Ariz. Admin. Code § 20-5-1504

Current through Register Vol. 30, No. 50, December 13, 2024

Section R20-5-1504 - Self-Insurance Criteria

A. A Public Entity may file an application for authority to self-insure if:

1. The Public Entity's annual payroll is at least $2 million; and

2. The Public Entity's total assets are at least $25 million.

B. An individual employer that is not a Public Entity may file an application for authority to self-insure if:

1. The employer has been engaged in business in Arizona for at least five consecutive years immediately before the prospective Authorization Date;

2. The employer's annual Arizona payroll is at least $2 million, including the combined payrolls of any Subsidiaries that will be covered by the self-insurance program; and

3. The employer meets one of the following criteria:

a. The employer's total assets are at least $25 million; or

b. The employer's net worth is at least $5 million and Cash Flow Ratio is at least 0.25.

C. A Public Entity Pool may file an application for authority to self-insure if:

1. The requirements set forth in A.R.S. §§ 11-952.01, 15-382, or 41-621.01, as applicable, are satisfied;

2. The combined annual payroll of the members of the Public Entity Pool is at least $2 million; and

3. The combined net worth of the members of the Public Entity Pool is at least $1 million.

D. A Similar Industry Pool may file an application for authority to self-insure if:

1. The requirements set forth in A.R.S. § 23-961.01 are satisfied;

2. The members of the Similar Industry Pool have been engaged in business in Arizona for at least five consecutive years immediately before the prospective Authorization Date;

3. The combined annual Arizona payroll of the members of the Similar Industry Pool is at least $2 million; and

4. The combined net worth of the members of the Similar Industry Pool is at least $1 million.

Ariz. Admin. Code § R20-5-1504

New section made by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.