Arizona House Bill HB2136

Arizona 2022 Regular Session

• Introduced: 2/7/22

Caption

Technical correction; insurance; uniform plans

Impact

The amendment would streamline the regulation of workers' compensation insurance by ensuring that all entities comply with standardized plans approved by the director. The intent is to enhance predictability and reliability in the insurance process, benefiting both insurers and policyholders. A key feature allows rating organizations to create their own statistical plans, provided they do not materially conflict with the state's uniform plans, which maintains a level of flexibility while ensuring compliance.

Summary

House Bill 2136, introduced by Representative Bolick, seeks to amend Section 20-344 of the Arizona Revised Statutes regarding the transaction of insurance business. The bill establishes a framework that mandates every rating organization and insurer involved in workers' compensation insurance within Arizona to adhere to approved uniform plans. These plans include a uniform statistical plan, a uniform classification plan, and a uniform experience rating plan, creating consistency across the state's insurance framework.

Contention

While the bill primarily focuses on standardization, some stakeholders may raise concerns regarding the implications of centralization in insurance regulation. Critics might argue that this could limit the ability of insurers to customize their plans to better fit specific market needs. Furthermore, the requirement for a 15-day waiting period for subclassification rates to become effective may be viewed as a bureaucratic hurdle for insurers looking to innovate or respond quickly to market changes.