HB 2121
Initials PRB/JL Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: COM DPA 9-0-0-1 | 3
rd
Read 59-0-1-0
Senate: FIN DPA/SE 7-3-0-0 | 3
rd
Read 25-0-5-0
HB 2121: workers' compensation; medical-only loss
NOW: insurance; omnibus
Sponsor: Representative Kaiser, LD 15
Senate Engrossed
The House Engrossed version of HB 2121 requires any experience rating adjustment, for workers'
compensation claims involving medical-only loss, to be applied to reduce the impact of the loss
in the employer's experience modification calculation.
The Senate adopted a strike-everything amendment that does the following:
Overview
Makes various changes to statutes relating to electronic communications, Medicare supplement
insurance, title insurance agencies and certificates of creditable coverages.
History
An insurer may deliver a notice or document to a party by electronic means if the party
electronically consents to that method of electronic delivery. An insured is deemed to have
consented to receive notices and documents electronically if the insured effectuates insurance
transactions by electronic means. An oral communication or a recording of an oral communication
does not qualify as consent to deliver a notice or document by electronic means (A.R.S. § 20-
239).
An agent for a title insurer is prohibited from adopting a corporate or business name containing
certain words or phrases indicating that the agent in the business of title insurance unless those
words are followed by agent or agency (A.R.S. § 20-1583).
Every health care insurer that offers individual health insurance coverage in the individual market
in Arizona must provide guaranteed availability of coverage to an eligible individual who desires
to enroll in individual health insurance coverage and may not: 1) decline to offer that coverage to,
or deny enrollment of, that individual; or 2) impose any preexisting condition exclusion for that
coverage. Statute requires a health care insurer to provide a written certificate of creditable
coverage if the individual: 1) ceases to be covered under a policy offered by the health care
insurer; and 2) requests certification from the insurer within 24 months after the coverage ceases
(A.R.S. § 20-1379).
Provisions
1. Directs the Department of Insurance and Financial Institution (DIFI) to post specified
information regarding flood insurance on a publicly accessible website. (Sec. 1)
2. Reduces, from $1.50 to $0.00, the minimum amount of the nonrefundable fee for the certificate
of Director, under seal. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2121
Initials PRB/JL Page 2 Senate Engrossed
3. Specifies either an oral communication with a contemporaneous written record made of the
communication or an archived recording of an oral communication qualifies as consent for an
insurer to deliver a notice or document by electronic means. (Sec. 3)
4. Specifies the oral consent applies only to an agreement to the use of electronic
communication with the insurer and is not an agreement to any other insurance matter. (Sec.
3)
5. Directs a casualty or property insurer who insures residential property in Arizona to provide
information to policyholders on how to obtain flood insurance and the National Flood
Insurance Program. (Sec. 4, 9)
6. Changes the definition of advisory organization to mean a person who assists two or more
insurers or rate service organizations. (Sec. 5)
7. Permits an insurer, for the purposes of Medicare supplement insurance, to file for Medicare
supplement rates that include an early enrollment discount that will not be considered an
attained age rating structure. (Sec. 6)
8. Requires an early enrollment discount to diminish over a period of time and an insurer to
disclose to all applicants how it will diminish over time. (Sec. 6)
9. Specifies an early enrollment discount is only available to enrollees who purchase the plan
within the early enrollment period designated by the insurer. (Sec. 6)
10. Specifies an insurer, if the federal laws that require providing a certificate of creditable
coverage are superseded by the prohibition on preexisting condition exclusions, is not
required to:
a) Provide a certificate of creditable coverage; and
b) Comply with certain annual reporting requirements. (Sec. 7, 8, 11)
11. Removes the restrictions on the corporate or business name of an agent for a title insurer.
(Sec. 10)
12. Requires the State Forester to make available to DIFI the list of areas that have been
designated as high risk for wildfire. (Sec. 12)
13. Makes technical changes. (Sec. 5, 6, 7)