Arizona Department of Insurance 2003/2004 annual report |
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Arizona Department Department of Insurance 2003/2004* Annual Report
Christina Urias
Director of Insurance to
Janet Napolitano
Governor
and
Members of the Arizona Legislature
Arizona Department of Insurance 2910 North 44th Street, Suite 210 Phoenix, Arizona 85018-7256 (602) 912-8400 The information in this report is in the public domain and may be reprinted without permission. * To provide the public with the most up-to-date information about the Department of Insurance and the domestic insurance industry, this report contains the most current, complete data available, which in some cases is for Calendar Year 2003 and in others is for Fiscal Year 2004 (7/01/03 through 6/30/04). Generally, data concerning the Department's licensees is reported for Calendar Year 2003, while data relating to the Department's operations is reported for Fiscal Year 2004. Exceptions are noted.
TABLE OF CONTENTS
Directory .....................................................................................................1 Message from the Director of Insurance ....................................................2 Strategic Plan Summary ..............................................................................3 Division Reports ..........................................................................................4 Director's Office ............................................................................6 Administrative Services and Licensing ..........................................8 Consumer Affairs ........................................................................ 11 Health Care Appeals ............................................................. 12 Financial Affairs .......................................................................... 14 Property and Casualty ................................................................ 16 Life and Health ........................................................................... 19 Fraud Unit .................................................................................. 21 Market Oversight Division ........................................................... 22 Guaranty Funds .......................................................................... 23 Receivership ............................................................................... 24 Captive Insurance ....................................................................... 25 Information Services ................................................................... 26 Public Information Resources ..................................................................28 Internet Resources .................................................................... 30 Newsletter Profile ....................................................................... 32 Consumer Publications ............................................................... 33 Laws and Policy .........................................................................................34 2003 and 2004 Legislation..........................................................36 2003 Regulatory Bulletins ...........................................................38 Fiscal Reports ...........................................................................................40 Insurance Professionals and Insurers Authorized in Arizona ................ 44 Summary of Insurance Professionals ......................................... 46 Synopsis of Annual Statements .................................................. 47 Insurers Authorized in Arizona .................................................... 49 Top 25 Admitted Premium Writers for Select Lines of Business ........................................................................ 102 Insurers That Ceased Arizona Business Activity .................................. 120 Receivership Activity ............................................................................... 126 Qualified Surplus Lines Insurers ............................................................ 130
Arizona Department of Insurance
2910 North 44th Street, 2nd Floor Phoenix, Arizona 85018 www.state.id.az.us
Divisions Director's Office Administrative Services Division Business Services Section Licensing Section licensing@id.state.az.us Arizona Guaranty Funds 1110 W. Washington, Ste. 150 Phoenix, AZ 85007 Consumer Affairs Division Consumer Services Section consumers@id.state.az.us Health Care Appeals Section Market Assistance Market Oversight Division Examinations Section Analysis Section Investigations Section Financial Affairs Division Examinations Section Surveillance Section Sections Phone Numbers (602) 912-8456 (602) 912-8400 (602) 912-8470 (877) 660-0964 (602) 364�3863 Facsimile Numbers (602) 912-8452 (602) 912-8408 (602) 912-8473 (602) 364-3872
DIRECTORY
(602) 912-8444 (800) 325-2548 (602) 912-8443 (602) 912-8450 (800) 544-9208 (602) 912-8442 (602) 912-8455 (602) 912-8430 (602) 912-8422 (602) 912-8420
(602) 954-7008 (602) 912-8447 (602) 954-7008 (602) 912-8469 (602) 912-8469 (602) 954-7008 (602) 912-8421 (602) 912-8421
Compliance Section: Records Unit (602) 912-8425 Tax Unit (602) 912-8429 Trust Deposits Unit (602) 912-8427 Fraud Unit 2929 N. 44th St, Suite 410 Phoenix, AZ 85020 Information Services Division Life and Health Division Rates and Forms Section Utilization Review Agents and Third Party Administrators Managed Care and Prepaid Dental Section Property & Casualty Division Rates and Forms Section Registration Section Receivership Division Tucson Office 400 W. Congress, Ste. 152 Tucson, AZ 85701 (602) 912-8418
(602) 912-8421 (602) 912-8419
(602) 912-8400 (602) 912-8460 (602) 912-8460 (602) 912-8464 (602) 912-8466 (602) 912-8466 (602) 912-8458 (520) 628-6370
(602) 912-8467 (602) 912-8453 (602) 912-8453 (602) 912-8453 (602) 912-8421 (602) 912-8421 (602) 912-8459 (520) 628-6633
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A Message from the Director of Insurance
Governor Napolitano and Members of the Arizona Legislature,
I am especially pleased to provide this 2003/2004 Annual Report of the Arizona Department of Insurance. The Department of Insurance, a relatively small agency, it is a critical component of state government. From the oneon-one assistance we offer the public, to the financial scrutiny we maintain over the massive insurance institutions doing business in our state, the functions of the Department of Insurance are invaluable to Arizona consumers. Through fee and assessment revenues, the Department reimburses the General Fund for the amount of its appropriation. In fiscal year 2004, the Department collected and remitted over $308 million in insurance premium tax revenues to the General Fund, and over $27 million to fire fighter and public safety retirement funds. Given a fiscal year 2004 appropriation of just over $6 million, the Department continued to adeptly regulate an insurance industry which transacted nearly $29 billion of premiums in this state in 2003 and to render helpful information and service to our ever-increasing population of insurance consumers and licensees. My utmost respect and gratitude goes to the Department's staff for another year of excellent service to Arizona's insurance consumers. I believe in a balanced approach to insurance regulation and urge all stakeholders in Arizona's insurance markets to continue to work together to further our joint interests in assuring the economic development of the insurance companies doing business in our state, while protecting the interests of Arizona insurance consumers. Sincerely,
Christina Urias Director of Insurance
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Strategic Plan Summary
The mission of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and encourages economic development. The Department achieves its overall mission through accomplishing the missions of the following programs and subprograms.
PROGRAM / SUBPROGRAM Policy and Administration Solvency Regulation MISSION STATEMENT To provide leadership, direction, coordination and support, enabling the agency to achieve its mission. To oversee and promote the ability of authorized insurers to perform their financial obligations under insurance policies. To detect and deter insurer financial deficiencies and unsound practices as early as possible. To minimize the impact of insurer insolvencies on Arizona residents. To inform, assist and protect Arizona insurance consumers. To make available and promote insurance-related information and assistance to enable Arizona consumers to make informed decisions, and to facilitate the receipt of benefits to which they are entitled. To protect Arizona insurance consumers from unfair and illegal market practices and to oversee insurer compliance with Arizona laws that promote effective health service delivery systems. To render efficient, effective and quality insurance licensing services and to restrict license issuance and renewal to qualified candidates. To render efficient, effective and quality licensing services to producers and other insurance-related service providers and to restrict license issuance and renewal to qualified applicants. To render efficient, effective and quality licensing services to insurers and other insurance risk bearing entities and to restrict license issuance to qualified applicants. To fully collect, efficiently deposit and accurately forecast insurance premium tax revenues. To deter, investigate, and facilitate conviction for insurance fraud. To provide a regulatory environment that enables development of the domestic captive insurance industry, and to oversee the soundness of domestic captive insurers.
Financial Condition and Soundness Oversight Insolvency Administration Consumer Support Consumer Information and Assistance
Market Practices Oversight
Licensing
Professional Service Licensing
Insurer Licensing
Premium Tax Collections and Analysis Fraud Investigation and Deterrence Captive Insurance
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Department of Insurance Division Reports
GOVERNOR OF ARIZONA DIRECTOR OF INSURANCE
Business Services Licensing
ADMINISTRATIVE SERVICES DIVISION
INFORMATION SERVICES DIVISION
Managed Care & Prepaid Dental Rates and Forms Utilization Review and Third Party Administrator
Compliance Examination Surveillance
FINANCIAL AFFAIRS DIVISION CAPTIVE INSURANCE DIVISION
LIFE & HEATLH DIVISION
PROPERTY & CASUALTY DIVISION
Property and Casualty Registration
RECEIVERSHIP DIVISION
CONSUMER AFFAIRS DIVISION
Consumer Services Health Care Appeals Market Assistance
Life and Disability Fund Property and Casualty Fund
ARIZONA INSURANCE GUARANTY FUNDS
MARKET OVERSIGHT DIVISION
Examination Analysis Investigation
INSURANCE FRAUD UNIT
4
5
OFF CE OF THE OFFIICE OF THE D RECTOR DIIRECTOR
Christina Urias................................................. Director Gerrie Marks ....................................... Deputy Director Jennifer Boecek......... Executive Asst., Policy Affairs Erin H. Klug ........................ Public Information Officer Margaret McClelland ............................. Rules Analyst
The mission of the Director's Office is to provide leadership, direction, coordination and support, enabling the Department to achieve its overall mission. The Director's Office: � As a Cabinet level agency, advises and supports the Governor's Office � Develops, recommends and implements insurance-related legislation � Develops and promulgates appropriate rules and substantive policy statements � Develops the agency's operational policies and coordinates and directs the activities of the agency's divisions � Provides technical support and advice to state legislators and the U.S. Congressional delegation � Participates as a member of the National Association of Insurance Commissioners � Coordinates interaction with the agency's major constituencies, including consumers, licensees, industry, elected officials and the media � Coordinates the agency's interaction with other state and federal agencies � Coordinates and participates in numerous task forces and advisory groups � Oversees the administration of boards and other public bodies within the agency � Oversees the preparation, publication and distribution of regulatory information to the public, including consumer oriented literature, statutorily required reports, the agency newsletter, and the agency website. � Makes appearances and speeches before interested groups � Coordinates legal representation of the agency by the Attorney General's Office � Renders ultimate decisions in administrative proceedings necessary to enforce and administer the Insurance Code � Develops the Agency Operational Plan, Budget Request, Information Technology Plan, Business Continuity Plan, and Disaster Preparedness Plan � Oversees the development of the agency's work force � Monitors the performance of the agency and its divisions, and promotes continuous improvement in agency efficiency and customer service � Provides agency accounting, budgeting, payroll, personnel, facilities management, risk management, telecommunication, information technology, mail processing and courier services.
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Director's Office Highlights
for Fiscal Year 2004
Continued efforts to modernize market oversight functions, fo cu sing on market analysis, including designating a Ma rke t Analysis Coordinator and working closely with other s tate s on the development of the NAIC Market Analysis Handboo k and a standard examination reporting format. Reorganized the Tucson office, centralizing the agency's inve st igat ion activities in Phoenix, and focusing Tucson s taff on delivering licensing services and basic consumer a ss is ta n c e . Worked in partnership with the Independent Agents and Brokers of Arizona to draft legislation to efficiently revise license renewals to every four years instead of every two years. Proposed and achieved enactment of legislation (HB 2228, Laws 2004) to require greater accountability and disclosure b y organizations offering charitable gift annuities. Implemented consumer protection improvements to Arizona's Life and Annuity laws, including replacement, f ree look, and disclosure provisions. Proposed Long Term Care insurance rules to facilitate imp le me ntat ion of HB 2153 (Laws 2003) and increase c onfo rmity with the NAIC National Model.
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ADMINISTRATIVE SERVICES DIVISION
Scott Greenberg ................. Chief Operating Officer Steven Fromholtz.............. Licensing Administrator Mary Jordan ............................ Accounting Manager Barbara Beltran....... Business Services Supervisor
The Division is comprised of the Licensing Section, the Business Services Section and the Accounting Section. Licensing Section The mission of the Licensing Section is to provide efficient, effective and quality insurance licensing services to producers and other insurance-related service providers. The Licensing Section ensures that insurance license candidates meet all qualifications before issuing or renewing a license. The Section reviews and analyzes applications for professional-services licensure, maintains and accesses agency-specific and national licensing databases, obtains criminal history information on certain applicants, maintains electronic and physical license files, administers contracts for pre-license examination services and for continuing education provider and course certification. Although the professional services licensing population grew by 8.5% during Fiscal Year 20041, the Licensing Section continued to operate efficiently, reviewing license applications in an average of only 17.1 licensing time frame days2.
Licensing Highlights
For Fiscal Year 2004
Processed 25,475 new license applications, an 8.0% increase from the prior fiscal year. Processed 29,371 license renewal applications, an 8.6% increase from the prior fiscal year. Satisfied 91.4% of customers surveyed during Fiscal Year 2004. Sent postcards to 37,862 Arizona-resident licensees concerning newly enacted legislation effective January 1, 2005, and promulgated information on Internet web site.
1 2
From 91,577 at June 30, 2003, to 99,379 at June 30, 2004. "Licensing time frame days" are the "overall time frame" days, as defined in A.R.S. �41-1072(2), minus the days that the overall time frame is suspended in accordance with A.R.S. � 41-1074(B).
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The following chart illustrates the licensing cycle time during the last two fiscal years on a monthly basis.
Producer Licensing Cycle Time
Average timeframe days* from date application is received to date license decision is rendered for license decisions rendered during the month.
FY 2003 Actual FY 2004 Actual 25.0
21.6
20.0
23.2 21.1 19.5 16.1 14.4 14.0 19.7 17.6 17.0 15.1 20.1 17.3
22.0 18.0 14.5 15.7
Time Frame Day
16.9
15.0
16.0 13.5
10.0
9.4 6.7
10.7
10.3
5.0
July Augus t S eptember Oc tober November Dec ember January February Marc h A pril May June
Fisc al Month
*"Timeframe days" exclude the number of days during which applications have been returned to applicants due to deficiencies.
Business Services Section The mission of the Business Services Section is to provide the goods and services needed to support efficient and effective agency operations. This Section is responsible for personnel, procurement, mail distribution and metering, facilities management, risk management and strategic planning support. The Business Services Section continues to be successful at delivering responsive service to its internal customers, and Fiscal Year 2004 surveys responses indicate employees are satisfied with Business Services Section service.3 Accounting Section The mission of the Accounting Section is to promptly and accurately complete and record agency accounting transactions. This Section is responsible over cash receipts and cash disbursements for eleven different funds; for executing and recording accounting transactions; for accurately forecasting revenues and expenditures; for developing and monitoring budgets for each of the Department's funding sources; for timely and accurately paying Department of Insurance employees.
3
79.5% of responses to employee satisfaction surveys during FY 2004 "agreed" or "strongly agreed" with the statement, "Overall, I am satisfied with the Business Services Section." Virtually all remaining responses (19.2%) "neither agreed nor disagreed."
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During Fiscal Year 2004, the Department deposited over $308-million of insurance premium tax revenues into the State General Fund. The Department's forecast of insurance premium tax revenues was extraordinarily accurate. Actual insurance premium tax revenues exceeding the Department's revenue forecast by less than 0.5%. In total, the Department returned to the General Fund over 50 times the amount of its General Fund appropriation last year.
Business Services and Accounting Highlights
for Fiscal year 2004
The two Sections worked together to implement the State of Arizona "Human Resources Information Solution" (HRIS), which replaced the State's "Human Resources Management System" (HRMS). The Department worked in partnership with the Department of Administration to properly configure the system and to train Department human resources and payroll employees The Department's insurance premium tax forecast was within 0.5% of actual premium tax revenue collections for FY 2004. The Department collected almost $316.5-million for the State General Fund, which was over 50 times the Department's $6.1-million General Fund appropriation. The Business Services Section helped to coordinate the restructuring of the Department's Tucson Office, focusing the office on rendering assistance to insurance consumers and license applicants.
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CONSUMER AFFAIRS DIVISION
Mary Butterfield............................. Assistant Director Catherine O'Neil ................................ Ombudsperson Mary Kitterman..............Market Assistance Manager Lorraine McCormack ..... Health Care Appeals Manager
The mission of the Consumer Affairs Division is to inform, assist and protect Arizona insurance consumers. The Division is comprised of the Consumer Services and Health Care Appeals Sections. The Division provides a full range of consumer information and assistance in response to written, telephonic and walk-in requests, including distribution of informative publications such as premium comparisons and insurer complaint ratios. The Division also assists with insurance-related education and outreach and offers one-on-one assistance to consumers, and businesses. The Department also has a satellite office in Tucson which offers consumer assistance and producer licensing services to southern Arizona residents. The Division also offers assistance to Arizona businesses having difficulty securing liability insurance. The Health Care Appeals Section a d m i n i s t e r s Arizona's health care appeals law which requires all health i n s u r e r s to have a multi-tiered process in place through which consumers m a y appeal insurer claim denials or denials of requests for services, e i t h e r on an expedited or standard basis. Consumer Services Section The Consumer Services Section is the insurance consumer's main point of contact with the Department. Consumer Services personnel in the Phoenix and Tucson offices provide critical assistance to Arizona's insurance consumers in numerous ways. During FY04 division personnel responded to over 52,000 phone calls, personally met with more than 500 members of the public, and handled in excess of 7,700 written complaints and requests for information and assistance regarding insurance-related problems. The Division also assisted consumers in recovering over $4,000,000 from their insurance companies.
Consumer Affairs Highlights
for Fiscal Year 2004
Assisted in settlements and restitution for Arizona consumers totaling $4,889,096 Answered 52,048 telephone inquiries Processed 7,722 written complaints Assisted 564 consumers in person at the Department. Assisted 516 consumers in finding difficult-to-place liability insurance coverage.
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Health Care Appeals Section
Established in 1998, the Health Care Appeals Section administers the 1997 legislation which created a uniform process for Arizona health insurance consumers to appeal insurer claim denials1 or requests for services2. The appeal process culminates in an opportunity for an insured to obtain an unbiased, independent, external level of review administered by the Department.
Exemptions to Arizona's Health Care Appeals Law
! ! ! ! Federal plans Worker's Compensation policies Self-funded employee benefit plans Fixed benefit plans (when benefit is based on the "health status of the insured") Long Term Care policies Medicare Supplement policies
In general, the health care appeals law3 provides a three-tiered process for insured members to contest ! denials or requests for service. The majority of ! appeals follow the standard appeals track, although the law provides an expedited track mirroring the standard process except for significantly reduced time frames at each level. To be eligible for an expedited appeal, the insured member's treating Standard Process Expedited Process provider must submit a written Level 1 Informal Reconsideration Expedited Medical Review certification along with supporting medical Level 2 Formal Appeal Expedited Appeal documentation indicating that Level 3 External Independent Expedited External Review Independent Review the time required for the standard process "is likely to cause a significant negative change" in the medical condition at issue in the appeal. The insured member must exhaust the insurer's internal appeal steps (usually both levels one and Who can request an appeal? two) before requesting external independent ! The insured member review, however, an insurer may choose to ! The member's treating provider accelerate a case to external review at any of the ! Parent, if a minor internal levels. The last level of this process ! Legal guardian allows for a review that is external and ! Person authorized to make decisions by a power of independent of the health insurer. Once again, attorney there are two distinct tracks that an external review can follow. If the case concerns a denial arising from a coverage or contractual issue, the Department makes the independent determination. The non-prevailing party can appeal to the Office of Administrative Hearings although the Department is not a participant at the hearing. If the case involves a medical necessity issue, an independent medical review organization makes the final determination. The Department contracts with several independent review organizations (IROs) through the state procurement process. Thus, for each medical case, the Department selects a reviewer from its list of IROs, sends the case to the selected IRO who completes its medical review, sends its recommended
1
A denied "claim" occurs when a person has already received care, submitted a claim for payment, and the insurer refuses to pay all or any portion of the claim. 2 A denial of "service" occurs when a person has requested a health care service or a referral to a specialist and the insurer refuses to pre-authorize the service. Thus, the desired service has not yet been rendered at the time of the appeal. 3 A.R.S. ��20-2530 through 20-2541.
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decision back to the Department for final written determination. The health care insurer has no direct relationship or contact with the chosen IRO at any time during the independent review process. The Department bills the insurer for the cost of the medical review and maintains a revolving fund to then pay the IRO fees on a case by case basis. This final medical determination is subject to judicial review, and cannot be appealed to the Office of Administrative Hearings. Only appeals taken to the third level come to the Department for external review. The external review component of this mandated process provides Arizona health insurance consumers with a valuable, user friendly dispute resolution mechanism that is expeditious and inexpensive. In addition, it is estimated that most insurers overturn approximately half of all appeals at the first level of an appeal, so the first tiers of an appeal to the insurer can be very beneficial.
Health Care Appeals Statistics
for Fiscal Year 2004
Total number of health care appeals subject to External Review Process: 280 " Number of cases decided by the Department as coverage issues: 148 ! 133 upheld in favor of the health insurer ! 1 overturned or partially overturned in favor of the consumer ! 7 remain pending at year end ! 7 were withdrawn " Number of cases decided by an independent medical review organization: 85 ! 56 upheld in favor of the health insurer ! 26 overturned or partially overturned in favor of the consumer ! 3 remain pending at year end " Number of cases reviewed by the Department but referred to an independent medical review organization for medical decision: 47 ! 44 standard appeals ! 3 expedited appeals ! 28 upheld in favor of the health insurer ! 18 overturned or partially overturned in favor of the consumer ! 1 remained pending at year end
Expedited vs. Standard Appeals 7/1/02 - 6/30/03 13
! 144 standard appeals ! 4 expedited appeals
! 79 standard appeals ! 5 expedited appeals
External Review Cases 7/1/02 - 6/30/03
Coverage Cases
85
Medical IRO cases Cases Referred for Medical IRO
Number of Standard Appeals Received Number of Expedited Appeals Received
148
267
47
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FINANCIAL AFFAIRS DIVISION
Steve Ferguson ........................ Assistant Director Kurt Regner ..................... Chief Financial Analyst Leslie Hess ......... Deputy Receiver/Legal Analyst Alan Griffieth ................ Chief Financial Examiner Kelly Stephens ..... Compliance Section Manager
The mission of the Financial Affairs Division is to detect and deter insurers' financial deficiencies and unsound financial practices. The Division also reviews applications for licensure in Arizona to ensure that only those insurers in sound financial condition are granted certificates of authority. In fulfilling this mission, the Division analyzes quantitative and qualitative information obtained through surveillance practices applied to required filings, the conduct of formal on-site financial examinations, correspondence with insurers and other sources. Required filings include annual and quarterly financial statements, annual holding company registration statements and audited financial reports. Other filings made by insurers requiring specific prior approval transactions such as acquisitions, mergers, withdrawals and certain transactions between an insurer and affiliated entities. If deficiencies are identified from analysis of available information, Division management initiates corrective action and enforcement activities as appropriate. In conducting its financial oversight of insurers, the Division is subject to standards for effective financial regulation promulgated through the National Association of Insurance Commissioners (NAIC). The NAIC accredited the Department as compliant with NAIC standards in 1993, and again in 2003. The Division is led by Assistant Director Steve Ferguson and is organized into three sections, the (1) Financial Surveillance Section, (2) Examinations Section and (3) Compliance Section. Financial Surveillance Section The Financial Surveillance Section is responsible for the ongoing analysis of mandatory financial filings of domestic and foreign authorized insurers. This continuous insurer surveillance results in early detection of violations of financial requirements and/or specific operating difficulties. The Division uses sophisticated financial analysis tools to extract and review financial data from NAIC national databases maintained and insurer financial filings submitted directly to the Department. When financial deficiencies are detected, analysts make recommendations regarding appropriate corrective actions and assist management of the Division in enforcement activities. Financial Surveillance staff reports financial analysis conclusions to other state insurance departments and the NAIC when appropriate. Financial Surveillance staff are also responsible: a) for reviewing insurer applications for issuance of new and amended certificates of authority; b) reviewing and providing significant analysis of financial and operational information; and c) providing recommendations related to certain specific domestic insurer transactions requiring prior notice and approval pursuant to law. Examinations Section The Examinations Section is responsible for the performance of periodic on-site full scope financial examinations of 112 domestic insurers and 120 domestic reinsurers and life care providers. The Section may also perform other limited scope examinations of domestic insurers and reinsurers when financial surveillance practices detect concerns regarding their financial condition or operations. The purpose of the examinations is to confirm the financial position and results of operations of insurers and their compliance with statutory financial solvency requirements. The information obtained through the examinations assists the Financial Surveillance Section and Division management in the ongoing oversight and enforcement responsibilities. Arizona law requires the Department to conduct a financial examination of each
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domestic insurer at least once every five years. Additionally, the Financial Surveillance Section may initiate financial examinations any time it identifies significant weakness and deficiencies that raise solvency concerns. Compliance Section The Compliance Section is responsible for premium tax collection, statutory deposit administration, maintenance of public records and general administrative support to the Division. The Section is also responsible for insurer customer support services, such as maintenance and dissemination of forms and processing of annual statutory filings. The Premium Tax Unit performs tax report audits and remittance processing functions. All premium tax and annual statutory fee remittance reports are audited and may result in the assessment of additional tax, penalties and interest that must be collected from insurers. The Trust Deposits Unit monitors and enforces compliance with trust deposit requirements comprising a $3 billion portfolio of securities held by the Arizona State Treasurer. The unit also monitors trust deposits held in other jurisdictions that are relied upon for an insurer's qualification to transact insurance business in Arizona.
Ins ur er s ' Securities On Deposit With Arizona State Treasurer ($000,000 Omitted) 3 20 0 3 00 0 2 80 0 2 60 0 2 40 0 2 20 0 2 00 0 C al en d ar Year OTHER STATUTOR Y WORKERS' COMPENSATION 20 03 70 21 2 27 49 20 02 62 22 4 27 26 20 01 68 22 6 27 57 20 00 67 2 20 26 87 19 99 60 2 15 26 88
Financial Financial Affairs Highlights
For Fiscal Year 2004
Successfully completed the NAIC Financial Regulatory Standards and Accreditation Committee review in July 2003 and received re-accreditation in September 2003 for a five-year period. Took enforcement actions against two domestic insurers found to be in hazardous financial condition by placing them into supervision for the protection of policyholders. Successfully implemented new automated examination techniques on substantially all insurer examinations during the year. Participated in certain multi-state insurer examinations as part to the NAIC's efforts to improve regulatory coordination within large insurance holding company systems.
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Deloris Williamson........... Assistant Director PROPERTY AND Dean Ehler...............Rates & Forms Supervisor RATESLTREGULATIONS DIVISION & Y DIVISION CASUA
The Division reviews all property and casualty insurance policies, contracts, related forms and certain property and casualty rate filings, to ensure compliance with the law and make certain they are not ambiguous, misleading or deceptive. The Division monitors the market for specific selected lines of insurance through insurer surveys, and compiling and analyzing the results, together with other material information, to determine the level of competition and the overall health of the market. The Division is comprised of the Rates & Forms Section and the Registration Section. The Rates & Forms Section This Section is primarily responsible for administering property and casualty insurance rate and form laws. Although all major lines of insurance are closely monitored, the section is particularly alert to homeowners (HO) filings and private passenger automobile (PPA) rate changes and compiles annual premium comparisons for the Department's consumer premium comparison publications.
Homeowners' Insurance Market: The following graph demonstrates the dollar amount of HO insurance premium written and insurers' incurred losses since 1997 in Arizona:
$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0
Arizona Homeowners' Written Premium and Incurred Losses (000 Omitted)
Incurred Losses Written Premium
1997
1998
1999
2000
2001
2002
2003
! ! ! !
107 of 195 insurers wrote $100,000 or more in premium in 2003. Numerous insurers have the capability of becoming active, but more insurers are exiting than entering the HO market. Competition is intense as only 19 insurers write more than 1% of the market. Rate increases were not as high or as frequent in 2003 as 71 insurers took an overall weighted average rate increase of 8.49% in 2003. In 2002, there were 83 insurers that took an overall weighted average rate increase of 16.85%.
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Private Passenger Automobile Insurance Market: The following graph demonstrates the dollar amount of PPA premiums written and insurers' incurred losses since 1997 in Arizona.
Arizona Private Passenger Automobile Liability and Physical Damage Written Premiums and Incurred Losses (000 Omitted)
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
Incurred Losses Written Premium
1997 1998 1999 2000 2001 2002 2003
! ! ! ! !
77.58% of the market is concentrated in the Top 25 insurers. The average premium is at a three-year high of $1,201. Only 22 insurers write more than 1% of the market. More insurers are entering than exiting the market. Overall, accident frequency and accident severity appear to be decreasing.
During Fiscal Year 2004, the Rates and Forms Section: � � � Qualified 126 surplus line insurers to transact business in Arizona. Produced four major consumer-information publications: two semi-annual Automobile Premium Comparisons, the Homeowners' Premium Comparison, and the Mobile Homeowners' Premium Comparison. Conducted surveys of insurers to monitor marketplace competition for the following lines or types of insurance: medical malpractice, homeowners, other liability, surety, personal automobile, commercial automobile, business owners insurance, and nursing home liability insurance.
Registration Section This Section is responsible for: a) issuing service company permits on contracts with consumers that for appliance repairs and/or electrical, plumbing, heating, cooling or air conditioning system services for residential property; b) approving motor vehicle service contract programs; and c) reviewing foreign Risk Retention Groups (RRG's) and registering Risk Purchasing Groups (RPG's) organized under the Federal Risk Retention Act. During Fiscal Year 2004, the Registration Section: � Issued 18 new Service Company permits. � Registered 14 new Risk Purchasing Groups, increasing the total number of registered Risk Purchasing Groups to 339.
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�
Registered 9 new Foreign Risk Retention Groups, bringing the total number of registered Foreign Risk Retention Groups to 63.
Property and Casualty Highlights
For Fiscal Year 2004 Reviewed 375 rate filings and 4,068 form filings. Supported the Arizona Workers' Compensation Appeals Board that hears appeals by employers regarding the rating of their workers' compensation insurance policies. Surpassed all of its goals related to form and rate filing review:
� � � � � �
Within the prescribed substantive review period, reviewed 99% of forms received instead of the expected 95%. Used 6.5 calendar days on average to review P&C products instead of the expected 20 days. Within 90 days, reviewed 97% of targeted "use and file" rate filings instead of the expected 90%. Reviewed 99% of "file and use" rate filings by the effective date of the filing, rather than the expected 95%. Used 8.7 calendar days on average for the substantive review of "file and use" rate filings instead of the expected 15 days. Received 13% of form filings electronically instead of the 7.5% expected.
