AZ SB1007

Requires domestic insurers or their insurance groups to submit a Corporate Governance Annual Disclosure (CGAD) to the Arizona Department of Insurance director by June 1 each year, containing information about corporate governance structure, policies, and practices.

Permits insurers to report CGAD information at the ultimate controlling parent level, intermediate holding company level, or individual legal entity level depending on where risk appetite and oversight of operations are determined.

Designates CGAD documents and related materials as confidential, proprietary trade secrets not subject to public records requests, subpoenas, or discovery in private civil actions, though the director may use them for regulatory purposes.

Allows the director to share CGAD information with other state, federal, and international financial regulators, the National Association of Insurance Commissioners, and third-party consultants if they maintain confidentiality and have legal authority to do so.

Imposes civil penalties of $20 per day (not to exceed $2,500) for insurers failing to timely file the CGAD without just cause, with the director authorized to reduce penalties if the insurer demonstrates financial hardship.