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Bill

HB 4020

insurance; fraud unit; assessment; increase

57th Legislature - Second Regular Session Introduced by Walt Blackman and 4 co-sponsors

HB 4020 raises the assessment insurance companies pay to fund Arizona's Insurance Fraud Unit to increase investigation and prosecution resources.

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Bill Summary · HB 4020

Legislative bill overview

HB 4020 increases the assessment that insurance companies must pay to fund Arizona's Insurance Fraud Unit, which investigates fraudulent insurance claims. The bill adjusts the funding mechanism to provide the fraud investigation agency with additional revenue to support its operations and staffing.

Why is this important

Insurance fraud costs the system billions annually and increases premiums for honest policyholders. Adequate funding for fraud investigation and prosecution can reduce fraudulent claims, lower overall insurance costs, and protect both insurers and legitimate consumers from bearing the costs of criminal activity.

Potential points of contention

  • Cost pass-through to consumers: Insurance companies may pass assessment increases directly to policyholders through higher premiums, meaning consumers ultimately fund the increase
  • Burden on insurance industry: Smaller insurers may face disproportionate impacts from the assessment increase, potentially affecting market competition and availability
  • Effectiveness questions: Increased funding effectiveness depends on how the fraud unit deploys resources; without performance metrics or oversight provisions, the assessment increase may not yield proportional fraud reduction

Compiled from official sources — confirm details with the bill’s official record.

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