Arizona House Passes PEO Law Granting More Insurance Choices

Arizona has passed a bill granting professional employment organizations more leeway in making insurance offerings to its employees.

Already passed by the Arizona house, HB 2087 allows PEOs to offer either master policy coverage or individual policies to PEO clients. Insurers will be required to report loss experience at the client level.

If a professional employer agreement does not provide for the professional employer organization to purchase workers' compensation for covered employees, the client is responsible to purchase a client based policy for all employees, including the covered employees.If the professional employer agreement provides for the professional employer organization to purchase the workers’ compensation for covered employees pursuant to section 23-562, the professional employer organization shall fulfill the responsibility through an individual policy, a master policy or multiple coordinated policies obtained from a carrier or carriers licensed to do business in this state.