Rural fire departments in Arizona that rely predominantly on volunteers are reporting massive increases in workers' compensation premiums, according to a report by the NBC affiliate in Tucson.

John Novak, chief of the San Simon Fire Department, told the television station that he was quoted $37,000 per person for a new workers' compensation policy. The quote would be a substantial increase from the $4,800 per person the department paid last year for its 24 volunteers.

Ed Nied, chief of the Mescal-J6 Fire Department, told KVOA that he reduced his premiums by reclassifying volunteers as part-time staff.

One insurance agent told the television station that premiums are increasing because of a law that assumes volunteers earn a salary equal to what is paid to similarly ranked firefighters so that there is a basis for calculating indemnity benefits. 

Rep. Lupe Diaz, R-Benson, told KVOA that the rising premiums are the result of a 2017 law that expanded the list of cancers presumed compensable for firefighters.

"The way insurance companies are handling things is not right," Diaz reportedly said.

He did not appear to elaborate on what insurance companies are doing that isn't right.

Diaz said he plans to adjust the law to protect fire departments, but again, didn't appear to elaborate.