Vice Chairman Poelstra moved that H.B. 2118 do pass. The motion carried. Vice Chairman Poelstra moved that H.B. 2118 as amended do pass. It establishes a standard for requiring and granting a hearing provided the request is made in good faith. Dave Childers, representing Farmers Insurance Group of Companies, testified that any acquisition or merger requires approval of the Director of the Department of Insurance.
Current statute mandates that a hearing be held for any new acquisition or merger.
Hearings are generally pro forma because the Department has already concluded that the transaction is acceptable. This legislation would basically eliminate the mandatory hearing requirement. It will conform Arizona law to the laws of most other states. It gives the Director the discretion to hold a hearing. The amendment provides a mechanism for interested parties to request that a hearing be held.