Section R20-5-1128. Decision by the Commission on Initial Applica- tion or Request for Renewal of Authorization to Self-insure

A.      The Commission shall consider the following before granting or denying an initial application or request for renewal to self- insure:

1.        The   information  submitted  by  an  applicant   or  self- insurer;

2.        The information and recommendations of the Division; and

3.        The requirements of A.R.S. § 23-961 and this Article, including compliance with the requirement for posting additional security as recommended by the Division under R20-5-1127.

B.       The Commission shall deny authority to self-insure if the Commission finds one or more of the following conditions:

1.        The applicant or self-insurer does not meet the require- ments of A.R.S. § 23-961,

2.        The applicant or self-insurer does not meet the require- ments of this Article, or

3.        The applicant or self-insurer is unable to process and pay benefits under the Arizona Workers’ Compensation Act.

C.      The Commission may table consideration of, or action on, a request for renewal pending the self-insurer posting additional security based on a Division decision under R20-5-1127 that the posted security is insufficient.

D.      Whether to grant, deny, or table an application for self-insur- ance authority shall be made by a majority vote of a quorum of Commission members present when the application for initial authority or renewal is presented at a public meeting.

E.       If the Commission approves an initial application of an appli- cant that is not exempt under R20-5-1114:

1.        The approval is contingent upon the self-insurer posting the required security;

2.        After the Commission takes action under subsection (D), the Division shall provide written notice to the applicant that the Commission approves the application for self- insurance authority effective on a date certain;

3.        The applicant shall provide to the Commission the required security before the effective date of the authority to self-insure; and

4.        After the applicant complies with the requirements of subsection (E)(3), the Division shall mail a Resolution of Authorization to Self-insure to the last known business address of the applicant.

F.       If an applicant fails to comply with the requirements of sub- section (E)(3), the Commission shall not grant authority to self-insure and the Commission shall deem the initial applica- tion withdrawn.

G.      If the Commission approves an initial application of an appli- cant exempt under R20-5-1114, the Division shall mail a Reso- lution of Authorization to Self-insure, to the last known business address of the applicant.

H.      If the Commission approves a request for renewal of authority to self-insure, or tables consideration of the request for renewal, the Division shall mail written notice of the Commis- sion’s action on the request for renewal to the last known busi- ness address of the self-insurer.

I.        If the Commission denies authority to self-insure, the Com- mission shall issue and mail written findings and an order to the last known business address of the applicant or self-insurer no later than 10 days after the Commission denies authority to self-insure.

Historical Note

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

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