Section R20-5-211. Revocation of Authorization; Notice of Insol- vency; Notice of Change of Ownership

A.      The Commission may revoke a resolution of authorization to self-insure for good cause. Good cause includes:

1.        The impairment of the solvency of the self-insurer.

2.        The failure of the self-insurer to respond within 10 days of a demand by the Commission to substitute a satisfac- tory guaranty bond or securities when in the Commis- sion’s judgment the bond or securities on deposit are unsatisfactory or insufficient in amount or character.

3.        The failure of the self-insurer to pay tax assessments lev- ied by the Commission within 30 days of the due dates prescribed by A.R.S. §§ 23-961 and 23-1065.

4.        The failure of the self-insurer to promptly provide the Commission within 60 days the reports required by the Commission under this Article concerning the business, operations, employees, wages, injuries, and other subjects under Commission jurisdiction.

5.        The failure to comply with state workers’ compensation laws.

6.        The failure of the self-insurer to pay or comply with any award of the Commission within 30 days after the award becomes final.

7.        The willful misstating of any material fact in a payroll report, injury report, or other report or statement made to the Commission.

8.        The deliberate refusal of the self-insurer to comply with Commission rules.

9.        The failure of the workers’ compensation pool to notify the Commission within 30 days before termination or cancellation that a member has been terminated or can- celled.

10.     The failure of the workers’ compensation pool to notify the Commission within 30 days of receipt of notification that, as a result of the annual audit or examination by the Director of the Department of Insurance, it appears that the assets of the pool are insufficient to enable the pool to discharge its legal liabilities and other obligations and the resulting notification by the Director of the Department of Insurance to the administrator and board of trustees of the workers’ compensation pool of the insufficiency and the Director’s list of recommendations to abate the defi- ciency.

11.     The failure of the pool to comply with the recommenda- tion of the Director of the Department of Insurance within 60 days of the date of notice as prescribed in A.R.S. §§ 11-952.01(L) and 41-621.01(J).

B.       The self-insurer shall notify the Commission within 24 hours of any bankruptcy filing under federal law or insolvency pro- ceeding under any state’s laws.

C.      The self-insurer shall notify the Commission within 24 hours of any change in the ownership status of the employer.

Historical Note

Former Rule XI. Section repealed, new Section adopted

effective July 6, 1993 (Supp. 93-3). R20-5-211 recodified from R4-13-211 (Supp. 95-1).