Ariz. Admin. Code § 20-5-1521

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

Section R20-5-1521 - Guaranty Bond; Effective Date

A Self-Insurer may post a guaranty bond or rider of a guaranty bond as security if:

1. The insurance carrier providing the guaranty bond submits the bond to the Commission on the Workers' Compensation Guaranty Bond Form, which is signed by an authorized representative of the Self-Insurer and the insurance carrier;

2. Any rider of a guaranty bond is signed and dated by an authorized representative of the insurance carrier and the Self-Insurer;

3. The penal sum of the guaranty bond or rider is no less than the amount the Self-Insurer is required to post as security under this Article;

4. The insurance carrier issuing the guaranty bond or rider is authorized to transact the business of surety insurance in Arizona by the Department of Insurance and Financial Institutions;

5. The insurance carrier issuing the guaranty bond or rider does not have an affiliate relationship with the Self-Insurer;

6. The insurance carrier issuing the guaranty bond or rider has a rating with A.M. Best of at least A-; and

7. The guaranty bond or rider bears the same effective date as the Authorization Date.

Ariz. Admin. Code § R20-5-1521

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