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LIFE AND HEALTH LIIVISION HEALTH DIV D FE AND
Alexandra Shafer............... Assistant Director Dennis Babka.......... Life & Health Supervisor Linda Beguin, DDS ........Dental Plan Manager Laura Weng.... .. Managed Care Program Mgr
Traditional Division Functions: Forms Review In Fiscal Year 2004, the Life and Health Division continued its traditional functions of reviewing the required submissions of policy, rate and advertising forms issued by authorized life and health insurers, health care services organizations (HMOs), nonprofit service corporations (HMDOs) and prepaid dental plans (PDPOs) to ensure compliance with Arizona law. Under new procedures implemented in May 2002, the Life and Health Division conducted expedited regulatory review of insurer product filings resulting in faster form approvals and allowing insurers to market their products more quickly. Insurers increasingly submitted filings electronically, using the System for Electronic Rate and Form Filing (SERFF), the national electronic filing system for insurance departments across the country. The Division received and reviewed a total of 17,958 forms in FY 2004, including 1,673 SERFF forms (compared to 925 SERFF forms in FY 2003). Health Care Insurance Oversight In FY 2004, the Division continued its implementation of health insurance regulation programs that resulted from legislation enacted in 2000, including oversight of medical service delivery by health care service organizations (HMOs) and dental service delivery by prepaid dental plan organizations (PDPOs). The Division's oversight includes compliance reviews, proactive education on compliance issues, rulemaking and enforcement activities. In addition, the Division administers Arizona's health care provider timely pay and grievance law, enacted in 2000. The Division reviews semi-annual statutory reports and copies of thousands of provider grievances every year and uses the resulting data to target enforcement activities, educate insurers and provide assistance to providers. In FY 2004, the Division received and analyzed 8,350 copies of provider grievances (compared to 5,167 copies in FY 2003). Non-Insurer Licensing The Division licenses third party administrators (TPAs) and utilization review agents (URAs) and oversees insurer compliance with Arizona's third party intermediary law. In FY 2004, the Division issued 33 new TPA licenses, 5 new URA licenses and renewed 13 URA licenses.
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Life and Health Highlights
for Fiscal Year 2004
Entered consent orders in two timely pay and grievance examinations, with penalties against the two insurers totaling $99,600. Worked with stakeholders to develop rules for the transaction of health insurance, long-term care insurance and HMO network adequacy. Assisted with Department comments on proposed legislation, including bills or language relating to state self-insurance, discrimination in health insurance, copays and deductibles, Health Care Group reforms, mental health coverage, licensure of alien health insurers, an Arizona high risk pool and timely pay reforms. Assisted in implementing 2003 comsumer protection legislation regarding long term care insurance and life insurance and annuity replacement. Assessed the Arizona operations of three pharmacy benefit management (PBM) companies to determine possible TPA license requirements; obtained applications and issued licenses to all three. Completed network adequacy reviews of two HMOs, including supervision of the HMOs' corrective action programs. Terminated the Small Employer Reinsurance Program (SERP), as a result of legislative repeal of SERP in 2002. Implemented a formal complaint process for health insurance oversight by receiving and investigating 26 written complaints regarding managed care or timely pay compliance. Conducted educational programs for consumers, providers, professional associations and payors on a variety of topics, including Medicare supplement insurance, long term care insurance, and timely pay laws. Surpassed its strategic goals: ! ! Reviewed 99% of non-HMO form filings within 30 Days. Timely reviewed 100% of pre-paid dental quarterly reports.
20
FRAUD UNIT
Terry Cooper ................................ Chief
Created as part of the Department of Insurance in 1994 (A.R.S. � 20-466), the Fraud Unit strives to improve the quality of its service and protection of Arizona consumers. A.R.S. � 20-463 defines fraudulent acts and designates insurance fraud a felony for any person or entity. The statutes require insurers to Mission Statement refer cases to the Fraud Unit when they " To deter, investigate and facilitate suspect "...a fraudulent claim has been or is being made." 1 These statutes also aid conviction for insurance fraud" in reducing the opportunity for insurers to apply overly broad fraud deterrence measures that could adversely affect honest claimants. To facilitate improvement and meet future demands, the Fraud Unit needs increased statutory authority, more manpower and more funding to expand investigations, and increase success in the deterrence, investigation and prosecution of insurance fraud. During FY 2004, the Fraud Unit's successes included 44 convictions and restitution awards totaling more than $322,443.00. The number of Since 1994 referrals hit a three-year low last year. Restitution Total Convictions ..................562 and fines are also lower perhaps due to resource Total Restitution and Fines.....$6,270,314 constraints adversely impacting the Fraud Unit's ability to investigate and prosecute insurance fraud. The following table summarizes the Fraud Unit's performance measures for FY 2004 compared to previous years, including the Fraud Unit's first year, FY1994-95. Reporting Categories
Total Fraud Referrals Received a. Referrals for Information Only
3 2
FY2004
2,143 1,537 303 497 217 112 44 44 $322,443 $123,785 $19,960 $1.9M
FY2003
2,475 1,537 838 432 161 34 77 76 $1,278,321 $69,398 $29,841 $275,925
FY2002
2,225 1,535 690 698 221 83 41 41 $407,540 $413,576 $43,345 $2.2M
FY1994
620 310 310 136 5 5 5 5 $134,609 N/A $23,925 N/A
b. Number of Cases Investigated Cases Closed Without Referral for Prosecution Cases Referred to Prosecutors Indictments Prosecutions Convictions Restitution Resulting from Unit Operations Value of Property Recovered Fines Resulting from Unit Operations Amount Saved by Insurers
1 2
A.R.S. � 20-466(F) The Fraud Unit receives referrals from the public and from insurers reporting possible fraudulent activity and claims. Insurers submit many referrals for "information only," not for investigation. Data also includes referrals that are reviewed and found not to indicate a violation of Arizona law.
3
21
MARKET OVERSIGHT DIVISION
Paul J. Hogan ........... Market Oversight Administrator Maria G. Chavira ............. Market Analysis Supervisor Delbert L. Knight.... Market Examinations Supervisor Arnold V. Sniegowski.............. Investigations Supervisor
To protect Arizona insurance consumers, the Market Oversight Division ("MOD") gathers and analyzes market information, and investigates and examines possible Title 20 violations by producers, insurers and others. The Division is comprised of the following sections: Market Analysis, Market Examinations and Investigations. The Department's formation of MOD consolidated much of the "fact finding" (investigative and examination) and enforcement activity relative to market activity in one Division, enabling the Department to have a more integrated, flexible, and cost-effective approach to market conduct oversight and enforcement. The Division relies upon selective use of a broad range of investigative, examination, research, analysis and enforcement tools, emphasizing market analysis, and tailoring its regulatory approach to particular parties or issues. Market Analysis Section The Market Analysis Section performs analytical risk assessment of market information derived from both internal and external data sources to enable the Department to identify potential market conduct problems as early as possible and allow for appropriate regulatory intervention. The Market Analysis Section works to prioritize and coordinate the various market oversight functions of the Department and promotes an integrated system of proportional responses to insurer market problems. Market Examinations Section The Market Examinations Section performs examinations of insurers' market related practices. Examinations gauge compliance with information filed with the Department and with applicable Arizona law (including the Unfair Claims Settlement Practices Act) and target specific areas of insurer operations based on reports from the Market Analysis Section. Exam inat ions may result in d i s c i p l i n a r y action, corrective action p l a n s , restitution, civil penalties, or a d d i t i o n a l payments to policyholders a n d claimants. The Section also conducts follow-up examinations and monitoring to assess compliance with corrective action plans. Investigations Section The Investigations Section investigates allegations of unauthorized insurance activity and insurance code violations by insurers and professional service licensees, and refers apparent violations for appropriate enforcement action. Section personnel coordinate their investigative activities with market analysis activities, when appropriate.
Market Oversight Highlights
for Fiscal Year 2004
Assessed
civil penalties against insurers totaling $365,763. Initiated 7 market conduct examinations. Filed 25 market conduct examination reports. Recovered $89,513 in restitution, including interest, for Arizona policyholders and claimants. Opened 130 investigations and closed 97. Referred 33 cases for administrative action.
22
ARIZONA INSURANCE GUARANTY FUNDS
Michael E. Surguine .... Executive Director
RIZONA
The Arizona Guaranty Funds serve as a safety net to protect insurance consumers from financial loss in the event that an authorized insurance company becomes insolvent. There are actually two guaranty funds administered by Department staff. A Board of Directors appointed by the Governor oversees each fund. The Arizona Life and Disability Insurance Guaranty Fund covers life insurance, health insurance and individual annuities. The Arizona Property and Casualty Insurance Guaranty Fund covers most traditional property and casualty lines. Each guaranty fund consists of the insurers authorized in Arizona to write the lines of business the guaranty fund covers. Following an insolvency, the Property and Casualty Guaranty Fund investigates, adjudicates and pays the claims of Arizona insureds and claimants and provides a defense to the insured where appropriate. Similarly, the Life and Disability Guaranty Fund pays the claims of Arizona residents or provides for continued coverage under covered life, health and annuity contracts. Coverage under each guaranty fund is subject to certain statutory limitations and exclusions, and each guaranty fund receives distributions from the estates of insolvent insurer and levies assessments on its member insurers to generate the necessary funds to meet its obligations. Upon payment of a guaranty fund assessment, each member insurer receives a certificate of contribution, entitling that insurer to a credit against its premium tax obligation to the State of Arizona. Since its inception in 1970, the Arizona Property and Casualty Insurance Guaranty Fund has paid out over $126 million in claims to Arizona policyholders and claimants.1 Since its creation in 1977, the Arizona Life and Disability Insurance Guaranty Fund has paid out over $251 million in benefits to Arizona policyholders and claimants.2
Guaranty Funds Highlights
for Fiscal Year 2004
Property and Casualty Guaranty Fund paid out almost $2.5 million in claims and loss adjustment expenses on behalf of Arizona policyholders and claimants. Independent claims audit rated the claims handling performance of the Guaranty Fund staff as excellent. In addition, claims handling audits of two contractors reported satisfactory to excellent performance.
1 2
Does not include loss adjustment expenses and administrative expenses. Does not include administrative expenses.
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RECEIVERSHIP DIVISION
Leslie Hess.... ................... Deputy Receiver Herb Swafford ........................ Legal Analyst
The mission of the Receivership Division is to maximize the ability of insolvent insurance companies to pay valid creditor claims. The Division executes the Director's duties and powers as statutory Receiver of insolvent insurers, and oversees their rehabilitation or liquidation, subject to court oversight. Special deputy receivers, attorneys, accountants and other professionals administer the day-to-day affairs of the insolvent insurers' estates, including collection and liquidation of assets and distribution of assets to creditors. In addition, the Division assists Arizonans affected by insurance receiverships domiciled in other states, and works closely with the Guaranty Funds to satisfy the insolvent insurers' claims obligations to Arizonans. During Fiscal Year 2004, the Division continued the administration of ten domestic and three foreign insurers in receivership: American Bonding Company; AMS Life Insurance Company; AzSTAR Casualty Company; Diamond Benefits Life Insurance Company; Farm and Home Life Insurance Company; Great Global Assurance Company; North American Physicians Insurance Risk Retention Group; Old West Annuity & Life Insurance Company, Premier Healthcare of Arizona, Inc.; USA Property & Casualty Insurance Company; Superior Pacific Casualty Company; Superior National Insurance Company and Reliance Insurance Company.
Receivership Highlights
for Fiscal Year 2004
Distributed $61,733,601 from receivership estates to policyholders, guaranty funds, and other creditors, including $36 million to annuitants of Old West Annuity & Life Insurance Company currently in rehabilitation. On March 2, 2004, the Department placed Old West Annuity & Life Insurance Company, an Arizona domestic insurance company into rehabilitation receivership, although Old West remains solvent under the Department's management as Receiver. Obtained Court approval of approximately $150.9 million in claim recommendations in the Farm & Home Life Insurance Company receivership.
24
CAPTIVE INSURANCE DIVISION
Captive Administrator...... Rod Morris
The Department established the Captive Insurance Division in 2002 to provide an alternative mechanism to traditional insurance that enables companies to control and customize their costs and coverages in a manner that is more responsive to their financial objectives. The Division is responsible for the regulatory oversight of these captive entities, including all processes related to licensing, monitoring and examination. The Captive Division's Administrator is Rod Morris, appointed almost coincidentally with the end of the fiscal year. Mr. Morris comes to the Department with a wealth of experience in both the private and public sectors. In a career of over 35 years in the insurance industry, he spent the last 25 years as a Senior Vice President in the Field Operations, International and Risk Management divisions of a major private sector insurer and, during the most recent three years, as the head of Political Risk Insurance for the US government in Washington, DC. 1 CAPTIVE FEES REPORT Fiscal year 2004 licensing fees collected Initial Licenses: Total applicants: 31 Fees collected: $31,000 Renewals: Licensees renewed: 12 Fees collected: $66,000
Total Fees collected: $97,000
Division Highlights
for Fiscal Year 2004 � � Total active captive insurers: 25 Out of the 25, 16 are Pure (single parent) insurers, 7 are Risk Retention Groups, 1 is an Industry group captive, and 1 is an Agency group captive. The AZ legislature enacted HB2235 which expands the captive law to permit non-profit corporations to form group and pure captives. It is effective August 25, 2004. With the support of the governor and director, the program is gaining momentum and is seeing an increase in the number of applications.
�
�
1
Reported in accordance with A.R.S. � 20-1098.17. Fees prescribed in A.A.C. R20-6-2002.
25
INF O RMATION SERVICES DIVISION
Eugene Glover.....Chief Information Officer
The mission of the Information Services Division is to provide quality information technology support to enable the Department to fulfill its mission. The Division manages, plans and maintains the operation of the Department's computer resources. The Division operates a Help Desk to answer questions and to resolve computer and communications related problems. Technical support and design of the Department's web site at www.id.state.az.us on the Internet, is also the responsibility of the Information Services Division, as is the development and maintenance of the Department's databases and system programs.
Information Services Highlights
for Fiscal Year 2004
Developed a real-time, on-line lookup utility for information on insurance companies licensed in Arizona and implemented the system through the Arizona Web Portal. Enhanced the Department's real-time, on-line Insurance Producer Lookup utility to include application data to assist producers in determining the status of their applications. Migrated and enhanced the Department's central Producer Licensing Databases to SQL in preparation for delivering additional on-line services. Continue to audit complaint and licensing data as represented on NIPR/NAIC databases to aid their correction of data to allow accurate processing of our Department data. Implemented communications to establish computer services at Department's new Flagstaff Office Enhanced security protections and drastically reduced e-mail spam and virus vulnerabilities.
26
27
Public Information Resources
28
29
Internet Resources
www.id.state.az.us The Department continually updates its website, which is a primary means for many in the industry and public to obtain information about the Department's activities, reports, publications, new laws, etc. The website is organized according to common visitors, including insurance consumers, producers and insurers. Visitors are guided through portals to information relevant to their needs.
An exciting new feature on the site is the ability for the visitors to "look up" any insurance company (and other licensees) to verify licensure and obtain basic financial and licensing data. The Producer Look Up feature was added last year, and the Insurer Look Up function enhances and eases the public's access to information about licensed insurance companies operating in Arizona. Similar to other state agencies that license particular professionals, we added a licensee "look up" function to our website. Now, before an insurance consumer opts to do to business with a particular agent or insurance company, they can verify on-line that they are licensed by the Department of Insurance. Insurance producers will find the page dedicated to them was revamped with expanded information and resources. The Department continues to offer a free email subscription service. Visitors can sign up for various mailing lists to receive immediate copies of Department Press Releases, Regulatory Bulletins and the quarterly newsletter by email. In addition to providing cost savings, this service allows us to communicate directly and promptly with the Department's stakeholders. Consumer Resources The Department's website contains a page dedicated to insurance consumers. Information is categorized by type of insurance, so visitors can quickly identify information relevant to their research. In addition, the number of helpful links has been increased, as has the information available in Spanish. The Department has numerous consumer publications on-line, including auto and homeowner guides and premium comparisons, guides to individual and group health insurance, and a detailed guide to the Health Care Appeals Program. Insurance consumers can also look up enforcement actions taken by the Department against insurers or producers, which are published quarterly in our newsletter, and posted to the website. 30
The website offers easy-to-follow instructions on how to seek assistance from the Department. Anyone wishing to file a complaint can print a "Request for Assistance" form (in English or Spanish) and then fax or mail it to the Department. In addition, there is a special email address that visitors can use to submit questions or request literature. This has proved to be the fastest growing method of communication with the Department. Industry Resources The Department's website offers current and prospective insurance professionals fast service, 24 hours a day, 7 days a week. Dozens of official Department forms and instructions for financial filings, and rate and form filings are posted, including all the Arizona "review standards checklists" and transmittal documents necessary for making complete form filings. In addition, surveys and other reporting forms are available on-line for quicker access and completion. The Producer Look Up feature is also popular with insurer personnel. Information on legislative proposals and rules activity initiated by the Department is available on line, allowing interested parties to stay informed. All Regulatory Bulletins issued by the Department are also posted on-line for easy reference. There is an extensive page dedicated to producer licensing which contains license applications, forms, an up-to-date fee schedule, a summary of law changes, and "frequently asked questions". There's also continuing education information, including forms, approved courses and course providers. Other features Visitors can obtain the Department's press releases which highlight important regulatory activity and consumer education information. The site also contains a section for employment and contractor opportunities. Another on-line resource is the Department's quarterly newsletter, Insurance Regulator, which is a good source for information about policy and procedural activity at the Department.
31
Quarterly Newsletter
Insurance Regulator
"Insurance Regulator" is the Department of Insurance quarterly Second Quarter 2004 newsletter. "Insurance Regulator" provides insurance licensees, public officials and others with information regarding key insurance regulation-related developments, from a local and national perspective. New to the newsletter is a regular feature that describes current compliance issues to help insurers stay on top of Arizona requirements, such as auto insurance cancellation laws and health care appeals requirements. In addition to informative articles, the newsletter contains a comprehensive report on regulatory activity of the Department of Insurance for each quarter. The report lists: � New licenses issued to insurers in a variety of categories � Insurer name changes � Mergers and acquisitions � Insurer withdrawals from Arizona � Insurer suspensions and reinstatements � Receivership activity � Market conduct exam reports, which include the type of violations uncovered and the action taken Disciplinary action against insurers and individuals � Rules promulgated by the Department, and � Regulatory bulletins issued by the Director. Other regular features in the newsletter include the Legislative Report which updates key legislative developments, and the Fraud Unit Report, which helps to keep the industry apprised of activity and developments at the Fraud Unit.
�
"Insurance Regulator" is published only electronically. It is distributed to all who subscribe to the Department's mailing list. Converting to an Internet based publishing and delivery system reduces costs and ensures that the newsletter is directed to all interested subscribers. An archive of the newsletter can be viewed on the Department's website at www.id.state.az.us. Insurance Regulator
Published by the Arizona Department of Insurance 2910 N. 44th St., Suite 210, Phoenix, AZ 85018 Janet Napolitano, Governor Christina Urias, Director Erin H. Klug, Public Information Officer (602) 912-8456 www.id.state.az.us
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Consumer Publications
The Department publishes numerous items of consumer literature which are available on the Department's website at www.id.state.az.us or by calling or visiting the Department. In addition, the Department distributes several key insurancerelated publications from other federal and state regulatory agencies which can be obtained by calling (602) 912-8444 or (800) 325-2548.
Department Publications
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
A Guide to Group Health Insurance In Arizona A Guide to Individual Health Insurance in Arizona A Guide to Health Care Appeals * How to Resolve Insurance Complaints * Automobile Premium Comparison Survey, for 12 hypothetical risks * Homeowners' Premium Comparison Survey, for like homes in Phoenix, Glendale, Mesa, Flagstaff and Tucson * Mobile Homeowners' Premium Comparison Survey, for a hypothetical risk in Mesa, Tucson and Yuma * Personal Lines Complaint Ratios for homeowners and auto insurance * Is my fire-related loss covered by insurance? Tips for Wildfire Victims Managed Care Complaint Ratios Consumer Guide to Understanding How Insurers Use Credit Information Consumer Guide to Homeowners' Insurance * Consumer Guide to Automobile Insurance * Overview of the Arizona Department of Insurance and the Arizona Insurance Industry Fighting Insurance Fraud in Arizona A Consumers Guide to Common Insurance Terms List of Individual Health Insurance Resources List of Individual Health Insurers List of Long Term Care Insurers List of Medicare Supplement/Medicare+Choice Plans Medicare Supplement Insurance Premium Comparison
Literature from Other Oranizations Available from the Department
! ! ! ! ! ! ! ! !
Buyer's Guide To Fixed Deferred Annuities Settling Claims After A Disaster (Insurance Information Institute) Guide to Health Insurance for People with Medicare, Choosing a Medigap Policy A Shoppers Guide to Long Term Care Insurance Recent Changes in Health Care Law (HIPAA, MHPA, Newborn Act, WHCRA) Medicare and You 2004 Introducing Medicare-Approved Discount Cards* Guide to Choosing a Medicare Approved Drug Discount Card* Protecting your Health Insurance Coverage
* Also available in Spanish
33
Laws and Policy
34
35
2003/2004 Legislative Review
The Arizona Department of Insurance initiated three bills during the 2003 legislative session, and one bill in 2004, all of which were signed into law by the Governor. Other insurance-related legislation enacted in the 2002 and 2003 sessions is identified below. Regulatory Bulletins 2003-08 and 2004-02, available on-line at www.id.state.az.us, discuss the listed insurance legislation in more detail. In addition, customers can view the laws amended by these bills at the Legislature's web site (www.azleg.state.az.us).
2003
DEPARTMENT BILLS HB2152 Captive insurers (Ch. 242) HB2153 Long term care insurance (Ch. 133) HB2160 Health insurer reporting (Ch. 55) OTHER INSURANCE-RELATED BILLS SB1010 Elder abuse; medical malpractice (Ch. 129) SB1048 Professional employer services (Ch. 180) SB1265 Insurance policy; grounds for cancellation (Ch. 120) SB1266 Residential property insurance; prohibited acts (Ch. 131) HB2015 Reviser's technical corrections: 2003 (Ch. 188) HB2032 Adverse underwriting decision; credit history (Ch. 151) HB2049 State agency reports; repeal (Ch. 104) HB2148 Mortgage guaranty; insurance (Ch. 28) HB2150 Insurance producers; continuing education; extension (Ch. 216) HB2151 Vehicles uninsured coverage; limits; notice (Ch. 86) HB2154 Insurance holding company systems (Ch. 143) HB2156 Vehicle claims; lienholders; notice (Ch. 243) HB2186 Life insurance; annuities; replacement (Ch. 224) HB2211 Hospital emergency services; study committee (Ch. 111) HB2267 Towed vehicle retrieval; insurance companies (Ch. 153) HB2273 Structural pest control commission (Ch. 146) HB2283 Taxis, limousines, and sedans; regulations (Ch. 168) HB2294 Vehicle title; registration (Ch. 258) HB2306 Employer drug policy (Ch. 185) HB2340 Insurers; credit life and disability (Ch. 81) HB2358 Health coverage impact (Ch. 232) HB2391 Removal of Medicaid special exemption (Ch. 136) HB2429 Social security numbers (Ch. 137)
36
2004
DEPARTMENT BILL HB2228 Charitable gift annuities (Ch. 30) OTHER INSURANCE-RELATED BILLS SB1094 Unfair claims; medical necessity review (Ch. 5) SB1113 Expert testimony; affidavits; health professionals (Ch. 4) SB1166 AHCCCS; Healthcare Group (Ch. 332) SB1204 Occupational therapy (Ch. 130) SB1238 Campaign finance; separate segregated fund (Ch. 156) SB1241 Vehicle insurance; loss; vendor choice (Ch. 226) SB1256 Workers' compensation; insurance carriers (Ch. 307) SB1311 Purchaser of dwelling actions (Ch. 216) SB1366 Department of Administration; self-insurance; benefits (Ch. 335) SB1381 Insurance; employee, union groups (Ch. 159) HB2181 School districts; agencies; insurance pools (Ch. 230) HB2224 Insurer claim files; access by director; definitions (Ch. 162) HB2232 Insurance producer licenses; renewal (Ch. 162) HB2233 Consumer reporting agency; information disclosure (Ch. 31) HB2235 Captive insurers; formation (Ch. 32) HB2239 Annuities; standard nonforfeiture law (Ch. 119) HB2241 Department of financial institutions (Ch. 188) HB2270 Rental car insurance; damage waiver (Ch. 317) HB2313 Insurnace policies; annuity contracts; replacement (Ch. 244) HB2324 Life insurance and annuities; benefits; exemption from seizure; exceptions (Ch. 201) HB2370 Association groups (Ch. 164) HB2433 Healthcare district; self-insurance (Ch. 141) HB2458 Taxis, limousines, sedans; regulation (Ch. 323) HB2463 Towed vehicles; release; insurance companies (Ch. 144) HB2468 Auto insurance; repair facility (Ch. 233) HB2547 Insurance inquiries; use by insurer (Ch. 149) HB2551 Insurance; utilization review agents; qualification (Ch. 211) HB2684 Vehicle protection product warranties (Ch. 128)
37
2003 Regulatory Bulletins
Throughout the year, the Director customarily issues regulatory bulletins to explain the Department's interpretation and application of insurance related laws, to provide commentary regarding regulatory compliance issues, and to provide important or useful information about the insurance laws and markets. The following bulletins were issued by the Director during 2003. The entire text of each is on the Insurance Department web site at www.id.state.az.us. Number 2003-01 2003-02 Title Premium Loans by Bail Bond Agents Revision of Private Passenger Automobile Property Damage Threshold for Purposes of A.R.S. � 20-1631(E) Revision of Form for Selection of Limits or Rejection of Uninsured Motorist or Underinsured Motorist Coverage Property and Casualty Insurance; Insurance Protection for Policyholders who have been Deployed for Military Duty; Coverage Continuation and/or Coverage Suspension AIDS/HIV Testing and Consent Form; Release of Related Information Licensure as Title Insurance Agent and as Escrow Agent A.R.S. � 20-443(A)(6) � Prohibition Against Referring to the Arizona Insurance Guaranty Funds in Connection with the Sale of Insurance Policies 2003 Arizona Insurance Laws 2003-08 2003-09 2003-10 Common Areas of Regulatory NonCompliance in Personal Lines Form for Selection of Limits or Rejection of Uninsured Motorist Coverage or Underinsured Motorist Coverage Laws 2003, Chapter 133 (HB2153); Long Term Care Insurance 2001 Commissioners' Standard Ordinary (CSO) Mortality Table 7/1/03 7/2/03 7/15/03 Date Issued 1/8/03 1/23/03
2003-03
3/19/03
2003-04
4/9/04
2003-05 2003-06 2003-07
5/13/04 6/9/03 6/9/03
2003-11 2003-12
9/18/03 12/29/03
38
39
Department of Insurance Fiscal Reports
40
41
GENERAL FUND REVENUES
INSURANCE PREMIUM TAX RECEIPTS FIRE VEHICLE SURPLUS LINES & INDUSTRIAL RETALIATORY ALL OTHER RISKS TOTAL INSURANCE PREMIUM TAX RECEIPTS (see chart, below) $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 LESS DISBURSEMENTS TO OTHER FUNDS FIRE DISTRICTS FOR PENSION (11,677,878) (10,588,634) (8,139,724) (7,211,989) (5,670,876) FUNDS1 PUBLIC SAFETY RETIREMENT (15,441,384) (14,009,067) (12,629,093) (11,456,444) (10,953,470) SYSTEM2 SUBTOTAL: INSURANCE PREMIUM TAXES DEPOSITED TO GENERAL FUND $ 308,790,874 $ 226,650,300 $ 194,554,980 $ 185,228,457 $ 160,720,078 OTHER GENERAL FUND REVENUES PRODUCER LICENSE FEES INSURER CERTIFICATE OF AUTHORITY FEES OTHER LICENSING AND REGISTRATION FEES INSURER FILING FEES FINES AND PENALTIES PUBLICATIONS, PHOTOCOPIES, MISC. FRAUD UNIT ASSESSMENTS SUBTOTAL: OTHER GENERAL FUND REVENUES TOTAL GENERAL FUND REVENUES
1 2
FY 2004 13,742,049 15,441,384 11,436,338 4,611,678 290,678,687 $ 335,910,136
FY 2003 12,463,839 14,002,558 9,237,767 3,246,789 212,297,049 $ 251,248,001
FY 2002 9,585,466 12,635,603 5,324,242 3,343,768 184,434,719 $ 215,323,797
FY 2001 8,484,694 11,456,200 3,457,128 3,702,143 176,796,725 $ 203,896,890
FY 2000 6,671,619 10,949,981 3,396,121 4,146,486 152,180,217 $ 177,344,424
FY 2004 $ 3,770,270 1,292,805 90,005 576,711 534,995 351,951 1,082,900 $7,699,637 $316,490,511 $
FY 2003 3,282,721 1,430,655 87,160 585,728 821,406 261,887 1,116,500 $7,586,056 $234,236,356 $ $
FY 2002 3,118,270 1,482,366 81,670 598,985 1,263,200 309,740 1,095,200 7,949,430 $ $
FY 2001 2,446,092 1,301,887 74,425 497,869 2,047,282 325,220 1,092,300 7,785,075 $ $
FY 2000 1,847,538 905,951 67,064 431,538 979,328 283,187 1,106,700 5,621,306
$ 202,504,410
$ 193,013,532
$ 166,341,384
Per A.R.S. �� 20-224(C), 9-951 and 9-952. Per A.R.S. � 20-224.01.
