AZ HB2546

Amends Arizona's life and disability insurance guaranty fund law to establish three separate accounts and expand the types of insurers and policies covered by the fund.

Redefines "impaired insurer" to exclude insolvent insurers, creates new definitions for "insolvent insurer," "covered policy," "owner," and other key terms, and adds coverage for structured settlement annuities and unallocated annuity contracts with specific limits.

Establishes coverage limits of $300,000 for life insurance death benefits, $100,000 for net cash surrender values, $300,000 for disability income and long-term care insurance, $500,000 for major medical insurance, and $250,000 for annuities, with aggregate caps of $300,000 to $500,000 per individual depending on coverage type.

Modifies the fund's powers to guarantee, assume, or reinsure policies of impaired or insolvent insurers and allows the fund to assume reinsurance contracts of insolvent insurers within 180 days of liquidation order.

Changes assessment procedures to distinguish between "authorized" assessments (approved but not yet called) and "called" assessments (for which payment is demanded), caps annual assessments at 2% of member insurers' average premiums, and allows the fund to join multi-state organizations.