Arizona Admin. Code Title 20 | Arizona Administrative Code, Title 20 — Commerce, Financial Institutions, and Insurance

Chapter 02 DEPARTMENT DISSOVLED

Article 1 RECODIFIED

Ariz. Admin. Code tit. 20, ch. 02, art. 1, tbl. 1 Recodified

History

Table 1 adopted effective October 8, 1998 (Supp. 98-4). 20 A.A.C. 2, Article 1, Table 1 recodified to 3 A.A.C. 7, Article 1, Table 1, at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 7 RECODIFIED

Ariz. Admin. Code tit. 20, ch. 02, art. 7, tbl. 2 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Table 2 permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-1). Table 2 amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). 20 A.A.C. 2, Article 7, Table 2 recodified to 3 A.A.C. 7, Article 7, Table 2 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Table was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit this Table to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish this Table in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the Table (Supp. 97-3). The exempt rules expired when the Section was repealed under the regular rulemaking process (Supp. 98-3).

Ariz. Admin. Code tit. 20, ch. 02, art. 7, tbl. 3 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption repealed October 1, 1998, under Laws 1997, Ch. 117, §3; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Repealed 20 A.A.C. 2, Article 7, Table 3 recodified to 3 A.A.C. 7, Article 7, Table 3 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Chapter 06 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION

Article 3 FINANCIAL PROVISIONS AND PROCEDURES

Ariz. Admin. Code tit. 20, ch. 06, art. 3, tbl. 4 Expired

Ariz. Admin. Code tit. 20, ch. 06, art. 3, tbl. 5 Expired

Chapter 01 ARIZONA COMMERCE AUTHORITY

Ariz. Admin. Code tit. 20, ch. 01, art. 6 RESERVED

Chapter 06 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION

Ariz. Admin. Code tit. 20, ch. 06, art. 13 RESERVED

Ariz. Admin. Code tit. 20, ch. 06, art. 15 RESERVED

Title 4 PROFESSIONS AND OCCUPATIONS

Chapter 31 RECODIFIED

History

Title 4, Chapter 31, the rules of the Department of Weights and Measures, has been recodified to Title 20, Chapter 2 pursuant to A.A.C. R1-1-102 (Supp. 95-1).

Chapter 47 RECODIFIED

History

Title 4, Chapter 47, the rules of the Department of Commerce, has been recodified to Title 20, Chapter 1 pursuant to A.A.C. R1-1-102 (Supp. 95-1).

Chapter 02 DEPARTMENT DISSOVLED

Article 7 RECODIFIED

Ariz. Admin. Code tit. 20, ch. 02, art. 7, tbl. A Recodified

History

New Table A made by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. 20 A.A.C. 2, Article 7, Table A recodified to 3 A.A.C. 7, Article 7, Table A at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Chapter 04 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - FINANCIAL INSTITUTIONS

Article 8 TRUST COMPANIES

Ariz. Admin. Code tit. 20, ch. 04, art. 8, app B [Repealed]

History

Appendix B repealed by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2).

Chapter 05 INDUSTRIAL COMMISSION OF ARIZONA

Article 6 OCCUPATIONAL SAFETY AND HEALTH STANDARDS

Ariz. Admin. Code tit. 20, ch. 05, art. 6, app C Sample Warning Tag (Nonmandatory)

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BACKGROUND COLOR--ORANGE

MESSAGE COLOR--BLACK

History

Appendix C adopted effective June 26, 1998 (Supp. 98-2).

Chapter 06 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION

Article 10 LONG-TERM CARE INSURANCE

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app D Notice to Applicant Regarding Replacement of Health or Long-term Care Insurance

NOTICE TO APPLICANT REGARDING REPLACEMENT OF HEALTH OR LONG-TERM CARE INSURANCE

[Insurance company's name and address]

SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE

According to [your application] [information you have furnished], you intend to lapse or otherwise terminate existing health or long-term care insurance and replace it with the long-term care insurance policy being delivered and issued by [company name] Insurance Company. Your new policy gives you thirty (30) days to decide, without cost, whether you want to keep the policy. For your own information and protection, you should be aware of and seriously consider certain factors which may affect the insurance protection available to you under the new policy.

You should review this new coverage carefully, comparing it with all health or long-term care insurance coverage you now have, and terminate your present policy only if, after due consideration, you find that purchase of this long-term care coverage is a wise decision.

1. Health conditions which you may presently have (preexisting conditions), may not be immediately or fully covered under the new policy. This could result in denial or delay in payment of benefits under the new policy, even though a similar claim might have been payable under your present policy.

2. State law provides that your replacement policy or certificate may not contain new preexisting conditions or probationary periods. The insurer will waive any time periods applicable to preexisting conditions or probationary periods in the new policy (or coverage) for similar benefits to the extent such time was spent (depleted) under the original policy.

3. If you are replacing existing long-term care insurance coverage, you may wish to secure the advice of your present insurer or its insurance producer regarding the proposed replacement of your present policy. This is not only your right, but it is also in your best interest to make sure you understand all the relevant factors involved in replacing your present coverage.

4. [To be included only if the application is attached to the policy.] If, after due consideration, you still wish to terminate your present policy and replace it with new coverage, read the copy of the application attached to your new policy and be sure that all questions are answered fully and correctly, Omissions or misstatements in the application could cause an otherwise valid claim to be denied. Carefully check the application and write to [company name and address] within thirty (30) days if any information is not correct and complete, or if any past medical history has been left out of the application.

History

New Appendix D renumbered from Appendix B and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app E Long-Term Care Insurance Replacement and Lapse Reporting Form

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History

New Appendix E made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app F Long-term Care Insurance Claims Denial Reporting Form

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History

New Appendix F made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app G Rescission Reporting Form for Long-term Policies

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History

New Appendix G made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app H Things You Should Know Before You Buy Long-term Care Insurance

