HB 2032
Initials PB Page 1 House Engrossed
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: COM DP 10-0-0-0
HB 2032: workers' compensation; assigned risk plan
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Adds factors that exempt an employer from placement in the assigned risk plan.
History
The Industrial Commission of Arizona (ICA) administers and enforces state laws relating to
the protection of life, health, safety and welfare of Arizona's employees, including workers'
compensation. Employers are required to provide workers’ compensation to their employees
either by securing insurance through an authorized carrier or providing the ICA with proof
of financial ability to pay workers’ compensation costs (A.R.S. § 23-961).
Insurers may decline to issue a workers' compensation or occupational disease policy to an
employer. An employer who is refused coverage by two or more insurers must be placed in
the assigned risk plan. The director of the Department of Insurance and Financial
Institutions must contract with a qualified party to be the administrator for the assigned risk
plan. The assigned risk plan administrator must develop a plan of operation and issue a
directive for the equitable apportioning of assigned risks among all the insurers. The plan
must include a method for the administrator to select one or more insurers transacting
workers' compensation to act as servicing carriers and a method for appropriating the
workers' compensation assigned risk among all insurers (A.R.S. § 23-1091).
Provisions
1. Specifies that employers are exempt from being placed in the assigned risk plan if any of
the following factors exist:
a) on a workers' compensation policy, the employer either:
i. knowingly fails to meet reasonable health and safety or audit or loss prevention
requirements;
ii. refuses an insurance carrier reasonable access to the employer's records;
b) has an outstanding premium due on a workers' compensation policy and that is not
subject to a bona fide dispute; or
c) knowingly fails to comply with the assigned risk plan's application procedures or
makes a material misrepresentation on the application. (Sec. 1)