Section R20-5-1110. Posting of Guaranty Bond; Bond Amount; Effec- tive Date

A.      A self-insurer shall ensure that a guaranty bond or rider for the guaranty bond filed with the Division bears the same effective date as the effective date of the Resolution of Authorization to self-insure.

B.       The Commission shall permit the self-insurer to post a guar- anty bond or rider of the guaranty bond instead of other secu- rity if:

1.        The insurance carrier providing the guaranty bond or rider submits the bond or rider to the Division on a form approved for use by the Division;

2.        The guaranty bond is continuous in form;

3.        The penal sum of the guaranty bond or rider equals the amount the self-insured must post as security under this Article;

4.        The company issuing the guaranty bond or rider is autho- rized and licensed to transact the business of surety insur- ance in Arizona;

5.        An authorized agent of the surety executes the guaranty bond or rider;

6.        The bond is signed and dated by an authorized represen- tative of the self-insurer;

7.        The surety issuing the bond or rider does not have an affiliate relationship with the applicant or self-insurer; and

8.        The surety issuing the guaranty bond or rider has a rating with A.M. Best of at least A-.

C.      A guaranty bond or rider is subject to annual change based on unpaid liabilities as reported by the self-insurer on the Work- ers’ Compensation Liability form.

Historical Note

New Section made by final rulemaking at 11 A.A.R.

1008, effective April 4, 2005 (Supp. 05-1).