ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

 

HB 2506: workers' compensation; rates; firefighters; cancer

Sponsor:  Representative Payne, LD 21

Committee on Military Affairs & Public Safety

Overview

Extends presumptive occupational diseases to fire investigators and adds two cancers to the list of presumptive occupational diseases for firefighters. Allows insurers to file one uniform percentage deviation associated with firefighters and investigators.

History

Occupational diseases are deemed to arise out of employment only if:

1)   There is a direct causal connection between the conditions under the work performed and the occupational disease;

2)   The disease can be seen to have followed a natural incident of the work as a result of the exposure happening by the nature of the job;

3)   The disease can be fairly traced to the job as proximate cause;

4)   The disease does not come from a hazard that the worker would have been equally exposed to outside of the worker's job;

5)   The disease is incidental to the character of business and not independent of the relation of employer and employee; and

6)   The disease appears to have had its origin in a risk connected with employment after its contraction and flowed from that source as a natural consequence.

Any disease, infirmity or impairment of a firefighter's health that is caused by brain, bladder, rectal or colon cancer, lymphoma, leukemia or adenocarcinoma or mesothelioma of the respiratory tract, buccal cavity and pharynx, esophagus, large intestine, lung, kidney, prostate, skin, stomach or testicular cancer or non-Hodgkin's lymphoma, multiple myeloma or malignant melanoma and that results in disability or death is presumed to be an occupational disease and is deemed to arise out of employment (A.R.S. § 23-901.01).

Personal injury by accident arising out of and in the course of employment means an occupational disease that is due to causes and conditions of a particular trade, occupation, process or employment, and not the ordinary disease which the general public is exposed, for heart-related, perivascular or pulmonary cases (A.R.S. § 23-901).

Provisions

Presumptive Occupational Diseases

1.   Removes firefighters from statutes relating to firefighter and peace officer presumptive occupational diseases and creates a separate section of statute relating to firefighter presumptive occupational diseases. (Secs. 5, 6)

2.   Adds ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Notedisease, infirmity or impairment of a firefighter or fire investigator's health caused by ovarian or breast cancer to conditions presumed to be an occupational disease arising out of employment. (Sec. 6)

3.   Specifies that the outlined presumptive occupational diseases arising out of employment apply to firefighters, fire investigators and peace officers currently in service. (Secs. 5, 6)

4.   Removes the following qualifications that grants presumptions to firefighters or peace officers:

a)   Having been exposed to a known carcinogen reasonably related to cancer; and

b)   Informing the Director of the Department of Insurance and Financial Institutions (DIFI) about the exposure of a carcinogen. (Sec. 5)

5.   Increases the rebuttal standard of cancer presumptions, from preponderance of evidence to clear and convincing evidence, that there is a specific cause of the cancer other than an occupational exposure to a carcinogen. (Sec. 5)

Insurance Rates and Premium Adjustments

6.   Allows insurers covering firefighters and fire investigators to file one uniform percentage deviation that increases the statewide rates under the rating organization's rate filing for the class codes associated with firefighters and fire investigators to address the anticipated increase in losses and expenses for claims that are compensable, in addition to the six uniform percentage deviations. (Sec. 2)

7.   Requires the deviation filing to be accompanied by actuarial analysis that substantively illustrates the basis for the rate increase.

8.   Outlines the information required for the analysis and the requirements for the supporting documents. (Sec. 2)

9.   Permits insurers to use data or analysis from various sources. (Sec. 2)

10.  Allows the DIFI Director to use independent contractor examiners to analyze the supporting justification of a requested deviation. (Sec. 2)

11.  Authorizes insurers to file and apply a schedule rating plan to adjust premiums associated with firefighters and fire investigators class codes based on loss control programs or activities undertaken by the insurer to reduce losses associated with firefighter and fire investigator cancer presumption claims. (Sec. 2)

12.  Stipulates that the schedule rating plan must be filed with and approved by the DIFI Director in addition to and separate from any other schedule rating plan available to the insurer. (Sec. 2)

13.  Mandates that a deviation must be on file with the DIFI director for at least 60 days before it becomes effective (Sec. 2)

Information Sharing

14.  Instructs insurance carriers, self-insuring employers and workers' compensation pools securing workers' compensation for firefighters and fire investigators (insurers) to compile and report to the Industrial Commission of Arizona (ICA) claim and claim reserve information for all cancer-related claims filed by or on behalf of firefighters and fire investigators. (Sec. 7)

15.  Outlines the information required for the reports relating to cancer-related claim and claim reserve compiled by insurers. (Sec. 7)

16.  Prohibits the ICA from requiring or obtaining any personally identifiable information for any claimant. (Sec. 7)

17.  ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteDirects the ICA to compile and make available the claim-related information collected to assist with the setting of workers' compensation insurance rates and to ensure the adequate reserving for cancer claims for the class codes associated with firefighter and fire investigators. (Sec. 7)

Miscellaneous

18.  Adds peace officers currently in service to those eligible under occupational disease presumptions. (Sec. 5)

19.  Defines firefighter and fire investigator. (Sec. 6)

20.  Contains a legislative intent clause. (Sec. 8)☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

21.  Makes technical changes. (Secs. 3, 4)

22.  Makes conforming changes. (Secs. 1, 2, 3, 4)

23.   

24.   

25.  ---------- DOCUMENT FOOTER ---------

26.                    HB 2506

27.  Initials ES  Page 0 Military Affairs & Public Safety

28.   

29.  ---------- DOCUMENT FOOTER ---------