Ariz. Admin. Code § R20-5-1531 - Gross Annual Premium of a Self-Insurance Pool; Calculation of Member Premiums; Discounts; Penalties; Refunds
A. The gross annual workers' compensation
premium for a Self-Insurance Pool shall be sufficient to fund the workers'
compensation administrative expenses and total incurred workers' compensation
losses of the pool.
B. A
Self-Insurance Pool shall calculate and collect member premiums using industry
best practices and formulas generally accepted in the industry.
C. A Self-Insurance Pool shall not discount
established Payroll Classification Rates unless the discount is based upon the
expense and loss experience of the Self-Insurance Pool and is supported and
justified by an actuarial feasibility study.
D. A Self-Insurance Pool may apply a penalty
rate in excess of an annual premium to any member, provided the Self-Insurance
Pool serves written justification and notice on the member 30 days before the
effective date of the penalty rate.
E. A Self-Insurance Pool may declare a refund
of surplus funds, including excess investment income, to its members if the
amount of the refund is supported by an actuarial report.
F. A Self-Insurance Pool discounting
established Payroll Classification Rates under subsection (C) or declaring a
refund of surplus funds under subsection (E) shall notify the Division at least
60 days before the Self-Insurance Pool discounts the Payroll Classification
Rates or refunds surplus funds.
Notes
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