Ariz. Admin. Code § 2-10-301

Current through Register Vol. 30, No. 25, June 21, 2024

Section R2-10-301 - [Effective until 7/6/2024] Insurance: Purchase and Contracts

A. An agency seeking to purchase property, liability, or workers' compensation insurance shall request RM's approval in writing at least 90 days before the desired effective date of coverage. RM shall not reimburse an agency for the purchase of property, liability, or workers' compensation insurance that has not been approved by RM.

B. An agency shall submit a written request for approval to RM before the agency does one or more of the following:

1. Names a non-state entity as an additional insured in a contract;

2. Provides a Certificate of Insurance;

3. Indemnifies, holds harmless, or limits the liability of any party to a contract, lease, or other written agreement; or

4. Waives the state's right to subrogate with regard to any party to a contract, lease, or other written agreement.

C. The written request prescribed in subsection (B) shall be signed by the agency director and include all of the following:

1. The circumstances of the request;

2. Whether the party to the contract, lease, or written agreement is a sole source for the state;

3. The level or additional risk of loss to the state resulting from the requested action;

4. Whether the requested action helps the agency accomplish the agency's mission; and

5. An explanation of why the action to be approved is in the best interest of the state.

D. If a contract requires the state to be named as an additional insured, the contracting agency shall place the name of the contracting agency and the state on the additional insured endorsement.

Ariz. Admin. Code § R2-10-301

Adopted effective July 27, 1983 (Supp. 83-4). Amended effective June 12, 1989 (Supp. 89-2). Amended effective December 18, 1992 (Supp. 92-4). Amended effective January 12, 1995 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 5453, effective February 4, 2006 (Supp. 05-4).