Section R20-5-734. Decision by the Commission on Initial or Renewal Applications for Authority to Self-insure

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

1.        The information submitted by an applicant or pool,

2.        The information and recommendations of the Division, and

3.        The requirements of A.R.S. § 23-961.01 and this Article.

B.       The Commission shall deny an application for authority to self-insure if the Commission finds one or more of the follow- ing conditions:

1.        An applicant or pool does not meet the requirements of A.R.S. § 23-961.01,

2.        An applicant or pool does not meet the requirements of this Article, or

3.        An applicant or pool is unable to process and pay benefits required under the Arizona Workers’ Compensation Act.

C.      A decision of the Commission shall be made by a majority vote of the quorum of Commission members present when the decision is rendered at a public meeting. The Commission shall issue written findings and an order granting or denying authorization to self-insure.

D.      The Division shall mail a copy of the Commission’s written findings and order upon the applicant or pool within 10 days of the date the Commission issues its findings and order.

E.       In the case of an initial application, an applicant shall substi- tute written confirmation from an authorized insurance carrier to provide fidelity coverage with evidence of fidelity insurance coverage as required under R20-5-712 no later than 10 days after the Commission grants authority to self-insure under this

Section. The grant of authority to self-insure under this Sec- tion shall not become effective until the applicant provides evidence of actual fidelity coverage. The Commission shall deem an initial application withdrawn and the grant of author- ity to self-insure rescinded if an applicant fails to substitute written confirmation of fidelity coverage with evidence of fidelity coverage as required under this subsection.

F.       In the case of an initial application, an applicant shall substi- tute written confirmation from an authorized insurance carrier to provide excess insurance coverage with evidence of excess insurance coverage as required under R20-5-715 no later than 10 days after the Commission grants authority to self-insure under this Section. The grant of authority to self-insure under this Section shall not become effective until the applicant pro- vides evidence of actual excess insurance coverage. The Com- mission shall deem an initial application withdrawn and the grant of authority to self-insure rescinded if an applicant fails to substitute written confirmation of excess insurance cover- age with evidence of excess insurance coverage as required under this subsection.

G.      In the case of an initial application, an applicant shall deposit the guaranty bond, letter of credit, or other securities as required under R20-5-713 no later than 10 days after the Com- mission grants authority to self-insure under this Section. The grant of authority to self-insure under this Section shall not become effective until the applicant deposits the guaranty bond, letter of credit, or other security. The Commission shall deem an initial application withdrawn and the grant of author- ity to self-insure rescinded if an applicant fails to deposit the guaranty bond, letter or credit, or other securities as required under this subsection.

H.      Subject to subsections (E), (F), and (G), no later than 10 days after the Commission grants authorization to self-insure, the Division shall prepare a certificate of authority to self-insure and shall mail the certificate to the self-insured at the business address of the pool listed on the initial or renewal application.

Historical Note

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