Chapter 5. INDUSTRIAL COMMISSION OF ARIZONA

Historical Note Former Rule 51. R20-5-151 recodified from R4-13-151 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-151 renumbered to R20-5-218 by final rulemaking at 31 A.A.R. 4199 (October 31, 2…

A. A Self-Insurer shall utilize a Third-Party Administrator to process workers’ compensation claims unless the Division authorizes the Self-Insurer to Self-Administer. B. A Self-Insurer seeking to Self-Administer shall file with the Division a completed Application to Self-Admini…

A Self-Insurer shall provide written notice to the Division regarding the location of the Self-Insurer’s open and closed claims files within 90 days of the Authorization Date. If a Self-Insurer or Third-Party Administrator intends to change the location of its claims files, the S…

A. All reports, books, records, minutes, and data of a Self-Insurer relating to matters governed by the Act and this Article are subject to review by the Commission or its authorized representative upon request. A Self-Insurer shall ensure that reports, books, records, minutes, a…

A. A Self-Insurer shall ensure that audited financial statements are prepared annually at the end of the Self-Insurer’s fiscal year by a certified public accountant experienced in auditing financial statements. B. Actuarial reports and studies required in this Article must be com…

A. Self-Insurers and Third-Party Administrators shall ensure that claims are processed and benefits are paid in compliance with the Act and applicable administrative rules. B. Self-Insurers and Third-Party Administrators shall adopt and adhere to industry-standard reserving pract…

A. A Self-Insurer shall notify the Division in writing within 10 days of any adverse condition or material change that impacts or could impact the Self-Insurer’s ability to process and pay benefits required under the Act. When a Self-Insurer provides notice to the Commission unde…

A. The Commission may revoke authorization to self-insure for good cause. Good cause for revocation includes, but is not limited to, any of the following: 1. Impairment of the solvency of the Self-Insurer; 2. An inability or failure to process and pay benefits required under the …

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…

A. A Self-Insurer voluntarily terminating self-insurance shall file a completed Notice of Termination of Self-Insurance Form at least 30 days before the effective date of the termination. B. If a Self-Insurer voluntarily terminates self-insurance, the individual employer or each …

A. A member of a Self-Insurance Pool may voluntarily withdraw from a Self-Insurance Pool or a Self-Insurance Pool may terminate an employer’s membership in a Self-Insurance Pool under the bylaws of the Self-Insurance Pool and applicable law. B. A Self-Insurance Pool shall provide…

Historical Note Former Rule 52. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-152 recodified from R4-13-152 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-152 renum…

A. Except as provided in R20-5-1525, and subject to the minimum requirements in A.R.S. § 23-961: 1. A newly approved Self-Insurer shall post security in an amount equal to the prior three-year average of annual total paid medical and indemnity benefits, unless the Commission requ…

A Self-Insurer may post a guaranty bond or rider of a guaranty bond as security if: 1. The insurance carrier providing the guaranty bond submits the bond to the Commission on the Workers’ Compensation Guaranty Bond Form, which is signed by an authorized representative of the Self…

A. A Self-Insurer may post a letter of credit as security if: 1. The letter of credit is registered to: “The Industrial Commission of Arizona, in trust for the fulfillment by [INSERT SELF-INSURER’S NAME] of its obligations under the Arizona Workers’ Compensation laws”; 2. The ban…

A Public Entity or Public Entity Pool may post Local Government Investment Pool funds as security if: 1. The Public Entity or Public Entity Pool completes a Statutory Deposit Agreement Form, which is signed by an authorized representative of the Self-Insurer, the Arizona State Tr…

A Self-Insurer may post a federal money market fund or a treasury note as security if: 1. The Self-Insurer completes a Custody Agreement Form, which is signed by an authorized representative of the Self-Insurer, the custodial bank, the Arizona State Treasurer, and the Commission;…

A. Only a Public Entity or Public Entity Pool is eligible for a waiver from posting security. B. A Public Entity or Public Entity Pool may receive a waiver from posting security if: 1. The Public Entity has conducted business or the Public Entity Pool has operated in Arizona for …

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 Institu…

A. A Self-Insurance Pool shall be directed by a Self-Insurance Pool Board consistent with A.R.S. §§ 11-952.01, 15-382, 23-961.01, 41-621.01, and this Article, as applicable. B. The Self-Insurance Pool Board of a Similar Industry Pool shall consist of five or more individuals elec…

A. Except as stated in subsection (C), a Self-Insurance Pool shall maintain during all periods of self-insurance a fidelity or crime insurance policy that protects the pool from unlawful actions of the following: 1. Individuals appointed to the Self-Insurance Pool Board (individu…

A. A Self-Insurance Pool shall maintain during all periods of self-insurance a loss control program that includes, at a minimum, written safety requirements and training programs for all employees of the members. A Self-Insurance Pool shall ensure that the loss control program is…

