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Arizona Administrative Code (Last Updated: November 17, 2016) |
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Title 20. COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE |
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Chapter 5. INDUSTRIAL COMMISSION OF ARIZONA |
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Article 7. SELF-INSURANCE REQUIREMENTS FOR WORKERS’ COMPENSATION POOLS ORGANIZED UNDER A.R.S. § 23-961.01 |
Section R20-5-739. Revocation of Authority to Self-insure
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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).