Ariz. Admin. Code § 17-5-810

Current through Register Vol. 30, No. 45, November 8, 2024

Section R17-5-810 - Self-insurance as Alternate Proof of Financial Responsibility; Provisions; Applicability

A. Self-insurance applicant qualification. A person or entity may apply for self-insurance under this Section if the applicant:

1. Owns the minimum number of vehicles prescribed under A.R.S. § 28-4007(A) with current Arizona registration;

2. Demonstrates minimum assets of $1 million on documentation required under subsections (C) and (D);

3. Meets any additional financial responsibility requirements under A.R.S. § 28-4033(A), according to the insured vehicle's weight and/or intended use; and

4. Provides a business office contact for the company with a current phone number and mailing information.

B. A self-insurance applicant shall provide, on a self-insurance application form provided by the Department, the following information:

1. Applicant's name;

2. Business name, if applicable;

3. Mailing address, city, state, and ZIP code;

4. A selection of coverage type:

a. Public liability only; or

b. Public liability and property damage;

5. Number of vehicles in the applicant's fleet;

6. A selection list that describes the nature of the applicant's business;

7. A description of any hazardous materials transported by type, class, and weight;

8. A report of all accidents in the prior 39-month period before the application date;

9. The applicant's signature and official business title to certify that all information is true and correct; and

10. Acknowledgment by a notary public or by the signature of an authorized Department agent.

C. Supplementary documentation. In addition to a completed self-insurance application form, the applicant shall submit a profit and loss statement certified by a Certified Public Accountant for the 12-month period before the application date. The profit and loss statement shall include one of the following:

1. A balance sheet; or

2. An annual financial report.

D. On approval of an application, the Department shall issue a certificate of self-insurance that is continuously valid, but shall require the self-insurer to submit a 12-month update of supplementary documentation prescribed under subsection (C) on or before July 1 of each successive year.

E. An initial self-insurance applicant or a self-insurer making an annual update shall submit documentation required under subsections (B) through (D) to the following address:

Motor Vehicle Division

Financial Responsibility Unit

P.O. Box 2100, Mail Drop 535M

Phoenix, AZ 85001-2100

F. A self-insurer shall keep a copy of the self-insurance certificate in each covered vehicle at all times.

G. A self-insurer shall submit periodic, written notification updates to the Department of vehicles added or removed from self-insurance coverage. The written notification shall include the vehicle identification number of each vehicle.

H. A self-insurer that terminates self-insurance shall provide new evidence of financial responsibility as required under A.R.S. § 28-4135 for each vehicle previously covered under a self-insurance certificate.

I. In addition to the reasonable grounds prescribed under A.R.S. § 28-4007(C), the Department may cancel a self-insurance certificate under the following circumstances:

1. A self-insurer fails to comply with provisions of the Department's annual update requirement under subsection (D), or

2. A self-insurer no longer owns the covered business or fleet.

J. For the purpose of A.R.S. § 28-4007(C) and this Section, the Department shall conduct a self-insurance cancellation hearing according to the provisions prescribed under 17 A.A.C. 1, Article 5.

Ariz. Admin. Code § R17-5-810

New Section made by final rulemaking at 13 A.A.R. 858, effective March 6, 2007 (Supp. 07-1). Amended by expedited rulemaking at 24 A.A.R. 279, effective 1/12/2018.