42
OPERATING EXPENDITURES
GENERAL FUND SOURCES GENERAL FUND NON-GENERAL FUND SOURCES INSURANCE EXAMINERS' REVOLVING FUND [A.R.S. � 20159] ASSESSMENTS FUND FOR VOLUNTARY PLANS [A.R.S. � 20-2201(E)]1 ARIZONA PROPERTY AND CASUALTY INSURANCE GUARANTY FUND [A.R.S. � 20-661 et seq. ]2 ARIZONA LIFE AND DISABILITY INSURANCE GUARANTY FUND [A.R.S. � 20-681 et seq. ]2 CAPTIVE INSURANCE REGULATORY AND SUPERVISION FUND [A.R.S. � 20-1098.18] RECEIVERSHIP LIQUIDATION FUND [A.R.S. � 20-648] HEALTH CARE APPEALS FUND [A.R.S. � 20-2540] FINANCIAL SURVEILLANCE FUND [A.R.S. � 20-156(F)] TOTAL NON-GENERAL FUND SOURCES TOTAL OPERATING EXPENDITURES, ALL FUNDING SOURCES
1 2
FY 2004 $ 6,069,201 $
FY 2003 5,719,404 $
FY 2002 5,844,585 $
FY 2001 5,624,261
$
3,923,479 219,082 620,619 498,400 1,333 159,282 129,760 297,396
$
5,603,667 421,943 562,506 447,357 0 136,254 114,402 269,207
$
7,425,570 $ 230,598 457,543 348,996 0 78,650 117,174 218,959
7,663,719 208,391 460,702 519,957 0 142,248 56,710 0
$
5,849,351
$
7,555,336
$
8,877,490
$
9,051,727
$ 11,918,552
$ 13,274,740
$ 14,722,075
$ 14,675,988
Effective July 1, 2002, per Laws 2002, Chapter 74, replaced the "Assessment Fund" formerly prescribed by [A.R.S. � 20-2351(C)]. Amounts shown exclude claim payments and related expenses.
43
Insurance Professionals and Insurers Authorized in Arizona
44
45
SUMMARY OF INSURANCE PROFESSIONALS
RESIDENT TYPE OF PROFESSIONAL Insurance Producers
1
NON-RESIDENT 12/31/2003 12/31/2002
25,206 25,252 1,026 32,453 28,678 17,660 165 11 25 0 19 4 8 389 1 339 185 114 2 9 0 7 3 0 21,885 21,908 509 29,310 25,827 15,724 87 4 13 0 22 4 8 214 0 253 175 105 2 9 0 7 2 0
12/31/2003
15,336 15,401 156 27,896 24,008 8,921 1,119 309 66 0 3 2 1 202 32 1,547 29 29 0 0 152 21 10 1
12/31/2002
13,439 13,446 82 27,315 23,048 8,874 290 321 52 4 3 1 4 185 26 1,310 27 29 0 0 151 15 11 1
PROPER TY CASUALTY PERSONAL LINES LIFE ACCIDENT AND HEALTH OR SICKNESS VARIABLE CONTRACTS CREDIT TRAVEL ACCIDENT TICKET AND BAGGAGE TITLE OTHER (NON-RESIDENT RECIPROCITY)
Managing General Agent
PROPERTY AND CASUALTY LIFE ACCIDENT AND HEALTH OR SICKNESS
Insurance Broker
SURPLUS LINES BROKER MEXICAN INSURANCE SURPLUS LINES BROKER INSURANCE ADJUSTER THIRD PARTY (LIFE/HEALTH) ADMINISTRATOR UTILIZATION REVIEW AGENT
Insurance Claims and Administration Professionals
Insurance Ratemaking Professionals
RATING ORGANIZATION RATE SERVICE ORGANIZATION
Other Insurance Professionals
BAIL BOND AGENT RENTAL CAR AGENT RISK MANAGEMENT CONSULTANT REINSURANCE INTERMEDIARY
120,000 100,000 80,000 60,000 40,000 20,000 -
99,379
Insurance Producer Licensing*
91,577 83,577 73,855
BARS: Total produc ers licensed as of J une 30.
54,846
2004
50,634
2003
45,818
2002
42,076
2001
Fiscal Year
LINE: Number of produc er license applications rec eived.
*Excludes third-party administrators, utilization reviewers, ratemaking professionals and reinsurance intermediaries
1
Indicates the number of individuals and entities authorized in each line of authority. Each producer may be authorized for more than one line of authority.
46
SYNOPSIS OF 2003 ANNUAL STATEMENTS
INSURER TYPE NUMBER OF INSURERS ASSETS LIABILITIES
($000 Omitted)
CAPITAL & SURPLUS
ARIZONA PREMIUMS
DOMESTIC COMPANIES Life And Disability LIFE AND DISABILITY INSURER CREDIT LIFE & DISABILITY REINSURANCE LIFE AND DISABILITY REINSURER All Other Health Care HEALTH CARE SERVICES ORGANIZATION HOSPITAL, MEDICAL, DENTAL, SERVICE ORGANIZATION PREPAID DENTAL PLAN ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER MECHANICAL REIMBURSEMENT REINSURER Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER LIFE CARE PROVIDER TOTAL FOR DOMESTIC COMPANIES FOREIGN AND ALIEN COMPANIES Life And Disability LIFE AND DISABILITY INSURER FRATERNAL BENEFIT SOCIETY All Other Health Care HEALTH CARE SERVICES ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER RISK RETENTION GROUP Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER PREPAID LEGAL INSURER LIFE CARE PROVIDER TOTAL FOR FOREIGN AND ALIEN COMPANIES 564 25 2 813 60 21 20 2 2 1,509 3,567,332,361 77,321,797 686,413 1,033,797,038 1,729,465 6,684,115 17,620,239 52,687 842,764 4,706,066,879 3,336,285,627 70,595,054 410,023 686,480,88 6 1,124,260 4,020,473 14,540,617 16,541 838,260 4,114,311,741 231,046,735 6,726,742 276,390 347,315,822 605,204 2,663,642 3,079,623 36,146 4,504 591,754,807 7,930,064 93,529 176,035 5,692,407 20,558 427,893 125,980 8,216 n/a 14,474,683 47 100 115 7 3 7 41 4 1 5 10 340 115,435,221 n/a 3,177,701 850,004 536,898 14,285 6,588,851 5,117 162,887 3,538,512 422,155 130,731,631 107,399,856 n/a 1,592,755 498,907 226,402 4,258 4,648,316 2,783 95,083 2,900,077 475,435 117,843,873 8,035,365 n/a 1,584,946 351,097 310,496 10,027 1,940,535 2,334 67,804 638,435 -53,280 12,887,758 9,507,179 n/a n/a 2,848,464 928,665 45,583 1,101,321 n/a 39,834 20,715 n/a 14,491,760
Total 2003 Arizona Premiums
($000 Omitted)
ALL OTHER HEALTH LIF E AND DISABILITY 17,530,772 60% CARE 3,998,746 14%
OT HER BUSINESS TYPES 622,639 2%
PR OPER T Y AND CASUALTY 6,814,286 24%
Credit Life and Disablity Reinsurance fiscal year financial information is due August 1 or November 1 pursuant to A.R.S. � 20-1082. Excludes Captive Insurers and Domestic Risk Retention Groups.
47
SYNOPSIS OF 2003 ANNUAL STATEMENTS - (continued)
INSURER TYPE NUMBER OF INSURERS ASSETS LIABILITIES
($000 Omitted)
CAPITAL & SURPLUS
ARIZONA PREMIUMS
TOTAL ARIZONA PREMIUMS BY INSURER TYPE Life And Disability LIFE AND DISABILITY INSURER FRATERNAL BENEFIT SOCIETY CREDIT LIFE & DISABILITY REINSURANCE LIFE AND DISABILITY REINSURER All Other Health Care HEALTH CARE SERVICES ORGANIZATION HOSPITAL, MEDICAL, DENTAL, SERVICE ORGANIZATION PREPAID DENTAL PLAN ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER RISK RETENTION GROUP MECHANICAL REIMBURSEMENT REINSURER Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER PREPAID LEGAL INSURER LIFE CARE PROVIDER GRAND TOTAL: 611 25 100 115 9 3 7 854 60 4 22 25 2 12 1,849 3,682,767,582 77,321,797 n/a 3,177,701 1,536,416 536,898 14,285 1,040,385,889 1,729,465 5,117 6,847,002 21,158,751 52,687 1,264,919 4,836,798,510 3,443,685,483 70,595,054 n/a 1,592,755 908,930 226,402 4,258 691,129,202 1,124,260 2,783 4,115,556 17,440,694 16,541 1,313,695 4,232,155,614 239,082,100 6,726,742 n/a 1,584,946 627,487 310,496 10,027 349,256,357 605,204 2,334 2,731,445 3,718,057 36,146 -48,776 604,642,565 17,437,243 93,529 n/a n/a 3,024,499 928,665 45,583 6,793,728 20,558 n/a 467,728 146,695 8,216 n/a 28,966,443
Total Arizona Premiums
($000 Omitted)
30, 000, 000 25, 000, 000 20, 000, 000 15, 000, 000 10, 000, 000 5, 000, 000 0 Calendar Year L i fe And Disability A l l Other Health Care Pr o p er ty And Casualty Oth er Business Types
2003 17, 525, 000 3, 998, 746 6, 813, 983 622, 639
2002 16, 422, 034 4, 055, 382 6, 111, 160 519, 212
2001 13, 454, 477 4, 070, 160 5, 455, 216 432, 870
2000 12, 212, 043 3, 859, 749 4, 849, 258 341, 305
1999 8, 665, 378 3, 508, 299 4, 652, 261 348, 881
Credit Life and Disablity Reinsurance fiscal year financial information is due August 1 or November 1 pursuant to A.R.S. � 20-1082. Excludes Captive Insurers and Domestic Risk Retention Groups.
48
INSURERS AUTHORIZED IN ARIZONA
AS OF DECEMBER 31, 2003
NAME AAA FIRE & CASUALTY INS CO * AAA LIFE INS CO ACA FINANCIAL GUARANTY CORP ACACIA LIFE INS CO ACADEMY LIFE INS CO ACADIA INS CO ACCELERATION LIFE INS CO ACCEPTANCE INS CO ACCIDENT FUND INS CO OF AMERICA ACCREDITED SURETY AND CASUALTY CO, INC. ACE AMERICAN INS CO ACE AMERICAN REINSURANCE CO ACE FIRE UNDERWRITERS INS CO ACE GUARANTY CORP. ACE INDEMNITY INS CO ACE PROPERTY AND CASUALTY INS CO ACIG INS CO ACME LIFE INS CO ACSTAR INS CO ACUITY, A MUTUAL INS CO ADAMSON LIFE INS CO ADIRONDACK REINSURANCE CO ADMIRAL INDEMNITY CO ADMIRAL LIFE INS CO OF AMERICA ADMIRAL LIFE INS CO OF AMERICA ADVANCE INS CO ADVANTA INS CO ADVANTA LIFE INS CO ADVANTAGE WORKERS COMPENSATION INS CO AEGIS SECURITY INS CO AEIC * AETNA HEALTH AND LIFE INS CO AETNA HEALTH INC. AETNA INS CO OF CONNECTICUT AETNA LIFE INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
AK MI MD DC MO ME OH NE MI FL PA PA PA MD PA PA IL AZ IL WI AZ AZ DE AZ AZ AZ AZ AZ IN PA DE CT AZ CT CT
ASSETS
13,876,643 363,892,090 374,072,952 1,053,129,289 360,590,679 150,756,364 12,031,454 58,877,002 1,498,146,855 32,719,218 3,514,325,581 321,724,629 74,780,056 1,207,785,868 21,384,423 3,675,443,471 175,459,225
LIABILITIES
1,798,889 328,154,889 236,289,757 885,504,613 314,594,773 114,265,584 117,579 104,581,089 1,099,766,903 20,421,293 2,902,525,326 136,753,286 24,081,858 952,203,218 10,509,244 2,908,216,329 122,588,179
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
12,077,754 35,737,202 137,783,194 167,624,676 45,995,906 36,490,780 11,913,875 (45,704,087) 398,379,952 12,297,925 611,800,255 184,971,343 50,698,198 255,582,650 10,875,179 767,227,142 52,871,038 3,254 1,820,857 3,609,533 6,257,823 1,105,645 0 0 (40,960) 43,492 60,072 26,265,015 0 569,174 0 (476) 2,321,788 11,938 CI MT PI VE DI LI SU DI LI VA VL DI LI CW MT PI SU VE DI LI SUSPENDED CW CI SU CW DI MT PI SU VE CW DI MT PI SU VE CW DI MT PI SU VE CI SU CW MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE UR 234,979 0 CI MT PI SU VE CI MT PI SU VE UR UR 0 CI MT PI VE
10921 (415)565-2935 71854 (734)779-2600 22896 (212)375-2000 60038 (301)280-1000 60046 (610)648-5000 31325
(800)773-4300
71099 (314)275-5200 37958 (712)329-3600 10166 (517)367-1400 26379 (407)841-8500 22667
(215)640-1000
22705 (215)761-1000 20702
(215)761-1000
30180 (212)974-0100 10030 (215)761-1000 20699 (215)761-1000 19984 (972)702-9004 --(800)477-8858
Financial Information Not Available 76,744,263 1,044,170,256 50,317,617 715,630,472 26,426,646 328,539,784
22950 (860)224-2000 14184 (920)458-9131 ----44318 71390
(314)275-5200 (602)254-5866 (856)429-9200
Financial Information Not Available Financial Information Not Available 52,463,514 27,785,123 24,678,391
Name changed 4/16/03, now known as ADMIRAL LIFE INS CO OF AMERICA
8,569,015 29,707,600 8,549,707 4,886,477 15,041,587 62,758,247 11,786,575 1,255,542,776 91,184,927 43,819,226 26,156,026,710 32,316 7,069,907 787,261 819,148 2,305,218 31,570,612 5,424,595 1,116,464,939 43,885,528 14,865,422 24,113,286,848 8,536,699 22,637,693 7,762,446 4,067,329 12,736,369 31,187,635 6,361,981 139,077,837 47,299,399 28,953,804 2,042,739,862 0 997,665 0 0 1,374,433 1,241,957 0 0 314,617,190 (24,994) 51,995,252 DI LI DI LI CI DI MT PI SU VE DI LI CW SU CI MT PI SU VE CI DI LI HC CI VE DI LI
71390 (517)349-6000 83445 (913)273-9804 33987 (800)847-7999 80055
(800)847-7999
40517 (801)288-8750 33898 (717)657-9671 44148 (800)437-2342 78700 (860)273-0123 95003
(602)427-2200
36153 (860)273-7126 60054 (860)273-0123
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
49
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME AFFILIATED FM INS CO AFFIRMATIVE INS CO AGL LIFE ASSURANCE CO AGRI GENERAL INS CO AIG ANNUITY INS CO AIG LIFE INS CO AIG NATIONAL INS CO, INC. AIG SUNAMERICA LIFE ASSURANCE CO AIU INS CO AKSARBEN LIFE INS CO ALASKA NATIONAL INS CO ALEA NORTH AMERICA INS CO ALL AMERICA INS CO ALLEGIANCE LIFE INS CO ALLFIRST LIFE INS CORP ALLIANCE INTERNATIONAL INS, INC. ALLIANCE OF NONPROFITS FOR INS, RISK RETENTION GR ALLIANZ GLOBAL RISKS US INS CO ALLIANZ INS CO ALLIANZ LIFE INS CO OF NORTH AMERICA ALLIED PROFESSIONALS INS CO, RRG ALLIED PROPERTY AND CASUALTY INS CO ALLMERICA FINANCIAL BENEFIT INS CO ALLMERICA FINANCIAL LIFE INS AND ANNUITY CO ALLSTATE ASSURANCE CO ALLSTATE FIRE AND CASUALTY INS CO ALLSTATE INDEMNITY CO ALLSTATE INS CO ALLSTATE LIFE INS CO ALLSTATE PROPERTY AND CASUALTY INS CO ALPHA PROPERTY & CASUALTY INS CO ALTA HEALTH & LIFE INS CO AMBAC ASSURANCE CORP AMCO INS CO AMCOMP ASSURANCE CORP AMERICAN AGRI-BUSINESS INS CO AMERICAN AGRICULTURAL INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
RI IL PA IA TX DE NY AZ NY NE AK NY OH IL AZ AZ VT CA CA MN FY Ending 06/30/2003 AZ IA MI MA IL IL IL IL IL IL WI IN WI IA FL TX IN
ASSETS
765,705,971 74,520,139 1,560,131,626 227,258,192 43,241,309,708 13,600,674,618 25,471,976 26,165,384,786 2,121,502,755
LIABILITIES
565,282,279 37,827,711 1,549,317,484 69,688,227 40,286,378,241 12,971,154,076 11,004,054 25,563,036,503 1,629,950,585
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
200,423,692 36,692,428 10,814,143 157,569,965 2,954,931,467 629,520,542 14,467,922 602,348,283 491,552,170 3,653,643 0 3,328,792 2,060,912 123,398,610 19,784,311 1,154,406 88,940,803 90,914 CI MT PI SU VE CI PI DI LI VA VL CI MT PI VE DI LI VA DI LI VA VL CI DI MT PI SU VE DI LI VA CW DI MT PI SU VE
10014 (401)275-3000 42609
(205)970-7000
60232 (484)530-4800 42757 (515)559-1000 70432 (800)424-4990 66842 (306)594-2952 36587
(770)753-8300
60941 (888)502-0600 19399 (212)770-7000 82880
Name changed 1/30/03, now known as CSI LIFE INS CO
466,569,270 504,644,817 151,085,504 244,044,865 311,913,622 248,592,030 91,943,016 10,934,356 154,655,648 256,052,787 59,142,489 233,110,509 94,958 375,311 2,539,747 0 CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE DI LI
38733 (907)248-2642 24899
(860)513-4180
20222 (419)238-1010 62790 (217)789-2500 91111 --10023
Name changed 10/16/03, now known as M&T LIFE INS CO
(301)881-8300 (802)229-5042 Financial Information Not Available 10,314,811 4,788,308,119 5,834,199 1,403,655,843 4,480,612 3,384,652,276 0 6,018,876 UR CI CW MT PI SU VE
35300 (818)260-7500 35300
Name changed 7/9/03, now known as ALLIANZ GLOBAL RISKS US INS CO
30,966,138,820 28,936,159,067 2,029,979,753 199,111,684 DI LI VA VL RG 2,513,737 0 4,027,717 0 0 92,370,759 259,429,102 44,404,266 107,789,013 305,010 641,869 15,053,338 23,579,502 9,408 262,915 (300) CW MT PI SU VE CW DI MT PI SU VE DI LI VA VL LI MG CW DI MT PI SU VE CW DI MT PI SU VE DI LI VA VL CI DI MT PI SU VE CI PI VE DI LI VA SU CW MT PI SU VE CW PI CI MT PI SU VE
90611 (763)765-6500 11710 42579
(515)508-4211
Financial Information Not Available 82,623,866 13,842,897 12,611,782,500 14,756,769 15,768,458 104,052,717 42,690,593,181 62,740,812,355 20,197,868 15,843,742 255,905,613 7,278,084,300 972,048,484 198,128,542 11,846,233 885,251,959 1,301,230 24,538 12,116,185,682 3,662,120 382,904 3,944,405 81,322,636 13,818,359 495,596,818 11,094,649 15,385,554 100,108,312
41840 (517)546-2160 84824 (508)855-1000 70866 (847)402-5000 29688 (847)402-5000 19240
(847)402-5000
19232 (847)402-5000 60186 (847)402-5000 17230 (847)402-5000 38156 (972)690-5500 67369 (303)689-3000 18708 (212)668-0340 19100
(515)508-4211
26,590,009,686 16,100,583,494 59,181,188,629 190,101 876,921 129,065,038 4,538,409,659 587,767,745 168,174,545 8,636,707 571,001,943 3,559,623,725 20,007,767 14,966,821 126,840,575 2,739,674,641 384,280,739 29,953,997 3,209,526 314,250,016
25402 (800)226-1898 12548 (806)473-0333 10103 (847)685-8600
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
50
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME AMERICAN ALTERNATIVE INS CORP AMERICAN AMBASSADOR CASUALTY CO AMERICAN AND FOREIGN INS CO AMERICAN ASSOCIATION OF ORTHODONTISTS INS. CO. (A RRG) AMERICAN AUTOMOBILE INS CO AMERICAN BANKERS INS CO OF FLORIDA AMERICAN BANKERS LIFE ASSURANCE CO OF FLORIDA AMERICAN BONDING CO AMERICAN BUSINESS & PERSONAL INS MUTUAL, INC. AMERICAN CAPITOL INS CO AMERICAN CASUALTY CO OF READING, PENNSYLVANIA AMERICAN CENTENNIAL INS CO AMERICAN CENTRAL INS CO AMERICAN CENTURY CASUALTY CO AMERICAN CLASSIC REINSURANCE CO AMERICAN COMMERCE INS CO AMERICAN COMMUNITY MUTUAL INS CO AMERICAN CONCEPT INS CO AMERICAN CONTRACTORS INDEMNITY CO AMERICAN CONTRACTORS INS. CO., RISK RETENTION GRP. AMERICAN CREDIT INDEMNITY CO AMERICAN DEPOSIT INS CO AMERICAN ECONOMY INS CO AMERICAN EMPIRE INS CO AMERICAN EMPLOYERS' INS CO AMERICAN ENTERPRISE LIFE INS CO AMERICAN EQUITY INS CO AMERICAN EQUITY INVESTMENT LIFE INS CO AMERICAN FAMILY HOME INS CO AMERICAN FAMILY LIFE ASSURANCE CO OF COLUMBUS AMERICAN FAMILY LIFE INS CO AMERICAN FAMILY MUTUAL INS CO AMERICAN FEDERATION INS CO AMERICAN FEED INDUSTRY INS. CO., RISK RETENTION GRP. AMERICAN FIDELITY ASSURANCE CO AMERICAN FIDELITY LIFE INS CO AMERICAN FINANCIAL SECURITY LIFE INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
DE IL DE VT MO FL FL AZ DE TX PA DE MO TX AZ OH MI RI CA TX NY OK IN OH MA IN AZ IA FL NE WI WI FL IA OK FL MO
ASSETS
363,481,935 30,885,452 386,841,404 15,720,714 274,081,322 1,080,454,394 879,777,110 6,929,252 41,749,359 74,104,964 101,515,161 38,305,222 45,494,538 58,421,838 1,646,829 218,037,162 161,375,686 13,634,177 103,364,494 4,630,778 242,241,645 34,547,721 1,400,117,164 57,640,690 341,338,050 8,293,400,222 179,542,742 6,311,328,534 356,108,375 41,792,273,808 2,996,479,187 8,378,401,612 20,184,071 13,215,464 2,441,109,161 436,730,005 2,079,698
LIABILITIES
217,997,745 4,329,240 335,341,424 11,627,105 175,187,657 813,332,893 685,448,329 7,361,351 18,847,501 68,984,239 2,257,977 15,500,564 4,783,060 42,257,573 390,859 140,660,811 77,223,406 9,869,512 72,591,526 214,080 127,792,223 18,542,820 1,007,378,987 29,971,879 211,802,056 7,797,584,031 125,614,407 5,936,741,676 265,095,567 39,439,023,440 2,731,528,662 5,692,104,616 7,395,560 5,157,232 2,280,016,917 365,685,545 100,014
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
145,484,192 26,556,212 51,499,980 4,093,609 98,893,665 267,121,501 194,328,781 (432,098) 22,901,858 5,120,724 99,257,184 22,804,658 40,711,478 16,164,265 1,255,970 77,376,351 84,152,280 3,764,665 30,772,968 4,416,698 114,449,422 16,004,901 392,738,177 27,668,810 129,535,994 495,816,190 53,928,335 374,586,858 91,012,808 2,353,250,368 264,950,525 2,686,296,996 12,788,511 8,058,232 161,092,244 71,044,460 1,979,685 4,750,505 0 2,519,828 219,681 3,448,959 26,211,138 3,068,039 0 0 22,470 9,144,580 0 0 0 0 47,998,781 36,313,324 0 1,071,121 262,304 251,950 717,377 4,560,097 0 189,007 9,492,194 71,401 61,983,932 3,228,850 34,726,940 17,849,711 381,048,680 1,958,357 0 5,984,221 473,119 279 CW DI MT PI SU VE CI VE CW DI MT PI SU VE CI CW DI MT PI SU VE CI DI MT PI SU VE DI LI REHABILITATION CW MT PI LI CW DI MT PI SU VE CI DI MT PI SU VE CI MT PI SU VE MT PI VE LR CI DI MT PI SU VE DI LI CI MT PI VE SU CI CI VE CW MT PI SU VE CI MT PI VE CW DI MT PI SU VE DI LI VA VL CI MT PI SU VE LI VA VL CI MT PI VE DI LI DI LI VA VL CW DI MT PI SU VE CI MT PI VE CI DI LI VA DI LI REHABILITATION
19720 (609)243-4200 10073
(630)521-0600
24589 (704)522-2000 10232 (802)229-5042 21849 (415)899-2000 10111 (305)253-2244 60275
(305)253-2244
10138 (602)240-6824 40789 (312)346-8100 60291 (713)974-2242 20427 (312)822-5000 10391
(302)479-2100
37915 (617)725-6000 10807 (281)919-0199 69595 (602)957-4647 19941 (614)272-6951 60305
(734)591-9000
31909 (401)453-7000 10216 (310)649-0990 12300 (972)702-9004 20516 (877)883-3224 16802
(770)951-5599
19690 (206)545-5000 37990 (513)369-3000 20613 (617)725-6000 94234 (612)671-8584 43117
(860)277-0111
92738 (515)221-0002 23450 (513)943-7200 60380 (706)660-7081 60399 (608)249-2111 19275 (608)249-2111 43699 (616)942-3000 44202
(515)254-0400
60410 (405)523-2000 60429 (850)456-7401 69337 (816)842-6605
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
51
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME AMERICAN FIRE AND CASUALTY CO AMERICAN FOUNDERS LIFE INS CO AMERICAN FUJI FIRE AND MARINE INS CO AMERICAN GENERAL ASSURANCE CO AMERICAN GENERAL INDEMNITY CO AMERICAN GENERAL LIFE AND ACCIDENT INS CO AMERICAN GENERAL LIFE INS CO AMERICAN GENERAL PROPERTY INS CO AMERICAN GUARANTEE AND LIABILITY INS CO AMERICAN HARDWARE MUTUAL INS CO AMERICAN HEALTH AND LIFE INS CO AMERICAN HEALTHCARE INDEMNITY CO AMERICAN HERITAGE LIFE INS CO AMERICAN HOME ASSURANCE CO AMERICAN HOME LIFE INS CO AMERICAN INCOME LIFE INS CO AMERICAN INDEMNITY CO AMERICAN INS CO OF TEXAS AMERICAN INS CO, THE AMERICAN INTERNATIONAL INS CO AMERICAN INTERNATIONAL SOUTH INS CO AMERICAN INVESTORS LIFE INS CO, INC. AMERICAN LABOR LIFE INS CO AMERICAN LIFE INS CO OF NEW YORK, THE AMERICAN LIVE STOCK INS CO AMERICAN MANUFACTURERS MUTUAL INS CO AMERICAN MATURITY LIFE INS CO AMERICAN MEMORIAL LIFE INS CO AMERICAN MERCURY INS CO AMERICAN MINING INS CO, INC. AMERICAN MODERN HOME INS CO AMERICAN MODERN LIFE INS CO AMERICAN MOTORISTS INS CO AMERICAN NATIONAL GENERAL INS CO AMERICAN NATIONAL INS CO AMERICAN NATIONAL LIFE INS CO OF TEXAS AMERICAN NATIONAL PROPERTY AND CASUALTY CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
OH TX IL IL IL TN TX TN NY OH TX DE FL NY KS IN TX TX NE NY PA KS AZ NY IL IL CT SD OK AL OH OH IL MO TX TX MO
ASSETS
300,905,673 636,406,640 104,372,405 1,362,133,999 34,680,205 8,640,890,184 25,511,318,492 62,253,908 93,987,173 217,799,523 2,087,486,063 130,548,535 1,810,313,199 15,948,770,992 124,561,238 1,163,210,051 61,172,909 6,241,849 1,153,982,358 1,095,719,691 30,914,094 8,086,034,147 2,146,278 103,907,326 62,971,772 10,054,480 81,326,717 1,256,773,934 186,068,064 67,893,021 646,816,260 59,128,945 35,854,788 99,465,836 10,699,209,119 157,157,651 873,204,467
LIABILITIES
193,310,057 600,736,675 22,042,126 1,206,852,330 25,342,085 8,140,785,149 21,444,004,530 17,513,152 258,199 125,734,164 1,143,344,482 95,545,942 1,623,962,569 12,326,871,679 112,558,044 1,004,251,276 17,939,919 4,235,305 805,972,972 847,589,370 38,203 7,743,092,887 918,062 79,213,736 20,532,602 54,480 44,860,745 1,146,886,342 108,728,994 51,908,806 478,334,997 42,011,565 5,947,891 51,150,478 9,022,932,026 105,976,856 571,105,764
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
107,595,616 35,669,965 82,330,279 155,281,669 9,338,120 500,105,035 4,067,313,962 44,740,756 93,728,973 92,065,359 944,141,581 35,002,593 186,350,630 3,621,899,313 12,003,195 158,958,775 43,232,990 2,006,544 348,009,386 248,130,321 30,875,891 342,941,260 1,228,216 24,693,590 42,439,170 10,000,000 36,465,972 109,887,592 77,339,070 15,984,215 168,481,263 17,117,380 29,906,897 48,315,358 1,676,277,093 51,180,795 302,098,703 865,759 4,389,490 0 2,385,222 462,910 902,060 37,802,112 0 10,120,906 1,863,469 289,041 752,127 3,496,069 41,569,725 723,554 4,331,270 0 8,569 17,011,150 8,431,456 6,581,377 49,690,004 1,484 37,736 15,206 365,650 65,700 11,455,567 332,456 51,250 11,756,743 19,010 1,242,867 1,496,452 77,893,111 2,448,065 19,883,408 CW MT PI SU VE DI LI CI DI MT PI SU VE DI LI CI DI MT PI VE DI LI DI LI VA VL DI PI CW DI MT PI SU VE CW DI MT PI SU VE DI LI CI PI SU DI LI CW DI MT PI SU VE DI LI DI LI CI MT PI SU VE DI LI CW MT PI SU VE CI DI MT PI SU VE CW MT PI VE DI LI DI LI DI LI VA VL CI MT CW DI MT PI SU VE DI LI VA DI LI CI MT PI SU VE CW MT PI VE CI DI MT PI SU VE DI LI CW DI MT PI SU VE CI MT PI VE DI LI VA VL DI LI DI MT PI SU VE
24066 (513)603-7400 60445
(480)425-5100
40398 (877)514-3542 68373 (847)517-6000 24376 (732)922-7000 66672 (615)749-1000 60488
(713)522-1111
31208 (615)749-1000 26247 (847)605-6000 13331 (614)225-8211 60518 (817)348-7500 39152
(310)551-5900
60534 (904)992-1776 19380 (212)770-7000 60542 (785)235-6276 60577 (254)751-8600 19518
(409)766-4600
81949 (817)878-3300 21857 (415)899-2000 32220 (302)252-2000 40258 (212)770-7000 60631
(913)232-6945
89427 (717)872-8576 60704 (502)587-7626 10200 (630)232-2100 30562 (847)320-2000 81213
(860)843-3978
67989 (605)399-3643 16810 (405)523-2000 15911 (205)823-4496 23469 (513)943-7200 65811 (513)943-7200 22918 (708)320-2000 39942
(417)887-0220
60739 (409)766-4661 71773 (409)763-4661 28401 (417)887-4990
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
52
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME AMERICAN NETWORK INS CO AMERICAN PARTNERS LIFE INS CO AMERICAN PHOENIX LIFE AND REASSURANCE CO AMERICAN PHYSICIANS ASSURANCE CORP AMERICAN PIONEER LIFE INS CO AMERICAN PIONEER TITLE INS CO AMERICAN PREMIER INS CO AMERICAN PROFESSIONALS INS CO AMERICAN PROTECTION INS CO AMERICAN PUBLIC LIFE INS CO AMERICAN RE-INSURANCE CO AMERICAN RELIABLE INS CO AMERICAN REPUBLIC INS CO AMERICAN RETIREMENT LIFE INS CO AMERICAN ROAD INS CO, THE AMERICAN SAFETY CASUALTY INS CO AMERICAN SAFETY RRG, INC. AMERICAN SAVINGS LIFE INS CO AMERICAN SECURITY INS CO AMERICAN SENTINEL INS CO AMERICAN SKANDIA LIFE ASSURANCE CORP AMERICAN SPECIALTY HEALTH INS CO AMERICAN STANDARD INS CO OF WISCONSIN AMERICAN STATES INS CO AMERICAN STATES INS CO OF TEXAS AMERICAN STATES LIFE INS CO AMERICAN STATES PREFERRED INS CO AMERICAN SUMMIT INS CO AMERICAN TRAVELERS ASSURANCE CO AMERICAN TRUCKING AND TRANSPORTATION INS. CO., A RRG AMERICAN UNDERWRITERS LIFE INS CO AMERICAN UNITED LIFE INS CO AMERICAN VANGUARD LIFE INS CO AMERICAN ZURICH INS CO AMERICAN-AMICABLE LIFE INS CO OF TEXAS AMERICO FINANCIAL LIFE AND ANNUITY INS CO AMERICOM LIFE & ANNUITY INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
PA AZ CT MI FL FL IN IN IL OK DE AZ IA OH MI DE VT AZ DE PA CT IL WI IN TX IN IN TX DC MT AZ IN IA IL TX TX TX
ASSETS
12,084,642 460,944,135 87,887,024 743,840,993 156,355,766 110,576,947 6,686,181 7,461,064 74,014,625 65,098,668 16,029,476,095 336,313,079 457,993,086 6,835,744 575,039,590 122,365,626 22,410,533 19,204,065 612,599,238 18,024,008 26,397,863,635 7,900,536 333,402,455 2,033,795,733 19,000,004 556,636,415 203,954,294 22,373,896 32,030,719 4,173,657 39,879,589 10,672,164,994 9,554,885 131,683,710 252,053,553 2,723,396,381 243,172,447
LIABILITIES
4,105,791 415,990,919 48,885,888 630,545,138 132,158,218 68,192,510 259,608 1,326,359 23,549,164 52,194,011 12,758,013,548 265,143,630 250,771,696 1,035,137 254,872,120 82,595,769 17,547,492 5,998,093 440,392,201 8,629,735 26,068,318,019 150,716 129,569,686 1,403,800,156 235,823 479,464,571 143,748,511 10,355,113 26,078,945 3,087,951 28,322,968 10,034,215,554 878,907 103,178 209,813,591 2,587,312,593 228,414,771
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
7,978,851 44,953,217 39,001,136 113,295,856 24,197,548 42,384,436 6,426,573 6,134,705 50,465,461 12,904,657 3,271,462,547 71,169,449 207,221,390 5,800,607 320,167,470 39,769,857 4,863,041 13,205,972 172,207,037 9,394,273 329,545,616 7,749,820 203,832,769 629,995,577 18,764,181 77,171,844 60,205,783 12,018,783 5,951,774 1,085,705 11,556,621 637,949,440 8,675,978 131,580,533 42,239,962 136,083,788 14,757,676 11,006 854,631 0 0 1,660,997 9,201,115 394,222 0 134,878 362,033 0 8,216,123 20,879,490 0 873,069 602,146 553,964 1,356,931 13,770,147 0 104,701,121 0 82,274,662 8,736,547 0 479,465 0 17,383,972 21,566 0 25,496 31,197,735 0 4,497,592 666,610 10,843,731 1,262,399 DI DI LI VA VL DI LI CW MT PI VE DI LI TI VE SUSPENDED CW DI MT PI SU VE DI LI CW DI MT PI SU VE CW DI MT PI SU VE DI LI LI CI MT PI SU VE CW MT PI SU CI DI LI CI DI MT PI SU VE CI DI MT PI VE DI LI VA VL DI LI CI MT PI VE CW DI MT PI SU VE CW DI MT PI VE DI LI CI MT PI SU VE CI DI MT PI SU VE DI LI CI VE DI LI DI LI VA VL LI CW DI MT PI SU VE DI LI DI LI DI LI
81078 (610)965-2222 93653
(612)671-1257
91785 (860)403-1000 33006 (517)351-1150 60763 (407)628-1776 51535 (407)260-8050 37001
