work. Firefighter includes

professional firefighters who are state firefighters or members of a city or town fire department,

fire district or fire authority.

Laws 2026, Chapter 89 (H. B. 2308) – dental insurers; dental practice; prohibition

Amends A.R.S. § 32-1213

Prohibits a dental insurer and a holding company of a dental insurer from having any

ownership interest in a business organization that offers to the public professional services

regulated by the Arizona State Board of Dental Examiners

n fire department,

fire district or fire authority.

Laws 2026, Chapter 89 (H. B. 2308) – dental insurers; dental practice; prohibition

Amends A.R.S. § 32-1213

Prohibits a dental insurer and a holding company of a dental insurer from having any

ownership interest in a business organization that offers to the public professional services

regulated by the Arizona State Board of Dental Examiners. A holding company is a corporation,

firm, partnership, limited partnership, limited liability company, trust or other form of business

organization that is not an individual and that directly or indirectly: 1) holds an ownership interest

of 10 percent or more, as determined by the holding company’s board, in a dental insurer; or 2)

holds voting rights with the power to vote 10 percent or more of the outstanding voting rights of a

dental insurer.

Laws 2026, Chapter 97 (H. B. 2501) – appraisal management companies; definition

Amends A.R.S. § 32-3661

Specifies, in the definition of appraisal management company (AMC), that an AMC

administers an appraiser panel within a 12-month period.

Laws 2026, Chapter 107 (H. B. 2693) – insurance; bona fide associations; qualifications

Amends A.R.S. § 20-2324

3

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.

Authorizes the operation of a self-funded multiple employer welfare arrangement through

a statewide chamber of commerce or a statewide business league that: 1) has a constitution or

bylaws; 2) was organized and has been maintained in good faith for a continuous five-year period

for purposes other than providing for or obtaining insurance; and 3) is exempt from federal

taxation.

Laws 2026, Chapter 122 (H. B. 2996) – DIFI; certificates of insurance

Adds A.R.S

arrangement through

a statewide chamber of commerce or a statewide business league that: 1) has a constitution or

bylaws; 2) was organized and has been maintained in good faith for a continuous five-year period

for purposes other than providing for or obtaining insurance; and 3) is exempt from federal

taxation.

Laws 2026, Chapter 122 (H. B. 2996) – DIFI; certificates of insurance

Adds A.R.S. § 20-443.03

States that a certificate of insurance (COI) that is prepared or issued by an insurer, an

insurance producer or a representative of an insurer or an insurance producer is not an insurance

policy, does not amend, extend or alter the coverage that is provided by an insurance policy and

does not confer any new or additional rights beyond those expressly stated in the insurance policy.

A person may not prepare, issue, request or require a COI that: 1) contains false or misleading

information about the insurance policy; 2) alters, amends or extends coverage that is provided for

in the insurance policy; or 3) claims that the insurance policy complies with the insurance or

indemnification requirements of a contract.

Stipulates that a person, other than the policyholder, is entitled to notice of cancellation,

nonrenewal or a material change in the terms of an insurance policy only if the policy or an

endorsement to the policy affords such notice rights to the person.

Allows the Department to investigate any violations of the COI requirements and issue an

order that requires the person to cease and desist from the actions that constitute the violation or

assess a civil penalty up to $1,000 per violation. A COI or any other document or correspondence

that is prepared, issued, requested or required in violation of the COI requirements is void

s to the person.

Allows the Department to investigate any violations of the COI requirements and issue an

order that requires the person to cease and desist from the actions that constitute the violation or

assess a civil penalty up to $1,000 per violation. A COI or any other document or correspondence

that is prepared, issued, requested or required in violation of the COI requirements is void.

Applies the COI requirements to any COI that is issued in connection with any contract or

addendum that is entered into on or after September 12, 2026, for property and casualty risks

located in Arizona without regard to the location of the policyholder, insurer or insurance producer

or any person who requests or requires a certificate of insurance to be issued.

