Senate Engrossed

State of Arizona Senate Fifty-first Legislature First Regular Session 2013

SENATE BILL 1310

 

AN ACT

 

requiring a report by the industrial commission of cash and assets held by the special fund attributable to insolvent insurer claims.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Industrial commission; insolvent insurer report; transfer of insolvent insurer administration; conforming legislation

A.  The industrial commission shall publish a report showing the amount of cash and assets held by the special fund established by section 23‑1065, Arizona Revised Statutes, that are attributable or allocated to the payment of claims of insolvent insurers as defined in section 20‑661, paragraph 5, Arizona Revised Statutes, as of June 30, 2013.  The report shall include all insurance carriers that have had claims assigned to the special fund pursuant to section 23‑966, subsection A, Arizona Revised Statutes.  The report shall be accompanied by a statement of actuarial opinion by an actuary who is a member in good standing of the American academy of actuaries confirming the adequacy of the reserves reported.  The amount of attributed cash and assets shall include the total amount of monies that are held by the special fund from any assessments, recoveries and released deposits.  The commission shall publish the report at the last industrial commission meeting in 2013 and shall include an explanation of the methodology and all of the data relied on to produce the statement.  The report shall include an opinion from an independent certified public accountant on whether the methodology employed fairly presents the attribution of cash and assets to the payment of claims of insolvent insurers as defined in section 20‑661, Arizona Revised Statutes.

B.  The legislative council staff shall prepare proposed legislation transferring all rights and obligations of the industrial commission special fund in regard to the administration and funding of insolvent insurer workers' compensation claims, as provided by section 23‑966, Arizona Revised Statutes, to the Arizona property and casualty insurance guaranty fund established by section 20‑662, Arizona Revised Statutes, for consideration in the fifty‑first legislature, second regular session.