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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
House Engrossed
Overview
Includes requirements for insurers relating to a zero estimated exposure policy.
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. Workers' 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 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)
2. 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)
3. Instructs an entity to retain the written notice and the policy for at least three years after the date it was received. (Sec. 1)
4. Requires, for any construction related workers' compensation policy with zero estimated exposure, any certificate of insurance requested must contain the statement "to confirm the status of the workers' compensation policy, go to EWCCV.COM/CVS/". (Sec. 1)
5. 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)
6. Applies the zero estimated exposure policy requirements to zero estimated exposure policies and any related certificates of insurance that are entered into or prepared on or after July 1, 2027. (Sec. 2)
7. Contains a conditional enactment clause. (Sec. 3)
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Initials PB HB 2680
2/14/2026 Page 0 House Engrossed
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