worker's compensation; notice; fraud; commission

Plain English Breakdown

The effective date for the certificate of insurance website link is uncertain because it depends on permission being granted by an external organization.

New Rules for Construction Workers' Compensation Policies with Zero Estimated Exposure

This law requires specific written statements, notices, and website links on workers' compensation policies issued to construction employers who report having no employees.

What This Bill Does

• Requires insurers to include a signed statement in zero estimated exposure policies where the applicant confirms they have no employees and accurate information.
• Mandates that employers providing business construction and improvement services with these policies give copies of their policy and written notice to every entity they directly contract with.
• Instructs entities receiving this notice to keep the documents for at least three years after receipt.
• Requires any certificate of insurance requested for construction-related zero estimated exposure policies to include a specific website link to confirm the policy status.
• Sets July 1, 2027 as the start date for applying these rules to new or prepared policies.

Who It Names or Affects

• Insurers who issue workers' compensation policies in Arizona
• Employers providing business construction and improvement services with zero estimated exposure
• Entities that directly contract with those construction employers

Terms To Know

Zero estimated exposure policy

An insurance policy obtained by an employer to cover liability after reporting a total estimated exposure of zero.

Certificate of Insurance

A document that proves the existence and details of an insurance policy, often requested by contractors or clients.

Limits and Unknowns

• The requirement to include a specific website link on certificates will not take effect unless permission is granted by the Association for Cooperative Research and Development.
• These rules only apply to policies entered into or prepared on or after July 1, 2027.

Official Summary Text

HB2680 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

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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Current Bill Text

HB2680 - 572R - H Ver

House Engrossed

worker's
compensation; notice; fraud; commission

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2680

AN
ACT

amending title 23, chapter 6, article 1,
arizona revised statutes, by adding section 23-911; relating to workers'
compensation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 6, article 1,
Arizona Revised Statutes, is amended by adding section 23-911, to read:

START_STATUTE
23-911.

Workers' compensation; proof of insurance; public database;
notice; definition

A. If an insurer issues a zero
estimated exposure policy, the zero estimated exposure policy shall include a
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, as follows:

I attest that the information provided on this
application is current, true, correct, accurate and complete to the best of my
knowledge and belief.� I further attest that I do not have any employees and an
estimated exposure of zero. If I employ an employee during the policy period, I
will provide written notification to my workers' compensation insurer of the
employment within sixty days and will include the estimated payroll and
classification codes of the new employee. I understand that an
intent to defraud or any omission or misrepresentation contained in this
application is unlawful.

B. If an employer that provides
business construction and improvement services obtains a zero estimated
exposure policy, the employer shall 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.� An entity
that receives written notice under this subsection shall retain the notice and
the policy for at least three years after the date of receipt.

C. FOR ANY CONSTRUCTION RELATED
WORKERS' COMPENSATION POLICY WITH ZERO ESTIMATED EXPOSURE, ANY CERTIFICATE OF
INSURANCE REQUESTED SHALL CONTAIN THE FOLLOWING STATEMENT "TO CONFIRM THE
STATUS OF THE WORKERS' COMPENSATION POLICY, GO TO EWCCV.COM/CVS/".

D. For the purposes of this section,
"Zero estimated exposure policy" means 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.
END_STATUTE

Sec. 2.
Applicability

Section 23-911, Arizona Revised
Statutes, as added by this act, applies to zero estimated exposure policies and
any related certificates of insurance that are entered into or prepared on or
after July 1, 2027.

Sec. 3.
Conditional enactment

Section 23-911, subsection C, Arizona
Revised Statutes, as added by this act, does not become effective unless
permission is granted by the Association for Cooperative Research and Development
allowing insurance producers to modify the standardized form used in this
state.