HB 2032
Initials PB Page 1 Senate 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 | 3
rd
Read 59-0-1-0
Senate: RAGE DPA 7-0-0-0 | 3
rd
Read 30-0-0-0
HB 2032: workers' compensation; assigned risk plan
Sponsor: Representative Livingston, LD 28
Senate Engrossed
Overview
Adds factors that exempt an employer from placement in the assigned risk plan relating to
workers' compensation insurance.
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 through an ICA approved workers'
compensation pool (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 may charge all insurers transacting workers'
compensation insurance a reasonable fee to administer the assigned risk plan. Insurers pay
a share of the fee based on the insurer's share of the preceding calendar year's total net direct
workers' compensation insurance premiums written in Arizona. 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; or
ii. refuses to allow an insurance carrier reasonable access to the employer's records;
b) the employer has an outstanding premium due on a workers' compensation policy and
that is not subject to a bona fide dispute; or
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c) the employer knowingly fails to comply with the assigned risk plan's application
procedures or makes a material misrepresentation on the application. (Sec. 1)
Senate Amendments
1. Adds a stipulation that an employer placed in the assigned risk plan may be removed
from the assigned risk plan, subject to statutory requirements for securing workers'
compensation coverage.
2. Makes conforming changes.