Things You Should Know Before You Buy

Long-term Care Insurance

| Long-Term Care Insurance | * A long-term care insurance policy may pay most of the costs for your care in a nursing home. Many policies also pay for care at home or other community settings. Since policies can vary in coverage, you should read this policy and make sure you understand what it covers before you buy it. * [ WARNING! You should not buy this insurance policy unless you can afford to pay the premiums every year. You are making a multi-year financial commitment.] [Remember that the company can increase premiums in the future.] | | --- | --- | | (Drafting Instruction: | For single premium policies, delete this bullet; for noncancellable policies, delete the second sentence only.) * The personal worksheet includes questions designed to help you and the company determine whether this policy is suitable for your needs. | | Medicare | * Medicare does not pay for most long-term care. | | Medicaid | * Medicaid will generally pay for long-term care if you have very little income and few assets. You probably should not buy this policy if you are now eligible for Medicaid. * Many people become eligible for Medicaid after they have used up their own financial resources by paying for long-term care services. * When Medicaid pays your spouse's nursing home bills, you are allowed to keep your house and furniture, a living allowance, and some of your joint assets. * Your choice of long-term care services may be limited if you are receiving Medicaid. To learn more about Medicaid, contact your local or state Medicaid agency. | | Shopper's Guide | * Make sure the insurance company or agent gives you a copy of a book called the National Association of Insurance Commissioners' "Shopper's Guide to Long-Term Care Insurance." Read it carefully. If you have decided to apply for long-term care insurance, you have the right to return the policy within 30 days and get back any premium you have paid if you are dissatisfied for any reason or choose not to purchase the policy. | | Counseling | * Free counseling and additional information about long-term care insurance are available through your state's insurance counseling program. Contact your state insurance department or department on aging for more information about the senior health insurance counseling program in your state. | | Facilities | * Some long-term care insurance contracts provide for benefit payments in certain facilities only if they are licensed or certified, such as in assisted living centers. However, not all states regulate these facilities in the same way. Also, many people move into a different state from where they purchased their long-term care insurance policy. Read the policy carefully to determine what types of facilities qualify for benefit payments. and to determine that payment for a covered service will be made if you move to a state that has a different licensing scheme for facilities than the one in which you purchased the policy. |

History

New Appendix H made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app I Long-term Care Insurance Suitability Letter

Long-term Care Insurance Suitability Letter

Dear [Applicant]:

Your recent application for long-term care insurance included a "personal worksheet," which asked questions about your finances and your reasons for buying long-term care insurance. For your protection, state law requires us to consider this information when we review your application, to avoid selling a policy to those who may not need coverage.

[Your answers indicate that long-term care insurance may not meet your financial needs. We suggest that you review the information provided along with your application, including the booklet "Shopper's Guide to Long-Term Care Insurance" and the page titled "Things You Should Know Before Buying Long-Term Care Insurance." Your state insurance department also has information about long-term care insurance and may be able to refer you to a counselor free of charge who can help you decide whether to buy this policy.]

[You chose not to provide any financial information for us to review.]

( Drafting Instruction: Choose the paragraph that applies.)

We have suspended our final review of your application. If, after careful consideration, you still believe this policy is what you want, check the appropriate box below and return this letter to us within the next 60 days. We will then continue reviewing your application and issue a policy if you meet our medical standards.

If we do not hear from you within the next 60 days, we will close your file and not issue you a policy. You should understand that you will not have any coverage until we hear back from you, approve your application and issue you a policy.

Please check one box and return in the enclosed envelope.

[] Yes , [although my worksheet indicates that long-term care insurance may not be a suitable purchase,] I wish to purchase this coverage. Please resume review of my application.

Drafting Instruction: Delete the phrase in brackets if the applicant did not answer the questions about income.

[] No. I have decided not to buy a policy at this time.

_____________________________________ ____________

APPLICANT'S SIGNATURE DATE

Please return to [issuer] at [address] by [date].

History

New Appendix I made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Ariz. Admin. Code tit. 20, ch. 06, art. 10, app J Long-term Care Insurance Outline of Coverage

[COMPANY NAME]

[ADDRESS - CITY & STATE]

[TELEPHONE NUMBER]

LONG-TERM CARE INSURANCE

OUTLINE OF COVERAGE

[Policy Number or Group Master Policy and Certificate Number]

[Except for policies or certificates which are guaranteed issue, the following caution statement, or language substantially similar, shall appear as follows in the outline of coverage.]

Caution: The issuance of this long-term care insurance [policy] [certificate] is based upon your responses to the questions on your application. A copy of your [application] [enrollment form] [is enclosed] [was retained by you when you applied]. If your answers are incorrect or untrue, the company has the right to deny benefits or rescind your policy. The best time to clear up any questions is now, before a claim arises! If, for any reason, any of your answers are incorrect, contact the company at this address: [insert address]

1. This policy is [an individual policy of insurance] [a group policy] which was issued in the [indicate jurisdiction in which group policy was issued].

2. PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides a very brief description of the important features of the policy. You should compare this outline of coverage to outlines of coverage for other policies available to you. This is not an insurance contract, but only a summary of coverage. Only the individual or group policy contains governing contractual provisions. This means that the policy or group policy sets forth in detail the rights and obligations of both you and the insurance company. Therefore, if you purchase this coverage, or any other coverage, it is important that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY

3. FEDERAL TAX CONSEQUENCES

This [POLICY] [CERTIFICATE] is intended to be a federally tax-qualified long-term care insurance contract under Section 7702(B)(b) of the Internal Revenue Code of 1986, as amended.

Federal Tax Implications of this [POLICY] [CERTIFICATE]. This [POLICY] [CERTIFICATE]. is not intended to be a federally tax-qualified long-term care insurance contract under Section 7702(B)(b) of the Internal Revenue Code of 1986, as amended. Benefits received under the [POLICY] [CERTIFICATE] may be taxable as income.

4. TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE CONTINUED IN FORCE OR DISCONTINUED

(a) [For long-term care health insurance policies or certificates describe one of the following permissible policy renewability provisions:

(1) Policies and certificates that are guaranteed renewable shall contain the following statement:] RENEWABILITY: THIS POLICY [CERTIFICATE] IS GUARANTEED RENEWABLE. This means you have the right, subject to the terms of your policy, [certificate] to continue this policy as long as you pay your premiums on time. [Company Name] cannot change any of the terms of your policy on its own, except that, in the future, IT MAY INCREASE THE PREMIUM YOU PAY.

(2) [Policies and certificates that are noncancellable shall contain the following statement:] RENEWABILITY: THIS POLICY [CERTIFICATE] IS NONCANCELLABLE. This means that you have the right, subject to the terms of your policy, to continue this policy as long as you pay your premiums on time. [Company Name] cannot change any of the terms of your policy on its own and cannot change the premium you currently pay. However, if your policy contains an inflation protection feature where you choose to increase your benefits, [Company Name] may increase your premium at that time for those additional benefits.

(b) [For group coverage, specifically describe continuation/conversion provisions applicable to the certificate and group policy;]

5. TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS.

[In bold type larger than the maximum type required to be used for the other provisions of the outline of coverage, state whether or not the company has a right to change the premium, and if a right exists, describe clearly and concisely each circumstance under which the premium may change.]

6. TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE RETURNED AND PREMIUM REFUNDED.

(a) [Provide a brief description of the right to return - "free look" provision of the policy.]

(b) [Include a statement that the policy either does or does not contain provisions providing for a refund or partial refund of premium upon the death of an insured or surrender of the policy or certificate. If the policy contains such provisions, include a description of them.]

7. THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are eligible for Medicare, review the Medicare Supplement Buyer's Guide available from the insurance company.

(a) [For insurance producers] Neither [insert company name] nor its [agents or insurance producers] represent Medicare, the federal government or any state government.

