State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2025: workers' compensation; rate deviations

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: House Engrossed

 

Legend: Director – Director of the Department of Insurance Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to workers' compensation rate filings.

Provisions

1.       Prohibits an insurer from simultaneously applying a deviation and a schedule rating to the same insured risk. (Sec. 1)

2.       Applies retroactively to March 1, 2018. (Sec. 2)

Current Law

A rating organization must annually file its rates with the Director by January 1. A worker's compensation insurer satisfies its obligation to file its ratings by becoming a member of a licensed rating organization who files on their behalf. (A.R.S. § 20-357)

Every insurer is required to adhere to the filings made by the rating organization of which it is a member, except that any member insurer may file with the Director:

a.       up to six uniform percentage deviations that decrease or increase the statewide portion of the rating organization's rate filing.

b.       a subclassification rate related rule that deviates from the rules or schedule rating plan filed by the insurer's rating organization.

An insurer is prohibited from applying a deviation and a schedule rating plan within the same insurance company (A.R.S. § 20-359). 

A schedule rating plan is a rating plan by which an insurer increases or decreases worker's compensation rates to reflect the individual risk characteristics or the loss ratios of the subject of insurance. (A.R.S. § 20-343).

 

 

 

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  HB 2025

Second Regular Session                               Version 3: House Engrossed

 

---------- DOCUMENT FOOTER ---------