Ariz. Admin. Code § 20-5-1517

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

Section R20-5-1517 - Retaining Authorization to Self-Insure Through Insolvency or Bankruptcy

A. If a Self-Insurer becomes insolvent or files for protection under the United States Bankruptcy Code seeking to reorganize, and desires to remain self-insured, it shall file with the Division a written statement regarding its intent to reorganize under the applicable provisions of the United States Bankruptcy Code. The statement shall discuss in detail the Self-Insurer's financial ability to continue selfinsurance.

B. A Self-Insurer shall file the statement described in subsection (A) with the Division within 10 days of the insolvency or bankruptcy filing. The letter shall be signed by an authorized representative of the Self-Insurer.

C. A Self-Insurer seeking to retain authorization to self-insure through bankruptcy shall ensure that a provision addressing the SelfInsurer's obligations to workers' compensation claimants and the Commission is included in the plan of reorganization filed with the United States Bankruptcy Court.

D. During the period between the initial bankruptcy filing and a final bankruptcy court determination, the Self-Insurer may continue its self-insurance status only after demonstrating to the Commission ongoing ability to process and pay benefits required under the Act. The Commission may require the Self-Insurer to post additional security in an amount the Commission deems appropriate to fully protect the Special Fund in the event of an assignment under A.R.S. § 23-966, which amount may exceed the amount specified in R20-5-1520(A).

E. A Self-Insurer shall file with the Division a copy of any proposed plan of reorganization or liquidation, including amendments, within 10 days of filing.

Ariz. Admin. Code § R20-5-1517

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