Ariz. Legislature Approves AIA-Sponsored Measure to Streamline Insurers’ National Operations

April 17, 2002

The Arizona Legislature has unanimously approved an American Insurance Association (AIA)-sponsored bill that streamlines how Arizona insurers manage deductible workers’ compensation policies.

HB 2276, authored by House Member Barbara Leff (R-Paradise Valley), allows loss adjustment expenses to be included within the deductible amount in workers’ comp insurance deductible policies.

“The passage of HB 2276 is a win for both insurers and Arizona’s business community,” Mark Webb, AIA vice president, western region, commented. “This bill will allow insurers to more efficiently manage deductible policies offered in multiple states. We sponsored this bill to make workers’ compensation policies written in Arizona competitive with those written in other states.”

Arizona’s current law does not specifically authorize payment for loss adjustment expenses, which is the processing of expenses incurred while administering a claim file. Examples of adjustment expenses include independent medical exams, payments for outside attorney fees, and fees for police and medical reports. Currently, 44 other states offer their policyholders and insurance carriers the option to include loss adjustment expenses within the limits of the deductible.

“Bringing Arizona in line with the vast majority of other states was a high priority for AIA in Arizona this session,” Webb concluded.

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