Laws 2026, Chapter 129 (H. B. 4157) – commerce; 2026-2027

Amends A.R.S. § 20-156

Requires the Department to annually assess and collect from each foreign, alien and

domestic insurer, rather than only from each domestic insurer, that holds an active certificate of

authority an amount within the ranges prescribed and on a uniform percentage basis among all

fee categories. States that the monies are to be used to pay the costs of administering the

insurance operational functions of the Department, rather than only for employing financial

analysts who must assist the Department in conducting financial surveillance of domestic

insurers. Monies in the Financial Surveillance Fund are subject to legislative appropriation, rather

than continuously appropriated and exempt from lapsing.

Laws 2026, Chapter 140 (H. B. 4168) – taxation; omnibus; 2026-2027

Amends A.R.S. §§ 20-224, 20-224.01, 20-837, 20-1010, 20-1060 and 20-1097.07; Repeals

A.R.S. § 20-224.03

st the Department in conducting financial surveillance of domestic

insurers. Monies in the Financial Surveillance Fund are subject to legislative appropriation, rather

than continuously appropriated and exempt from lapsing.

Laws 2026, Chapter 140 (H. B. 4168) – taxation; omnibus; 2026-2027

Amends A.R.S. §§ 20-224, 20-224.01, 20-837, 20-1010, 20-1060 and 20-1097.07; Repeals

A.R.S. § 20-224.03

4

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.

Applicable to tax years beginning January 1, 2026, repeals the premium tax credit for net

increases in full-time employees residing in Arizona. Includes a savings clause for any amount of

the credit carried forward from previous tax years for application against subsequent tax liabilities

as allowed by prior law.

Laws 2026, Chapter 145 (S. B. 1135) – death benefits; burial costs

Amends A.R.S. § 23-1046

Increases the cap on the workers' compensation death benefit for burial expenses from

$5,000 to $10,000.

Laws 2026, Chapter 146 (S. B. 1136) – workers’ compensation; death benefits; remarriage

Amends A.R.S. § 23-1046

Modifies workers' compensation death benefits for surviving family members of a first

responder as follows: 1) to the surviving spouse, if there are no children, 66 and two-thirds percent

of the average monthly wage of the deceased, to be paid until the spouse's death; 2) to the

surviving spouse if there are surviving children, 35 percent of the average monthly wage of the

deceased, to be paid until the spouse's death and to the surviving children, an additional 31 and

two-thirds percent of the average monthly wage, to be divided equally among the surviving

children until 18 years of age, until 22 years of age if the child is enrolled as a full-time student in

any accredited educational institution, or if over 18 years of age and incapable of self-support,

when the child becomes capable

the spouse's death and to the surviving children, an additional 31 and

two-thirds percent of the average monthly wage, to be divided equally among the surviving

children until 18 years of age, until 22 years of age if the child is enrolled as a full-time student in

any accredited educational institution, or if over 18 years of age and incapable of self-support,

when the child becomes capable of self-support; and 3) to a single surviving child, in the case of

the subsequent death of the surviving husband or wife, or if there is no surviving husband or wife,

66 and two-thirds percent of the average monthly wage of the deceased, or if there is more than

one surviving child, 66 and two-thirds percent to be divided equally among the surviving children.

Specifies that when all surviving children are no longer eligible for benefits, the surviving

spouse's benefits must be paid as if there were no children. Compensation to any surviving child,

in the case of the subsequent death of the surviving husband or wife or if there is no surviving

husband or wife, must cease on death, on marriage or on reaching 18 years of age, except, if

over 18 years of age and incapable of self-support, when the child becomes capable of self-

support, or if over 18 years of age and enrolled as a full-time student in any accredited educational

institution, when the child reaches 22 years of age.

