1. A. A Public Entity may file an application for authority to self-insure if:

   1. 1. The Public Entity’s annual payroll is at least $2 million; and
   2. 2. The Public Entity’s total assets are at least $25 million.

2. B. An individual employer that is not a Public Entity may file an application for authority to self-insure if:

   1. 1. The employer has been engaged in business in Arizona for at least five consecutive years immediately before the prospective Authorization Date;
   2. 2. The employer’s annual Arizona payroll is at least $2 million, including the combined payrolls of any Subsidiaries that will be covered by the self-insurance program; and

   3. 3. The employer meets one of the following criteria:

      1. a. The employer’s total assets are at least $25 million; or
      2. b. The employer’s net worth is at least $5 million and Cash Flow Ratio is at least 0.25.

3. C. A Public Entity Pool may file an application for authority to self-insure if:

   1. 1. The requirements set forth in A.R.S. §§ 11-952.01, 15-382, or 41-621.01, as applicable, are satisfied;
   2. 2. The combined annual payroll of the members of the Public Entity Pool is at least $2 million; and
   3. 3. The combined net worth of the members of the Public Entity Pool is at least $1 million.

4. D. A Similar Industry Pool may file an application for authority to self-insure if:

   1. 1. The requirements set forth in A.R.S. § 23-961.01 are satisfied;
   2. 2. The members of the Similar Industry Pool have been engaged in business in Arizona for at least five consecutive years immediately before the prospective Authorization Date;
   3. 3. The combined annual Arizona payroll of the members of the Similar Industry Pool is at least $2 million; and
   4. 4. The combined net worth of the members of the Similar Industry Pool is at least $1 million.

Historical Note

New Section made by final rulemaking at 28 A.A.R. 3435 (October 28, 2022), with an immediate effective date of October 5, 2022 (Supp. 22-4).