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HB2271 - 572R - H Ver
House Engrossed
insurers covering
firefighters; rate deviation
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2271
AN
ACT
amending section 20-359, arizona
revised statutes; relating to insurance rates.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 20-359, Arizona Revised
Statutes, is amended to read:
START_STATUTE
20-359.
Deviations from filed workers' compensation rates
A. Every insurer shall 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:
1. Up to six uniform percentage deviations that
decrease or increase the statewide rate portion of the rating organization's
rate filing. If more than one deviation is filed by an insurer, each
deviation must be established consistent with the underwriting rules that are
based on criteria that would lead to a logical distinction of potential risk.
2. A subclassification rate related rule that
deviates from the rules or schedule rating plan filed by the insurer's rating
organization.� An insurer shall not simultaneously apply a deviation and a
schedule rating to the same insured risk.
B. In addition to the six uniform percentage
deviations authorized under subsection A, paragraph 1 of this section,
insurers
an insurer
covering firefighters
and fire investigators may 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 pursuant to
section 23-901.09
only if the insurer is not reimbursed
for claims from the municipal firefighter cancer reimbursement fund established
by section 23-1702
.� The deviation filing shall be accompanied by
an
analysis from an actuary that substantively illustrates the
basis for the rate increase, including information made available by the
industrial commission of Arizona pursuant to section 23-971 and the
anticipated and, when available, actual combined loss ratio, claim frequency
and claim severity associated with these claims.� The supporting documentation
submitted with the filing must be sufficient to allow the department to assess
the reasonableness of the insurer's assumptions and justification for the
deviation and shall include data related to workers' compensation indemnity and
medical claims and administrative expenses associated specifically with
presumptive coverage related to workers' compensation claims. The
insurer may use data or
analysis
analyses
from
any of the following sources:
1. The insured or insurer.
2. Self-funded employers providing workers'
compensation.
3. The industrial commission of Arizona.
4. A risk retention pool.
5. Studies and information illustrating the state
and national frequency of cancer among firefighters and fire investigators.
6. The assigned risk pool or assigned risk.
7. Claims and expense data from other relevant lines
of insurance such as long-term disability insurance, group or individual major
medical insurance or long-term care insurance.
8. Other available cancer-related statistics.
9. Relevant incurred but not reported workers'
compensation claims
data
.
C. The director may use independent contractor
examiners to analyze the supporting justification of a requested deviation
under subsection B of this section pursuant to section 20-358, subsection
D.
D. Notwithstanding subsection A, paragraph 2 of this
section, in addition to the deviation filing authorized under subsection B of
this section, insurers may 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 section 23-901.09.� The schedule rating plan must
be filed with and approved by the director and shall be in addition to and separate
from any other schedule rating plan available to the insurer.
E. Each deviation filed shall be on file with the
director for a waiting period of at least thirty days before it becomes
effective, except that a deviation filed pursuant to subsection B of this
section shall be on file with the director for at least sixty days before it
becomes effective. On written application by the insurer making the
filing, the director may authorize a filing to become effective before the
waiting period expires. A deviation that is filed pursuant to
subsection A, paragraph 1 of this section and that is not disapproved by the
director expires the following December 31 at midnight in this state unless the
director terminates the deviation sooner. A deviation that is filed
pursuant to subsection A, paragraph 2 of this section continues until the
insurer withdraws the deviation or the director determines that the deviation
no longer meets the standards prescribed in section 20-356, paragraph
1. At any time the director may require an insurer to actuarially
support a deviation. The insurer that files the deviation shall
simultaneously send a copy of the filing to the rating organization of which it
is a member and to any designated rating organization.
F. A rating organization shall notify the director
if the organization disapproves any deviation relating to workers' compensation
insurance. The director shall notify the industrial commission of
Arizona of the disapproval within ten days after receipt of the disapproval
from the rating organization.
END_STATUTE