Applies the modified death benefits to spouses of first responders who lost benefits due

to remarriage on or after January 1, 2000, and states that beginning September 12, 2026, they

are eligible to receive benefits prospectively, but that they may not receive retroactive benefit

payments. Defines first responder.

Laws 2026, Chapter 151 (S. B. 1165) – insurance; cost sharing; breast exams

Adds A.R.S

the modified death benefits to spouses of first responders who lost benefits due

to remarriage on or after January 1, 2000, and states that beginning September 12, 2026, they

are eligible to receive benefits prospectively, but that they may not receive retroactive benefit

payments. Defines first responder.

Laws 2026, Chapter 151 (S. B. 1165) – insurance; cost sharing; breast exams

Adds A.R.S. §§ 20-841.14, 20-1057.21, 20-1376.11 and 20-1406.11

Beginning January 1, 2027, prohibits a health care insurer from imposing cost sharing

requirements for preventive screening services for breast cancer or for additional screening

services required to complete the screening continuum. The prohibition applies after the

deductible is met for a high deductible health plan, except that if the items or services are

preventive, the prohibition applies regardless of whether the minimum deductible has been met.

5

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.

Defines preventative screening service for breast cancer as a screening mammography.

Additional screening services include a diagnostic breast examination and a supplemental breast

examination. Defines diagnostic breast examination and supplemental breast examination.

Laws 2026, Chapter 157 (S. B. 1206) – storm related insurance claims; adjusters

Amends A.R.S

d stewards of taxpayer resources.

Defines preventative screening service for breast cancer as a screening mammography.

Additional screening services include a diagnostic breast examination and a supplemental breast

examination. Defines diagnostic breast examination and supplemental breast examination.

Laws 2026, Chapter 157 (S. B. 1206) – storm related insurance claims; adjusters

Amends A.R.S. §§ 20-321, 20-321.02 and 32-1158.02

Prohibits an adjuster from: 1) proposing or attempting to propose to any insured that the

adjuster represents the insured while a loss-producing occurrence is continuing at the damaged

premises or while the fire department or any other public safety service is engaged in a public

safety emergency response at the damaged premises; 2) participating either directly or indirectly,

including as a contractor or subcontractor, in the restoration, reconstruction or repair of any

damaged premises or property that is the subject of a claim adjusted by the adjuster; or 3)

endorsing payment instruments issued to an insured as a result of a claim arising under an

insurance contract without the insured’s direct endorsement and signature.

Defines adjust as investigating or negotiating the settlement of a claim arising pursuant to

a property and casualty insurance contract. Includes, in the definition of adjuster, directly or

indirectly soliciting business from, investigating or advising an insured about claims arising

pursuant to property and casualty insurance contracts for a person that adjusts claims on behalf

of either the insurer or the insured.

Laws 2026, Chapter 180 (S. B. 1494) – health insurance; patient steering; prohibition

Amends A.R.S

nce contract. Includes, in the definition of adjuster, directly or

indirectly soliciting business from, investigating or advising an insured about claims arising

pursuant to property and casualty insurance contracts for a person that adjusts claims on behalf

of either the insurer or the insured.

Laws 2026, Chapter 180 (S. B. 1494) – health insurance; patient steering; prohibition

Amends A.R.S. §§ 13-3730, 20-281, 20-449, 32-1401, 32-1601, 32-1854 and 36-407

Specifies that it is unlawful for an insurance producer to offer, pay, solicit or receive

compensation of any kind in return for either: 1) referring patients or clients to a sober living home

or from a sober living home to any other health care institution; or 2) accepting or acknowledging

the enrollment of a patient or client for substance use disorder services at a sober living home. It

is unlawful for a person who is licensed or who is required to be licensed as an insurance producer

to knowingly provide false or fraudulent information about a person's eligibility for or enrollment

status in the Arizona Health Care Cost Containment System in connection with an application for,

enrollment in or change in coverage under any health benefits plan issued by a health care insurer

in Arizona.

