Ariz. Admin. Code § 20-5-1516

Current through Register Vol. 30, No. 49, December 6, 2024

Section R20-5-1516 - Revocation of Self-Insurance Authorization

A. The Commission may revoke authorization to self-insure for good cause. Good cause for revocation includes, but is not limited to, any of the following:

1. Impairment of the solvency of the Self-Insurer;

2. An inability or failure to process and pay benefits required under the Act, including the failure to pay or comply with any award of the Commission;

3. The failure of the Self-Insurer to respond within 10 days to a demand by the Commission to substitute security when the posted security is unsatisfactory or insufficient in amount or character;

4. The failure of the Self-Insurer to pay tax assessments levied by the Commission within 30 days of the due dates prescribed by A.R.S. §§ 23-961 and 23-1065;

5. The failure of the Self-Insurer to promptly provide the Commission with notices or information required under this Article;

6. The failure of the Self-Insurer to comply with the Act or administrative rules contained in Title 20, Chapter 5, Articles 1, 13, 14 and this Article;

7. The willful misstating of material fact in any documentation or information provided to the Commission;

8. The failure of a Public Entity Pool to comply with the recommendations of the Director of the Department of Insurance and Financial Institutions within 60 days of the date of notice issued under A.R.S. §§ 11-952.01(N) and 41-621.01(L); or

9. Except for a Self-Insurer approved to Self-Administer, the failure to contract with or adequately fund a Third-Party Administrator for claim processing and payment.

B. Upon receiving information indicating that any of the grounds for revocation described in subsection (A) may apply, the Division shall conduct an investigation. If, upon completion of the investigation, the Division determines that sufficient evidence exists to warrant revocation of authorization to self-insure, the Division shall promptly present its findings and recommendations to the Commission.

C. The decision of the Commission to revoke authorization to self-insure shall be made by a majority vote of a quorum of Commissioners present at a public meeting. The Commission shall issue and serve written findings and an order revoking self-insurance authority no later than 10 days after the Commission vote. The findings and order may be electronically signed by the Commission.

Ariz. Admin. Code § R20-5-1516

New section made by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.