Historical Note Former Rule 53. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-153 recodified from R4-13-153 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-153 renum…

A. A Self-Insurance Pool shall maintain a Workers’ Compensation Pool Operations Account, which is subject to all of the following: 1. All workers’ compensation premiums charged to members of the Self-Insurance Pool shall be deposited into the Workers’ Compensation Pool Operations…

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 premi…

A. The joint and several liability clause required by A.R.S. § 23-961.01(E) applies to any agreements used to form a Similar Industry Pool on a cooperative or contract basis, through a joint formation of a nonprofit corporation, or by the execution of a trust agreement. B. A Simi…

A. A Self-Insurer shall submit to the Division the information required in R20-5-1536, R20-5-1537, R20-5-1538, or R20-5-1539, as applicable, by January 31 of each year. A request for an extension may be filed with the Division in writing and shall state the reasons the Self-Insur…

A. Annually, by September 15, premium calculation rates and a schedule of Deviation Rates shall be calculated and approved by the Commission at a public rate hearing. The premium calculation rates and the schedule of Deviation Rates shall be effective the following calendar year.…

The Division may use the definitions, classifications, and rating procedures specified in rating plans filed by a Rating Organization or developed by the Division to calculate the net taxable premium under A.R.S. §§ 23-961 and 23-1065. Historical Note New Section made by final ru…

A. Except as provided in R20-5-1539, a Self-Insurer shall use a Fixed Premium Plan for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if the Self-Insurer’s annual net taxable premium does not exceed $100,000. B. Except as provided in R20-5-1539, a Self-Insu…

A. Except as provided in R20-5-1539, a Self-Insurer may elect to use an Ex-Medical for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if the Self-Insurer’s annual net taxable premium exceeds $100,000 and the Self-Insurer operates a medical facility with a p…

A. Except as provided in R20-5-1539, a Self-Insurer may elect to use a Guaranteed Cost Plan for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if the Self-Insurer’s annual net taxable premium exceeds $100,000. B. The Division shall calculate the net taxable…

A. The Division may require a Self-Insurer to use a Retrospective Rating Plan for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if: 1. The Self-Insurer has an Experience Modification Rate specific to Arizona that exceeds 1.10 for two consecutive years; or …

Historical Note Former Rule 54. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-154 recodified from R4-13-154 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-154 renum…

A. A party may request a hearing under A.R.S. § 23-945 in the following circumstances: 1. Denial of an initial application, renewal application, or new member application under R20-5-1509. 2. Denial of an application to Self-Administer or revocation of authority to Self-Administe…

A. A party may request review of a Commission decision upon hearing issued under R20-5-1540 by filing with the Commission a written request for review no later than 15 days after the decision upon hearing is served upon the parties. A decision upon hearing under R20-5-1540 is dee…

Historical Note Former Rule 55. Amended subsections (A) and (D) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-155 recodified from R4-13-155 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).…

Historical Note Former Rule 56. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-156 recodified from R4-13-156 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-157 renum…

Historical Note Former Rule 57. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-157 recodified from R4-13-157 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-157 renum…

Historical Note Former Rule 58. Amended subsection (C) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-158 recodified from R4-13-158 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section …

Historical Note Former Rule 59. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-159 recodified from R4-13-159 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-159 renum…

A. For purposes of A.R.S. § 23-1069, “final disposition of a case” occurs when all compensation benefits have been released to a claimant. B. A claimant or attorney filing an application for attorney’s fees under A.R.S. § 23-1069 shall serve notice of the application to all parti…

Historical Note Former Rule 61. R20-5-161 recodified from R4-13-161 (Supp. 95-1). Section R20-5-161 renumbered to R20-5-233 by final rulemaking at 31 A.A.R. 4199 (October 31, 2025), effective December 6, 2025 (Supp. 25-4).

Historical Note Former Rule 62. R20-5-162 recodified from R4-13-162 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3). Section R20-5-162 renumbered to R20-5-234 by final rulemaking at 31 A.A.R. 4199 (October 31, 2…

A. For purposes of A.R.S. § 23-930, an employer, self-insured employer, insurance carrier, or claims processing representative commits “bad faith” if the employer, self-insured employer, insurance carrier, or claims processing representative: 1. Institutes a proceeding or interpo…

A. An employer subject to the Act shall notify its employees of the requirements of A.R.S. §§ 23-1043.02, 23-1043.03, and 23-1043.04 by posting the Commission notices titled “Work Exposure to Bodily Fluids” and “Work Exposure to methicillin-resistant Staphylococcus Aureus (MRSA),…

In using the Bureau of Labor Statistics Employment Cost Index to adopt the amount of an increase to the maximum average monthly wage under A.R.S. § 23-1041(E), the Commission shall use the Bureau of Labor Statistics, Employment Cost Index for Wages and Salaries, for Civilian Work…