Section R20-5-739. Revocation of Authority to Self-insure

A.      In addition to those specific grounds set forth in this Article, the following constitute grounds for revocation of authority to self-insure for workers’ compensation:

1.        Failure to comply with requirements of this Article or applicable requirements of 20 A.A.C. 5, Article 1;

2.        Failure to comply with applicable requirements of A.R.S.

§ 23-901 et seq.;

3.        Unless otherwise provided, failure to comply with an order or award of the Commission within 30 days after the order or award becomes final;

4.        An inability to process and pay claims under the Arizona Workers’ Compensation Act;

5.        The failure of a pool to provide the Commission the reports and taxes required under this Article; and

6.        The willful misstatement of any material fact in an appli- cation, report, or statement made to the Commission.

B.       Upon receipt of information demonstrating that a pool has committed an act described in subsection (A), the Division shall conduct an investigation of the facts of the alleged mis- conduct. If, upon completion of the investigation, the Division determines that sufficient evidence exists to warrant revoca- tion of a pool’s authority to self-insure, then the Division shall present it findings to the Commission.

C.      The Commission shall consider the findings and recommenda- tion of the Division before revoking a pool’s authority to self- insure.

D.      The Commission shall revoke a pool’s authority to self-insure if the Commission finds one or more of the grounds set forth in subsection (A). The Commission shall issue written findings and an order revoking the authority to self-insure and shall serve a copy of the findings and order upon the pool.

E.       A pool shall have 10 days from the date the Commission serves the findings and order described in subsection (D) to request a hearing. The request for hearing shall comply with the requirements of A.R.S. § 23-945.

F.       R20-5-736, R20-5-737, and R20-5-738 govern hearing rights and procedures for revocation hearings.

G.      A pool shall immediately inform each of its members, in writ- ing, of the Commission’s order of revocation.

Historical Note

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