(770)447-8930
12084 (609)896-1921 18910 (847)320-2000 60801 (601)936-6600 10227 (609)243-4200 19615
(480)483-8666
60836 (515)245-2155 88366 (513)333-5300 19631 (313)390-6170 39969 (770)916-1908 25448
(770)916-1908
91910 (602)835-5000 42978 (770)763-1000 17965 (717)540-0600 86630 (203)926-1888 84697
(619)578-2000
19283 (608)249-2111 19704 (206)545-5000 19712 (206)545-5000 60879 (425)376-8000 37214
(206)545-5000
19623 (254)399-0626 61140 (203)229-1000 11534 (406)523-3934 92649 (316)794-2200 60895 (317)285-1877 97314 (515)283-2371 40142
(847)605-6000
68594 (254)753-7311 61999 (816)391-2000 94471 (410)895-0100
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
53
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME AMERIHEALTH INS CO * AMERIN GUARANTY CORP AMERISERV LIFE INS CO AMERISURE INS CO AMERISURE MUTUAL INS CO AMERITAS LIFE INS CORP. AMERITAS VARIABLE LIFE INS CO AMERUS LIFE INS CO AMEX ASSURANCE CO AMGUARD INS CO AMHERST LIFE INS CO AMICA LIFE INS CO AMICA MUTUAL INS CO ANCHOR GENERAL INS CO ANCHOR NATIONAL LIFE INS CO ANESTHESIOLOGISTS PROFESSIONAL ASSURANCE CO ANNUITY & LIFE REASSURANCE AMERICA, INC. ANNUITY INVESTORS LIFE INS CO ANTHEM ALLIANCE HEALTH INS CO ANTHEM INS COMPANIES, INC. ANTHEM LIFE INS CO APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC AQUA CAPTIVE INS, INC. ARAG INS CO ARCH INS CO ARCH REINSURANCE CO ARGONAUT GREAT CENTRAL INS CO ARGONAUT INS CO ARGONAUT-MIDWEST INS CO ARGONAUT-NORTHWEST INS CO ARGONAUT-SOUTHWEST INS CO ARIZONA AUTOMOBILE INS CO ARIZONA HOME INS CO ARIZONA NATIONAL LIFE INS CO ARIZONA STATE COMPENSATION FUND ARKANSAS LIFE INS CO ARMED FORCES INS EXCHANGE
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
PA IL AZ MI MI NE NE IA IL PA AZ RI RI CA AZ FL CT OH IN IN IN AZ AZ IA MO NE IL CA IL ID LA AZ AZ AZ AZ AZ KS
ASSETS
1,076,535,633 330,774,842
LIABILITIES
719,257,406 26,743,669
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
357,278,227 304,031,173 0 0 DI LI MG UR 18,023 122,233 13,610,380 8,490,045 32,544,827 22,297,694 0 CW MT PI SU VE CW MT PI SU VE DI LI VA VL DI LI VA VL DI LI CW DI MT PI SU VE CW DI MT PI SU VE UR 412,658 19,389,443 498,595 LI CI MT PI VE CI MT PI VE
93688 (215)241-2400 30872 --(215)564-6600 (814)533-5194
Financial Information Not Available 458,583,098 1,250,815,294 2,616,462,474 2,378,950,952 5,873,373,234 333,334,619 162,342,888 343,711,044 894,184,751 1,978,027,184 2,282,017,926 5,637,043,710 127,376,920 118,534,406 114,872,054 356,630,543 638,435,290 96,933,026 236,329,523 205,957,699 43,808,482
19488 (810)615-9000 23396 (248)615-9000 61301 (402)467-1122 97977
(402)467-1122
61689 (515)283-2371 27928 (920)330-5250 42390 (800)673-2465 --72222
(602)957-4647 (401)334-6000
Financial Information Not Available 744,699,680 3,131,996,564 22,195,673 630,246,625 1,673,141,552 11,751,572 114,453,055 1,458,855,012 10,444,101
19976 (401)334-6000 40010 (858)527-3600 60941
Name changed 2/28/03, now known as AIG SUNAMERICA LIFE ASSURANCE CO
93,306,790 55,957,385 1,159,543,881 78,297,877 42,065,718 1,109,526,754 15,008,913 13,891,667 50,017,127 1,344,714 172,785 6,490,506 CI DI LI DI LI VA VL
37656 (305)666-3002 62421
(860)256-2122
93661 (513)333-6246 85286
Name changed 10/27/03, now known as ONENATION INS CO
3,935,084,674 233,874,647 1,477,337,971 169,987,884 2,457,746,703 63,886,763 0 1,434,322 CI DI PI VE DI LI RG CP 178,539 2,931,530 0 96,912 2,632,347 1,469,859 3,297,729 505,712 286,741 4,502,939 0 341,020,015 0 1,150,916 PL CW DI MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI VE VE CI PI LR CW LR CI MT PI VE
28207 (317)488-6000 61069 (614)436-0688 11598 --34738 (515)246-1200 11150 (203)975-5953 10348 (973)898-9575 19860
(309)688-8571
Financial Information Not Available Financial Information Not Available 34,295,942 651,846,574 717,593,126 156,056,588 1,139,536,081 100,637,093 15,544,712 19,425,952 1,243,305 7,499,008 8,798,134 2,752,641,613 2,071,550 148,188,959 13,629,373 402,417,122 334,775,841 123,663,752 785,962,601 58,987,467 5,194,176 6,133,464 289,697 3,719,349 7,223,720 2,132,454,976 1,170,732 59,374,891 20,666,569 249,429,451 382,817,285 32,392,836 353,573,480 41,649,626 10,350,536 13,292,488 953,608 3,779,659 1,574,414 620,186,637 900,818 88,814,068
19801 (210)321-8400 19828 (210)321-8400 19836 (210)321-8400 19844 (210)321-8400 11805 (480)413-9173 38490 (602)993-1155 60018
(319)398-7979
36714 (602)631-2050 97551 (870)483-6355 41459 (913)727-5500
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
54
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME ASSOCIATED DEALERS LIFE INS CO ASSOCIATED INDEMNITY CORP ASSOCIATES INS CO ASSURANCE CO OF AMERICA ASSURED LIFE ASSOCIATION ASSURITY LIFE INS CO ATHENA ASSURANCE CO ATLANTA CASUALTY CO ATLANTA INTERNATIONAL INS CO ATLANTIC INS CO ATLANTIC MUTUAL INS CO ATLANTIC SPECIALTY INS CO ATTORNEYS LIABILITY PROTECTION SOCIETY, A RRG ATTORNEYS' LIABILITY ASSURANCE SOCIETY, INC. A RRG AURORA NATIONAL LIFE ASSURANCE CO AUSA LIFE INS CO, INC. AUSTIN MUTUAL INS CO AUTO CLUB LIFE INS CO AUTO-OWNERS INS CO AUTO-OWNERS LIFE INS CO AUTOMOBILE INS CO OF HARTFORD, CT AUTOMOTIVE UNDERWRITERS INS CO, A RRG AVEMCO INS CO AVESIS REINSURANCE INCORPORATED AVIVA LIFE INS CO AVOMARK INS CO AXA ART INS CORP AXA CORPORATE SOLUTIONS INS CO AXA CORPORATE SOLUTIONS LIFE REINSURANCE CO AXA CORPORATE SOLUTIONS REINSURANCE CO AXA RE AMERICA INS CO AXA RE PROPERTY AND CASUALTY INS CO AXIS REINSURANCE CO BALBOA INS CO BALBOA LIFE INS CO BALTIMORE LIFE INS CO, THE BANC LIFE INS CORP
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
AZ CA IN NY CO NE MN IL NY TX NY NY MT VT CA NY MN MI MI MI CT HI MD AZ DE IN NY NY DE DE DE DE NY CA CA MD AZ
ASSETS
3,554,188 117,121,860 195,373,411 17,618,972 59,343,686 1,060,799,761 180,751,422 229,990,115 18,382,801 87,211,642 1,426,692,808 79,786,045 56,902,540 75,470,975 3,697,915,373
LIABILITIES
411,173 70,075,062 79,401,486 45,450 53,192,780 954,602,045 133,220,237 145,647,902 8,433,061 65,926,971 1,105,424,696 30,079,159 36,642,759 52,165,690 3,378,646,433
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
3,143,015 47,046,798 115,971,926 17,573,522 6,150,906 106,197,715 47,531,185 84,342,213 9,949,740 21,284,671 321,268,112 49,706,886 20,259,781 23,305,285 319,268,940 0 1,627,020 (4,204) 6,946,323 329,143 1,023,771 658,970 1,985,598 0 106,606 10,520,875 0 104,829 5,408,174 1,495,438 LR CW DI MT PI SU VE CI DI MT PI SU VE CW DI MT PI SU VE DI LI DI LI CW MT PI SU VE VE CI DI MT PI SU VE CW MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE CI CI DI LI
81485 (602)200-6900 21865
(415)899-2000
21296 (972)652-4000 19305 (847)605-6000 56499 (303)792-9777 71439 (402)476-6500 41769
(612)310-7066
21792 (404)447-8930 20931 (770)813-6220 22209 (972)650-3650 19895 (212)943-1800 27154
(212)943-1800
32450 (406)728-3113 10639 (312)697-6900 61182 (661)253-1688 70688 13412
Name changed 4/1/03, now known as TRANSAMERICA FINANCIAL LIFE INS CO
(612)378-8600 117,313,344 391,299,361 6,970,374,873 1,330,110,287 875,050,955 18,284,480 185,644,891 1,969,659 4,575,003,274 23,078,594 62,078,802 224,560,173 628,575,462 1,199,288,677 99,762,974 240,583,326 694,080,889 846,817,702 115,219,359 793,744,772 62,205,775 361,933,404 3,727,769,444 1,166,944,442 619,939,655 13,214,185 77,539,621 913,326 4,231,523,213 13,832,166 39,343,993 133,433,809 337,742,453 619,409,263 52,844,110 134,905,631 191,018,269 507,704,606 38,805,243 761,545,226 55,107,569 29,365,957 3,242,605,428 163,165,845 255,111,300 5,070,295 108,105,270 1,056,333 343,480,061 9,246,429 22,734,809 91,126,364 290,833,009 579,879,414 46,918,864 105,677,695 503,062,620 339,113,096 76,414,116 32,199,546 5,109,374 169,260 52,804,617 2,474,053 3,419,787 262,173 4,204,214 0 7,956,377 0 224,780 481,315 0 0 0 2,945,445 158,462 11,582,309 517,499 2,302,488 CI MT PI VE DI LI CW DI MT PI SU VE DI LI CW DI MT PI SU VE CI CI DI MT PI SU LR DI LI CW MT PI SU VE CI MT PI VE CW DI MT PI SU VE LI CI MT PI SU VE CI DI MT PI SU VE CI DI MT PI SU VE CW DI MT PI SU VE CI DI MT PI SU VE DI LI DI LI UR
84522 (734)779-2085 18988 (517)323-1200 61190 (517)323-1200 19062 (860)277-0111 11033
(808)521-1121
10367 (301)694-5700 11163 (602)241-3400 62898 (617)786-2075 10792 (513)867-3000 29530
(212)415-8400
33022 (212)493-9300 68365 (212)493-9364 36552 (212)493-9364 11835 (212)493-9364 16187 (212)493-9364 20370 (678)746-9400 24813
(949)222-8000
68160 (949)222-8000 61212 (410)581-6600 --(414)433-3166
Financial Information Not Available
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
55
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME BANC ONE LIFE INS CO BANC ONE LIFE REINSURANCE CO BANCINSURE, INC. BANKERS CAPITAL LIFE INS CO BANKERS FIDELITY LIFE INS CO BANKERS FINANCIAL LIFE INS CO BANKERS INS CO BANKERS LIFE AND CASUALTY CO BANKERS LIFE INS CO BANKERS MULTIPLE LINE INS CO BANKERS NATIONAL LIFE INS CO BANKERS RESERVE LIFE INS CO OF WISCONSIN BANKERS STANDARD INS CO BANNER LIFE INS CO BAPTIST LIFE ASSOCIATION BAR PLAN MUTUAL INS CO, THE BASNEY AUTO GROUP LIFE INS CO BAY LIFE INS CO, INC. BCS INS CO BCS LIFE INS CO BEACON LIFE INS CO BECK LIFE INS CO BEE LIFE INS CO BENCHMARK INS CO BENEFICIAL LIFE INS CO BENICORP INS CO BENSON MOTORS INS CO BERKLEY REGIONAL INS CO BERKSHIRE HATHAWAY LIFE INS CO OF NEBRASKA BERKSHIRE LIFE INS CO OF AMERICA BEST LIFE AND HEALTH INS CO BEVERLY HILLS LIFE INS CO BIRMINGHAM FIRE INS CO OF PENNSYLVANIA BITUMINOUS CASUALTY CORP BITUMINOUS FIRE AND MARINE INS CO BLUE CROSS AND BLUE SHIELD OF ARIZONA, INC. BONNEVILLE INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
AZ AZ OK AZ GA AZ FL IL FL IL TX WI PA MD NY MO AZ AZ OH IL AZ AZ AZ KS UT IN AZ DE NE MA TX AZ PA IL IL AZ OR
ASSETS
LIABILITIES
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
77534 77534
Name changed 12/16/03, now known as BANC ONE LIFE REINSURANCE CO
(414)765-3454 281,666,571 99,522,785 224,221,366 69,285,913 57,445,205 30,236,872 0 357,302 LR CW MT PI SU VE UR 83,907 0 760,669 21,758,776 106,592 0 307,862 0 162,129 5,889,856 8,260 1,650 DI LI LR CI MT PI SU VE DI LI DI LI CI DI MT PI SU VE DI LI DI LI CW DI MT PI SU VE DI LI DI LI SU UR 0 3,596,880 471,331 LR CI DI MT DI LI UR UR UR 9,533,552 13,976,576 0 CW DI PI VE DI LI DI LI UR 0 224,000 2,009,808 334,341 CW MT PI SU VE LI DI LI DI LI UR 1,107,665 172,553 63,524 867,351,681 CW DI MT PI SU VE CW MT PI SU VE CW MT PI SU VE DS HS MS REHABILITATION
18538 (405)290-5600 --(602)254-5866
Financial Information Not Available 109,750,842 4,758,630 77,480,988 6,861,868,837 124,988,149 8,125,461 726,407,583 16,787,501 138,865,652 1,047,152,731 21,716,843 43,748,132 78,553,365 1,956,766 48,104,306 6,417,514,373 117,627,033 495,769 661,461,101 10,520,080 103,725,461 767,036,870 20,904,700 23,095,417 31,197,477 2,801,865 29,376,682 444,354,464 7,361,116 7,629,692 64,946,482 6,267,421 35,140,191 280,115,861 812,143 20,652,715
61239 (404)266-5600 62723 (319)363-5400 33162
(727)823-4000
61263 (314)817-6100 81043 (813)823-4000 23132 (972)364-7000 71900 (317)817-6300 71013
(314)725-4477
18279 (215)761-1000 94250 (301)279-4800 57223 (716)633-4393 29513 (314)965-3333 --(314)275-5200
Financial Information Not Available 2,932,629 226,933,935 148,943,792 622,463 108,307,142 82,183,026 2,310,166 118,626,793 66,760,765
80101 (216)566-5300 38245 (312)951-7700 80985 (312)951-7700 ------(602)254-5866 (800)477-8858 (314)275-5200
Financial Information Not Available Financial Information Not Available Financial Information Not Available 82,288,353 2,616,259,288 34,774,101 58,192,981 2,407,310,625 18,935,066 24,095,372 208,948,663 15,839,035
41394 (913)722-0622 61395 (801)933-1100 69752 (317)290-1205 --(602)254-5866
Financial Information Not Available 1,664,915,058 2,841,254,076 1,611,195,335 21,806,167 1,127,187,049 2,290,933,998 1,344,424,630 12,497,416 537,728,009 550,320,078 266,770,705 9,308,751
29580 (515)727-1146 62345 (402)536-3000 71714 (413)499-4321 90638 (949)253-4080 --(800)477-8858
Financial Information Not Available 2,473,821,290 621,292,032 266,307,728 514,000,226 1,769,989,522 420,886,440 192,439,356 219,074,070 703,831,768 200,405,592 73,868,372 294,926,156
19402 (212)770-7000 20095
(309)786-5401
20109 (309)786-5401 53589 (602)864-4100 36005 (503)222-1041
Financial Information Not Available
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
56
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME BOSTON MUTUAL LIFE INS CO BOSTON OLD COLONY INS CO BOWTIE LIFE INS CO BRADLEY LIFE INS CO BREMEN LIFE INS CO II BREMER LIFE INS CO BROKERS NATIONAL LIFE ASSURANCE CO BROTHERHOOD MUTUAL INS CO BUCKEYE STATE INS CO BUCKTAIL LIFE INS CO BUILDERS & CONTRACTORS INS CO, RRG BUSINESS MEN'S ASSURANCE CO OF AMERICA C B I INS CO C.L.V. LIFE INS CO C.M. LIFE INS CO CALFARM INS CO CALIFORNIA CAPITAL INS CO CALIFORNIA CASUALTY & FIRE INS CO CALIFORNIA CASUALTY GENERAL INS CO CALIFORNIA CASUALTY INDEMNITY EXCHANGE CALIFORNIA CASUALTY INS CO CALIFORNIA INDEMNITY INS CO CALIFORNIA INS CO CAMBRIDGE LIFE INS CO CAMDEN FIRE INS ASSOCIATION, THE CAMERON LIFE INS CO CAMICO MUTUAL INS CO CANADA LIFE ASSURANCE CO, THE CANADA LIFE INS CO OF AMERICA CANAL INS CO CANYON STATE LIFE INS CO CAPITAL ASSURANCE RRG, INC. CAPITAL MARKETS ASSURANCE CORP CAPITOL INDEMNITY CORP CAPITOL LIFE INS CO, THE CARDINAL & GOLD INS CO CAREAMERICA LIFE INS CO
Company Names: Authorized Lines:
DOMICILE NAIC # TELEPHONE
MA MA AZ AZ AZ AZ AR IN AZ AZ DC MO AZ AZ CT CA CA CA CA CA CA CA CA MO NJ AZ CA CANADA MI SC AZ SC NY WI CO AZ CA
ASSETS
698,038,875 30,659,221
LIABILITIES
632,296,596 18,909
CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS
65,742,279 30,640,311 1,697,024 0 DI LI CI DI MT PI SU VE UR UR UR 0 1,141 5,730,087 LR DI LI CW DI MT PI SU VE UR 0 LR
61476 (781)828-7000 20761 ------(312)822-5000 (205)803-6733 (800)477-8858 (314)275-5200
Financial Information Not Available Financial Information Not Available Financial Information Not Available 2,288,703 22,318,911 203,618,480 1,320,824 9,970,522 144,662,264 967,879 12,348,389 58,956,216
81221 (612)397-4215 74900
(512)383-0220
13528 (219)482-8668 --(602)254-5866
Financial Information Not Available 2,432,285 380,535 2,051,749
94633 (602)200-6900 11671 61492
Name changed 10/30/03, now known as PROBUILDERS SPECIALTY INS CO, RRG
(816)218-6500 2,049,418,003 5,859,189 2,463,549 7,565,956,353 126,383,584 324,258,174 48,354,297 70,357,200 398,931,000 124,742,487 345,921,037 7,265,427 9,435,887 588,840,025 1,913,317,296 1,994,984 1,499,828 7,179,828,623 5,059 188,913,858 28,405,454 44,540,453 132,865,295 56,810,908 260,521,482 16,326 2,664,041 330,194,197 136,100,707 3,864,205 963,721 386,127,730 126,378,525 135,344,297 19,948,843 25,816,747 266,065,705 67,931,579 85,399,555 7,249,102 6,771,846 258,645,828 17,335,678 0 0 18,394,162 0 0 0 0 3,703,465 21,812,926 0 0 94,782 0 DI LI VA VL LR LR DI LI VA VL CI MT PI SU VE CI MT PI CI MT PI VE CI MT PI VE CI MT PI VE CI MT PI VE CW CW DI MT PI SU VE DI LI CW MT PI SU VE UR 918,501 3,790,388 475,657 6,079,450 315 16,128 103,521 4,226,686 0 CI DI LI DI LI VA VL CI MT PI VE DI LI CI SU CI MT PI SU VE DI LI UR 2,328,288 DI LI
82996 (602)254-5866 88943 (602)957-4647 93432 (413)788-8411 18961 (916)924-4000 13544
(408)649-1155
27464 (650)574-4000 35955 (650)574-4000 20117 (415)574-4000 20125 (650)574-4000 32271
(702)242-7046
38865 (312)821-4000 81000 (714)380-0233 21946 (617)725-6000 --36340
(602)200-6900 (650)802-2500
Financial Information Not Available 98,981,780 2,609,476,970 2,906,123,755 980,716,505 2,132,174 3,053,121 111,770,628 374,398,154 304,819,268 67,030,774 2,536,433,224 2,741,569,379 532,968,120 436,262 869,259 6,449,336 234,076,844 294,434,242 31,951,006 73,043,746 164,554,376 447,748,386 1,695,912 2,183,862 105,321,292 140,321,310 10,385,026
80659 (770)953-1959 81060 (770)953-1959 10464 (864)242-5365 72958 (602)258-2422 11194 (843)579-2214 20877 (914)273-4545 10472
(608)231-4450
61581 (303)273-9303 --(480)607-1602
Financial Information Not Available 26,600,423 2,404,692 24,195,731
71331 (888)646-0789
CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility
57
INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued)
NAME CARLISLE LIFE INS CO CAROLINA CAS
Object Description
| Rating | |
| TITLE | Annual report / Arizona Department of Insurance |
| CREATOR | Arizona Insurance Department |
| SUBJECT | Arizona. Insurance Dept--Appropriations and expenditures; Insurance--Arizona; |
| Browse Topic |
Business and industry Government and politics |
| DESCRIPTION | This title contains one or more publications. |
| Language | English |
| Publisher | Arizona. Insurance Dept |
| Material Collection |
Annual Reports State Documents |
| Source Identifier | ID 1.1 |
| Location | 22053008 |
| REPOSITORY | Arizona State Library, Archives and Public Records--Law and Research Library. |
Description
| TITLE | Arizona Department of Insurance 2003/2004 annual report |
| DESCRIPTION | 139 pages (PDF version). File size: 2491.882 KB. |
| TYPE |
Text |
| Material Collection |
Senate Received Reports |
| RIGHTS MANAGEMENT | Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution. |
| DATE ORIGINAL | [2004] |
| Time Period | 2000s (2000-2009) |
| ORIGINAL FORMAT | Born digital |
| Source Identifier | ID 1.1: 2003/2004 |
| DIGITAL IDENTIFIER | Annual_Report_2003-2004.pdf |
| DIGITAL FORMAT |
PDF (Portable Document Format) |
| REPOSITORY | Arizona State Library, Archives and Public Records--Law and Research Library. |
| Full Text | Arizona Department Department of Insurance 2003/2004* Annual Report Christina Urias Director of Insurance to Janet Napolitano Governor and Members of the Arizona Legislature Arizona Department of Insurance 2910 North 44th Street, Suite 210 Phoenix, Arizona 85018-7256 (602) 912-8400 The information in this report is in the public domain and may be reprinted without permission. * To provide the public with the most up-to-date information about the Department of Insurance and the domestic insurance industry, this report contains the most current, complete data available, which in some cases is for Calendar Year 2003 and in others is for Fiscal Year 2004 (7/01/03 through 6/30/04). Generally, data concerning the Department's licensees is reported for Calendar Year 2003, while data relating to the Department's operations is reported for Fiscal Year 2004. Exceptions are noted. TABLE OF CONTENTS Directory .....................................................................................................1 Message from the Director of Insurance ....................................................2 Strategic Plan Summary ..............................................................................3 Division Reports ..........................................................................................4 Director's Office ............................................................................6 Administrative Services and Licensing ..........................................8 Consumer Affairs ........................................................................ 11 Health Care Appeals ............................................................. 12 Financial Affairs .......................................................................... 14 Property and Casualty ................................................................ 16 Life and Health ........................................................................... 19 Fraud Unit .................................................................................. 21 Market Oversight Division ........................................................... 22 Guaranty Funds .......................................................................... 23 Receivership ............................................................................... 24 Captive Insurance ....................................................................... 25 Information Services ................................................................... 26 Public Information Resources ..................................................................28 Internet Resources .................................................................... 30 Newsletter Profile ....................................................................... 32 Consumer Publications ............................................................... 33 Laws and Policy .........................................................................................34 2003 and 2004 Legislation..........................................................36 2003 Regulatory Bulletins ...........................................................38 Fiscal Reports ...........................................................................................40 Insurance Professionals and Insurers Authorized in Arizona ................ 44 Summary of Insurance Professionals ......................................... 46 Synopsis of Annual Statements .................................................. 47 Insurers Authorized in Arizona .................................................... 49 Top 25 Admitted Premium Writers for Select Lines of Business ........................................................................ 102 Insurers That Ceased Arizona Business Activity .................................. 120 Receivership Activity ............................................................................... 126 Qualified Surplus Lines Insurers ............................................................ 130 Arizona Department of Insurance 2910 North 44th Street, 2nd Floor Phoenix, Arizona 85018 www.state.id.az.us Divisions Director's Office Administrative Services Division Business Services Section Licensing Section licensing@id.state.az.us Arizona Guaranty Funds 1110 W. Washington, Ste. 150 Phoenix, AZ 85007 Consumer Affairs Division Consumer Services Section consumers@id.state.az.us Health Care Appeals Section Market Assistance Market Oversight Division Examinations Section Analysis Section Investigations Section Financial Affairs Division Examinations Section Surveillance Section Sections Phone Numbers (602) 912-8456 (602) 912-8400 (602) 912-8470 (877) 660-0964 (602) 364�3863 Facsimile Numbers (602) 912-8452 (602) 912-8408 (602) 912-8473 (602) 364-3872 DIRECTORY (602) 912-8444 (800) 325-2548 (602) 912-8443 (602) 912-8450 (800) 544-9208 (602) 912-8442 (602) 912-8455 (602) 912-8430 (602) 912-8422 (602) 912-8420 (602) 954-7008 (602) 912-8447 (602) 954-7008 (602) 912-8469 (602) 912-8469 (602) 954-7008 (602) 912-8421 (602) 912-8421 Compliance Section: Records Unit (602) 912-8425 Tax Unit (602) 912-8429 Trust Deposits Unit (602) 912-8427 Fraud Unit 2929 N. 44th St, Suite 410 Phoenix, AZ 85020 Information Services Division Life and Health Division Rates and Forms Section Utilization Review Agents and Third Party Administrators Managed Care and Prepaid Dental Section Property & Casualty Division Rates and Forms Section Registration Section Receivership Division Tucson Office 400 W. Congress, Ste. 152 Tucson, AZ 85701 (602) 912-8418 (602) 912-8421 (602) 912-8419 (602) 912-8400 (602) 912-8460 (602) 912-8460 (602) 912-8464 (602) 912-8466 (602) 912-8466 (602) 912-8458 (520) 628-6370 (602) 912-8467 (602) 912-8453 (602) 912-8453 (602) 912-8453 (602) 912-8421 (602) 912-8421 (602) 912-8459 (520) 628-6633 1 A Message from the Director of Insurance Governor Napolitano and Members of the Arizona Legislature, I am especially pleased to provide this 2003/2004 Annual Report of the Arizona Department of Insurance. The Department of Insurance, a relatively small agency, it is a critical component of state government. From the oneon-one assistance we offer the public, to the financial scrutiny we maintain over the massive insurance institutions doing business in our state, the functions of the Department of Insurance are invaluable to Arizona consumers. Through fee and assessment revenues, the Department reimburses the General Fund for the amount of its appropriation. In fiscal year 2004, the Department collected and remitted over $308 million in insurance premium tax revenues to the General Fund, and over $27 million to fire fighter and public safety retirement funds. Given a fiscal year 2004 appropriation of just over $6 million, the Department continued to adeptly regulate an insurance industry which transacted nearly $29 billion of premiums in this state in 2003 and to render helpful information and service to our ever-increasing population of insurance consumers and licensees. My utmost respect and gratitude goes to the Department's staff for another year of excellent service to Arizona's insurance consumers. I believe in a balanced approach to insurance regulation and urge all stakeholders in Arizona's insurance markets to continue to work together to further our joint interests in assuring the economic development of the insurance companies doing business in our state, while protecting the interests of Arizona insurance consumers. Sincerely, Christina Urias Director of Insurance 2 Strategic Plan Summary The mission of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and encourages economic development. The Department achieves its overall mission through accomplishing the missions of the following programs and subprograms. PROGRAM / SUBPROGRAM Policy and Administration Solvency Regulation MISSION STATEMENT To provide leadership, direction, coordination and support, enabling the agency to achieve its mission. To oversee and promote the ability of authorized insurers to perform their financial obligations under insurance policies. To detect and deter insurer financial deficiencies and unsound practices as early as possible. To minimize the impact of insurer insolvencies on Arizona residents. To inform, assist and protect Arizona insurance consumers. To make available and promote insurance-related information and assistance to enable Arizona consumers to make informed decisions, and to facilitate the receipt of benefits to which they are entitled. To protect Arizona insurance consumers from unfair and illegal market practices and to oversee insurer compliance with Arizona laws that promote effective health service delivery systems. To render efficient, effective and quality insurance licensing services and to restrict license issuance and renewal to qualified candidates. To render efficient, effective and quality licensing services to producers and other insurance-related service providers and to restrict license issuance and renewal to qualified applicants. To render efficient, effective and quality licensing services to insurers and other insurance risk bearing entities and to restrict license issuance to qualified applicants. To fully collect, efficiently deposit and accurately forecast insurance premium tax revenues. To deter, investigate, and facilitate conviction for insurance fraud. To provide a regulatory environment that enables development of the domestic captive insurance industry, and to oversee the soundness of domestic captive insurers. Financial Condition and Soundness Oversight Insolvency Administration Consumer Support Consumer Information and Assistance Market Practices Oversight Licensing Professional Service Licensing Insurer Licensing Premium Tax Collections and Analysis Fraud Investigation and Deterrence Captive Insurance 3 Department of Insurance Division Reports GOVERNOR OF ARIZONA DIRECTOR OF INSURANCE Business Services Licensing ADMINISTRATIVE SERVICES DIVISION INFORMATION SERVICES DIVISION Managed Care & Prepaid Dental Rates and Forms Utilization Review and Third Party Administrator Compliance Examination Surveillance FINANCIAL AFFAIRS DIVISION CAPTIVE INSURANCE DIVISION LIFE & HEATLH DIVISION PROPERTY & CASUALTY DIVISION Property and Casualty Registration RECEIVERSHIP DIVISION CONSUMER AFFAIRS DIVISION Consumer Services Health Care Appeals Market Assistance Life and Disability Fund Property and Casualty Fund ARIZONA INSURANCE GUARANTY FUNDS MARKET OVERSIGHT DIVISION Examination Analysis Investigation INSURANCE FRAUD UNIT 4 5 OFF CE OF THE OFFIICE OF THE D RECTOR DIIRECTOR Christina Urias................................................. Director Gerrie Marks ....................................... Deputy Director Jennifer Boecek......... Executive Asst., Policy Affairs Erin H. Klug ........................ Public Information Officer Margaret McClelland ............................. Rules Analyst The mission of the Director's Office is to provide leadership, direction, coordination and support, enabling the Department to achieve its overall mission. The Director's Office: � As a Cabinet level agency, advises and supports the Governor's Office � Develops, recommends and implements insurance-related legislation � Develops and promulgates appropriate rules and substantive policy statements � Develops the agency's operational policies and coordinates and directs the activities of the agency's divisions � Provides technical support and advice to state legislators and the U.S. Congressional delegation � Participates as a member of the National Association of Insurance Commissioners � Coordinates interaction with the agency's major constituencies, including consumers, licensees, industry, elected officials and the media � Coordinates the agency's interaction with other state and federal agencies � Coordinates and participates in numerous task forces and advisory groups � Oversees the administration of boards and other public bodies within the agency � Oversees the preparation, publication and distribution of regulatory information to the public, including consumer oriented literature, statutorily required reports, the agency newsletter, and the agency website. � Makes appearances and speeches before interested groups � Coordinates legal representation of the agency by the Attorney General's Office � Renders ultimate decisions in administrative proceedings necessary to enforce and administer the Insurance Code � Develops the Agency Operational Plan, Budget Request, Information Technology Plan, Business Continuity Plan, and Disaster Preparedness Plan � Oversees the development of the agency's work force � Monitors the performance of the agency and its divisions, and promotes continuous improvement in agency efficiency and customer service � Provides agency accounting, budgeting, payroll, personnel, facilities management, risk management, telecommunication, information technology, mail processing and courier services. 6 Director's Office Highlights for Fiscal Year 2004 Continued efforts to modernize market oversight functions, fo cu sing on market analysis, including designating a Ma rke t Analysis Coordinator and working closely with other s tate s on the development of the NAIC Market Analysis Handboo k and a standard examination reporting format. Reorganized the Tucson office, centralizing the agency's inve st igat ion activities in Phoenix, and focusing Tucson s taff on delivering licensing services and basic consumer a ss is ta n c e . Worked in partnership with the Independent Agents and Brokers of Arizona to draft legislation to efficiently revise license renewals to every four years instead of every two years. Proposed and achieved enactment of legislation (HB 2228, Laws 2004) to require greater accountability and disclosure b y organizations offering charitable gift annuities. Implemented consumer protection improvements to Arizona's Life and Annuity laws, including replacement, f ree look, and disclosure provisions. Proposed Long Term Care insurance rules to facilitate imp le me ntat ion of HB 2153 (Laws 2003) and increase c onfo rmity with the NAIC National Model. 8 ADMINISTRATIVE SERVICES DIVISION Scott Greenberg ................. Chief Operating Officer Steven Fromholtz.............. Licensing Administrator Mary Jordan ............................ Accounting Manager Barbara Beltran....... Business Services Supervisor The Division is comprised of the Licensing Section, the Business Services Section and the Accounting Section. Licensing Section The mission of the Licensing Section is to provide efficient, effective and quality insurance licensing services to producers and other insurance-related service providers. The Licensing Section ensures that insurance license candidates meet all qualifications before issuing or renewing a license. The Section reviews and analyzes applications for professional-services licensure, maintains and accesses agency-specific and national licensing databases, obtains criminal history information on certain applicants, maintains electronic and physical license files, administers contracts for pre-license examination services and for continuing education provider and course certification. Although the professional services licensing population grew by 8.5% during Fiscal Year 20041, the Licensing Section continued to operate efficiently, reviewing license applications in an average of only 17.1 licensing time frame days2. Licensing Highlights For Fiscal Year 2004 Processed 25,475 new license applications, an 8.0% increase from the prior fiscal year. Processed 29,371 license renewal applications, an 8.6% increase from the prior fiscal year. Satisfied 91.4% of customers surveyed during Fiscal Year 2004. Sent postcards to 37,862 Arizona-resident licensees concerning newly enacted legislation effective January 1, 2005, and promulgated information on Internet web site. 1 2 From 91,577 at June 30, 2003, to 99,379 at June 30, 2004. "Licensing time frame days" are the "overall time frame" days, as defined in A.R.S. �41-1072(2), minus the days that the overall time frame is suspended in accordance with A.R.S. � 41-1074(B). 8 The following chart illustrates the licensing cycle time during the last two fiscal years on a monthly basis. Producer Licensing Cycle Time Average timeframe days* from date application is received to date license decision is rendered for license decisions rendered during the month. FY 2003 Actual FY 2004 Actual 25.0 21.6 20.0 23.2 21.1 19.5 16.1 14.4 14.0 19.7 17.6 17.0 15.1 20.1 17.3 22.0 18.0 14.5 15.7 Time Frame Day 16.9 15.0 16.0 13.5 10.0 9.4 6.7 10.7 10.3 5.0 July Augus t S eptember Oc tober November Dec ember January February Marc h A pril May June Fisc al Month *"Timeframe days" exclude the number of days during which applications have been returned to applicants due to deficiencies. Business Services Section The mission of the Business Services Section is to provide the goods and services needed to support efficient and effective agency operations. This Section is responsible for personnel, procurement, mail distribution and metering, facilities management, risk management and strategic planning support. The Business Services Section continues to be successful at delivering responsive service to its internal customers, and Fiscal Year 2004 surveys responses indicate employees are satisfied with Business Services Section service.3 Accounting Section The mission of the Accounting Section is to promptly and accurately complete and record agency accounting transactions. This Section is responsible over cash receipts and cash disbursements for eleven different funds; for executing and recording accounting transactions; for accurately forecasting revenues and expenditures; for developing and monitoring budgets for each of the Department's funding sources; for timely and accurately paying Department of Insurance employees. 3 79.5% of responses to employee satisfaction surveys during FY 2004 "agreed" or "strongly agreed" with the statement, "Overall, I am satisfied with the Business Services Section." Virtually all remaining responses (19.2%) "neither agreed nor disagreed." 9 During Fiscal Year 2004, the Department deposited over $308-million of insurance premium tax revenues into the State General Fund. The Department's forecast of insurance premium tax revenues was extraordinarily accurate. Actual insurance premium tax revenues exceeding the Department's revenue forecast by less than 0.5%. In total, the Department returned to the General Fund over 50 times the amount of its General Fund appropriation last year. Business Services and Accounting Highlights for Fiscal year 2004 The two Sections worked together to implement the State of Arizona "Human Resources Information Solution" (HRIS), which replaced the State's "Human Resources Management System" (HRMS). The Department worked in partnership with the Department of Administration to properly configure the system and to train Department human resources and payroll employees The Department's insurance premium tax forecast was within 0.5% of actual premium tax revenue collections for FY 2004. The Department collected almost $316.5-million for the State General Fund, which was over 50 times the Department's $6.1-million General Fund appropriation. The Business Services Section helped to coordinate the restructuring of the Department's Tucson Office, focusing the office on rendering assistance to insurance consumers and license applicants. 10 CONSUMER AFFAIRS DIVISION Mary Butterfield............................. Assistant Director Catherine O'Neil ................................ Ombudsperson Mary Kitterman..............Market Assistance Manager Lorraine McCormack ..... Health Care Appeals Manager The mission of the Consumer Affairs Division is to inform, assist and protect Arizona insurance consumers. The Division is comprised of the Consumer Services and Health Care Appeals Sections. The Division provides a full range of consumer information and assistance in response to written, telephonic and walk-in requests, including distribution of informative publications such as premium comparisons and insurer complaint ratios. The Division also assists with insurance-related education and outreach and offers one-on-one assistance to consumers, and businesses. The Department also has a satellite office in Tucson which offers consumer assistance and producer licensing services to southern Arizona residents. The Division also offers assistance to Arizona businesses having difficulty securing liability insurance. The Health Care Appeals Section a d m i n i s t e r s Arizona's health care appeals law which requires all health i n s u r e r s to have a multi-tiered process in place through which consumers m a y appeal insurer claim denials or denials of requests for services, e i t h e r on an expedited or standard basis. Consumer Services Section The Consumer Services Section is the insurance consumer's main point of contact with the Department. Consumer Services personnel in the Phoenix and Tucson offices provide critical assistance to Arizona's insurance consumers in numerous ways. During FY04 division personnel responded to over 52,000 phone calls, personally met with more than 500 members of the public, and handled in excess of 7,700 written complaints and requests for information and assistance regarding insurance-related problems. The Division also assisted consumers in recovering over $4,000,000 from their insurance companies. Consumer Affairs Highlights for Fiscal Year 2004 Assisted in settlements and restitution for Arizona consumers totaling $4,889,096 Answered 52,048 telephone inquiries Processed 7,722 written complaints Assisted 564 consumers in person at the Department. Assisted 516 consumers in finding difficult-to-place liability insurance coverage. 11 Health Care Appeals Section Established in 1998, the Health Care Appeals Section administers the 1997 legislation which created a uniform process for Arizona health insurance consumers to appeal insurer claim denials1 or requests for services2. The appeal process culminates in an opportunity for an insured to obtain an unbiased, independent, external level of review administered by the Department. Exemptions to Arizona's Health Care Appeals Law ! ! ! ! Federal plans Worker's Compensation policies Self-funded employee benefit plans Fixed benefit plans (when benefit is based on the "health status of the insured") Long Term Care policies Medicare Supplement policies In general, the health care appeals law3 provides a three-tiered process for insured members to contest ! denials or requests for service. The majority of ! appeals follow the standard appeals track, although the law provides an expedited track mirroring the standard process except for significantly reduced time frames at each level. To be eligible for an expedited appeal, the insured member's treating Standard Process Expedited Process provider must submit a written Level 1 Informal Reconsideration Expedited Medical Review certification along with supporting medical Level 2 Formal Appeal Expedited Appeal documentation indicating that Level 3 External Independent Expedited External Review Independent Review the time required for the standard process "is likely to cause a significant negative change" in the medical condition at issue in the appeal. The insured member must exhaust the insurer's internal appeal steps (usually both levels one and Who can request an appeal? two) before requesting external independent ! The insured member review, however, an insurer may choose to ! The member's treating provider accelerate a case to external review at any of the ! Parent, if a minor internal levels. The last level of this process ! Legal guardian allows for a review that is external and ! Person authorized to make decisions by a power of independent of the health insurer. Once again, attorney there are two distinct tracks that an external review can follow. If the case concerns a denial arising from a coverage or contractual issue, the Department makes the independent determination. The non-prevailing party can appeal to the Office of Administrative Hearings although the Department is not a participant at the hearing. If the case involves a medical necessity issue, an independent medical review organization makes the final determination. The Department contracts with several independent review organizations (IROs) through the state procurement process. Thus, for each medical case, the Department selects a reviewer from its list of IROs, sends the case to the selected IRO who completes its medical review, sends its recommended 1 A denied "claim" occurs when a person has already received care, submitted a claim for payment, and the insurer refuses to pay all or any portion of the claim. 2 A denial of "service" occurs when a person has requested a health care service or a referral to a specialist and the insurer refuses to pre-authorize the service. Thus, the desired service has not yet been rendered at the time of the appeal. 3 A.R.S. ��20-2530 through 20-2541. 12 decision back to the Department for final written determination. The health care insurer has no direct relationship or contact with the chosen IRO at any time during the independent review process. The Department bills the insurer for the cost of the medical review and maintains a revolving fund to then pay the IRO fees on a case by case basis. This final medical determination is subject to judicial review, and cannot be appealed to the Office of Administrative Hearings. Only appeals taken to the third level come to the Department for external review. The external review component of this mandated process provides Arizona health insurance consumers with a valuable, user friendly dispute resolution mechanism that is expeditious and inexpensive. In addition, it is estimated that most insurers overturn approximately half of all appeals at the first level of an appeal, so the first tiers of an appeal to the insurer can be very beneficial. Health Care Appeals Statistics for Fiscal Year 2004 Total number of health care appeals subject to External Review Process: 280 " Number of cases decided by the Department as coverage issues: 148 ! 133 upheld in favor of the health insurer ! 1 overturned or partially overturned in favor of the consumer ! 7 remain pending at year end ! 7 were withdrawn " Number of cases decided by an independent medical review organization: 85 ! 56 upheld in favor of the health insurer ! 26 overturned or partially overturned in favor of the consumer ! 3 remain pending at year end " Number of cases reviewed by the Department but referred to an independent medical review organization for medical decision: 47 ! 44 standard appeals ! 3 expedited appeals ! 28 upheld in favor of the health insurer ! 18 overturned or partially overturned in favor of the consumer ! 1 remained pending at year end Expedited vs. Standard Appeals 7/1/02 - 6/30/03 13 ! 144 standard appeals ! 4 expedited appeals ! 79 standard appeals ! 5 expedited appeals External Review Cases 7/1/02 - 6/30/03 Coverage Cases 85 Medical IRO cases Cases Referred for Medical IRO Number of Standard Appeals Received Number of Expedited Appeals Received 148 267 47 13 FINANCIAL AFFAIRS DIVISION Steve Ferguson ........................ Assistant Director Kurt Regner ..................... Chief Financial Analyst Leslie Hess ......... Deputy Receiver/Legal Analyst Alan Griffieth ................ Chief Financial Examiner Kelly Stephens ..... Compliance Section Manager The mission of the Financial Affairs Division is to detect and deter insurers' financial deficiencies and unsound financial practices. The Division also reviews applications for licensure in Arizona to ensure that only those insurers in sound financial condition are granted certificates of authority. In fulfilling this mission, the Division analyzes quantitative and qualitative information obtained through surveillance practices applied to required filings, the conduct of formal on-site financial examinations, correspondence with insurers and other sources. Required filings include annual and quarterly financial statements, annual holding company registration statements and audited financial reports. Other filings made by insurers requiring specific prior approval transactions such as acquisitions, mergers, withdrawals and certain transactions between an insurer and affiliated entities. If deficiencies are identified from analysis of available information, Division management initiates corrective action and enforcement activities as appropriate. In conducting its financial oversight of insurers, the Division is subject to standards for effective financial regulation promulgated through the National Association of Insurance Commissioners (NAIC). The NAIC accredited the Department as compliant with NAIC standards in 1993, and again in 2003. The Division is led by Assistant Director Steve Ferguson and is organized into three sections, the (1) Financial Surveillance Section, (2) Examinations Section and (3) Compliance Section. Financial Surveillance Section The Financial Surveillance Section is responsible for the ongoing analysis of mandatory financial filings of domestic and foreign authorized insurers. This continuous insurer surveillance results in early detection of violations of financial requirements and/or specific operating difficulties. The Division uses sophisticated financial analysis tools to extract and review financial data from NAIC national databases maintained and insurer financial filings submitted directly to the Department. When financial deficiencies are detected, analysts make recommendations regarding appropriate corrective actions and assist management of the Division in enforcement activities. Financial Surveillance staff reports financial analysis conclusions to other state insurance departments and the NAIC when appropriate. Financial Surveillance staff are also responsible: a) for reviewing insurer applications for issuance of new and amended certificates of authority; b) reviewing and providing significant analysis of financial and operational information; and c) providing recommendations related to certain specific domestic insurer transactions requiring prior notice and approval pursuant to law. Examinations Section The Examinations Section is responsible for the performance of periodic on-site full scope financial examinations of 112 domestic insurers and 120 domestic reinsurers and life care providers. The Section may also perform other limited scope examinations of domestic insurers and reinsurers when financial surveillance practices detect concerns regarding their financial condition or operations. The purpose of the examinations is to confirm the financial position and results of operations of insurers and their compliance with statutory financial solvency requirements. The information obtained through the examinations assists the Financial Surveillance Section and Division management in the ongoing oversight and enforcement responsibilities. Arizona law requires the Department to conduct a financial examination of each 14 domestic insurer at least once every five years. Additionally, the Financial Surveillance Section may initiate financial examinations any time it identifies significant weakness and deficiencies that raise solvency concerns. Compliance Section The Compliance Section is responsible for premium tax collection, statutory deposit administration, maintenance of public records and general administrative support to the Division. The Section is also responsible for insurer customer support services, such as maintenance and dissemination of forms and processing of annual statutory filings. The Premium Tax Unit performs tax report audits and remittance processing functions. All premium tax and annual statutory fee remittance reports are audited and may result in the assessment of additional tax, penalties and interest that must be collected from insurers. The Trust Deposits Unit monitors and enforces compliance with trust deposit requirements comprising a $3 billion portfolio of securities held by the Arizona State Treasurer. The unit also monitors trust deposits held in other jurisdictions that are relied upon for an insurer's qualification to transact insurance business in Arizona. Ins ur er s ' Securities On Deposit With Arizona State Treasurer ($000,000 Omitted) 3 20 0 3 00 0 2 80 0 2 60 0 2 40 0 2 20 0 2 00 0 C al en d ar Year OTHER STATUTOR Y WORKERS' COMPENSATION 20 03 70 21 2 27 49 20 02 62 22 4 27 26 20 01 68 22 6 27 57 20 00 67 2 20 26 87 19 99 60 2 15 26 88 Financial Financial Affairs Highlights For Fiscal Year 2004 Successfully completed the NAIC Financial Regulatory Standards and Accreditation Committee review in July 2003 and received re-accreditation in September 2003 for a five-year period. Took enforcement actions against two domestic insurers found to be in hazardous financial condition by placing them into supervision for the protection of policyholders. Successfully implemented new automated examination techniques on substantially all insurer examinations during the year. Participated in certain multi-state insurer examinations as part to the NAIC's efforts to improve regulatory coordination within large insurance holding company systems. 15 Deloris Williamson........... Assistant Director PROPERTY AND Dean Ehler...............Rates & Forms Supervisor RATESLTREGULATIONS DIVISION & Y DIVISION CASUA The Division reviews all property and casualty insurance policies, contracts, related forms and certain property and casualty rate filings, to ensure compliance with the law and make certain they are not ambiguous, misleading or deceptive. The Division monitors the market for specific selected lines of insurance through insurer surveys, and compiling and analyzing the results, together with other material information, to determine the level of competition and the overall health of the market. The Division is comprised of the Rates & Forms Section and the Registration Section. The Rates & Forms Section This Section is primarily responsible for administering property and casualty insurance rate and form laws. Although all major lines of insurance are closely monitored, the section is particularly alert to homeowners (HO) filings and private passenger automobile (PPA) rate changes and compiles annual premium comparisons for the Department's consumer premium comparison publications. Homeowners' Insurance Market: The following graph demonstrates the dollar amount of HO insurance premium written and insurers' incurred losses since 1997 in Arizona: $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Arizona Homeowners' Written Premium and Incurred Losses (000 Omitted) Incurred Losses Written Premium 1997 1998 1999 2000 2001 2002 2003 ! ! ! ! 107 of 195 insurers wrote $100,000 or more in premium in 2003. Numerous insurers have the capability of becoming active, but more insurers are exiting than entering the HO market. Competition is intense as only 19 insurers write more than 1% of the market. Rate increases were not as high or as frequent in 2003 as 71 insurers took an overall weighted average rate increase of 8.49% in 2003. In 2002, there were 83 insurers that took an overall weighted average rate increase of 16.85%. 16 Private Passenger Automobile Insurance Market: The following graph demonstrates the dollar amount of PPA premiums written and insurers' incurred losses since 1997 in Arizona. Arizona Private Passenger Automobile Liability and Physical Damage Written Premiums and Incurred Losses (000 Omitted) $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Incurred Losses Written Premium 1997 1998 1999 2000 2001 2002 2003 ! ! ! ! ! 