Ariz. Admin. Code § 2-10-107

Current through Register Vol. 30, No. 44, November 1, 2024

Section R2-10-107 - Liability Coverage and Limitations

A. The following coverage and limitations apply in this Chapter:

1. The Department provides liability coverage within the limitations of A.R.S. § 41-621 for a state officer or employee while driving a state-owned or other vehicle in the course and scope of employment.

a. Coverage shall be on a primary basis for a state-owned, leased, or rented vehicle and on an excess basis for any other vehicle.

b. The state shall not provide coverage for damage or loss of a personal vehicle.

2. a state officer or employee operates a state-owned vehicle within the course and scope of employment if driving:

a. On authorized state business,

b. To and from work,

c. To and from lunch on a working day,

d. To and from meals while on out-of-town travel.

3. a state officer or employee does not operate a personal vehicle within the course and scope of employment when driving:

a. To and from work,

b. To and from lunch in the area of employment and not on authorized state business,

c. On other than state-authorized business.

B. A volunteer acting at the direction of a state official, within the course and scope of state-authorized activities, is covered under A.R.S. § 41-621.

C. A claim alleging a civil rights violation is covered through RM, unless otherwise excluded, except there is no coverage for payment of that portion of a settlement or judgment for position status adjustments.

D. The state shall cover a state officer, employee, or other person self-insured pursuant to A.R.S. § 41-621, for liability on an excess basis while using such insured's personal aircraft within the course and scope of employment with the state subject to the following conditions:

1. a state officer, employee, or other person self-insured pursuant to A.R.S. § 41-621 shall carry a minimum of $1,000,000 in aircraft liability coverage.

2. Any state officer, employee pilot, or other pilot self-insured pursuant to A.R.S. § 41-621, must obtain approval prior to flying on state business. To obtain this approval, such insured pilot shall complete an RM pilot application form that requests the pilot's name, airman's certificate number, driver's license number, aircraft description, rating, and flying hours, and submit it to RM for review with a certificate of insurance evidencing the required limits of coverage on a personal aircraft. To maintain RM approval, such insured pilot shall submit an updated pilot application form and certificate of insurance annually.

3. RM shall send a letter to the pilot self-insured pursuant to A.R.S. § 41-621 approving or rejecting an application to fly a personal aircraft on state business. The approval letter shall be presented to the appropriate department head and a copy sent to the agency's loss prevention coordinator.

4. Every pilot self-insured pursuant to A.R.S. § 41-621 shall maintain a current FAA pilot certification.

5. Every pilot self-insured pursuant to A.R.S. § 41-621 shall meet the pilot warranties in the aircraft insurance policy owned by the state.

6. Every pilot self-insured pursuant to A.R.S. § 41-621 shall hold all licenses, certificates, endorsements, and other qualifications, including proficiency checks and recent experience, required by the FAA or other federal, state, or local statutes and rules to act as pilot-in-command or as a required crew member for the aircraft being flown. The pilot-incommand shall meet current requirements for carrying passengers.

7. Course and scope of employment with the state does not include:

a. Personal use of an aircraft;

b. An aircraft for hire, reward or commercial use;

c. Agricultural operations;

d. Carrying external loads;

e. Performing aerial acrobatics.

8. No pilot self-insured pursuant to A.R.S. § 41-621 shall carry more passengers on an aircraft than the number defined in the aircraft insurance policy purchased by RM.

9. The Department shall not cover damage or loss of the agent, officer, or employee-owned aircraft.

10. The requirements in this Section apply to a non-state employee pilot flying on behalf of an agent, officer, or employee on authorized state business.

11. All aircraft used for state business shall comply with all statutes and rules of the FAA and other federal, state, and local jurisdictions for flight.

Ariz. Admin. Code § R2-10-107

Renumbered from R2-10-105(C) through (J) and amended effective December 18, 1992 (Supp. 92-4). Amended effective January 12, 1995 (Supp. 95-1). Section corrected to reflect amendment on file with the Office of the Secretary of State effective January 12, 1995 (Supp. 97-1). Amended by final rulemaking at 6 A.A.R. 1717, effective April 20, 2000 (Supp. 00-2). Amended by final rulemaking at 23 A.A.R. 3239, effective 1/8/2018. Amended by final rulemaking at 30 A.A.R. 1941, effective 7/6/2024.