Deems it unlawful for a health care provider, health care institution or drug manufacturer

to pay the premiums or subscription fees for an enrollee under any health benefits plan issued by

a health care insurer in Arizona, except as otherwise expressly allowed by federal law.

Classifies a violation as a class 3, 4 or 6 felony, depending on the value of the

consideration. In addition to any other penalties, the court must order a person who is convicted

of a violation to pay a civil penalty of not less than $1,000 for each violation and must double the

civil penalty if the person is a serial offender

in Arizona, except as otherwise expressly allowed by federal law.

Classifies a violation as a class 3, 4 or 6 felony, depending on the value of the

consideration. In addition to any other penalties, the court must order a person who is convicted

of a violation to pay a civil penalty of not less than $1,000 for each violation and must double the

civil penalty if the person is a serial offender.

Exempts from the limitations and prohibitions, if prohibited remuneration is not paid or

received: 1) health insurance navigators and certified application counselors who act within the

scope of their license or registration to assist persons enrolling in a health benefits plan and who

do not knowingly provide or facilitate the provision of false or fraudulent information on an

application submitted to the federal health benefit exchange; and 2) case management,

6

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.

coordination of care and patient consultation activities that are performed in the ordinary course

of business.

Includes, in the definition of solicit, if done as a regular course of dealing or business,

steering, advising, recommendation or encouraging persons in Arizona with a known health

condition to terminate their existing health benefits plan or coverage or to let their existing health

benefits plan or coverage lapse and to purchase a replacement or alternative health benefits plan

or policy from an insurer authorized to transact insurance in Arizona. A prohibited rebate includes

payment by a health care provider, health care institution or drug manufacturer of an enrollee’s

health benefits plan premiums.

Laws 2026, Chapter 208 (H. B. 2979) – credit unions; certificates; powers; committee

Amends A.R.S

se and to purchase a replacement or alternative health benefits plan

or policy from an insurer authorized to transact insurance in Arizona. A prohibited rebate includes

payment by a health care provider, health care institution or drug manufacturer of an enrollee’s

health benefits plan premiums.

Laws 2026, Chapter 208 (H. B. 2979) – credit unions; certificates; powers; committee

Amends A.R.S. §§ 6-506, 6-508, 6-509, 6-510, 6-516, 6-517, 6-538 and 6-551

Bylaws – Within 10 business days after receiving a completed request to amend a credit

union's bylaws, the Deputy Director of Financial Institutions (Deputy Director) must submit an

acknowledgment of receipt or request additional information. The Deputy Director must make a

decision within 30 business days after the date that the acknowledgment of receipt is submitted

to the credit union, except that the Deputy Director may extend the response time for good cause.

Specifies that a credit union's bylaws must provide for the par value, if any, of shares.

Name Changes – Requires, within 10 business days after receiving a completed request

to change a credit union’s name, the Deputy Director to submit an acknowledgment of receipt or

request additional information. The Deputy Director must make a decision within 30 business

days after the date that the acknowledgment of receipt is submitted to the credit union.

Principal Place of Business Changes – Requires, within 10 business days after

receiving a completed request to change a credit union’s principal place of business or branch

that is located in Arizona, the Deputy Director to submit an acknowledgment of receipt or request

additional information. The Deputy Director must make a decision within 60 business days after

the date that the acknowledgment of receipt is submitted to the credit union, except that the

Deputy Director may extend the response time for good cause

dit union’s principal place of business or branch

that is located in Arizona, the Deputy Director to submit an acknowledgment of receipt or request

additional information. The Deputy Director must make a decision within 60 business days after

the date that the acknowledgment of receipt is submitted to the credit union, except that the

Deputy Director may extend the response time for good cause.

Out-of-State Parity – Authorizes a credit union to exercise all of the rights, powers and

privileges of any out-of-state credit union with the prior approval of the Deputy Director. A credit

union must submit a request to the Deputy Director on a form prescribed by the Deputy Director

and reference the specific statutory or regulatory source of the rights, powers or privileges that

the credit union wishes to exercise.

