HB 2204
Initials PB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: COM DPA 9-0-0-1
HB 2204: workers' compensation rates; deviation
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Allows certain insurers to file for a premium credit from the rating organization's uniform
rate filing.
History
The Department of Insurance and Financial Institutions (DIFI) oversees insurance rate
regulation to promote the public welfare and prevent excessive, inadequate or discriminatory
rates. DIFI designates a rating organization for the purpose of annually making and filing
statewide workers' compensation insurance rates (A.R.S. §§ 20-341 and 20-371).
A workers' compensation or employers' liability insurer (insurer) must adhere to the
statewide workers' compensation insurance rates filed with DIFI, except an insurer may file:
1) up to six uniform percentage deviations to adjust the statewide rate portion of the rating
organization's rate filing; and 2) a subclassification rate related rule that deviates from the
rating organization rules or schedule rating plan. An insurer may not simultaneously apply
a deviation and a schedule rating to the same insured risk. If an insurer files more than one
deviation, each must be consistent with underwriting rules based on criteria that would lead
to a logical distinction of potential risk (A.R.S. § 20-359).
Provisions
1. Permits a rating organization's member insurer to file a premium credit of up to 5% from
the rating organization's uniform rate filing based on a policyholder's membership in an
association. (Sec. 2)
2. Defines association as a membership organization whose membership is comprised of
persons that are in a similar or related line of commerce, that is organized to promote and
improve business conditions in that line of commerce, that is not engaged in a regular
business of a kind that is ordinarily carried on for profit and whose net earnings do not
inure to the benefit of any member. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note