(b) [For direct response] [insert company name] is not representing Medicare, the federal government or any state government.

8. LONG-TERM CARE COVERAGE. Policies of this category are designed to provide coverage for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting other than an acute-care unit of a hospital, such as in a nursing home, in the community or in the home.

This policy provides coverage in the form of a fixed dollar indemnity benefit for covered long-term care expenses, subject to policy [limitations] [waiting periods] and [coinsurance] requirements. [Modify this paragraph if the policy is not an indemnity policy.]

9. BENEFITS PROVIDED BY THIS POLICY.

(a) [Covered services, related deductible(s), waiting periods, elimination periods and benefit maximums.]

(b) [Institutional benefits, by skill level.]

(d) Eligibility for Payment of Benefits

[Activities of daily living and cognitive impairment shall be used to measure an insured's need for long-term care and shall be defined and described as part of the outline of coverage.]

[Any additional benefit triggers shall be explained in this Section. If these triggers differ for different benefits, explanation of the triggers shall accompany each benefit description. If an attending physician or other specified person must certify a certain level of functional dependency in order to be eligible for benefits, this too must be specified.]

10. LIMITATIONS AND EXCLUSIONS.

[Describe:

(a) Preexisting conditions;

(b) Non-eligible facilities and providers;

(d) Exclusions and exceptions;

(e) Limitations.]

[This Section shall provide a brief specific description of any policy provisions which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify payment of the benefits described in paragraph 6 above.]

THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH YOUR LONG-TERM CARE NEEDS.

11. RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs of long-term care services will likely increase over time, you should consider whether and how the benefits of this plan may be adjusted. [As applicable, indicate the following:

(a) That the benefit level will not increase over time;

(b) Any automatic benefit adjustment provisions;

(c) Whether the insured will be guaranteed the option to buy additional benefits and the basis upon which benefits will be increased over time if not by a specified amount or percentage;

(d) If there is such a guarantee, include whether additional underwriting or health screening will be required, the frequency and amounts of the upgrade options, and any significant restrictions or limitations;

(e) Describe whether there will be any additional premium charge imposed, and how that is to be calculated.]

12. ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN DISORDERS.

[State that the policy provides coverage for insureds clinically diagnosed as having Alzheimer's disease or related degenerative and dementing illnesses. Specifically describe each benefit screen or other policy provision which provides preconditions to the availability of policy benefits for such an insured.]

13. PREMIUM.

[(a) State the total annual premium for the policy;

(b) If the premium varies with an applicant's choice among benefit options, indicate the portion of annual premium which corresponds to each benefit option.]

14. ADDITIONAL FEATURES.

[(a) Indicate if medical underwriting is used;

(b) Describe other important features.]

15. CONTACT THE STATE SENIOR HEALTH INSURANCE ASSISTANCE PROGRAM IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE POLICY OR CERTIFICATE.

History

New Appendix J renumbered from Appendix C and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective November 10, 2017 (Supp. 17-2).

Title 1 RULES AND THE RULEMAKING PROCESS

Chapter 1 SECRETARY OF STATE - RULES AND RULEMAKING

Article 1 GENERAL PROVISIONS

Ariz. Admin. Code § R1-1-102 Codification Outline

A. All rules made, amended, renumbered, recodified, or repealed and filed with the Office after September 30, 1992, will be published in the Register or the Code, as appropriate under:

1. The Act, or

2. Exempt from all or part of the rulemaking process as required in:

a. The Act, or

b. Arizona Revised Statute, or

c. As provided in the Constitution of Arizona.

B. Rules shall be published within the following Titles:

1. Title 1. Rules and the Rulemaking Process

2. Title 2. Administration

3. Title 3. Agriculture

4. Title 4. Professions and Occupations

5. Title 5. Corrections

6. Title 6. Economic Security

7. Title 7. Education

8. Title 8. Emergency and Military Affairs

9. Title 9. Health Services

10. Title 10. Law

11. Title 11. Mines

12. Title 12. Natural Resources

13. Title 13. Public Safety

14. Title 14. Public Service Corporations; Corporations and Associations; Securities Regulation

15. Title 15. Revenue

16. Title 16. Tax Appeals

17. Title 17. Transportation

18. Title 18. Environmental Quality

19. Title 19. Alcohol, Horse and Dog Racing, Lottery, and Gaming

20. Title 20. Commerce, Financial Institutions, and Insurance

History

Adopted effective January 1, 1987 (Supp. 86-6). Section repealed, new Section adopted effective January 1, 1995; filed in the Office of the Secretary of State December 30, 1994 (Supp. 94-4). Amended by final rulemaking at 10 A.A.R. 468, effective March 23, 2004 (Supp. 04-1). Amended by final rulemaking at 17 A.A.R. 1391, effective September 5, 2011 (Supp. 11-3).

Chapter 01 ARIZONA COMMERCE AUTHORITY

Article 1 ADMINISTRATION

Ariz. Admin. Code § R20-1-101 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-101 (Supp. 94-2). R20-1-201 recodified from R4-47-101 (Supp. 95-1). Former Section R20-1-101 renumbered to R20-1-201, new Section adopted effective December 14, 1995 (Supp. 95-4). Amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-201 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-102 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-102 and references to the Office of Economic Planning and Development changed to reflect the Department of Commerce (Supp. 94-2). R20-1-202 recodified from R4-47-102 (Supp. 95-1). Former Section R20-1-102 renumbered to R20-1-202, new Section adopted effective December 14, 1995 (Supp. 95-4). Amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-204 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-103 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-103 (Supp. 94-2). R20-1-203 recodified from R4-47-103 (Supp. 95-1). Former Section R20-1-103 renumbered to R20-1-203, new Section adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-104 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-202 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-104 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-104 (Supp. 94-2). R20-1-204 recodified from R4-47-104 (Supp. 95-1). Former Section R20-1-104 renumbered to R20-1-204, new Section adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-104 renumbered to R20-1-103; new Section R20-1-104 made by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-206 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-105 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-105 (Supp. 94-2). R20-1-205 recodified from R4-47-105 (Supp. 95-1). Former Section R20-1-105 renumbered to R20-1-205, new Section adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-106 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-208 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-106 Renumbered

History

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-106 (Supp. 94-2). R20-1-206 recodified from R4-47-106 (Supp. 95-1). Former Section R20-1-106 renumbered to R20-1-206, new Section adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-106 renumbered to R20-1-105; new Section R20-1-106 renumbered from R20-1-109 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-209 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-107 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section repealed by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-108 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-116 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-210 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-109 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-109 renumbered to R20-1-106; new Section R20-1-109 renumbered from R20-1-117 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-211 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-110 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-118 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-212 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-111 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-119 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-213 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

Ariz. Admin. Code § R20-1-112 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-113 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-114 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-115 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-116 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-108 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-117 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-109 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-118 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-110 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-119 Renumbered

