Specifications include, but are not limited to: the Arizona Department of Insurance and Financial Institutions (hereinafter referred to as “State Agency”) is authorized by ARS § 20-148 to contract for and procure, on a fee or part-time basis, or both, such actuarial, technical and other professional services as may be required for the operation of the State Agency. The State Agency is permitted by ARS § 20-142(C) to conduct examinations and investigations of insurance matters. 1.2.1 The State Agency is required by ARS § 20-156 to examine the financial affairs, transactions, accounts, records and assets of each insurer seeking to do business in Arizona, and of other authorized insurers as often as deemed advisable. 1.2.2 The State Agency is permitted by ARS § 20-157 to employ experts to correct examinee accounting records and appraisers to valuate real estate. 1.2.3 The State Agency is permitted by House Bill 2322, Chapter 238 Second Regular Session 2018 to conduct examinations and investigations of insurance matters related to health insurer provider credentialing. 1.2.4 Insurers that hold a certificate of authority issued pursuant to ARS § 20-216 generally file financial statements with the State Agency pursuant to statutory accounting practices. Financial examinations of these insurers must be conducted in accordance with the NAIC Examiners Handbook to determine whether those statements are in accordance with statutory accounting standards. Captive insurers that hold a certificate of authority issued pursuant ARS § 20-1098.01, and certain other entities over which the State Agency has examination authority, may prepare and file their financial statements using generally accepted accounting principles. Examinations of entities using generally accepted accounting principles will be conducted pursuant to the NAIC Examiners Handbook, where applicable. 1.2.5 The State Agency may pursuant to ARS § 20-358 utilize independent contractor examiners to review workers’ compensation manuals of classification, rules, rating plans and rates.
