Which legislative body governs the establishment and operation of the Arizona Insurance Guaranty Fund?

The correct answer is the Arizona State Legislature because this legislative body is responsible for enacting laws and regulations that govern various aspects of state operations, including the establishment and operation of the Arizona Insurance Guaranty Fund. This fund is designed to protect policyholders in the event that an insurance company becomes insolvent, ensuring that claims are still paid.

The Arizona State Senate and the Arizona State House of Representatives are components of the State Legislature; however, when legislation is established, it is the Legislative body as a whole that has the authority. The Arizona Insurance Commission, while it plays a crucial role in overseeing the insurance industry and enforcing insurance laws, does not have the legislative power to create laws, which is the primary function of the State Legislature. Thus, it is the collective authority of the Arizona State Legislature that governs the establishment and operation of the Arizona Insurance Guaranty Fund.