Ariz. Admin. Code § R20-5-1508 - Processing of Initial, Renewal, and New Member Applications

A. The Division shall administratively review an initial, renewal, or new member application within 20 days of receipt of the application to determine if the application is complete. If the application is incomplete, the Division shall notify the Applicant in writing of the missing documentation or information necessary to comply with this Article.

B. The Division shall deem an initial, renewal, or new member application withdrawn if the Applicant fails to file a complete application within 30 days of being notified by the Division that the application is incomplete according to subsection (A) or fails to submit requested information or documentation within 30 days of receiving a request under subsection (F).

C. Unless the substantive review time frame is extended under A.R.S. § 41-1075, the Commission shall determine whether an initial, renewal, or new member application meets the substantive criteria of A.R.S. §§ 11-952.01, 15-382, 23-961, 23-961.01, and 41621.01, and this Article, as applicable, within 60 days after the initial, renewal, or new member application is deemed complete.

D. The overall timeframe for processing initial, renewal, and new member applications is 80 days, unless extended under A.R.S. § 411072 et seq.

E. Upon the filing of a complete initial, renewal, or new member application, the Division shall review the submitted documentation and information and:

1. Evaluate and determine whether the Applicant meets the requirements of A.R.S. §§ 11-952.01, 15-382, 23-961, 23-961.01, and 41-621.01 and this Article, as applicable;

2. Evaluate and determine whether the Applicant has the financial ability to process and pay benefits required under the Act;

3. Evaluate and determine whether a waiver of security is appropriate under R20-5-1525 or, if security is required, the appropriate amount of security; and

4. If the Division recommends approval of an initial or renewal application, evaluate and determine a recommended term of selfinsurance, which may not be less than one year or more than two years from the date of Commission approval under R20-5-1509.

F. The Division may request an Applicant to provide additional information and documentation reasonably related to the Division's review and evaluation under subsection (E).

G. The Division shall consider the following information in determining whether two or more employers meet the "similar industry" requirement in A.R.S. § 23-961.01(A):

1. The two-digit sector designation of the most recent edition of the North American Industry Classification System assigned to the employers;

2. The extent to which the employers are engaged in business involving similar products, services, activities, and processes; and

3. Other relevant information describing or concerning the business of the employers.

H. The Division shall present its evaluation, findings, and recommendations according to subsection (E) to the Commission.

Notes

Ariz. Admin. Code § R20-5-1508

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