77.58% of the market is concentrated in the Top 25 insurers. The average premium is at a three-year high of $1,201. Only 22 insurers write more than 1% of the market. More insurers are entering than exiting the market. Overall, accident frequency and accident severity appear to be decreasing. During Fiscal Year 2004, the Rates and Forms Section: � � � Qualified 126 surplus line insurers to transact business in Arizona. Produced four major consumer-information publications: two semi-annual Automobile Premium Comparisons, the Homeowners' Premium Comparison, and the Mobile Homeowners' Premium Comparison. Conducted surveys of insurers to monitor marketplace competition for the following lines or types of insurance: medical malpractice, homeowners, other liability, surety, personal automobile, commercial automobile, business owners insurance, and nursing home liability insurance. Registration Section This Section is responsible for: a) issuing service company permits on contracts with consumers that for appliance repairs and/or electrical, plumbing, heating, cooling or air conditioning system services for residential property; b) approving motor vehicle service contract programs; and c) reviewing foreign Risk Retention Groups (RRG's) and registering Risk Purchasing Groups (RPG's) organized under the Federal Risk Retention Act. During Fiscal Year 2004, the Registration Section: � Issued 18 new Service Company permits. � Registered 14 new Risk Purchasing Groups, increasing the total number of registered Risk Purchasing Groups to 339. 17 � Registered 9 new Foreign Risk Retention Groups, bringing the total number of registered Foreign Risk Retention Groups to 63. Property and Casualty Highlights For Fiscal Year 2004 Reviewed 375 rate filings and 4,068 form filings. Supported the Arizona Workers' Compensation Appeals Board that hears appeals by employers regarding the rating of their workers' compensation insurance policies. Surpassed all of its goals related to form and rate filing review: � � � � � � Within the prescribed substantive review period, reviewed 99% of forms received instead of the expected 95%. Used 6.5 calendar days on average to review P&C products instead of the expected 20 days. Within 90 days, reviewed 97% of targeted "use and file" rate filings instead of the expected 90%. Reviewed 99% of "file and use" rate filings by the effective date of the filing, rather than the expected 95%. Used 8.7 calendar days on average for the substantive review of "file and use" rate filings instead of the expected 15 days. Received 13% of form filings electronically instead of the 7.5% expected. 18 LIFE AND HEALTH LIIVISION HEALTH DIV D FE AND Alexandra Shafer............... Assistant Director Dennis Babka.......... Life & Health Supervisor Linda Beguin, DDS ........Dental Plan Manager Laura Weng.... .. Managed Care Program Mgr Traditional Division Functions: Forms Review In Fiscal Year 2004, the Life and Health Division continued its traditional functions of reviewing the required submissions of policy, rate and advertising forms issued by authorized life and health insurers, health care services organizations (HMOs), nonprofit service corporations (HMDOs) and prepaid dental plans (PDPOs) to ensure compliance with Arizona law. Under new procedures implemented in May 2002, the Life and Health Division conducted expedited regulatory review of insurer product filings resulting in faster form approvals and allowing insurers to market their products more quickly. Insurers increasingly submitted filings electronically, using the System for Electronic Rate and Form Filing (SERFF), the national electronic filing system for insurance departments across the country. The Division received and reviewed a total of 17,958 forms in FY 2004, including 1,673 SERFF forms (compared to 925 SERFF forms in FY 2003). Health Care Insurance Oversight In FY 2004, the Division continued its implementation of health insurance regulation programs that resulted from legislation enacted in 2000, including oversight of medical service delivery by health care service organizations (HMOs) and dental service delivery by prepaid dental plan organizations (PDPOs). The Division's oversight includes compliance reviews, proactive education on compliance issues, rulemaking and enforcement activities. In addition, the Division administers Arizona's health care provider timely pay and grievance law, enacted in 2000. The Division reviews semi-annual statutory reports and copies of thousands of provider grievances every year and uses the resulting data to target enforcement activities, educate insurers and provide assistance to providers. In FY 2004, the Division received and analyzed 8,350 copies of provider grievances (compared to 5,167 copies in FY 2003). Non-Insurer Licensing The Division licenses third party administrators (TPAs) and utilization review agents (URAs) and oversees insurer compliance with Arizona's third party intermediary law. In FY 2004, the Division issued 33 new TPA licenses, 5 new URA licenses and renewed 13 URA licenses. 19 Life and Health Highlights for Fiscal Year 2004 Entered consent orders in two timely pay and grievance examinations, with penalties against the two insurers totaling $99,600. Worked with stakeholders to develop rules for the transaction of health insurance, long-term care insurance and HMO network adequacy. Assisted with Department comments on proposed legislation, including bills or language relating to state self-insurance, discrimination in health insurance, copays and deductibles, Health Care Group reforms, mental health coverage, licensure of alien health insurers, an Arizona high risk pool and timely pay reforms. Assisted in implementing 2003 comsumer protection legislation regarding long term care insurance and life insurance and annuity replacement. Assessed the Arizona operations of three pharmacy benefit management (PBM) companies to determine possible TPA license requirements; obtained applications and issued licenses to all three. Completed network adequacy reviews of two HMOs, including supervision of the HMOs' corrective action programs. Terminated the Small Employer Reinsurance Program (SERP), as a result of legislative repeal of SERP in 2002. Implemented a formal complaint process for health insurance oversight by receiving and investigating 26 written complaints regarding managed care or timely pay compliance. Conducted educational programs for consumers, providers, professional associations and payors on a variety of topics, including Medicare supplement insurance, long term care insurance, and timely pay laws. Surpassed its strategic goals: ! ! Reviewed 99% of non-HMO form filings within 30 Days. Timely reviewed 100% of pre-paid dental quarterly reports. 20 FRAUD UNIT Terry Cooper ................................ Chief Created as part of the Department of Insurance in 1994 (A.R.S. � 20-466), the Fraud Unit strives to improve the quality of its service and protection of Arizona consumers. A.R.S. � 20-463 defines fraudulent acts and designates insurance fraud a felony for any person or entity. The statutes require insurers to Mission Statement refer cases to the Fraud Unit when they " To deter, investigate and facilitate suspect "...a fraudulent claim has been or is being made." 1 These statutes also aid conviction for insurance fraud" in reducing the opportunity for insurers to apply overly broad fraud deterrence measures that could adversely affect honest claimants. To facilitate improvement and meet future demands, the Fraud Unit needs increased statutory authority, more manpower and more funding to expand investigations, and increase success in the deterrence, investigation and prosecution of insurance fraud. During FY 2004, the Fraud Unit's successes included 44 convictions and restitution awards totaling more than $322,443.00. The number of Since 1994 referrals hit a three-year low last year. Restitution Total Convictions ..................562 and fines are also lower perhaps due to resource Total Restitution and Fines.....$6,270,314 constraints adversely impacting the Fraud Unit's ability to investigate and prosecute insurance fraud. The following table summarizes the Fraud Unit's performance measures for FY 2004 compared to previous years, including the Fraud Unit's first year, FY1994-95. Reporting Categories Total Fraud Referrals Received a. Referrals for Information Only 3 2 FY2004 2,143 1,537 303 497 217 112 44 44 $322,443 $123,785 $19,960 $1.9M FY2003 2,475 1,537 838 432 161 34 77 76 $1,278,321 $69,398 $29,841 $275,925 FY2002 2,225 1,535 690 698 221 83 41 41 $407,540 $413,576 $43,345 $2.2M FY1994 620 310 310 136 5 5 5 5 $134,609 N/A $23,925 N/A b. Number of Cases Investigated Cases Closed Without Referral for Prosecution Cases Referred to Prosecutors Indictments Prosecutions Convictions Restitution Resulting from Unit Operations Value of Property Recovered Fines Resulting from Unit Operations Amount Saved by Insurers 1 2 A.R.S. � 20-466(F) The Fraud Unit receives referrals from the public and from insurers reporting possible fraudulent activity and claims. Insurers submit many referrals for "information only" not for investigation. Data also includes referrals that are reviewed and found not to indicate a violation of Arizona law. 3 21 MARKET OVERSIGHT DIVISION Paul J. Hogan ........... Market Oversight Administrator Maria G. Chavira ............. Market Analysis Supervisor Delbert L. Knight.... Market Examinations Supervisor Arnold V. Sniegowski.............. Investigations Supervisor To protect Arizona insurance consumers, the Market Oversight Division ("MOD") gathers and analyzes market information, and investigates and examines possible Title 20 violations by producers, insurers and others. The Division is comprised of the following sections: Market Analysis, Market Examinations and Investigations. The Department's formation of MOD consolidated much of the "fact finding" (investigative and examination) and enforcement activity relative to market activity in one Division, enabling the Department to have a more integrated, flexible, and cost-effective approach to market conduct oversight and enforcement. The Division relies upon selective use of a broad range of investigative, examination, research, analysis and enforcement tools, emphasizing market analysis, and tailoring its regulatory approach to particular parties or issues. Market Analysis Section The Market Analysis Section performs analytical risk assessment of market information derived from both internal and external data sources to enable the Department to identify potential market conduct problems as early as possible and allow for appropriate regulatory intervention. The Market Analysis Section works to prioritize and coordinate the various market oversight functions of the Department and promotes an integrated system of proportional responses to insurer market problems. Market Examinations Section The Market Examinations Section performs examinations of insurers' market related practices. Examinations gauge compliance with information filed with the Department and with applicable Arizona law (including the Unfair Claims Settlement Practices Act) and target specific areas of insurer operations based on reports from the Market Analysis Section. Exam inat ions may result in d i s c i p l i n a r y action, corrective action p l a n s , restitution, civil penalties, or a d d i t i o n a l payments to policyholders a n d claimants. The Section also conducts follow-up examinations and monitoring to assess compliance with corrective action plans. Investigations Section The Investigations Section investigates allegations of unauthorized insurance activity and insurance code violations by insurers and professional service licensees, and refers apparent violations for appropriate enforcement action. Section personnel coordinate their investigative activities with market analysis activities, when appropriate. Market Oversight Highlights for Fiscal Year 2004 Assessed civil penalties against insurers totaling $365,763. Initiated 7 market conduct examinations. Filed 25 market conduct examination reports. Recovered $89,513 in restitution, including interest, for Arizona policyholders and claimants. Opened 130 investigations and closed 97. Referred 33 cases for administrative action. 22 ARIZONA INSURANCE GUARANTY FUNDS Michael E. Surguine .... Executive Director RIZONA The Arizona Guaranty Funds serve as a safety net to protect insurance consumers from financial loss in the event that an authorized insurance company becomes insolvent. There are actually two guaranty funds administered by Department staff. A Board of Directors appointed by the Governor oversees each fund. The Arizona Life and Disability Insurance Guaranty Fund covers life insurance, health insurance and individual annuities. The Arizona Property and Casualty Insurance Guaranty Fund covers most traditional property and casualty lines. Each guaranty fund consists of the insurers authorized in Arizona to write the lines of business the guaranty fund covers. Following an insolvency, the Property and Casualty Guaranty Fund investigates, adjudicates and pays the claims of Arizona insureds and claimants and provides a defense to the insured where appropriate. Similarly, the Life and Disability Guaranty Fund pays the claims of Arizona residents or provides for continued coverage under covered life, health and annuity contracts. Coverage under each guaranty fund is subject to certain statutory limitations and exclusions, and each guaranty fund receives distributions from the estates of insolvent insurer and levies assessments on its member insurers to generate the necessary funds to meet its obligations. Upon payment of a guaranty fund assessment, each member insurer receives a certificate of contribution, entitling that insurer to a credit against its premium tax obligation to the State of Arizona. Since its inception in 1970, the Arizona Property and Casualty Insurance Guaranty Fund has paid out over $126 million in claims to Arizona policyholders and claimants.1 Since its creation in 1977, the Arizona Life and Disability Insurance Guaranty Fund has paid out over $251 million in benefits to Arizona policyholders and claimants.2 Guaranty Funds Highlights for Fiscal Year 2004 Property and Casualty Guaranty Fund paid out almost $2.5 million in claims and loss adjustment expenses on behalf of Arizona policyholders and claimants. Independent claims audit rated the claims handling performance of the Guaranty Fund staff as excellent. In addition, claims handling audits of two contractors reported satisfactory to excellent performance. 1 2 Does not include loss adjustment expenses and administrative expenses. Does not include administrative expenses. 23 RECEIVERSHIP DIVISION Leslie Hess.... ................... Deputy Receiver Herb Swafford ........................ Legal Analyst The mission of the Receivership Division is to maximize the ability of insolvent insurance companies to pay valid creditor claims. The Division executes the Director's duties and powers as statutory Receiver of insolvent insurers, and oversees their rehabilitation or liquidation, subject to court oversight. Special deputy receivers, attorneys, accountants and other professionals administer the day-to-day affairs of the insolvent insurers' estates, including collection and liquidation of assets and distribution of assets to creditors. In addition, the Division assists Arizonans affected by insurance receiverships domiciled in other states, and works closely with the Guaranty Funds to satisfy the insolvent insurers' claims obligations to Arizonans. During Fiscal Year 2004, the Division continued the administration of ten domestic and three foreign insurers in receivership: American Bonding Company; AMS Life Insurance Company; AzSTAR Casualty Company; Diamond Benefits Life Insurance Company; Farm and Home Life Insurance Company; Great Global Assurance Company; North American Physicians Insurance Risk Retention Group; Old West Annuity & Life Insurance Company, Premier Healthcare of Arizona, Inc.; USA Property & Casualty Insurance Company; Superior Pacific Casualty Company; Superior National Insurance Company and Reliance Insurance Company. Receivership Highlights for Fiscal Year 2004 Distributed $61,733,601 from receivership estates to policyholders, guaranty funds, and other creditors, including $36 million to annuitants of Old West Annuity & Life Insurance Company currently in rehabilitation. On March 2, 2004, the Department placed Old West Annuity & Life Insurance Company, an Arizona domestic insurance company into rehabilitation receivership, although Old West remains solvent under the Department's management as Receiver. Obtained Court approval of approximately $150.9 million in claim recommendations in the Farm & Home Life Insurance Company receivership. 24 CAPTIVE INSURANCE DIVISION Captive Administrator...... Rod Morris The Department established the Captive Insurance Division in 2002 to provide an alternative mechanism to traditional insurance that enables companies to control and customize their costs and coverages in a manner that is more responsive to their financial objectives. The Division is responsible for the regulatory oversight of these captive entities, including all processes related to licensing, monitoring and examination. The Captive Division's Administrator is Rod Morris, appointed almost coincidentally with the end of the fiscal year. Mr. Morris comes to the Department with a wealth of experience in both the private and public sectors. In a career of over 35 years in the insurance industry, he spent the last 25 years as a Senior Vice President in the Field Operations, International and Risk Management divisions of a major private sector insurer and, during the most recent three years, as the head of Political Risk Insurance for the US government in Washington, DC. 1 CAPTIVE FEES REPORT Fiscal year 2004 licensing fees collected Initial Licenses: Total applicants: 31 Fees collected: $31,000 Renewals: Licensees renewed: 12 Fees collected: $66,000 Total Fees collected: $97,000 Division Highlights for Fiscal Year 2004 � � Total active captive insurers: 25 Out of the 25, 16 are Pure (single parent) insurers, 7 are Risk Retention Groups, 1 is an Industry group captive, and 1 is an Agency group captive. The AZ legislature enacted HB2235 which expands the captive law to permit non-profit corporations to form group and pure captives. It is effective August 25, 2004. With the support of the governor and director, the program is gaining momentum and is seeing an increase in the number of applications. � � 1 Reported in accordance with A.R.S. � 20-1098.17. Fees prescribed in A.A.C. R20-6-2002. 25 INF O RMATION SERVICES DIVISION Eugene Glover.....Chief Information Officer The mission of the Information Services Division is to provide quality information technology support to enable the Department to fulfill its mission. The Division manages, plans and maintains the operation of the Department's computer resources. The Division operates a Help Desk to answer questions and to resolve computer and communications related problems. Technical support and design of the Department's web site at www.id.state.az.us on the Internet, is also the responsibility of the Information Services Division, as is the development and maintenance of the Department's databases and system programs. Information Services Highlights for Fiscal Year 2004 Developed a real-time, on-line lookup utility for information on insurance companies licensed in Arizona and implemented the system through the Arizona Web Portal. Enhanced the Department's real-time, on-line Insurance Producer Lookup utility to include application data to assist producers in determining the status of their applications. Migrated and enhanced the Department's central Producer Licensing Databases to SQL in preparation for delivering additional on-line services. Continue to audit complaint and licensing data as represented on NIPR/NAIC databases to aid their correction of data to allow accurate processing of our Department data. Implemented communications to establish computer services at Department's new Flagstaff Office Enhanced security protections and drastically reduced e-mail spam and virus vulnerabilities. 26 27 Public Information Resources 28 29 Internet Resources www.id.state.az.us The Department continually updates its website, which is a primary means for many in the industry and public to obtain information about the Department's activities, reports, publications, new laws, etc. The website is organized according to common visitors, including insurance consumers, producers and insurers. Visitors are guided through portals to information relevant to their needs. An exciting new feature on the site is the ability for the visitors to "look up" any insurance company (and other licensees) to verify licensure and obtain basic financial and licensing data. The Producer Look Up feature was added last year, and the Insurer Look Up function enhances and eases the public's access to information about licensed insurance companies operating in Arizona. Similar to other state agencies that license particular professionals, we added a licensee "look up" function to our website. Now, before an insurance consumer opts to do to business with a particular agent or insurance company, they can verify on-line that they are licensed by the Department of Insurance. Insurance producers will find the page dedicated to them was revamped with expanded information and resources. The Department continues to offer a free email subscription service. Visitors can sign up for various mailing lists to receive immediate copies of Department Press Releases, Regulatory Bulletins and the quarterly newsletter by email. In addition to providing cost savings, this service allows us to communicate directly and promptly with the Department's stakeholders. Consumer Resources The Department's website contains a page dedicated to insurance consumers. Information is categorized by type of insurance, so visitors can quickly identify information relevant to their research. In addition, the number of helpful links has been increased, as has the information available in Spanish. The Department has numerous consumer publications on-line, including auto and homeowner guides and premium comparisons, guides to individual and group health insurance, and a detailed guide to the Health Care Appeals Program. Insurance consumers can also look up enforcement actions taken by the Department against insurers or producers, which are published quarterly in our newsletter, and posted to the website. 30 The website offers easy-to-follow instructions on how to seek assistance from the Department. Anyone wishing to file a complaint can print a "Request for Assistance" form (in English or Spanish) and then fax or mail it to the Department. In addition, there is a special email address that visitors can use to submit questions or request literature. This has proved to be the fastest growing method of communication with the Department. Industry Resources The Department's website offers current and prospective insurance professionals fast service, 24 hours a day, 7 days a week. Dozens of official Department forms and instructions for financial filings, and rate and form filings are posted, including all the Arizona "review standards checklists" and transmittal documents necessary for making complete form filings. In addition, surveys and other reporting forms are available on-line for quicker access and completion. The Producer Look Up feature is also popular with insurer personnel. Information on legislative proposals and rules activity initiated by the Department is available on line, allowing interested parties to stay informed. All Regulatory Bulletins issued by the Department are also posted on-line for easy reference. There is an extensive page dedicated to producer licensing which contains license applications, forms, an up-to-date fee schedule, a summary of law changes, and "frequently asked questions". There's also continuing education information, including forms, approved courses and course providers. Other features Visitors can obtain the Department's press releases which highlight important regulatory activity and consumer education information. The site also contains a section for employment and contractor opportunities. Another on-line resource is the Department's quarterly newsletter, Insurance Regulator, which is a good source for information about policy and procedural activity at the Department. 