History

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-111 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-1-120 [Repealed]

History

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

Article 2 EXPIRED

Ariz. Admin. Code § R20-1-201 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-201 renumbered from R20-1-101 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-202 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-202 renumbered from R20-1-103 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-203 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-204 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-204 renumbered from R20-1-102 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-205 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-206 Expired

History

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-206 renumbered from R20-1-104 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-207 Expired

History

New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-208 Expired

History

New Section renumbered from R20-1-105 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-209 Expired

History

New Section renumbered from R20-1-106 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-210 Expired

History

New Section renumbered from R20-1-108 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-211 Expired

History

New Section renumbered from R20-1-109 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-212 Expired

History

New Section renumbered from R20-1-110 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-213 Expired

History

New Section renumbered from R20-1-111 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-214 Expired

History

New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Article 3 EMERGENCY EXPIRED

Ariz. Admin. Code § R20-1-301 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-302 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-303 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-304 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-305 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-306 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-307 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-308 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-309 Emergency Expired

History

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Ariz. Admin. Code § R20-1-310 Emergency Expired

History

New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Article 4 EXPIRED

Ariz. Admin. Code § R20-1-401 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Ariz. Admin. Code § R20-1-402 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Ariz. Admin. Code § R20-1-403 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Ariz. Admin. Code § R20-1-404 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Ariz. Admin. Code § R20-1-405 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Ariz. Admin. Code § R20-1-406 Expired

History

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Article 5 RECODIFIED

Ariz. Admin. Code § R20-1-501 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-101 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-502 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-102 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-503 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-103 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-504 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-104 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-505 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-105 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-506 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-106 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-507 Recodified

History

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-107 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-508 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-108 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-509 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-109 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-510 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-110 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-511 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-111 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-512 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-112 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-513 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-113 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Ariz. Admin. Code § R20-1-514 Recodified

History

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-114 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Article 7 EXPIRED

Ariz. Admin. Code § R20-1-701 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-702 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-703 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-704 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-705 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-706 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-707 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-708 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-709 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-710 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-711 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Ariz. Admin. Code § R20-1-712 Expired

History

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3). Section expired under A.R.S. § 41-1056(J) at 20 A.A.R. 2043, effective June 30, 2014 (Supp. 14-3).

Article 8 EXPIRED

Ariz. Admin. Code § R20-1-801 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-802 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-803 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-804 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-805 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-806 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-807 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-808 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-809 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-810 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-811 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Ariz. Admin. Code § R20-1-812 Expired

History

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Chapter 02 DEPARTMENT DISSOVLED

Article 1 RECODIFIED

Ariz. Admin. Code § R20-2-101 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-2). Emergency amendments adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency amendments adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-101 recodified from R4-31-101 (Supp. 95-1). Citations referencing the former Title (A.A.C. Title 4, Chapter 31, recodified) corrected to 20 A.A.C. 2 (Supp. 97-2). Amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-101 recodified to R3-7-101 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-102 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Amended by adding a new subsection (A) and renumbering accordingly effective February 3, 1989 (Supp. 89-1). Amended subsection (A) effective May 3, 1989 (Supp. 89-2). Amended and subsection (D) renumbered to R4-31-117 effective June 14, 1990 (Supp. 90-2). Amended effective July 3, 1991 (Supp. 91-3). Amended effective April 22, 1992 (Supp. 92-2). R20-2-102 recodified from R4-31-102 (Supp. 95-1). Section repealed; new Section R20-2-102 renumbered from R20-2-105 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). R20-2-102 recodified to R3-7-102 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-103 Recodified

History

Former Section R4-31-103 adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section renumbered from R4-31-117 effective May 31, 1991 (Supp. 91-2). R20-2-103 recodified from R4-31-103 (Supp. 95-1). Section repealed; new Section R20-2-103 renumbered from R20-2-106 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). R20-2-103 recodified to R3-7-103 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-104 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Repealed effective May 31, 1991 (Supp. 91-2). R20-2-104 recodified from R4-31-104 (Supp. 95-1). New Section R20-2-104 renumbered from R20-2-108 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). R20-2-104 recodified to R3-7-104 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-105 Recodified

History

Former Section R4-31-103 adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section renumbered from Section R4-31-114 effective May 31, 1991 (Supp. 91-2). Amended effective August 28, 1992 (Supp. 92-3). R20-2-105 recodified from R4-31-105 (Supp. 95-1). Section R20-2-105 renumbered to R20-2-102; new Section R20-2-105 renumbered from R20-2-109 and amended effective October 8, 1998 (Supp. 98-4). Section repealed by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Repealed Section R20-2-105 recodified to R3-7-105 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-106 Recodified

History

Former Section R4-31-106 adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section renumbered from R4-31-115 effective May 31, 1991 (Supp. 91-2). R20-2-106 recodified from R4-31-106 (Supp. 95-1). Section R20-2-106 renumbered to R20-2-103; new Section R20-2-106 renumbered from R20-2-110 and amended effective October 8, 1998 (Supp. 98-4). Section repealed by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Repealed Section R20-2-106 recodified to R3-7-106 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-107 Recodified

