Section R20-5-733. Review of Initial and Renewal Applications for Authority to Self-insure by the Division

A.      Upon the filing of a completed initial or renewal application for authority to self-insure, the Division shall review the initial or renewal application to determine and verify whether the information contained in and submitted with the initial or renewal application for authorization to self-insure is complete and accurate. The Division shall also review the information provided to determine the following:

1.        Whether the pool has met the requirements of A.R.S. § 23-961.01;

2.        Whether the pool has met the requirements of this Arti- cle; and

3.        Whether the pool has the ability to process and pay bene- fits required under the Arizona Workers’ Compensation Act. A determination of a pool’s financial ability to pay shall include a review of the ratios provided by each member at the time of an initial application and review of the following ratios for a pool at the time of renewal:

a.        Total  cash,  receivables,  and  investments   to  total assets; and

b.        Total revenue to total expenditures for loss fund and trustee fund.

B.       The Division shall present the findings of its review described in subsection (A) to the Commission. The Division shall also present its recommendations to the Commission regarding an initial or renewal application.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).