HB 4020 Arizona House · 57th Legislature - Second Regular Session

insurance; fraud unit; assessment; increase

HB 4020 enhances Arizona's insurance fraud investigation unit by requiring insurers to report suspected fraudulent claims to the Department of Insurance. It grants fraud unit investigators limited peace officer powers while maintaining confidentiality protections for reports and sources. The bill increases the annual assessment fee insurers pay to fund the unit from $1,050 to $1,350 per insurer. This directly affects all insurers licensed to operate in Arizona, mandating new reporting procedures and increasing their annual costs to support fraud investigations.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Feb 9, 2026 Last action Mar 23, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (02/26/2026) · 4 edits · Feb 26, 2026

MODERATE

The bill was reformatted from a standard legislative draft to a final 'House Engrossed' version, which includes the addition of two new subsections (I and J) and a retroactivity clause. These substantive changes establish a legal waiver for confidentiality when information is shared, set a new annual assessment fee of $1,350 for insurers, and make the law effective retroactively to June 30, 2026.

Scope change

The bill's scope expanded to include a specific waiver of privilege for shared information and a new funding mechanism via an annual assessment on insurers.

REQUIREMENT

Added a new provision stating that sharing information under this bill does not waive any legal privileges or claims of confidentiality.

FISCAL

Increased the annual assessment fee for insurers from $1,050 to $1,350 to fund the fraud unit.

TIMELINE

Added a retroactivity clause making the amended law effective from and after June 30, 2026.

TECHNICAL

Converted the document from a draft introduction format to a final engrossed version with updated headers and page numbering.

Floor votes · House Feb 26, 2026

How they voted

42–12

Passed · 6 other

Total votes 60

Feb 26, 2026

D Democratic27

23 Yea 4

85% Yea

R Republican33

19 Yea 12 Nay 2

57% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Upper · Passed

upper

Feb 26, 2026

Lower · Passed

PASSED

lower

Feb 17, 2026

Lower · Passed

lower

1 primary · 4 co-sponsors