History

Former Section R4-31-107 adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section renumbered from R4-31-116 effective May 31, 1991 (Supp. 91-2). Amended by emergency action effective June 1, 1993, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 93-2). Emergency expired. Emergency amendments adopted again effective October 14, 1993, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 93-4). Emergency expired. Emergency amendments adopted again with changes effective January 19, 1994, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 94-1). Emergency amendments permanently adopted with changes effective April 4, 1994 (Supp. 94-2). R20-2-107 recodified from R4-31-107 (Supp. 95-1). Section repealed; new Section adopted effective October 8, 1998 (Supp. 98-4). Section repealed by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Repealed Section R20-2-107 recodified to R3-7-107 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-108 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). R20-2-108 recodified from R4-31-108 (Supp. 95-1). R20-2-108 renumbered to R20-2-104; new Section R20-2-108 adopted effective October 8, 1998 (Supp. 98-4). R20-2-108 recodified to R3-7-108 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-109 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). Emergency amendments adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency amendments adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Amended effective June 22, 1992 (Supp. 92-2). R20-2-109 recodified from R4-31-109 (Supp. 95-1). Citation referencing the former Title (A.A.C. Title 4, Chapter 31, recodified) corrected to 20 A.A.C. 2 (Supp. 97-2). R20-2-109 renumbered to R20-2-105; new Section adopted effective October 8, 1998 (Supp. 98-4). R20-2-109 recodified to R3-7-109 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-110 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). Emergency amendments adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency amendments adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Amended effective June 22, 1992 (Supp. 92-2). R20-2-110 recodified from R4-31-110 (Supp. 95-1). Citations referencing former rules in A.A.C. Title 4, Chapter 31, corrected to 20 A.A.C. 2 (Supp. 97-2). R20-2-110 renumbered from R20-2-113 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). R20-2-110 recodified to R3-7-110 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-111 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). Section R4-31-111 repealed, new Section R4-31-111 adopted by emergency action effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Section R4-31-111 repealed again, new Section R4-31-111 adopted again by emergency action without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Section R4-31-111 repealed again, new Section R4-31-111 adopted again by emergency action without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Section R4-31-111 repealed again, new Section R4-31-111 adopted again by emergency action without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Section R4-31-111 repealed, new Section R4-31-111 adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-111 recodified from R4-31-111 (Supp. 95-1). Section repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-111 recodified to R3-7-111 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-112 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). Former Section R4-31-112 renumbered to R4-31-113, new Section R4-31-112 adopted by emergency action effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Former Section R4-31-112 renumbered again to R4-31-113, new Section R4-31-112 adopted again by emergency action without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Former Section R4-31-112 renumbered again to R4-31-113, new Section R4-31-112 adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Former Section R4-31-112 renumbered again to R4-31-113, new Section R4-31-112 adopted again by emergency action without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Former Section R4-31-112 renumbered to R4-31-113, new Section R4-31-112 adopted effective June 22, 1992 (Supp. 92-2). R20-2-112 recodified from R4-31-112 (Supp. 95-1). Section repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-112 recodified to R3-7-112 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-113 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Section repealed, new Section adopted effective May 31, 1991 (Supp. 91-1). Former Section R4-31-113 renumbered to R4-31-114, new Section R4-31-113 renumbered from R4-31-112 by emergency action effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Section R4-31-113 renumbered again to R4-31-114, new Section R4-31-113 renumbered again from R4-31-112 by emergency action without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Section R4-31-113 renumbered again to R4-31-114, new Section R4-31-113 renumbered again from R4-31-112 by emergency action without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Section R4-31-113 renumbered again to R4-31-114, new Section R4-31-113 renumbered again from R4-31-112 by emergency action without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Section R4-31-113 renumbered to R4-31-114, new Section R4-31-113 renumbered from R4-31-112 effective June 22, 1992 (Supp. 92-2). R20-2-113 recodified from R4-31-113 (Supp. 95-1). Section R20-2-113 renumbered to R20-2-110 effective October 8, 1998 (Supp. 98-4). Renumbered Section R20-2-113 recodified to R3-7-113 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-114 Recodified

History

Adopted effective April 10, 1984 (Supp. 84-2). Amended effective April 19, 1989 (Supp. 89-2). Renumbered to Section R4-31-105 effective May 31, 1991 (Supp. 91-2). Section R4-31-114 renumbered from R4-31-113 by emergency action effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Section R4-31-114 renumbered again from R4-31-113 by emergency action without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Section R4-31-114 renumbered again from R4-31-113 by emergency action without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Section R4-31-114 renumbered again from R4-31-113 by emergency action without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Section R4-31-114 renumbered from R4-31-113 effective June 22, 1992 (Supp. 92-2). R20-2-114 recodified from R4-31-114 (Supp. 95-1). R20-2-114 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-114 recodified to R3-7-114 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-115 Recodified

History

Adopted effective April 10, 1984 (Supp. 84-2). Renumbered to R4-31-106 effective May 31, 1991 (Supp. 91-2). R20-2-115 recodified from R4-31-115 (Supp. 95-1). Renumbered Section R20-2-115 recodified to R3-7-115 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-116 Recodified

History

Adopted effective March 14, 1988 (Supp. 88-1). Renumbered to R4-31-107 effective May 31, 1991 (Supp. 91-2). R20-2-116 recodified from R4-31-116 (Supp. 95-1). Renumbered Section R20-2-116 recodified to R3-7-116 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-117 Recodified

History

Renumbered from R4-31-102(D) and amended effective June 14, 1990 (Supp. 90-2). Former Section R4-31-117 renumbered to R4-31-103 effective May 31, 1991 (Supp. 91-2). R20-2-117 recodified from R4-31-117 (Supp. 95-1). Renumbered Section R20-2-117 recodified to R3-7-117 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 2 RECODIFIED

Ariz. Admin. Code § R20-2-201 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-201 recodified from R4-31-201 (Supp. 95-1). Section repealed; new Section adopted effective October 8, 1998 (Supp. 98-4). Subsection labeling corrected to conform to Secretary of State format requirements (Supp. 01-1). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-201 recodified to R3-7-201 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-202 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-202 recodified from R4-31-202 (Supp. 95-1). R20-2-202 renumbered to R20-2-203; new Section R20-2-202 adopted effective October 8, 1998 (Supp. 98-4). Section repealed by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Repealed Section R20-2-202 recodified to R3-7-202 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-203 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-203 recodified from R4-31-203 (Supp. 95-1). Section R20-2-203 renumbered to R20-2-204; new Section R20-2-203 renumbered from R20-2-202 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-203 recodified to R3-7-203 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-204 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Amended by adding subsections (C) through (J) effective April 10, 1984 (Supp. 84-2). Amended subsection (H) and added a new subsection (K) effective April 22, 1988 (Supp. 88-2). Former Section R4-31-204 renumbered without change as Sections R4-31-701 and R4-31-703 through R4-31-717 (Supp. 89-1). R20-2-204 recodified from R4-31-204 (Supp. 95-1). R20-2-204 renumbered from R20-2-203 and amended effective October 8, 1998 (Supp. 98-4). Section R20-2-204 recodified to R3-7-204 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
This Section was not recodified by the Department of Agriculture, Weights and Measures Services Division because it does not have the authority to regulate taxi cabs under Laws 2015, Chapter 244. Regulation related to for-hire transportation (taxis, limousines, livery vehicles) have been transferred to the Arizona Department of Transportation (ADOT). The Section expired at 24 A.A.R. 1125, effective March 13, 2018 (Supp. 18-1).

Ariz. Admin. Code § R20-2-205 Expired

History

Adopted effective July 27, 1983 (Supp. 83-4). Amended subsection (B) effective April 10, 1984 (Supp. 84-2). Amended effective April 22, 1988 (Supp. 88-2). Correction: Paragraph 10. in subsections (C) and (D) corrected to read: "0. 50 percent by weight..." as certified effective July 27, 1983 (Supp.88-3). Former Section R4-31-205 renumbered without change as Sections R4-31-701 and R4-31-718 through R4-32-721 (Supp. 89-1). R20-2-205 recodified from R4-31-205 (Supp. 95-1). New Section made by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section expired under A.R.S. § 41-1056(J) at 24 A.A.R. 1125, effective March 13, 2018 (Supp. 18-1).

