The Arizona House Commerce Committee has unanimously endorsed newly proposed legislation to require State Compensation Fund of Arizona (SCF Arizona) to become a private mutual insurance company owned by its policyholders.
The bill states that the successor mutual insurer corporation would not be an agency of the state or a public entity of the state, and would not be able to use the name “state compensation fund” or “SCF” in its new name or logo from and after June 30, 2012.
Senate President Bob Burns proposed the legislation to separate the organization from state government on Jan. 1.
This is not the only state to consider privatizing its workers’ comp insurer. Colorado’s Pinnacol Assurance had proposed paying the state in exchange for its autonomy, but the state legislature decided not to consider the plan.
Arizona’s bill now moves to the floor of the House. SCF said it supports the proposed legislation and believes it would be a positive step for SCF and its customers. However, the workers’ comp insurer noted nothing is final and this remains an ongoing process.
Source: Arizona House of Representatives, SCF Arizona
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