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AZ HB2455
Bill
Status
1/28/2014
Primary Sponsor
Eddie Farnsworth
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AI Summary
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Amends Arizona Revised Statutes Section 23-930 to establish that the Industrial Commission has exclusive jurisdiction over all complaints and causes of action arising out of workers' compensation claim processing.
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Requires the Commission to find economic damage, permanent aggravation of injury, or greater permanent disability resulting from claim processing before awarding a claimant penalty of up to $5,000 for each finding of wrongful, unfair, or bad faith claim processing.
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Imposes civil penalties of up to $1,000 for violations where no evidence supports intentional denial or delay of benefits and no claimant injury is sustained; allows up to $10,000 per violation for patterns of repeated unfair claim processing or bad faith.
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Establishes a civil penalty of up to $1,000 against claimants or their representatives who file complaints found to have no evidence or legal basis supporting claims of wrongful claim processing or bad faith.
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Requires the Commission to consider violation seriousness, history of previous violations, rectification efforts, and deterrence when assessing penalties, and directs the Commission to adopt rules defining unfair claim processing practices and bad faith.
Legislative Description
Workers' compensation insurance; claim processing
Last Action
Referred to House RULES Committee
2/18/2014