AZ SB1477

Allows qualified insurers to offer loss sensitive reinsurance programs with workers' compensation policies without director approval, requiring only informational filing with the director.

Defines "qualified insured" as an Arizona business with principal place of business in the state and annual workers' compensation premium of at least $500,000.

Establishes "qualified insurer" requirements: admitted in Arizona, combined loss ratio under 100% for two preceding years, assets exceeding $500 million, and A+ rating from a nationally recognized statistical rating organization.

Requires qualified loss sensitive reinsurance programs to include segregated cell accounts for the insured's participation in underwriting profit or risk, minimum/maximum loss participation limits, program duration disclosure, early termination penalties, payment schedules, calculation methodology, and arbitration provisions.