Article 3 RECODIFIED

Ariz. Admin. Code § R20-2-301 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-301 recodified from R4-31-301 (Supp. 95-1). Section repealed; new Section adopted effective October 8, 1998 (Supp. 98-4). Section repealed by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Repealed Section R20-2-301 recodified to R3-7-301 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-302 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-302 recodified from R4-31-302 (Supp. 95-1). Section repealed; new Section adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-302 recodified to R3-7-302 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-303 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-303 recodified from R4-31-303 (Supp. 95-1). R20-2-303 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-303 recodified to R3-7-303 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-304 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-304 recodified from R4-31-304 (Supp. 95-1). R20-2-304 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-304 recodified to R3-7-304 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-305 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-305 recodified from R4-31-305 (Supp. 95-1). R20-2-305 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-305 recodified to R3-7-305 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-306 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-306 recodified from R4-31-306 (Supp. 95-1). R20-2-306 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-306 recodified to R3-7-306 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-307 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-307 recodified from R4-31-307 (Supp. 95-1). R20-2-307 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-307 recodified to R3-7-307 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-308 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-308 recodified from R4-31-308 (Supp. 95-1). R20-2-308 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-308 recodified to R3-7-308 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-309 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-309 recodified from R4-31-309 (Supp. 95-1). R20-2-309 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-309 recodified to R3-7-309 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-310 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-310 recodified from R4-31-310 (Supp. 95-1). R20-2-310 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-310 recodified to R3-7-310 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-311 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-311 recodified from R4-31-311 (Supp. 95-1). R20-2-311 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-311 recodified to R3-7-311 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-312 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-312 recodified from R4-31-312 (Supp. 95-1). R20-2-312 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-312 recodified to R3-7-312 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-313 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). Amended effective August 24, 1992 (Supp. 92-3). R20-2-313 recodified from R4-31-313 (Supp. 95-1). R20-2-313 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-313 recodified to R3-7-313 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 4 RECODIFIED

Ariz. Admin. Code § R20-2-401 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-401 recodified from R4-31-401 (Supp. 95-1). R20-2-401 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-401 recodified to R3-7-401 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-402 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-402 recodified from R4-31-402 (Supp. 95-1). R20-2-402 repealed effective October 8, 1998 (Supp. 98-4). New Section made by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-402 recodified to R3-7-402 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-403 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-403 recodified from R4-31-403 (Supp. 95-1). R20-2-403 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-403 recodified to R3-7-403 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-404 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-404 recodified from R4-31-404 (Supp. 95-1). R20-2-404 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-404 recodified to R3-7-404 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-405 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-405 recodified from R4-31-405 (Supp. 95-1). R20-2-405 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-405 recodified to R3-7-405 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-406 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-406 recodified from R4-31-406 (Supp. 95-1). R20-2-406 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-406 recodified to R3-7-406 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-407 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-407 recodified from R4-31-407 (Supp. 95-1). R20-2-407 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-407 recodified to R3-7-407 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-408 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-408 recodified from R4-31-408 (Supp. 95-1). R20-2-408 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-408 recodified to R3-7-408 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-409 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-409 recodified from R4-31-409 (Supp. 95-1). R20-2-409 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-409 recodified to R3-7-409 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-410 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-410 recodified from R4-31-410 (Supp. 95-1). R20-2-410 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-410 recodified to R3-7-410 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-411 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-411 recodified from R4-31-411 (Supp. 95-1). R20-2-411 recodified from R4-31-410 (Supp. 95-1). R20-2-411 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-411 recodified to R3-7-411 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-412 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-412 recodified from R4-31-412 (Supp. 95-1). R20-2-412 recodified from R4-31-410 (Supp. 95-1). R20-2-412 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-412 recodified to R3-7-412 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 5 RECODIFIED

Ariz. Admin. Code § R20-2-501 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-501 recodified from R4-31-501 (Supp. 95-1). Section repealed; new Section adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-501 recodified to R3-7-501 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-502 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-502 recodified from R4-31-502 (Supp. 95-1). R20-2-502 renumbered to R20-2-504; new Section R20-2-502 adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-502 recodified to R3-7-502 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-503 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-503 recodified from R4-31-503 (Supp. 95-1). R20-2-503 renumbered to R20-2-505; new Section R20-2-503 adopted effective October 8, 1998 (Supp. 98-4). Section R20-2-503 recodified to R3-7-503 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-504 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-504 recodified from R4-31-504 (Supp. 95-1). R20-2-504 renumbered to R20-2-506; new Section R20-2-504 renumbered from R20-2-502 and amended effective October 8, 1998 (Supp. 98-4). Section R20-2-504 recodified to R3-7-504 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-505 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-505 recodified from R4-31-505 (Supp. 95-1). R20-2-505 renumbered to R20-2-507; new Section R20-2-505 renumbered from R20-2-503 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-505 recodified to R3-7-505 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-506 Recodified

History

R20-2-506 renumbered from R20-2-504 and amended effective October 8, 1998 (Supp. 98-4). Section R20-2-506 recodified to R3-7-506 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-507 Recodified

History

R20-2-507 renumbered from R20-2-505 and amended effective October 8, 1998 (Supp. 98-4). Section R20-2-507 recodified to R3-7-507 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 6 RECODIFIED

Ariz. Admin. Code § R20-2-601 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-601 recodified from R4-31-601 (Supp. 95-1). Section amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). Section R20-2-601 recodified to R3-7-601 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-602 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-602 recodified from R4-31-602 (Supp. 95-1). Section amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-602 recodified to R3-7-602 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-603 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-603 recodified from R4-31-603 (Supp. 95-1). Section amended effective October 8, 1998 (Supp. 98-4). Section R20-2-603 recodified to R3-7-603 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-604 Recodified

History

Adopted effective July 27, 1983 (Supp. 83-4). R20-2-604 recodified from R4-31-604 (Supp. 95-1). Amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-604 recodified to R3-7-604 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-605 Recodified

History

New Section made by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-605 recodified to R3-7-605 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 7 RECODIFIED

Ariz. Admin. Code § R20-2-701 Recodified

History

Former Section R4-31-204(K) and Section R4-31-205(A)(1) through (5) renumbered without change as Section R4-31-701 (Supp. 89-1). Amended as R4-31-204(O) and incorporated into R4-31-701 effective September 29, 1989 (Supp. 89-3). Amended effective October 12, 1990 (Supp. 90-4). Amended by emergency amendment effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2-701 recodified from R4-31-701 (Supp. 95-1). Amended effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim amendment expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently amended October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-1). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-701 recodified to R3-7-701 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-702 Recodified

History

Adopted by emergency amendment effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Adopted with changes effective August 17, 1992 (Supp. 92-3). R20-2-702 recodified from R4-31-702 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-702 recodified to R3-7-702 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-703 Recodified

History

Former Section R4-31-204(A) renumbered without change as Section R4-31-703 (Supp. 89-1). Amended effective October 12, 1990 (Supp. 90-4). R20-2-703 recodified from R4-31-703 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 4312, effective October 18. 1999 (Supp. 99-4). Section R20-2-703 recodified to R3-7-703 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-704 Recodified

