Ariz. Admin. Code § 2-10-401

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

Section R2-10-401 - [Effective 7/6/2024] Coverages and Limitations

A. The Department of Administration shall purchase insurance or self-insure the parties and programs as set forth in A.R.S. § 41-621(B) for losses caused by an occurrence or wrongful act which is the result of either the actions of a state client or an individual provider within the course and scope of activities as a state client or individual provider.

B. Coverages which shall apply under this program are as follows:

1. Liability coverage for providers and clients for damages resulting from acts and omissions within the course and scope of activities as a provider or client is provided pursuant to A.R.S. § 41-621(B). The amount that the Department will pay on behalf of an insured provider or client is limited as described in R2-10-401(C).

2. Coverage is provided on a replacement-cost-less-depreciation basis for the loss of or damage to real or personal property owned by a provider as a result of the actions of a client.

C. Limits of Liability Coverage:

1. The maximum amount of liability coverage that will be paid on behalf of an insured provider or client is $1,000,000 per claim, including related claims, and $2,000,000 in the aggregate for all claims first made against that provider or client during a single fiscal year of the State, July 1 through June 30, regardless of the number of:

a. Claims made; or

b. Persons making such claims or on whose behalf such claims are made; or

c. Causes of action asserted.

2. If more than one provider or client in a custodial-care facility or home is a PIP insured, the liability of all providers and clients combined in such home or facility shall be subject to a single per-claim limit.

3. For purposes of R2-10-401(C), a claim is "made" on the date that it was sent to the insured provider or client or, if a lawsuit, the date that the lawsuit was filed against the insured provider or client.

4. As used in R2-10-401(C), "related claims" means all claims based upon, arising from, or resulting from the same or related acts, omissions, facts, circumstances or events or the same or related series of acts, omissions, facts, circumstances or events, regardless of when such acts, omissions, facts, circumstances or events occur.

5. If two or more related claims are made against an insured provider or client in different state fiscal years, all such related claims shall be deemed to have been made when the first such related claim was made.

6. The payment of defense costs will not affect the per-claim or annual aggregate limit. However, once the annual aggregate limit has been paid, whether based upon settlement or a judgment, there will be no duty to defend that insured against any other claim to which that particular annual aggregate limit would apply.

D. The following are excluded from the Provider Indemnity Program coverage:

1. Mysterious disappearance of property;

2. Automobile physical damage resulting from permissive use by a client;

3. Benefits covered under any workers' compensation, unemployment compensation, or disability benefits law; and

4. All claims, injuries, and damages that A.R.S. § 41-621 excludes from coverage, including, without limitation, injury or damage that is expected or intended from the standpoint of the insured, including any such expected or intended injury or damage resulting from physical abuse, sexual abuse or sexual molestation.

Ariz. Admin. Code § R2-10-401

Adopted 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 30 A.A.R. 1941, effective 7/6/2024.