Ariz. Admin. Code § 20-5-1532

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

Section R20-5-1532 - Similar Industry Pool; Joint and Several Liability of Members

A. The joint and several liability clause required by A.R.S. § 23-961.01(E) applies to any agreements used to form a Similar Industry Pool on a cooperative or contract basis, through a joint formation of a nonprofit corporation, or by the execution of a trust agreement.

B. A Similar Industry Pool shall ensure that the pool and all members read and agree, in writing, to the following terms:

1. The members of the pool are jointly and severally liable for the liabilities of the pool to the extent the pool is unable to, or does not, satisfy the liabilities;

2. Member liability under subsection (B)(1) extends to all liabilities incurred by the pool during the member's period of membership in the pool, including all future liabilities that accrued during the member's period of membership in the pool; and

3. In the event that claims are assigned to the Special Fund under A.R.S. § 23-966, the Commission shall have a right of reimbursement against the members jointly and severally for any and all amounts paid by the Special Fund, including costs, necessary expenses, and reasonable attorney's fees, to the extent that such liabilities are not covered by the pool's security or other assets.

Ariz. Admin. Code § R20-5-1532

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