History

Former Section R4-31-204(B) renumbered without change as Section R4-31-704 (Supp. 89-1). Amended effective October 12, 1990 (Supp. 90-4). Amended effective August 17, 1992 (Supp. 92-3). R20-2-704 recodified from R4-31-704 (Supp. 95-1). Former Section R20-2-704 repealed; new Section R20-2-704 renumbered from R20-2-705 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-704 recodified to R3-7-704 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-705 Recodified

History

Former Section R4-31-204(C) renumbered without change as Section R4-31-705 (Supp. 89-1). Amended effective August 17, 1992 (Supp. 92-3). R20-2-705 recodified from R4-31-705 (Supp. 95-1). Former Section R20-2-705 renumbered to R20-2-704; new Section R20-2-705 renumbered from R20-2-706 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Section R20-2-705 recodified to R3-7-705 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-706 Recodified

History

Former Section R4-31-204(D) renumbered without change as Section R4-31-706 (Supp. 89-1). Amended effective August 17, 1992 (Supp. 92-3). R20-2-706 recodified from R4-31-706 (Supp. 95-1). Former Section R20-2-706 renumbered to R20-2-705; new Section R20-2-706 renumbered from R20-2-707 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Section R20-2-706 recodified to R3-7-706 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-707 Recodified

History

Former Section R4-31-204(E) renumbered without change as Section R4-31-707 (Supp. 89-1). Amended effective August 17, 1992 (Supp. 92-3). R20-2-707 recodified from R4-31-707 (Supp. 95-1). Former Section R20-2-707 renumbered to R20-2-706; new Section R20-2-707 renumbered from R20-2-709 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-707 recodified to R3-7-707 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-708 Recodified

History

Former Section R4-31-204(F) renumbered without change as Section R4-31-708 (Supp. 89-1). Amended effective October 12, 1990 (Supp. 90-4). R20-2-708 recodified from R4-31-708 (Supp. 95-1). Former Section R20-2-708 repealed; new Section R20-2-708 renumbered from R20-2-710 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. Section R20-2-708 recodified to R3-7-708 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-709 Recodified

History

Former Section R4-31-204(G) renumbered without change as Section R4-31-709 (Supp. 89-1). Former R4-31-709 repealed, new Section R4-31-709 adopted by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Former R4-31-709 repealed again, new Section R4-31-709 adopted again without change by emergency action effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Former R4-31-709 repealed again, new Section adopted again by emergency action without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Former Section R4-31-709 repealed, new Section R4-31-709 adopted with changes effective August 17, 1992 (Supp. 92-3). R20-2-709 recodified from R4-31-709 (Supp. 95-1). Amended effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim amendment expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently amended October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Former Section R20-2-709 renumbered to R20-2-707; new Section R20-2-709 renumbered from R20-2-711 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. Section R20-2-709 recodified to R3-7-709 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-710 Recodified

History

Former Section R4-31-204(H) renumbered without change as Section R4-31-710 (Supp. 89-1). Amended effective February 21, 1990 (Supp. 90-1). See emergency amendment below (Supp. 92-1). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended effective August 17, 1992 (Supp. 92-3). R20-2-710 recodified from R4-31-710 (Supp. 95-1). Former Section R20-2-710 renumbered to R20-2-708; new Section R20-2-710 renumbered from R20-2-713 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-710 recodified to R3-7-710 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-711 Recodified

History

Former Section R4-31-204(I) renumbered without change as Section R4-31-711 (Supp. 89-1). Section repealed, new Section adopted effective February 21, 1990 (Supp. 90-1). Amended effective October 1, 1990 (Supp. 90-4). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2-711 recodified from R4-31-711 (Supp. 95-1). Former Section R20-2-711 renumbered to R20-2-709; new Section R20-2-711 renumbered from R20-2-715 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-711 recodified to R3-7-711 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-712 Recodified

History

Former Section R4-31-204(J) renumbered without change as Section R4-31-712 (Supp. 89-1). Section repealed, new Section adopted effective February 21, 1990 (Supp. 90-1). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2-712 recodified from R4-31-712 (Supp. 95-1). Former Section R20-2-712 repealed; new Section R20-2-712 renumbered from R20-2-716 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Section R20-2-712 recodified to R3-7-712 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-713 Recodified

History

Adopted as R4-31-204(K) and renumbered as R4-31-713 effective September 29, 1989 (Supp. 89-3). Amended effective October 12, 1990 (Supp. 90-4). R20-2-713 recodified from R4-31-713 (Supp. 95-1). Former Section R20-2-713 renumbered to R20-2-710; new Section R20-2-713 renumbered from R20-2-717 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-713 recodified to R3-7-713 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-714 Recodified

History

Adopted as R4-31-204(L) and renumbered as R4-31-714 effective September 29, 1989 (Supp. 89-3). R20-2-714 recodified from R4-31-714 (Supp. 95-1). Former Section R20-2-714 repealed; new Section R20-2-714 renumbered from R20-2-718 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-714 recodified to R3-7-714 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-715 Recodified

History

Adopted as R4-31-204(M) and renumbered as R4-31-715 effective September 29, 1989 (Supp. 89-3). Amended effective October 12, 1990 (Supp. 90-4). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2-715 recodified from R4-31-715 (Supp. 95-1). Former Section 20-2-715 renumbered to R20-2-711; new Section R20-2-715 renumbered from R20-2-720 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-715 recodified to R3-7-715 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-716 Recodified

History

Adopted as R4-31-204(N) and renumbered as R4-31-716 effective September 29, 1989 (Supp. 89-3). Repealed effective October 12, 1990 (Supp. 90-4). New Section R4-31-716 adopted effective August 17, 1992 (Supp. 92-3). R20-2-716 recodified from R4-31-716 (Supp. 95-1). Former Section R20-2-716 renumbered to R20-2-712; new Section R20-2-716 renumbered from R20-2-721 and amended by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-716 recodified to R3-7-716 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-717 Recodified

History

Adopted effective October 19, 1989 (Supp. 89-4). Amended effective August 17, 1992 (Supp. 92-3). R20-2-717 recodified from R4-31-717 (Supp. 95-1). Section R20-2-717 renumbered to R20-2-713 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). New Section made by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-717 recodified to R3-7-717 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-718 Recodified

History

Former Section R4-31-205(B) renumbered without change as R4-31-718 (Supp. 89-1). Amended as R4-31-205(B) and incorporated into R4-31-728 effective September 29, 1989 (Supp. 89-3). Amended effective February 21, 1990 (Supp. 90-1). Subsections (3) through (10) corrected (Supp. 91-3). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2-718 recodified from R4-31-718 (Supp. 95-1). Section R20-2-718 renumbered to R20-2-714 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). New Section made by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. Section R20-2-718 recodified to R3-7-718 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-719 Recodified

