Arizona Regulations R20-5-739

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§ 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 application, 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 misconduct. If, upon completion of the investigation, the Division determines that sufficient evidence exists to warrant revocation 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 recommendation 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 1 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, R 20-5-737, and R20-5-738 govern hearing rights and procedures for revocation hearings.


G. A pool shall immediately inform each of its members, in writing, of the Commission's order of revocation.

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