31 Quarterly Newsletter Insurance Regulator "Insurance Regulator" is the Department of Insurance quarterly Second Quarter 2004 newsletter. "Insurance Regulator" provides insurance licensees, public officials and others with information regarding key insurance regulation-related developments, from a local and national perspective. New to the newsletter is a regular feature that describes current compliance issues to help insurers stay on top of Arizona requirements, such as auto insurance cancellation laws and health care appeals requirements. In addition to informative articles, the newsletter contains a comprehensive report on regulatory activity of the Department of Insurance for each quarter. The report lists: � New licenses issued to insurers in a variety of categories � Insurer name changes � Mergers and acquisitions � Insurer withdrawals from Arizona � Insurer suspensions and reinstatements � Receivership activity � Market conduct exam reports, which include the type of violations uncovered and the action taken Disciplinary action against insurers and individuals � Rules promulgated by the Department, and � Regulatory bulletins issued by the Director. Other regular features in the newsletter include the Legislative Report which updates key legislative developments, and the Fraud Unit Report, which helps to keep the industry apprised of activity and developments at the Fraud Unit. � "Insurance Regulator" is published only electronically. It is distributed to all who subscribe to the Department's mailing list. Converting to an Internet based publishing and delivery system reduces costs and ensures that the newsletter is directed to all interested subscribers. An archive of the newsletter can be viewed on the Department's website at www.id.state.az.us. Insurance Regulator Published by the Arizona Department of Insurance 2910 N. 44th St., Suite 210, Phoenix, AZ 85018 Janet Napolitano, Governor Christina Urias, Director Erin H. Klug, Public Information Officer (602) 912-8456 www.id.state.az.us 32 Consumer Publications The Department publishes numerous items of consumer literature which are available on the Department's website at www.id.state.az.us or by calling or visiting the Department. In addition, the Department distributes several key insurancerelated publications from other federal and state regulatory agencies which can be obtained by calling (602) 912-8444 or (800) 325-2548. Department Publications ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! A Guide to Group Health Insurance In Arizona A Guide to Individual Health Insurance in Arizona A Guide to Health Care Appeals * How to Resolve Insurance Complaints * Automobile Premium Comparison Survey, for 12 hypothetical risks * Homeowners' Premium Comparison Survey, for like homes in Phoenix, Glendale, Mesa, Flagstaff and Tucson * Mobile Homeowners' Premium Comparison Survey, for a hypothetical risk in Mesa, Tucson and Yuma * Personal Lines Complaint Ratios for homeowners and auto insurance * Is my fire-related loss covered by insurance? Tips for Wildfire Victims Managed Care Complaint Ratios Consumer Guide to Understanding How Insurers Use Credit Information Consumer Guide to Homeowners' Insurance * Consumer Guide to Automobile Insurance * Overview of the Arizona Department of Insurance and the Arizona Insurance Industry Fighting Insurance Fraud in Arizona A Consumers Guide to Common Insurance Terms List of Individual Health Insurance Resources List of Individual Health Insurers List of Long Term Care Insurers List of Medicare Supplement/Medicare+Choice Plans Medicare Supplement Insurance Premium Comparison Literature from Other Oranizations Available from the Department ! ! ! ! ! ! ! ! ! Buyer's Guide To Fixed Deferred Annuities Settling Claims After A Disaster (Insurance Information Institute) Guide to Health Insurance for People with Medicare, Choosing a Medigap Policy A Shoppers Guide to Long Term Care Insurance Recent Changes in Health Care Law (HIPAA, MHPA, Newborn Act, WHCRA) Medicare and You 2004 Introducing Medicare-Approved Discount Cards* Guide to Choosing a Medicare Approved Drug Discount Card* Protecting your Health Insurance Coverage * Also available in Spanish 33 Laws and Policy 34 35 2003/2004 Legislative Review The Arizona Department of Insurance initiated three bills during the 2003 legislative session, and one bill in 2004, all of which were signed into law by the Governor. Other insurance-related legislation enacted in the 2002 and 2003 sessions is identified below. Regulatory Bulletins 2003-08 and 2004-02, available on-line at www.id.state.az.us, discuss the listed insurance legislation in more detail. In addition, customers can view the laws amended by these bills at the Legislature's web site (www.azleg.state.az.us). 2003 DEPARTMENT BILLS HB2152 Captive insurers (Ch. 242) HB2153 Long term care insurance (Ch. 133) HB2160 Health insurer reporting (Ch. 55) OTHER INSURANCE-RELATED BILLS SB1010 Elder abuse; medical malpractice (Ch. 129) SB1048 Professional employer services (Ch. 180) SB1265 Insurance policy; grounds for cancellation (Ch. 120) SB1266 Residential property insurance; prohibited acts (Ch. 131) HB2015 Reviser's technical corrections: 2003 (Ch. 188) HB2032 Adverse underwriting decision; credit history (Ch. 151) HB2049 State agency reports; repeal (Ch. 104) HB2148 Mortgage guaranty; insurance (Ch. 28) HB2150 Insurance producers; continuing education; extension (Ch. 216) HB2151 Vehicles uninsured coverage; limits; notice (Ch. 86) HB2154 Insurance holding company systems (Ch. 143) HB2156 Vehicle claims; lienholders; notice (Ch. 243) HB2186 Life insurance; annuities; replacement (Ch. 224) HB2211 Hospital emergency services; study committee (Ch. 111) HB2267 Towed vehicle retrieval; insurance companies (Ch. 153) HB2273 Structural pest control commission (Ch. 146) HB2283 Taxis, limousines, and sedans; regulations (Ch. 168) HB2294 Vehicle title; registration (Ch. 258) HB2306 Employer drug policy (Ch. 185) HB2340 Insurers; credit life and disability (Ch. 81) HB2358 Health coverage impact (Ch. 232) HB2391 Removal of Medicaid special exemption (Ch. 136) HB2429 Social security numbers (Ch. 137) 36 2004 DEPARTMENT BILL HB2228 Charitable gift annuities (Ch. 30) OTHER INSURANCE-RELATED BILLS SB1094 Unfair claims; medical necessity review (Ch. 5) SB1113 Expert testimony; affidavits; health professionals (Ch. 4) SB1166 AHCCCS; Healthcare Group (Ch. 332) SB1204 Occupational therapy (Ch. 130) SB1238 Campaign finance; separate segregated fund (Ch. 156) SB1241 Vehicle insurance; loss; vendor choice (Ch. 226) SB1256 Workers' compensation; insurance carriers (Ch. 307) SB1311 Purchaser of dwelling actions (Ch. 216) SB1366 Department of Administration; self-insurance; benefits (Ch. 335) SB1381 Insurance; employee, union groups (Ch. 159) HB2181 School districts; agencies; insurance pools (Ch. 230) HB2224 Insurer claim files; access by director; definitions (Ch. 162) HB2232 Insurance producer licenses; renewal (Ch. 162) HB2233 Consumer reporting agency; information disclosure (Ch. 31) HB2235 Captive insurers; formation (Ch. 32) HB2239 Annuities; standard nonforfeiture law (Ch. 119) HB2241 Department of financial institutions (Ch. 188) HB2270 Rental car insurance; damage waiver (Ch. 317) HB2313 Insurnace policies; annuity contracts; replacement (Ch. 244) HB2324 Life insurance and annuities; benefits; exemption from seizure; exceptions (Ch. 201) HB2370 Association groups (Ch. 164) HB2433 Healthcare district; self-insurance (Ch. 141) HB2458 Taxis, limousines, sedans; regulation (Ch. 323) HB2463 Towed vehicles; release; insurance companies (Ch. 144) HB2468 Auto insurance; repair facility (Ch. 233) HB2547 Insurance inquiries; use by insurer (Ch. 149) HB2551 Insurance; utilization review agents; qualification (Ch. 211) HB2684 Vehicle protection product warranties (Ch. 128) 37 2003 Regulatory Bulletins Throughout the year, the Director customarily issues regulatory bulletins to explain the Department's interpretation and application of insurance related laws, to provide commentary regarding regulatory compliance issues, and to provide important or useful information about the insurance laws and markets. The following bulletins were issued by the Director during 2003. The entire text of each is on the Insurance Department web site at www.id.state.az.us. Number 2003-01 2003-02 Title Premium Loans by Bail Bond Agents Revision of Private Passenger Automobile Property Damage Threshold for Purposes of A.R.S. � 20-1631(E) Revision of Form for Selection of Limits or Rejection of Uninsured Motorist or Underinsured Motorist Coverage Property and Casualty Insurance; Insurance Protection for Policyholders who have been Deployed for Military Duty; Coverage Continuation and/or Coverage Suspension AIDS/HIV Testing and Consent Form; Release of Related Information Licensure as Title Insurance Agent and as Escrow Agent A.R.S. � 20-443(A)(6) � Prohibition Against Referring to the Arizona Insurance Guaranty Funds in Connection with the Sale of Insurance Policies 2003 Arizona Insurance Laws 2003-08 2003-09 2003-10 Common Areas of Regulatory NonCompliance in Personal Lines Form for Selection of Limits or Rejection of Uninsured Motorist Coverage or Underinsured Motorist Coverage Laws 2003, Chapter 133 (HB2153); Long Term Care Insurance 2001 Commissioners' Standard Ordinary (CSO) Mortality Table 7/1/03 7/2/03 7/15/03 Date Issued 1/8/03 1/23/03 2003-03 3/19/03 2003-04 4/9/04 2003-05 2003-06 2003-07 5/13/04 6/9/03 6/9/03 2003-11 2003-12 9/18/03 12/29/03 38 39 Department of Insurance Fiscal Reports 40 41 GENERAL FUND REVENUES INSURANCE PREMIUM TAX RECEIPTS FIRE VEHICLE SURPLUS LINES & INDUSTRIAL RETALIATORY ALL OTHER RISKS TOTAL INSURANCE PREMIUM TAX RECEIPTS (see chart, below) $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 LESS DISBURSEMENTS TO OTHER FUNDS FIRE DISTRICTS FOR PENSION (11,677,878) (10,588,634) (8,139,724) (7,211,989) (5,670,876) FUNDS1 PUBLIC SAFETY RETIREMENT (15,441,384) (14,009,067) (12,629,093) (11,456,444) (10,953,470) SYSTEM2 SUBTOTAL: INSURANCE PREMIUM TAXES DEPOSITED TO GENERAL FUND $ 308,790,874 $ 226,650,300 $ 194,554,980 $ 185,228,457 $ 160,720,078 OTHER GENERAL FUND REVENUES PRODUCER LICENSE FEES INSURER CERTIFICATE OF AUTHORITY FEES OTHER LICENSING AND REGISTRATION FEES INSURER FILING FEES FINES AND PENALTIES PUBLICATIONS, PHOTOCOPIES, MISC. FRAUD UNIT ASSESSMENTS SUBTOTAL: OTHER GENERAL FUND REVENUES TOTAL GENERAL FUND REVENUES 1 2 FY 2004 13,742,049 15,441,384 11,436,338 4,611,678 290,678,687 $ 335,910,136 FY 2003 12,463,839 14,002,558 9,237,767 3,246,789 212,297,049 $ 251,248,001 FY 2002 9,585,466 12,635,603 5,324,242 3,343,768 184,434,719 $ 215,323,797 FY 2001 8,484,694 11,456,200 3,457,128 3,702,143 176,796,725 $ 203,896,890 FY 2000 6,671,619 10,949,981 3,396,121 4,146,486 152,180,217 $ 177,344,424 FY 2004 $ 3,770,270 1,292,805 90,005 576,711 534,995 351,951 1,082,900 $7,699,637 $316,490,511 $ FY 2003 3,282,721 1,430,655 87,160 585,728 821,406 261,887 1,116,500 $7,586,056 $234,236,356 $ $ FY 2002 3,118,270 1,482,366 81,670 598,985 1,263,200 309,740 1,095,200 7,949,430 $ $ FY 2001 2,446,092 1,301,887 74,425 497,869 2,047,282 325,220 1,092,300 7,785,075 $ $ FY 2000 1,847,538 905,951 67,064 431,538 979,328 283,187 1,106,700 5,621,306 $ 202,504,410 $ 193,013,532 $ 166,341,384 Per A.R.S. �� 20-224(C), 9-951 and 9-952. Per A.R.S. � 20-224.01. 42 OPERATING EXPENDITURES GENERAL FUND SOURCES GENERAL FUND NON-GENERAL FUND SOURCES INSURANCE EXAMINERS' REVOLVING FUND [A.R.S. � 20159] ASSESSMENTS FUND FOR VOLUNTARY PLANS [A.R.S. � 20-2201(E)]1 ARIZONA PROPERTY AND CASUALTY INSURANCE GUARANTY FUND [A.R.S. � 20-661 et seq. ]2 ARIZONA LIFE AND DISABILITY INSURANCE GUARANTY FUND [A.R.S. � 20-681 et seq. ]2 CAPTIVE INSURANCE REGULATORY AND SUPERVISION FUND [A.R.S. � 20-1098.18] RECEIVERSHIP LIQUIDATION FUND [A.R.S. � 20-648] HEALTH CARE APPEALS FUND [A.R.S. � 20-2540] FINANCIAL SURVEILLANCE FUND [A.R.S. � 20-156(F)] TOTAL NON-GENERAL FUND SOURCES TOTAL OPERATING EXPENDITURES, ALL FUNDING SOURCES 1 2 FY 2004 $ 6,069,201 $ FY 2003 5,719,404 $ FY 2002 5,844,585 $ FY 2001 5,624,261 $ 3,923,479 219,082 620,619 498,400 1,333 159,282 129,760 297,396 $ 5,603,667 421,943 562,506 447,357 0 136,254 114,402 269,207 $ 7,425,570 $ 230,598 457,543 348,996 0 78,650 117,174 218,959 7,663,719 208,391 460,702 519,957 0 142,248 56,710 0 $ 5,849,351 $ 7,555,336 $ 8,877,490 $ 9,051,727 $ 11,918,552 $ 13,274,740 $ 14,722,075 $ 14,675,988 Effective July 1, 2002, per Laws 2002, Chapter 74, replaced the "Assessment Fund" formerly prescribed by [A.R.S. � 20-2351(C)]. Amounts shown exclude claim payments and related expenses. 43 Insurance Professionals and Insurers Authorized in Arizona 44 45 SUMMARY OF INSURANCE PROFESSIONALS RESIDENT TYPE OF PROFESSIONAL Insurance Producers 1 NON-RESIDENT 12/31/2003 12/31/2002 25,206 25,252 1,026 32,453 28,678 17,660 165 11 25 0 19 4 8 389 1 339 185 114 2 9 0 7 3 0 21,885 21,908 509 29,310 25,827 15,724 87 4 13 0 22 4 8 214 0 253 175 105 2 9 0 7 2 0 12/31/2003 15,336 15,401 156 27,896 24,008 8,921 1,119 309 66 0 3 2 1 202 32 1,547 29 29 0 0 152 21 10 1 12/31/2002 13,439 13,446 82 27,315 23,048 8,874 290 321 52 4 3 1 4 185 26 1,310 27 29 0 0 151 15 11 1 PROPER TY CASUALTY PERSONAL LINES LIFE ACCIDENT AND HEALTH OR SICKNESS VARIABLE CONTRACTS CREDIT TRAVEL ACCIDENT TICKET AND BAGGAGE TITLE OTHER (NON-RESIDENT RECIPROCITY) Managing General Agent PROPERTY AND CASUALTY LIFE ACCIDENT AND HEALTH OR SICKNESS Insurance Broker SURPLUS LINES BROKER MEXICAN INSURANCE SURPLUS LINES BROKER INSURANCE ADJUSTER THIRD PARTY (LIFE/HEALTH) ADMINISTRATOR UTILIZATION REVIEW AGENT Insurance Claims and Administration Professionals Insurance Ratemaking Professionals RATING ORGANIZATION RATE SERVICE ORGANIZATION Other Insurance Professionals BAIL BOND AGENT RENTAL CAR AGENT RISK MANAGEMENT CONSULTANT REINSURANCE INTERMEDIARY 120,000 100,000 80,000 60,000 40,000 20,000 - 99,379 Insurance Producer Licensing* 91,577 83,577 73,855 BARS: Total produc ers licensed as of J une 30. 54,846 2004 50,634 2003 45,818 2002 42,076 2001 Fiscal Year LINE: Number of produc er license applications rec eived. *Excludes third-party administrators, utilization reviewers, ratemaking professionals and reinsurance intermediaries 1 Indicates the number of individuals and entities authorized in each line of authority. Each producer may be authorized for more than one line of authority. 46 SYNOPSIS OF 2003 ANNUAL STATEMENTS INSURER TYPE NUMBER OF INSURERS ASSETS LIABILITIES ($000 Omitted) CAPITAL & SURPLUS ARIZONA PREMIUMS DOMESTIC COMPANIES Life And Disability LIFE AND DISABILITY INSURER CREDIT LIFE & DISABILITY REINSURANCE LIFE AND DISABILITY REINSURER All Other Health Care HEALTH CARE SERVICES ORGANIZATION HOSPITAL, MEDICAL, DENTAL, SERVICE ORGANIZATION PREPAID DENTAL PLAN ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER MECHANICAL REIMBURSEMENT REINSURER Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER LIFE CARE PROVIDER TOTAL FOR DOMESTIC COMPANIES FOREIGN AND ALIEN COMPANIES Life And Disability LIFE AND DISABILITY INSURER FRATERNAL BENEFIT SOCIETY All Other Health Care HEALTH CARE SERVICES ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER RISK RETENTION GROUP Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER PREPAID LEGAL INSURER LIFE CARE PROVIDER TOTAL FOR FOREIGN AND ALIEN COMPANIES 564 25 2 813 60 21 20 2 2 1,509 3,567,332,361 77,321,797 686,413 1,033,797,038 1,729,465 6,684,115 17,620,239 52,687 842,764 4,706,066,879 3,336,285,627 70,595,054 410,023 686,480,88 6 1,124,260 4,020,473 14,540,617 16,541 838,260 4,114,311,741 231,046,735 6,726,742 276,390 347,315,822 605,204 2,663,642 3,079,623 36,146 4,504 591,754,807 7,930,064 93,529 176,035 5,692,407 20,558 427,893 125,980 8,216 n/a 14,474,683 47 100 115 7 3 7 41 4 1 5 10 340 115,435,221 n/a 3,177,701 850,004 536,898 14,285 6,588,851 5,117 162,887 3,538,512 422,155 130,731,631 107,399,856 n/a 1,592,755 498,907 226,402 4,258 4,648,316 2,783 95,083 2,900,077 475,435 117,843,873 8,035,365 n/a 1,584,946 351,097 310,496 10,027 1,940,535 2,334 67,804 638,435 -53,280 12,887,758 9,507,179 n/a n/a 2,848,464 928,665 45,583 1,101,321 n/a 39,834 20,715 n/a 14,491,760 Total 2003 Arizona Premiums ($000 Omitted) ALL OTHER HEALTH LIF E AND DISABILITY 17,530,772 60% CARE 3,998,746 14% OT HER BUSINESS TYPES 622,639 2% PR OPER T Y AND CASUALTY 6,814,286 24% Credit Life and Disablity Reinsurance fiscal year financial information is due August 1 or November 1 pursuant to A.R.S. � 20-1082. Excludes Captive Insurers and Domestic Risk Retention Groups. 47 SYNOPSIS OF 2003 ANNUAL STATEMENTS - (continued) INSURER TYPE NUMBER OF INSURERS ASSETS LIABILITIES ($000 Omitted) CAPITAL & SURPLUS ARIZONA PREMIUMS TOTAL ARIZONA PREMIUMS BY INSURER TYPE Life And Disability LIFE AND DISABILITY INSURER FRATERNAL BENEFIT SOCIETY CREDIT LIFE & DISABILITY REINSURANCE LIFE AND DISABILITY REINSURER All Other Health Care HEALTH CARE SERVICES ORGANIZATION HOSPITAL, MEDICAL, DENTAL, SERVICE ORGANIZATION PREPAID DENTAL PLAN ORGANIZATION Property And Casualty PROPERTY AND CASUALTY INSURER RISK RETENTION GROUP MECHANICAL REIMBURSEMENT REINSURER Other Business Types TITLE INSURER MORTGAGE GUARANTY INSURER PREPAID LEGAL INSURER LIFE CARE PROVIDER GRAND TOTAL: 611 25 100 115 9 3 7 854 60 4 22 25 2 12 1,849 3,682,767,582 77,321,797 n/a 3,177,701 1,536,416 536,898 14,285 1,040,385,889 1,729,465 5,117 6,847,002 21,158,751 52,687 1,264,919 4,836,798,510 3,443,685,483 70,595,054 n/a 1,592,755 908,930 226,402 4,258 691,129,202 1,124,260 2,783 4,115,556 17,440,694 16,541 1,313,695 4,232,155,614 239,082,100 6,726,742 n/a 1,584,946 627,487 310,496 10,027 349,256,357 605,204 2,334 2,731,445 3,718,057 36,146 -48,776 604,642,565 17,437,243 93,529 n/a n/a 3,024,499 928,665 45,583 6,793,728 20,558 n/a 467,728 146,695 8,216 n/a 28,966,443 Total Arizona Premiums ($000 Omitted) 30, 000, 000 25, 000, 000 20, 000, 000 15, 000, 000 10, 000, 000 5, 000, 000 0 Calendar Year L i fe And Disability A l l Other Health Care Pr o p er ty And Casualty Oth er Business Types 2003 17, 525, 000 3, 998, 746 6, 813, 983 622, 639 2002 16, 422, 034 4, 055, 382 6, 111, 160 519, 212 2001 13, 454, 477 4, 070, 160 5, 455, 216 432, 870 2000 12, 212, 043 3, 859, 749 4, 849, 258 341, 305 1999 8, 665, 378 3, 508, 299 4, 652, 261 348, 881 Credit Life and Disablity Reinsurance fiscal year financial information is due August 1 or November 1 pursuant to A.R.S. � 20-1082. Excludes Captive Insurers and Domestic Risk Retention Groups. 48 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 NAME AAA FIRE & CASUALTY INS CO * AAA LIFE INS CO ACA FINANCIAL GUARANTY CORP ACACIA LIFE INS CO ACADEMY LIFE INS CO ACADIA INS CO ACCELERATION LIFE INS CO ACCEPTANCE INS CO ACCIDENT FUND INS CO OF AMERICA ACCREDITED SURETY AND CASUALTY CO, INC. ACE AMERICAN INS CO ACE AMERICAN REINSURANCE CO ACE FIRE UNDERWRITERS INS CO ACE GUARANTY CORP. ACE INDEMNITY INS CO ACE PROPERTY AND CASUALTY INS CO ACIG INS CO ACME LIFE INS CO ACSTAR INS CO ACUITY, A MUTUAL INS CO ADAMSON LIFE INS CO ADIRONDACK REINSURANCE CO ADMIRAL INDEMNITY CO ADMIRAL LIFE INS CO OF AMERICA ADMIRAL LIFE INS CO OF AMERICA ADVANCE INS CO ADVANTA INS CO ADVANTA LIFE INS CO ADVANTAGE WORKERS COMPENSATION INS CO AEGIS SECURITY INS CO AEIC * AETNA HEALTH AND LIFE INS CO AETNA HEALTH INC. AETNA INS CO OF CONNECTICUT AETNA LIFE INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE AK MI MD DC MO ME OH NE MI FL PA PA PA MD PA PA IL AZ IL WI AZ AZ DE AZ AZ AZ AZ AZ IN PA DE CT AZ CT CT ASSETS 13,876,643 363,892,090 374,072,952 1,053,129,289 360,590,679 150,756,364 12,031,454 58,877,002 1,498,146,855 32,719,218 3,514,325,581 321,724,629 74,780,056 1,207,785,868 21,384,423 3,675,443,471 175,459,225 LIABILITIES 1,798,889 328,154,889 236,289,757 885,504,613 314,594,773 114,265,584 117,579 104,581,089 1,099,766,903 20,421,293 2,902,525,326 136,753,286 24,081,858 952,203,218 10,509,244 2,908,216,329 122,588,179 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 12,077,754 35,737,202 137,783,194 167,624,676 45,995,906 36,490,780 11,913,875 (45,704,087) 398,379,952 12,297,925 611,800,255 184,971,343 50,698,198 255,582,650 10,875,179 767,227,142 52,871,038 3,254 1,820,857 3,609,533 6,257,823 1,105,645 0 0 (40,960) 43,492 60,072 26,265,015 0 569,174 0 (476) 2,321,788 11,938 CI MT PI VE DI LI SU DI LI VA VL DI LI CW MT PI SU VE DI LI SUSPENDED CW CI SU CW DI MT PI SU VE CW DI MT PI SU VE CW DI MT PI SU VE CI SU CW MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE UR 234,979 0 CI MT PI SU VE CI MT PI SU VE UR UR 0 CI MT PI VE 10921 (415)565-2935 71854 (734)779-2600 22896 (212)375-2000 60038 (301)280-1000 60046 (610)648-5000 31325 (800)773-4300 71099 (314)275-5200 37958 (712)329-3600 10166 (517)367-1400 26379 (407)841-8500 22667 (215)640-1000 22705 (215)761-1000 20702 (215)761-1000 30180 (212)974-0100 10030 (215)761-1000 20699 (215)761-1000 19984 (972)702-9004 --(800)477-8858 Financial Information Not Available 76,744,263 1,044,170,256 50,317,617 715,630,472 26,426,646 328,539,784 22950 (860)224-2000 14184 (920)458-9131 ----44318 71390 (314)275-5200 (602)254-5866 (856)429-9200 Financial Information Not Available Financial Information Not Available 52,463,514 27,785,123 24,678,391 Name changed 4/16/03, now known as ADMIRAL LIFE INS CO OF AMERICA 8,569,015 29,707,600 8,549,707 4,886,477 15,041,587 62,758,247 11,786,575 1,255,542,776 91,184,927 43,819,226 26,156,026,710 32,316 7,069,907 787,261 819,148 2,305,218 31,570,612 5,424,595 1,116,464,939 43,885,528 14,865,422 24,113,286,848 8,536,699 22,637,693 7,762,446 4,067,329 12,736,369 31,187,635 6,361,981 139,077,837 47,299,399 28,953,804 2,042,739,862 0 997,665 0 0 1,374,433 1,241,957 0 0 314,617,190 (24,994) 51,995,252 DI LI DI LI CI DI MT PI SU VE DI LI CW SU CI MT PI SU VE CI DI LI HC CI VE DI LI 71390 (517)349-6000 83445 (913)273-9804 33987 (800)847-7999 80055 (800)847-7999 40517 (801)288-8750 33898 (717)657-9671 44148 (800)437-2342 78700 (860)273-0123 95003 (602)427-2200 36153 (860)273-7126 60054 (860)273-0123 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 49 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME AFFILIATED FM INS CO AFFIRMATIVE INS CO AGL LIFE ASSURANCE CO AGRI GENERAL INS CO AIG ANNUITY INS CO AIG LIFE INS CO AIG NATIONAL INS CO, INC. AIG SUNAMERICA LIFE ASSURANCE CO AIU INS CO AKSARBEN LIFE INS CO ALASKA NATIONAL INS CO ALEA NORTH AMERICA INS CO ALL AMERICA INS CO ALLEGIANCE LIFE INS CO ALLFIRST LIFE INS CORP ALLIANCE INTERNATIONAL INS, INC. ALLIANCE OF NONPROFITS FOR INS, RISK RETENTION GR ALLIANZ GLOBAL RISKS US INS CO ALLIANZ INS CO ALLIANZ LIFE INS CO OF NORTH AMERICA ALLIED PROFESSIONALS INS CO, RRG ALLIED PROPERTY AND CASUALTY INS CO ALLMERICA FINANCIAL BENEFIT INS CO ALLMERICA FINANCIAL LIFE INS AND ANNUITY CO ALLSTATE ASSURANCE CO ALLSTATE FIRE AND CASUALTY INS CO ALLSTATE INDEMNITY CO ALLSTATE INS CO ALLSTATE LIFE INS CO ALLSTATE PROPERTY AND CASUALTY INS CO ALPHA PROPERTY & CASUALTY INS CO ALTA HEALTH & LIFE INS CO AMBAC ASSURANCE CORP AMCO INS CO AMCOMP ASSURANCE CORP AMERICAN AGRI-BUSINESS INS CO AMERICAN AGRICULTURAL INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE RI IL PA IA TX DE NY AZ NY NE AK NY OH IL AZ AZ VT CA CA MN FY Ending 06/30/2003 AZ IA MI MA IL IL IL IL IL IL WI IN WI IA FL TX IN ASSETS 765,705,971 74,520,139 1,560,131,626 227,258,192 43,241,309,708 13,600,674,618 25,471,976 26,165,384,786 2,121,502,755 LIABILITIES 565,282,279 37,827,711 1,549,317,484 69,688,227 40,286,378,241 12,971,154,076 11,004,054 25,563,036,503 1,629,950,585 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 200,423,692 36,692,428 10,814,143 157,569,965 2,954,931,467 629,520,542 14,467,922 602,348,283 491,552,170 3,653,643 0 3,328,792 2,060,912 123,398,610 19,784,311 1,154,406 88,940,803 90,914 CI MT PI SU VE CI PI DI LI VA VL CI MT PI VE DI LI VA DI LI VA VL CI DI MT PI SU VE DI LI VA CW DI MT PI SU VE 10014 (401)275-3000 42609 (205)970-7000 60232 (484)530-4800 42757 (515)559-1000 70432 (800)424-4990 66842 (306)594-2952 36587 (770)753-8300 60941 (888)502-0600 19399 (212)770-7000 82880 Name changed 1/30/03, now known as CSI LIFE INS CO 466,569,270 504,644,817 151,085,504 244,044,865 311,913,622 248,592,030 91,943,016 10,934,356 154,655,648 256,052,787 59,142,489 233,110,509 94,958 375,311 2,539,747 0 CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE DI LI 38733 (907)248-2642 24899 (860)513-4180 20222 (419)238-1010 62790 (217)789-2500 91111 --10023 Name changed 10/16/03, now known as M&T LIFE INS CO (301)881-8300 (802)229-5042 Financial Information Not Available 10,314,811 4,788,308,119 5,834,199 1,403,655,843 4,480,612 3,384,652,276 0 6,018,876 UR CI CW MT PI SU VE 35300 (818)260-7500 35300 Name changed 7/9/03, now known as ALLIANZ GLOBAL RISKS US INS CO 30,966,138,820 28,936,159,067 2,029,979,753 199,111,684 DI LI VA VL RG 2,513,737 0 4,027,717 0 0 92,370,759 259,429,102 44,404,266 107,789,013 305,010 641,869 15,053,338 23,579,502 9,408 262,915 (300) CW MT PI SU VE CW DI MT PI SU VE DI LI VA VL LI MG CW DI MT PI SU VE CW DI MT PI SU VE DI LI VA VL CI DI MT PI SU VE CI PI VE DI LI VA SU CW MT PI SU VE CW PI CI MT PI SU VE 90611 (763)765-6500 11710 42579 (515)508-4211 Financial Information Not Available 82,623,866 13,842,897 12,611,782,500 14,756,769 15,768,458 104,052,717 42,690,593,181 62,740,812,355 20,197,868 15,843,742 255,905,613 7,278,084,300 972,048,484 198,128,542 11,846,233 885,251,959 1,301,230 24,538 12,116,185,682 3,662,120 382,904 3,944,405 81,322,636 13,818,359 495,596,818 11,094,649 15,385,554 100,108,312 41840 (517)546-2160 84824 (508)855-1000 70866 (847)402-5000 29688 (847)402-5000 19240 (847)402-5000 19232 (847)402-5000 60186 (847)402-5000 17230 (847)402-5000 38156 (972)690-5500 67369 (303)689-3000 18708 (212)668-0340 19100 (515)508-4211 26,590,009,686 16,100,583,494 59,181,188,629 190,101 876,921 129,065,038 4,538,409,659 587,767,745 168,174,545 8,636,707 571,001,943 3,559,623,725 20,007,767 14,966,821 126,840,575 2,739,674,641 384,280,739 29,953,997 3,209,526 314,250,016 25402 (800)226-1898 12548 (806)473-0333 10103 (847)685-8600 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 50 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME AMERICAN ALTERNATIVE INS CORP AMERICAN AMBASSADOR CASUALTY CO AMERICAN AND FOREIGN INS CO AMERICAN ASSOCIATION OF ORTHODONTISTS INS. CO. (A RRG) AMERICAN AUTOMOBILE INS CO AMERICAN BANKERS INS CO OF FLORIDA AMERICAN BANKERS LIFE ASSURANCE CO OF FLORIDA AMERICAN BONDING CO AMERICAN BUSINESS & PERSONAL INS MUTUAL, INC. AMERICAN CAPITOL INS CO AMERICAN CASUALTY CO OF READING, PENNSYLVANIA AMERICAN CENTENNIAL INS CO AMERICAN CENTRAL INS CO AMERICAN CENTURY CASUALTY CO AMERICAN CLASSIC REINSURANCE CO AMERICAN COMMERCE INS CO AMERICAN COMMUNITY MUTUAL INS CO AMERICAN CONCEPT INS CO AMERICAN CONTRACTORS INDEMNITY CO AMERICAN CONTRACTORS INS. CO., RISK RETENTION GRP. AMERICAN CREDIT INDEMNITY CO AMERICAN DEPOSIT INS CO AMERICAN ECONOMY INS CO AMERICAN EMPIRE INS CO AMERICAN EMPLOYERS' INS CO AMERICAN ENTERPRISE LIFE INS CO AMERICAN EQUITY INS CO AMERICAN EQUITY INVESTMENT LIFE INS CO AMERICAN FAMILY HOME INS CO AMERICAN FAMILY LIFE ASSURANCE CO OF COLUMBUS AMERICAN FAMILY LIFE INS CO AMERICAN FAMILY MUTUAL INS CO AMERICAN FEDERATION INS CO AMERICAN FEED INDUSTRY INS. CO., RISK RETENTION GRP. AMERICAN FIDELITY ASSURANCE CO AMERICAN FIDELITY LIFE INS CO AMERICAN FINANCIAL SECURITY LIFE INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE DE IL DE VT MO FL FL AZ DE TX PA DE MO TX AZ OH MI RI CA TX NY OK IN OH MA IN AZ IA FL NE WI WI FL IA OK FL MO ASSETS 363,481,935 30,885,452 386,841,404 15,720,714 274,081,322 1,080,454,394 879,777,110 6,929,252 41,749,359 74,104,964 101,515,161 38,305,222 45,494,538 58,421,838 1,646,829 218,037,162 161,375,686 13,634,177 103,364,494 4,630,778 242,241,645 34,547,721 1,400,117,164 57,640,690 341,338,050 8,293,400,222 179,542,742 6,311,328,534 356,108,375 41,792,273,808 2,996,479,187 8,378,401,612 20,184,071 13,215,464 2,441,109,161 436,730,005 2,079,698 LIABILITIES 217,997,745 4,329,240 335,341,424 11,627,105 175,187,657 813,332,893 685,448,329 7,361,351 18,847,501 68,984,239 2,257,977 15,500,564 4,783,060 42,257,573 390,859 140,660,811 77,223,406 9,869,512 72,591,526 214,080 127,792,223 18,542,820 1,007,378,987 29,971,879 211,802,056 7,797,584,031 125,614,407 5,936,741,676 265,095,567 39,439,023,440 2,731,528,662 5,692,104,616 7,395,560 5,157,232 2,280,016,917 365,685,545 100,014 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 145,484,192 26,556,212 51,499,980 4,093,609 98,893,665 267,121,501 194,328,781 (432,098) 