AZ SB1149

Amends Arizona insurance valuation laws to align with the National Association of Insurance Commissioners (NAIC) Standard Valuation Law as amended in 2009, establishing a "valuation manual" as the minimum standard for reserve valuation for life insurance, annuity, accident and health, and deposit-type contracts issued on or after the operative date.

Defines key terms including "principle-based valuation," "appointed actuary," "qualified actuary," and "tail risk," and establishes separate valuation standards for policies issued before versus after the operative date of the valuation manual.

Requires companies to establish reserves using principle-based valuation for specified policies that quantify benefits and guarantees at appropriate levels of conservatism, incorporate company-specific and prescribed assumptions, and provide adequate margins for uncertainty.

Establishes confidentiality protections for actuarial memorandums, principle-based valuation reports, and experience data submitted to the director, with limited exceptions for regulatory actions and professional disciplinary proceedings.

Allows the director to exempt domestic companies licensed only in Arizona from valuation manual requirements if they use pre-operative date assumptions and methods plus director-established requirements, and permits the director to engage qualified actuaries to review company valuations at company expense.