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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: COM DPA 10-1-0-0 |
HB 2680: worker's compensation; notice; fraud; commission
Sponsor: Representative Hernandez A, LD 20
Caucus & COW
Overview
Requires the Industrial Commission of Arizona to maintain a database containing certain workers' compensation information.
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. Worker’s compensation insurance provides coverage of medical costs, rehabilitation and lost wages for an employee who has suffered injury or illness in the course of performing job related duties. Employers are statutorily 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 costs. An employer can demonstrate financial ability to pay benefits directly or through participation in an approved self-insurance compensation pool (A.R.S. §§ 23-107 and 23-961).
The ICA is statutorily required to establish a fraud unit which investigates fraudulent activities, statements or representations made in connection with workers' compensation claims. The fraud unit may investigate allegations of fraud either on receiving a complaint or on the fraud unit's own motion. If, on investigation, the fraud unit determines that fraudulent activities, statements or representations were made, the fraud unit may report violations of law to the claimant or claimant's representative, to the reporting employer, self-insured employer or insurance carrier, to the appropriate licensing agency, and to the appropriate county attorney or the attorney general for prosecution (A.R.S. § 23-934).
Provisions
1. Requires the ICA to generate and maintain a publicly accessible database containing an employer's workers' compensation information that includes:
a. the name of the insured person;
b. the name of the insurer; and
c. the expiration date of the policy. (Sec. 1)
2. Instructs the ICA to maintain a record of the workers' compensation policies sold by each insurance broker or agent. (Sec. 1)
3. Details information that a licensed or certified insurer must provide to the ICA. (Sec. 1)
4. Outlines information that must be included in a declaration page. (Sec. 1)
5. Requires the ICA, on notice by an insurer, to investigate allegations of workers' compensation or premium insurance fraud. (Sec. 1)
6. Requires insurers who issue a zero estimated exposure policy to include a specified statement signed by the applicant that attests to the accuracy of the information provided in the application and that the applicant has no employees and an estimated exposure of zero. (Sec. 1)
7. Stipulates an employer that provides business construction and improvement services obtains a zero estimated exposure policy must provide to each entity that the employer directly contracts with a copy of the policy and written notification that states that the employer has a total estimated exposure of zero. (Sec. 1)
8. Instructs an entity to retain the written notice and the policy for at least three years after the date it was received. (Sec. 1)
9. Defines zero estimated exposure policy as an insurance policy that is obtained by an employer to cover the employer's liability to pay compensation after the employer reports a total estimated exposure of zero. (Sec. 1)
10. Applies the zero estimated exposure policy requirements to contracts that are entered into after the effective date of this act. (Sec. 2)
Amendments
Committee on Commerce
1. Removes language directing the ICA to generate and maintain a publicly accessible database containing an employer's worker's compensation information, and the requirement that insurers must provide specified information to the ICA.
2. Revises the information that must be included in a certificate of insurance, instead of a declaration page.
3. Removes language requiring the ICA to investigate allegations of workers' compensation fraud.
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Initials PB HB 2680
2/14/2026 Page 0 Caucus & COW
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