Ariz. Admin. Code § R20-5-1526 - Excess Insurance

A. A Self-Insurer may secure specific and aggregate excess insurance if all of the following are satisfied:

1. The insurance carrier issuing excess insurance is authorized to transact the business of excess insurance in Arizona by the Department of Insurance and Financial Institutions;

2. The retention for specific excess insurance is not less than $100,000 without advance written approval by the Commission;

3. Payments of workers' compensation benefits on a claim made by a Self-Insurer, member, or through security posted by a Self Insurer are applied toward reaching the retention level in the excess insurance policy;

4. The excess insurance carrier does not have an affiliate relationship with the Self-Insurer; and

5. The excess insurance policy provides that insolvency of the Self-Insurer does not relieve the excess insurance carrier of liability under the policy.

B. A Self-Insurer or insurance company seeking to cancel or refuse renewal of an excess insurance policy shall provide 60 days written notice of the proposed cancellation or non-renewal to the Commission. The written notice shall be sent by registered or certified mail. Failure to provide notice as required by this subsection shall preclude cancellation or non-renewal of the policy.

Notes

Ariz. Admin. Code § R20-5-1526

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