Miscellaneous – Eliminates the prohibition on a credit union from delegating the exercise

of any general powers to any person who is not an officer, director or employee without the prior

written approval of the Deputy Director. Specifies that appeals to a credit union's credit committee,

rather than all loans, must be approved or denied by a majority of the members of the committee

who are present at the meeting at which the application is considered.

Laws 2026, Chapter 228 (S. B. 1428) – proof of insurance; workers’ compensation

Adds A.R.S. § 23-911

7

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.

Requires a zero estimated exposure workers’ compensation policy to include a statement

signed by the applicant that attests to the accuracy of the information provided in the application

and that the applicant has no employees and an estimated exposure of zero as prescribed

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

Requires a zero estimated exposure workers’ compensation policy to include a statement

signed by the applicant that attests to the accuracy of the information provided in the application

and that the applicant has no employees and an estimated exposure of zero as prescribed. For

any construction-related workers’ compensation policy with zero estimated exposure, any COI

requested must contain the statement: “To confirm the status of the workers’ compensation policy,

go to ewccv.com/cvs/.”

Requires an employer that provides business construction and improvement services and

obtains a zero estimated exposure policy to provide to each entity with which the employer directly

contracts a copy of the policy and written notification that the employer has a total estimated

exposure of zero. An entity that receives a written notice must retain the notice and the policy for

at least three years after the date of receipt.

Applies the requirements to a zero estimated exposure policy or any related COI that is

entered into or prepared on or after July 1, 2027. A zero estimated exposure policy is an insurance

policy that is obtained by an employer to cover the employer’s liability to pay compensation after

the employer reports a total estimated exposure of zero.

Laws 2026, Chapter 247 (H. B. 2174) – insurance; modeling and data organizations

Amends A.R.S. §§ 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

Modeling and Data Organizations (MDOs) – Renames advisory organizations (AOs) as

MDOs and applies all statutory authority and requirements of AOs to MDOs. An MDO must file

with the Director a list of its insurer members and subscribers, if applicable. Eliminates the

authority of the Director to examine an MDO as often as the Director deems it expedient or

necessary

20-396, 20-409 and 20-3604

Modeling and Data Organizations (MDOs) – Renames advisory organizations (AOs) as

MDOs and applies all statutory authority and requirements of AOs to MDOs. An MDO must file

with the Director a list of its insurer members and subscribers, if applicable. Eliminates the

authority of the Director to examine an MDO as often as the Director deems it expedient or

necessary.

Requires an MDO to file with the Director models to be used by insurers in Arizona for

making rates. The Director may require the MDO to file supporting data or any additional

information related to the content of the model and the outputs of the model necessary to verify

that the model complies with the requirements of Arizona insurance laws. Models, any supporting

data or additional information requested by the Director and model outputs filed by MDOs are

confidential and not subject to subpoena or public records laws.

Credit for Reinsurance – Clarifies that any rule regulating reinsurance arrangements

relating to any outlined life, health and annuity products does not apply to cessions to an assuming

insurer that either: 1) meets the conditions for credit when the reinsurance is ceded to an

assuming insurer that satisfies the conditions outlined in law; 2) is certified in Arizona; or 3)

maintains at least $250 million in capital and surplus as determined in accordance with the

accounting practices and procedures manual adopted by the National Association of Insurance

Commissioners, excluding the impact of any allowed or prescribed practices, and that is either

licensed in at least 26 states or licensed in at least 10 states and licensed or accredited in a total

of at least 35 states.

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

ny allowed or prescribed practices, and that is either

licensed in at least 26 states or licensed in at least 10 states and licensed or accredited in a total

of at least 35 states.

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, Chief

Legislative Liaison, at fausto.burruel@difi.az.gov.