22,901,858 5,120,724 99,257,184 22,804,658 40,711,478 16,164,265 1,255,970 77,376,351 84,152,280 3,764,665 30,772,968 4,416,698 114,449,422 16,004,901 392,738,177 27,668,810 129,535,994 495,816,190 53,928,335 374,586,858 91,012,808 2,353,250,368 264,950,525 2,686,296,996 12,788,511 8,058,232 161,092,244 71,044,460 1,979,685 4,750,505 0 2,519,828 219,681 3,448,959 26,211,138 3,068,039 0 0 22,470 9,144,580 0 0 0 0 47,998,781 36,313,324 0 1,071,121 262,304 251,950 717,377 4,560,097 0 189,007 9,492,194 71,401 61,983,932 3,228,850 34,726,940 17,849,711 381,048,680 1,958,357 0 5,984,221 473,119 279 CW DI MT PI SU VE CI VE CW DI MT PI SU VE CI CW DI MT PI SU VE CI DI MT PI SU VE DI LI REHABILITATION CW MT PI LI CW DI MT PI SU VE CI DI MT PI SU VE CI MT PI SU VE MT PI VE LR CI DI MT PI SU VE DI LI CI MT PI VE SU CI CI VE CW MT PI SU VE CI MT PI VE CW DI MT PI SU VE DI LI VA VL CI MT PI SU VE LI VA VL CI MT PI VE DI LI DI LI VA VL CW DI MT PI SU VE CI MT PI VE CI DI LI VA DI LI REHABILITATION 19720 (609)243-4200 10073 (630)521-0600 24589 (704)522-2000 10232 (802)229-5042 21849 (415)899-2000 10111 (305)253-2244 60275 (305)253-2244 10138 (602)240-6824 40789 (312)346-8100 60291 (713)974-2242 20427 (312)822-5000 10391 (302)479-2100 37915 (617)725-6000 10807 (281)919-0199 69595 (602)957-4647 19941 (614)272-6951 60305 (734)591-9000 31909 (401)453-7000 10216 (310)649-0990 12300 (972)702-9004 20516 (877)883-3224 16802 (770)951-5599 19690 (206)545-5000 37990 (513)369-3000 20613 (617)725-6000 94234 (612)671-8584 43117 (860)277-0111 92738 (515)221-0002 23450 (513)943-7200 60380 (706)660-7081 60399 (608)249-2111 19275 (608)249-2111 43699 (616)942-3000 44202 (515)254-0400 60410 (405)523-2000 60429 (850)456-7401 69337 (816)842-6605 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 51 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME AMERICAN FIRE AND CASUALTY CO AMERICAN FOUNDERS LIFE INS CO AMERICAN FUJI FIRE AND MARINE INS CO AMERICAN GENERAL ASSURANCE CO AMERICAN GENERAL INDEMNITY CO AMERICAN GENERAL LIFE AND ACCIDENT INS CO AMERICAN GENERAL LIFE INS CO AMERICAN GENERAL PROPERTY INS CO AMERICAN GUARANTEE AND LIABILITY INS CO AMERICAN HARDWARE MUTUAL INS CO AMERICAN HEALTH AND LIFE INS CO AMERICAN HEALTHCARE INDEMNITY CO AMERICAN HERITAGE LIFE INS CO AMERICAN HOME ASSURANCE CO AMERICAN HOME LIFE INS CO AMERICAN INCOME LIFE INS CO AMERICAN INDEMNITY CO AMERICAN INS CO OF TEXAS AMERICAN INS CO, THE AMERICAN INTERNATIONAL INS CO AMERICAN INTERNATIONAL SOUTH INS CO AMERICAN INVESTORS LIFE INS CO, INC. AMERICAN LABOR LIFE INS CO AMERICAN LIFE INS CO OF NEW YORK, THE AMERICAN LIVE STOCK INS CO AMERICAN MANUFACTURERS MUTUAL INS CO AMERICAN MATURITY LIFE INS CO AMERICAN MEMORIAL LIFE INS CO AMERICAN MERCURY INS CO AMERICAN MINING INS CO, INC. AMERICAN MODERN HOME INS CO AMERICAN MODERN LIFE INS CO AMERICAN MOTORISTS INS CO AMERICAN NATIONAL GENERAL INS CO AMERICAN NATIONAL INS CO AMERICAN NATIONAL LIFE INS CO OF TEXAS AMERICAN NATIONAL PROPERTY AND CASUALTY CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE OH TX IL IL IL TN TX TN NY OH TX DE FL NY KS IN TX TX NE NY PA KS AZ NY IL IL CT SD OK AL OH OH IL MO TX TX MO ASSETS 300,905,673 636,406,640 104,372,405 1,362,133,999 34,680,205 8,640,890,184 25,511,318,492 62,253,908 93,987,173 217,799,523 2,087,486,063 130,548,535 1,810,313,199 15,948,770,992 124,561,238 1,163,210,051 61,172,909 6,241,849 1,153,982,358 1,095,719,691 30,914,094 8,086,034,147 2,146,278 103,907,326 62,971,772 10,054,480 81,326,717 1,256,773,934 186,068,064 67,893,021 646,816,260 59,128,945 35,854,788 99,465,836 10,699,209,119 157,157,651 873,204,467 LIABILITIES 193,310,057 600,736,675 22,042,126 1,206,852,330 25,342,085 8,140,785,149 21,444,004,530 17,513,152 258,199 125,734,164 1,143,344,482 95,545,942 1,623,962,569 12,326,871,679 112,558,044 1,004,251,276 17,939,919 4,235,305 805,972,972 847,589,370 38,203 7,743,092,887 918,062 79,213,736 20,532,602 54,480 44,860,745 1,146,886,342 108,728,994 51,908,806 478,334,997 42,011,565 5,947,891 51,150,478 9,022,932,026 105,976,856 571,105,764 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 107,595,616 35,669,965 82,330,279 155,281,669 9,338,120 500,105,035 4,067,313,962 44,740,756 93,728,973 92,065,359 944,141,581 35,002,593 186,350,630 3,621,899,313 12,003,195 158,958,775 43,232,990 2,006,544 348,009,386 248,130,321 30,875,891 342,941,260 1,228,216 24,693,590 42,439,170 10,000,000 36,465,972 109,887,592 77,339,070 15,984,215 168,481,263 17,117,380 29,906,897 48,315,358 1,676,277,093 51,180,795 302,098,703 865,759 4,389,490 0 2,385,222 462,910 902,060 37,802,112 0 10,120,906 1,863,469 289,041 752,127 3,496,069 41,569,725 723,554 4,331,270 0 8,569 17,011,150 8,431,456 6,581,377 49,690,004 1,484 37,736 15,206 365,650 65,700 11,455,567 332,456 51,250 11,756,743 19,010 1,242,867 1,496,452 77,893,111 2,448,065 19,883,408 CW MT PI SU VE DI LI CI DI MT PI SU VE DI LI CI DI MT PI VE DI LI DI LI VA VL DI PI CW DI MT PI SU VE CW DI MT PI SU VE DI LI CI PI SU DI LI CW DI MT PI SU VE DI LI DI LI CI MT PI SU VE DI LI CW MT PI SU VE CI DI MT PI SU VE CW MT PI VE DI LI DI LI DI LI VA VL CI MT CW DI MT PI SU VE DI LI VA DI LI CI MT PI SU VE CW MT PI VE CI DI MT PI SU VE DI LI CW DI MT PI SU VE CI MT PI VE DI LI VA VL DI LI DI MT PI SU VE 24066 (513)603-7400 60445 (480)425-5100 40398 (877)514-3542 68373 (847)517-6000 24376 (732)922-7000 66672 (615)749-1000 60488 (713)522-1111 31208 (615)749-1000 26247 (847)605-6000 13331 (614)225-8211 60518 (817)348-7500 39152 (310)551-5900 60534 (904)992-1776 19380 (212)770-7000 60542 (785)235-6276 60577 (254)751-8600 19518 (409)766-4600 81949 (817)878-3300 21857 (415)899-2000 32220 (302)252-2000 40258 (212)770-7000 60631 (913)232-6945 89427 (717)872-8576 60704 (502)587-7626 10200 (630)232-2100 30562 (847)320-2000 81213 (860)843-3978 67989 (605)399-3643 16810 (405)523-2000 15911 (205)823-4496 23469 (513)943-7200 65811 (513)943-7200 22918 (708)320-2000 39942 (417)887-0220 60739 (409)766-4661 71773 (409)763-4661 28401 (417)887-4990 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 52 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME AMERICAN NETWORK INS CO AMERICAN PARTNERS LIFE INS CO AMERICAN PHOENIX LIFE AND REASSURANCE CO AMERICAN PHYSICIANS ASSURANCE CORP AMERICAN PIONEER LIFE INS CO AMERICAN PIONEER TITLE INS CO AMERICAN PREMIER INS CO AMERICAN PROFESSIONALS INS CO AMERICAN PROTECTION INS CO AMERICAN PUBLIC LIFE INS CO AMERICAN RE-INSURANCE CO AMERICAN RELIABLE INS CO AMERICAN REPUBLIC INS CO AMERICAN RETIREMENT LIFE INS CO AMERICAN ROAD INS CO, THE AMERICAN SAFETY CASUALTY INS CO AMERICAN SAFETY RRG, INC. AMERICAN SAVINGS LIFE INS CO AMERICAN SECURITY INS CO AMERICAN SENTINEL INS CO AMERICAN SKANDIA LIFE ASSURANCE CORP AMERICAN SPECIALTY HEALTH INS CO AMERICAN STANDARD INS CO OF WISCONSIN AMERICAN STATES INS CO AMERICAN STATES INS CO OF TEXAS AMERICAN STATES LIFE INS CO AMERICAN STATES PREFERRED INS CO AMERICAN SUMMIT INS CO AMERICAN TRAVELERS ASSURANCE CO AMERICAN TRUCKING AND TRANSPORTATION INS. CO., A RRG AMERICAN UNDERWRITERS LIFE INS CO AMERICAN UNITED LIFE INS CO AMERICAN VANGUARD LIFE INS CO AMERICAN ZURICH INS CO AMERICAN-AMICABLE LIFE INS CO OF TEXAS AMERICO FINANCIAL LIFE AND ANNUITY INS CO AMERICOM LIFE & ANNUITY INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE PA AZ CT MI FL FL IN IN IL OK DE AZ IA OH MI DE VT AZ DE PA CT IL WI IN TX IN IN TX DC MT AZ IN IA IL TX TX TX ASSETS 12,084,642 460,944,135 87,887,024 743,840,993 156,355,766 110,576,947 6,686,181 7,461,064 74,014,625 65,098,668 16,029,476,095 336,313,079 457,993,086 6,835,744 575,039,590 122,365,626 22,410,533 19,204,065 612,599,238 18,024,008 26,397,863,635 7,900,536 333,402,455 2,033,795,733 19,000,004 556,636,415 203,954,294 22,373,896 32,030,719 4,173,657 39,879,589 10,672,164,994 9,554,885 131,683,710 252,053,553 2,723,396,381 243,172,447 LIABILITIES 4,105,791 415,990,919 48,885,888 630,545,138 132,158,218 68,192,510 259,608 1,326,359 23,549,164 52,194,011 12,758,013,548 265,143,630 250,771,696 1,035,137 254,872,120 82,595,769 17,547,492 5,998,093 440,392,201 8,629,735 26,068,318,019 150,716 129,569,686 1,403,800,156 235,823 479,464,571 143,748,511 10,355,113 26,078,945 3,087,951 28,322,968 10,034,215,554 878,907 103,178 209,813,591 2,587,312,593 228,414,771 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 7,978,851 44,953,217 39,001,136 113,295,856 24,197,548 42,384,436 6,426,573 6,134,705 50,465,461 12,904,657 3,271,462,547 71,169,449 207,221,390 5,800,607 320,167,470 39,769,857 4,863,041 13,205,972 172,207,037 9,394,273 329,545,616 7,749,820 203,832,769 629,995,577 18,764,181 77,171,844 60,205,783 12,018,783 5,951,774 1,085,705 11,556,621 637,949,440 8,675,978 131,580,533 42,239,962 136,083,788 14,757,676 11,006 854,631 0 0 1,660,997 9,201,115 394,222 0 134,878 362,033 0 8,216,123 20,879,490 0 873,069 602,146 553,964 1,356,931 13,770,147 0 104,701,121 0 82,274,662 8,736,547 0 479,465 0 17,383,972 21,566 0 25,496 31,197,735 0 4,497,592 666,610 10,843,731 1,262,399 DI DI LI VA VL DI LI CW MT PI VE DI LI TI VE SUSPENDED CW DI MT PI SU VE DI LI CW DI MT PI SU VE CW DI MT PI SU VE DI LI LI CI MT PI SU VE CW MT PI SU CI DI LI CI DI MT PI SU VE CI DI MT PI VE DI LI VA VL DI LI CI MT PI VE CW DI MT PI SU VE CW DI MT PI VE DI LI CI MT PI SU VE CI DI MT PI SU VE DI LI CI VE DI LI DI LI VA VL LI CW DI MT PI SU VE DI LI DI LI DI LI 81078 (610)965-2222 93653 (612)671-1257 91785 (860)403-1000 33006 (517)351-1150 60763 (407)628-1776 51535 (407)260-8050 37001 (770)447-8930 12084 (609)896-1921 18910 (847)320-2000 60801 (601)936-6600 10227 (609)243-4200 19615 (480)483-8666 60836 (515)245-2155 88366 (513)333-5300 19631 (313)390-6170 39969 (770)916-1908 25448 (770)916-1908 91910 (602)835-5000 42978 (770)763-1000 17965 (717)540-0600 86630 (203)926-1888 84697 (619)578-2000 19283 (608)249-2111 19704 (206)545-5000 19712 (206)545-5000 60879 (425)376-8000 37214 (206)545-5000 19623 (254)399-0626 61140 (203)229-1000 11534 (406)523-3934 92649 (316)794-2200 60895 (317)285-1877 97314 (515)283-2371 40142 (847)605-6000 68594 (254)753-7311 61999 (816)391-2000 94471 (410)895-0100 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 53 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME AMERIHEALTH INS CO * AMERIN GUARANTY CORP AMERISERV LIFE INS CO AMERISURE INS CO AMERISURE MUTUAL INS CO AMERITAS LIFE INS CORP. AMERITAS VARIABLE LIFE INS CO AMERUS LIFE INS CO AMEX ASSURANCE CO AMGUARD INS CO AMHERST LIFE INS CO AMICA LIFE INS CO AMICA MUTUAL INS CO ANCHOR GENERAL INS CO ANCHOR NATIONAL LIFE INS CO ANESTHESIOLOGISTS PROFESSIONAL ASSURANCE CO ANNUITY & LIFE REASSURANCE AMERICA, INC. ANNUITY INVESTORS LIFE INS CO ANTHEM ALLIANCE HEALTH INS CO ANTHEM INS COMPANIES, INC. ANTHEM LIFE INS CO APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC AQUA CAPTIVE INS, INC. ARAG INS CO ARCH INS CO ARCH REINSURANCE CO ARGONAUT GREAT CENTRAL INS CO ARGONAUT INS CO ARGONAUT-MIDWEST INS CO ARGONAUT-NORTHWEST INS CO ARGONAUT-SOUTHWEST INS CO ARIZONA AUTOMOBILE INS CO ARIZONA HOME INS CO ARIZONA NATIONAL LIFE INS CO ARIZONA STATE COMPENSATION FUND ARKANSAS LIFE INS CO ARMED FORCES INS EXCHANGE Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE PA IL AZ MI MI NE NE IA IL PA AZ RI RI CA AZ FL CT OH IN IN IN AZ AZ IA MO NE IL CA IL ID LA AZ AZ AZ AZ AZ KS ASSETS 1,076,535,633 330,774,842 LIABILITIES 719,257,406 26,743,669 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 357,278,227 304,031,173 0 0 DI LI MG UR 18,023 122,233 13,610,380 8,490,045 32,544,827 22,297,694 0 CW MT PI SU VE CW MT PI SU VE DI LI VA VL DI LI VA VL DI LI CW DI MT PI SU VE CW DI MT PI SU VE UR 412,658 19,389,443 498,595 LI CI MT PI VE CI MT PI VE 93688 (215)241-2400 30872 --(215)564-6600 (814)533-5194 Financial Information Not Available 458,583,098 1,250,815,294 2,616,462,474 2,378,950,952 5,873,373,234 333,334,619 162,342,888 343,711,044 894,184,751 1,978,027,184 2,282,017,926 5,637,043,710 127,376,920 118,534,406 114,872,054 356,630,543 638,435,290 96,933,026 236,329,523 205,957,699 43,808,482 19488 (810)615-9000 23396 (248)615-9000 61301 (402)467-1122 97977 (402)467-1122 61689 (515)283-2371 27928 (920)330-5250 42390 (800)673-2465 --72222 (602)957-4647 (401)334-6000 Financial Information Not Available 744,699,680 3,131,996,564 22,195,673 630,246,625 1,673,141,552 11,751,572 114,453,055 1,458,855,012 10,444,101 19976 (401)334-6000 40010 (858)527-3600 60941 Name changed 2/28/03, now known as AIG SUNAMERICA LIFE ASSURANCE CO 93,306,790 55,957,385 1,159,543,881 78,297,877 42,065,718 1,109,526,754 15,008,913 13,891,667 50,017,127 1,344,714 172,785 6,490,506 CI DI LI DI LI VA VL 37656 (305)666-3002 62421 (860)256-2122 93661 (513)333-6246 85286 Name changed 10/27/03, now known as ONENATION INS CO 3,935,084,674 233,874,647 1,477,337,971 169,987,884 2,457,746,703 63,886,763 0 1,434,322 CI DI PI VE DI LI RG CP 178,539 2,931,530 0 96,912 2,632,347 1,469,859 3,297,729 505,712 286,741 4,502,939 0 341,020,015 0 1,150,916 PL CW DI MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI SU VE CW MT PI VE VE CI PI LR CW LR CI MT PI VE 28207 (317)488-6000 61069 (614)436-0688 11598 --34738 (515)246-1200 11150 (203)975-5953 10348 (973)898-9575 19860 (309)688-8571 Financial Information Not Available Financial Information Not Available 34,295,942 651,846,574 717,593,126 156,056,588 1,139,536,081 100,637,093 15,544,712 19,425,952 1,243,305 7,499,008 8,798,134 2,752,641,613 2,071,550 148,188,959 13,629,373 402,417,122 334,775,841 123,663,752 785,962,601 58,987,467 5,194,176 6,133,464 289,697 3,719,349 7,223,720 2,132,454,976 1,170,732 59,374,891 20,666,569 249,429,451 382,817,285 32,392,836 353,573,480 41,649,626 10,350,536 13,292,488 953,608 3,779,659 1,574,414 620,186,637 900,818 88,814,068 19801 (210)321-8400 19828 (210)321-8400 19836 (210)321-8400 19844 (210)321-8400 11805 (480)413-9173 38490 (602)993-1155 60018 (319)398-7979 36714 (602)631-2050 97551 (870)483-6355 41459 (913)727-5500 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 54 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME ASSOCIATED DEALERS LIFE INS CO ASSOCIATED INDEMNITY CORP ASSOCIATES INS CO ASSURANCE CO OF AMERICA ASSURED LIFE ASSOCIATION ASSURITY LIFE INS CO ATHENA ASSURANCE CO ATLANTA CASUALTY CO ATLANTA INTERNATIONAL INS CO ATLANTIC INS CO ATLANTIC MUTUAL INS CO ATLANTIC SPECIALTY INS CO ATTORNEYS LIABILITY PROTECTION SOCIETY, A RRG ATTORNEYS' LIABILITY ASSURANCE SOCIETY, INC. A RRG AURORA NATIONAL LIFE ASSURANCE CO AUSA LIFE INS CO, INC. AUSTIN MUTUAL INS CO AUTO CLUB LIFE INS CO AUTO-OWNERS INS CO AUTO-OWNERS LIFE INS CO AUTOMOBILE INS CO OF HARTFORD, CT AUTOMOTIVE UNDERWRITERS INS CO, A RRG AVEMCO INS CO AVESIS REINSURANCE INCORPORATED AVIVA LIFE INS CO AVOMARK INS CO AXA ART INS CORP AXA CORPORATE SOLUTIONS INS CO AXA CORPORATE SOLUTIONS LIFE REINSURANCE CO AXA CORPORATE SOLUTIONS REINSURANCE CO AXA RE AMERICA INS CO AXA RE PROPERTY AND CASUALTY INS CO AXIS REINSURANCE CO BALBOA INS CO BALBOA LIFE INS CO BALTIMORE LIFE INS CO, THE BANC LIFE INS CORP Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE AZ CA IN NY CO NE MN IL NY TX NY NY MT VT CA NY MN MI MI MI CT HI MD AZ DE IN NY NY DE DE DE DE NY CA CA MD AZ ASSETS 3,554,188 117,121,860 195,373,411 17,618,972 59,343,686 1,060,799,761 180,751,422 229,990,115 18,382,801 87,211,642 1,426,692,808 79,786,045 56,902,540 75,470,975 3,697,915,373 LIABILITIES 411,173 70,075,062 79,401,486 45,450 53,192,780 954,602,045 133,220,237 145,647,902 8,433,061 65,926,971 1,105,424,696 30,079,159 36,642,759 52,165,690 3,378,646,433 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 3,143,015 47,046,798 115,971,926 17,573,522 6,150,906 106,197,715 47,531,185 84,342,213 9,949,740 21,284,671 321,268,112 49,706,886 20,259,781 23,305,285 319,268,940 0 1,627,020 (4,204) 6,946,323 329,143 1,023,771 658,970 1,985,598 0 106,606 10,520,875 0 104,829 5,408,174 1,495,438 LR CW DI MT PI SU VE CI DI MT PI SU VE CW DI MT PI SU VE DI LI DI LI CW MT PI SU VE VE CI DI MT PI SU VE CW MT PI SU VE CW DI MT PI SU VE CW MT PI SU VE CI CI DI LI 81485 (602)200-6900 21865 (415)899-2000 21296 (972)652-4000 19305 (847)605-6000 56499 (303)792-9777 71439 (402)476-6500 41769 (612)310-7066 21792 (404)447-8930 20931 (770)813-6220 22209 (972)650-3650 19895 (212)943-1800 27154 (212)943-1800 32450 (406)728-3113 10639 (312)697-6900 61182 (661)253-1688 70688 13412 Name changed 4/1/03, now known as TRANSAMERICA FINANCIAL LIFE INS CO (612)378-8600 117,313,344 391,299,361 6,970,374,873 1,330,110,287 875,050,955 18,284,480 185,644,891 1,969,659 4,575,003,274 23,078,594 62,078,802 224,560,173 628,575,462 1,199,288,677 99,762,974 240,583,326 694,080,889 846,817,702 115,219,359 793,744,772 62,205,775 361,933,404 3,727,769,444 1,166,944,442 619,939,655 13,214,185 77,539,621 913,326 4,231,523,213 13,832,166 39,343,993 133,433,809 337,742,453 619,409,263 52,844,110 134,905,631 191,018,269 507,704,606 38,805,243 761,545,226 55,107,569 29,365,957 3,242,605,428 163,165,845 255,111,300 5,070,295 108,105,270 1,056,333 343,480,061 9,246,429 22,734,809 91,126,364 290,833,009 579,879,414 46,918,864 105,677,695 503,062,620 339,113,096 76,414,116 32,199,546 5,109,374 169,260 52,804,617 2,474,053 3,419,787 262,173 4,204,214 0 7,956,377 0 224,780 481,315 0 0 0 2,945,445 158,462 11,582,309 517,499 2,302,488 CI MT PI VE DI LI CW DI MT PI SU VE DI LI CW DI MT PI SU VE CI CI DI MT PI SU LR DI LI CW MT PI SU VE CI MT PI VE CW DI MT PI SU VE LI CI MT PI SU VE CI DI MT PI SU VE CI DI MT PI SU VE CW DI MT PI SU VE CI DI MT PI SU VE DI LI DI LI UR 84522 (734)779-2085 18988 (517)323-1200 61190 (517)323-1200 19062 (860)277-0111 11033 (808)521-1121 10367 (301)694-5700 11163 (602)241-3400 62898 (617)786-2075 10792 (513)867-3000 29530 (212)415-8400 33022 (212)493-9300 68365 (212)493-9364 36552 (212)493-9364 11835 (212)493-9364 16187 (212)493-9364 20370 (678)746-9400 24813 (949)222-8000 68160 (949)222-8000 61212 (410)581-6600 --(414)433-3166 Financial Information Not Available CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 55 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME BANC ONE LIFE INS CO BANC ONE LIFE REINSURANCE CO BANCINSURE, INC. BANKERS CAPITAL LIFE INS CO BANKERS FIDELITY LIFE INS CO BANKERS FINANCIAL LIFE INS CO BANKERS INS CO BANKERS LIFE AND CASUALTY CO BANKERS LIFE INS CO BANKERS MULTIPLE LINE INS CO BANKERS NATIONAL LIFE INS CO BANKERS RESERVE LIFE INS CO OF WISCONSIN BANKERS STANDARD INS CO BANNER LIFE INS CO BAPTIST LIFE ASSOCIATION BAR PLAN MUTUAL INS CO, THE BASNEY AUTO GROUP LIFE INS CO BAY LIFE INS CO, INC. BCS INS CO BCS LIFE INS CO BEACON LIFE INS CO BECK LIFE INS CO BEE LIFE INS CO BENCHMARK INS CO BENEFICIAL LIFE INS CO BENICORP INS CO BENSON MOTORS INS CO BERKLEY REGIONAL INS CO BERKSHIRE HATHAWAY LIFE INS CO OF NEBRASKA BERKSHIRE LIFE INS CO OF AMERICA BEST LIFE AND HEALTH INS CO BEVERLY HILLS LIFE INS CO BIRMINGHAM FIRE INS CO OF PENNSYLVANIA BITUMINOUS CASUALTY CORP BITUMINOUS FIRE AND MARINE INS CO BLUE CROSS AND BLUE SHIELD OF ARIZONA, INC. BONNEVILLE INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE AZ AZ OK AZ GA AZ FL IL FL IL TX WI PA MD NY MO AZ AZ OH IL AZ AZ AZ KS UT IN AZ DE NE MA TX AZ PA IL IL AZ OR ASSETS LIABILITIES CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 77534 77534 Name changed 12/16/03, now known as BANC ONE LIFE REINSURANCE CO (414)765-3454 281,666,571 99,522,785 224,221,366 69,285,913 57,445,205 30,236,872 0 357,302 LR CW MT PI SU VE UR 83,907 0 760,669 21,758,776 106,592 0 307,862 0 162,129 5,889,856 8,260 1,650 DI LI LR CI MT PI SU VE DI LI DI LI CI DI MT PI SU VE DI LI DI LI CW DI MT PI SU VE DI LI DI LI SU UR 0 3,596,880 471,331 LR CI DI MT DI LI UR UR UR 9,533,552 13,976,576 0 CW DI PI VE DI LI DI LI UR 0 224,000 2,009,808 334,341 CW MT PI SU VE LI DI LI DI LI UR 1,107,665 172,553 63,524 867,351,681 CW DI MT PI SU VE CW MT PI SU VE CW MT PI SU VE DS HS MS REHABILITATION 18538 (405)290-5600 --(602)254-5866 Financial Information Not Available 109,750,842 4,758,630 77,480,988 6,861,868,837 124,988,149 8,125,461 726,407,583 16,787,501 138,865,652 1,047,152,731 21,716,843 43,748,132 78,553,365 1,956,766 48,104,306 6,417,514,373 117,627,033 495,769 661,461,101 10,520,080 103,725,461 767,036,870 20,904,700 23,095,417 31,197,477 2,801,865 29,376,682 444,354,464 7,361,116 7,629,692 64,946,482 6,267,421 35,140,191 280,115,861 812,143 20,652,715 61239 (404)266-5600 62723 (319)363-5400 33162 (727)823-4000 61263 (314)817-6100 81043 (813)823-4000 23132 (972)364-7000 71900 (317)817-6300 71013 (314)725-4477 18279 (215)761-1000 94250 (301)279-4800 57223 (716)633-4393 29513 (314)965-3333 --(314)275-5200 Financial Information Not Available 2,932,629 226,933,935 148,943,792 622,463 108,307,142 82,183,026 2,310,166 118,626,793 66,760,765 80101 (216)566-5300 38245 (312)951-7700 80985 (312)951-7700 ------(602)254-5866 (800)477-8858 (314)275-5200 Financial Information Not Available Financial Information Not Available Financial Information Not Available 82,288,353 2,616,259,288 34,774,101 58,192,981 2,407,310,625 18,935,066 24,095,372 208,948,663 15,839,035 41394 (913)722-0622 61395 (801)933-1100 69752 (317)290-1205 --(602)254-5866 Financial Information Not Available 1,664,915,058 2,841,254,076 1,611,195,335 21,806,167 1,127,187,049 2,290,933,998 1,344,424,630 12,497,416 537,728,009 550,320,078 266,770,705 9,308,751 29580 (515)727-1146 62345 (402)536-3000 71714 (413)499-4321 90638 (949)253-4080 --(800)477-8858 Financial Information Not Available 2,473,821,290 621,292,032 266,307,728 514,000,226 1,769,989,522 420,886,440 192,439,356 219,074,070 703,831,768 200,405,592 73,868,372 294,926,156 19402 (212)770-7000 20095 (309)786-5401 20109 (309)786-5401 53589 (602)864-4100 36005 (503)222-1041 Financial Information Not Available CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 56 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME BOSTON MUTUAL LIFE INS CO BOSTON OLD COLONY INS CO BOWTIE LIFE INS CO BRADLEY LIFE INS CO BREMEN LIFE INS CO II BREMER LIFE INS CO BROKERS NATIONAL LIFE ASSURANCE CO BROTHERHOOD MUTUAL INS CO BUCKEYE STATE INS CO BUCKTAIL LIFE INS CO BUILDERS & CONTRACTORS INS CO, RRG BUSINESS MEN'S ASSURANCE CO OF AMERICA C B I INS CO C.L.V. LIFE INS CO C.M. LIFE INS CO CALFARM INS CO CALIFORNIA CAPITAL INS CO CALIFORNIA CASUALTY & FIRE INS CO CALIFORNIA CASUALTY GENERAL INS CO CALIFORNIA CASUALTY INDEMNITY EXCHANGE CALIFORNIA CASUALTY INS CO CALIFORNIA INDEMNITY INS CO CALIFORNIA INS CO CAMBRIDGE LIFE INS CO CAMDEN FIRE INS ASSOCIATION, THE CAMERON LIFE INS CO CAMICO MUTUAL INS CO CANADA LIFE ASSURANCE CO, THE CANADA LIFE INS CO OF AMERICA CANAL INS CO CANYON STATE LIFE INS CO CAPITAL ASSURANCE RRG, INC. CAPITAL MARKETS ASSURANCE CORP CAPITOL INDEMNITY CORP CAPITOL LIFE INS CO, THE CARDINAL & GOLD INS CO CAREAMERICA LIFE INS CO Company Names: Authorized Lines: DOMICILE NAIC # TELEPHONE MA MA AZ AZ AZ AZ AR IN AZ AZ DC MO AZ AZ CT CA CA CA CA CA CA CA CA MO NJ AZ CA CANADA MI SC AZ SC NY WI CO AZ CA ASSETS 698,038,875 30,659,221 LIABILITIES 632,296,596 18,909 CAPITAL & ARIZONA AUTHORIZED LINES SURPLUS PREMIUMS 65,742,279 30,640,311 1,697,024 0 DI LI CI DI MT PI SU VE UR UR UR 0 1,141 5,730,087 LR DI LI CW DI MT PI SU VE UR 0 LR 61476 (781)828-7000 20761 ------(312)822-5000 (205)803-6733 (800)477-8858 (314)275-5200 Financial Information Not Available Financial Information Not Available Financial Information Not Available 2,288,703 22,318,911 203,618,480 1,320,824 9,970,522 144,662,264 967,879 12,348,389 58,956,216 81221 (612)397-4215 74900 (512)383-0220 13528 (219)482-8668 --(602)254-5866 Financial Information Not Available 2,432,285 380,535 2,051,749 94633 (602)200-6900 11671 61492 Name changed 10/30/03, now known as PROBUILDERS SPECIALTY INS CO, RRG (816)218-6500 2,049,418,003 5,859,189 2,463,549 7,565,956,353 126,383,584 324,258,174 48,354,297 70,357,200 398,931,000 124,742,487 345,921,037 7,265,427 9,435,887 588,840,025 1,913,317,296 1,994,984 1,499,828 7,179,828,623 5,059 188,913,858 28,405,454 44,540,453 132,865,295 56,810,908 260,521,482 16,326 2,664,041 330,194,197 136,100,707 3,864,205 963,721 386,127,730 126,378,525 135,344,297 19,948,843 25,816,747 266,065,705 67,931,579 85,399,555 7,249,102 6,771,846 258,645,828 17,335,678 0 0 18,394,162 0 0 0 0 3,703,465 21,812,926 0 0 94,782 0 DI LI VA VL LR LR DI LI VA VL CI MT PI SU VE CI MT PI CI MT PI VE CI MT PI VE CI MT PI VE CI MT PI VE CW CW DI MT PI SU VE DI LI CW MT PI SU VE UR 918,501 3,790,388 475,657 6,079,450 315 16,128 103,521 4,226,686 0 CI DI LI DI LI VA VL CI MT PI VE DI LI CI SU CI MT PI SU VE DI LI UR 2,328,288 DI LI 82996 (602)254-5866 88943 (602)957-4647 93432 (413)788-8411 18961 (916)924-4000 13544 (408)649-1155 27464 (650)574-4000 35955 (650)574-4000 20117 (415)574-4000 20125 (650)574-4000 32271 (702)242-7046 38865 (312)821-4000 81000 (714)380-0233 21946 (617)725-6000 --36340 (602)200-6900 (650)802-2500 Financial Information Not Available 98,981,780 2,609,476,970 2,906,123,755 980,716,505 2,132,174 3,053,121 111,770,628 374,398,154 304,819,268 67,030,774 2,536,433,224 2,741,569,379 532,968,120 436,262 869,259 6,449,336 234,076,844 294,434,242 31,951,006 73,043,746 164,554,376 447,748,386 1,695,912 2,183,862 105,321,292 140,321,310 10,385,026 80659 (770)953-1959 81060 (770)953-1959 10464 (864)242-5365 72958 (602)258-2422 11194 (843)579-2214 20877 (914)273-4545 10472 (608)231-4450 61581 (303)273-9303 --(480)607-1602 Financial Information Not Available 26,600,423 2,404,692 24,195,731 71331 (888)646-0789 CO = COMPANY CORP = CORPORATION INS = INSURANCE RRG = RISK RETENTION GROUP CI = CASUALTY CP = CAPTIVE INSURER CW = CASUALTY WITH WORKERS' COMPENSATION DI = DISABILITY DS = DENTAL SERVICE HC = HEALTH CARE SERVICES ORGANIZATION HS = HOSPITAL SERVICE LC = LIFE CARE PROVIDER LP = LIFE CARE PROVICER PROVISIONAL PERMIT LI = LIFE LR = LIFE AND DISABILITY REINSURANCE MG = MORTGAGE GUARANTY MR = MECHANICAL REIMBURSEMENT REINSURANCE MS = MEDICAL SERVICE MT = MARINE AND TRANSPORTATION OS = OPTOMETRIC SERVICE PD = PREPAID DENTAL PLAN PI = PROPERTY PL = PREPAID LEGAL RG = DOMESTIC RISK RETENTION GROUP SU = SURETY TI = TITLE UR = UNAFFILIATED CREDIT LIFE AND DISABILITY REINSURANCE VA = VARIABLE ANNUITY VE = VEHICLE VL = VARIABLE LIFE Financial information is as of 12/31/2003 unless alternative fiscal year end is indicated. Fiscal year financial information due August 1 or November 1, 2004 pursuant to A.R.S. � 20-1083. Financial information was not required during this period or is not available due to regulatory action or notification of merger or withdrawal. * DBA (Doing Business As) ** Life Care Facility 57 INSURERS AUTHORIZED IN ARIZONA AS OF DECEMBER 31, 2003 - (continued) NAME CARLISLE LIFE INS CO CAROLINA CAS |