History

Former Section R4-31-205(C) and (D) renumbered without change as R4-31-719 (Supp. 89-1). Amended as R4-31-205(C) and (D) and incorporated into R4-31-719 effective September 29, 1989 (Supp. 89-3). Amended effective August 17, 1992 (Supp. 92-3). R20-2-719 recodified from R4-31-719 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). New Section made by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section repealed by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Repealed Section R20-2-719 recodified to R3-7-719 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-720 Recodified

History

Former Section R4-31-205(E) renumbered without change as R4-31-720 (Supp. 89-1). Amended effective August 17, 1992 (Supp. 92-3). R20-2-720 recodified from R4-31-720 (Supp. 95-1). Section R20-2-720 renumbered to R20-2-715 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). Renumbered Section R20-2-720 recodified to R3-7-720 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-721 Recodified

History

Former Section R4-31-205(F) renumbered without change as R4-31-721 (Supp. 89-1). Amended as R4-31-205(F) and incorporated into R4-31-721 effective September 29, 1989 (Supp. 89-3). Amended effective October 12, 1990 (Supp. 90-4). Heading amended effective August 17, 1992 (Supp. 92-3). R20-2-721 recodified from R4-31-721 (Supp. 95-1). Amended effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim amendment expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently amended October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Section R20-2-721 renumbered to R20-2-716 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99-4). R20-2-722. Reserved through R20-2-748. Reserved. Renumbered Section R20-2-721 recodified to R3-7-721 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-722 Recodified

History

Reserved Section R20-2-722 recodified to R3-7-722 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-723 Recodified

History

Reserved Section R20-2-723 recodified to R3-7-723 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-724 Recodified

History

Reserved Section R20-2-724 recodified to R3-7-724 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-725 Recodified

History

Reserved Section R20-2-725 recodified to R3-7-725 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-726 Recodified

History

Reserved Section R20-2-726 recodified to R3-7-726 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-727 Recodified

History

Reserved Section R20-2-727 recodified to R3-7-727 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-728 Recodified

History

Reserved Section R20-2-728 recodified to R3-7-728 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-729 Recodified

History

Reserved Section R20-2-729 recodified to R3-7-729 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-730 Recodified

History

Reserved Section R20-2-730 recodified to R3-7-730 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-731 Recodified

History

Reserved Section R20-2-731 recodified to R3-7-731 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-732 Recodified

History

Reserved Section R20-2-732 recodified to R3-7-732 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-733 Recodified

History

Reserved Section R20-2-733 recodified to R3-7-733 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-734 Recodified

History

Reserved Section R20-2-734 recodified to R3-7-734 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-735 Recodified

History

Reserved Section R20-2-735 recodified to R3-7-735 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-736 Recodified

History

Reserved Section R20-2-736 recodified to R3-7-736 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-737 Recodified

History

Reserved Section R20-2-737 recodified to R3-7-737 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-738 Recodified

History

Reserved Section R20-2-738 recodified to R3-7-738 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-739 Recodified

History

Reserved Section R20-2-739 recodified to R3-7-739 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-740 Recodified

History

Reserved Section R20-2-740 recodified to R3-7-740 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-741 Recodified

History

Reserved Section R20-2-741 recodified to R3-7-741 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-742 Recodified

History

Reserved Section R20-2-742 recodified to R3-7-742 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-743 Recodified

History

Reserved Section R20-2-743 recodified to R3-7-743 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-744 Recodified

History

Reserved Section R20-2-744 recodified to R3-7-744 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-745 Recodified

History

Reserved Section R20-2-745 recodified to R3-7-745 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-746 Recodified

History

Reserved Section R20-2-746 recodified to R3-7-746 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-747 Recodified

History

Reserved Section R20-2-747 recodified to R3-7-747 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-748 Recodified

History

Reserved Section R20-2-748 recodified to R3-7-748 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-749 Recodified

History

New Section made by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-749 recodified to R3-7-749 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-750 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-750 recodified to R3-7-750 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-751 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-1). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). . Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. Section R20-2-751 recodified to R3-7-751 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-751.01 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption repealed October 1, 1998, under Laws 1997, Ch. 117, §3; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Repealed Section R20-2-751.01 recodified to R3-7-751.01 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-752 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). . Amended by final rulemaking at 19 A.A.R. 3325, effective November 30, 2013. Section R20-2-752 recodified to R3-7-752 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-753 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Section R20-2-753 recodified to R3-7-753 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-754 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-754 recodified to R3-7-754 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-755 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-755 recodified to R3-7-755 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-756 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-756 recodified to R3-7-756 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-757 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-757 recodified to R3-7-757 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-758 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Section repealed by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Repealed Section R20-2-758 recodified to R3-7-758 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-759 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-1). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-759 recodified to R3-7-759 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-760 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). Amended by final rulemaking at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-1). Amended by final rulemaking at 12 A.A.R. 3722, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Section R20-2-760 recodified to R3-7-760 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-761 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). R20-2-761 recodified to R3-7-761 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish these rules in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the rules (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Ariz. Admin. Code § R20-2-762 Recodified

History

Adopted effective under an exemption from the provisions of A.R.S. Title 41, Chapter 6, with an interim effective date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secretary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective September 22, 1999 (Supp. 99-3). R20-2-762 recodified to R3-7-762 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).
The following Table was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Chapter 117, § 3. Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit this Table to the Governor's Regulatory Review Council for review and approval. Although exempt from certain provisions of the Administrative Procedure Act, the Department was required to publish this Table in the Arizona Administrative Register and provide reasonable notice and at least one public hearing on the Table (Supp. 97-3). The exempt rules expired when the Section was permanently adopted with changes (Supp. 98-3).

Article 8 RECODIFIED

Ariz. Admin. Code § R20-2-801 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-801 recodified from R4-31-801 (Supp. 95-1). R20-2-801 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-801 recodified to R3-7-801 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-802 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-802 recodified from R4-31-802 (Supp. 95-1). R20-2-802 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-802 recodified to R3-7-802 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-803 Recodified

History

Emergency rule adopted effective October 12, 1990, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 90-4). Emergency expired. Emergency rule adopted again without change effective February 12, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-1). Emergency expired. Emergency rule adopted again with changes effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-803 recodified from R4-31-803 (Supp. 95-1). R20-2-803 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-803 recodified to R3-7-803 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-804 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-804 recodified from R4-31-804 (Supp. 95-1). R20-2-804 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-804 recodified to R3-7-804 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-805 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-805 recodified from R4-31-805 (Supp. 95-1). R20-2-805 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-805 recodified to R3-7-805 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-806 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-806 recodified from R4-31-806 (Supp. 95-1). R20-2-806 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-806 recodified to R3-7-806 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-807 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-807 recodified from R4-31-807 (Supp. 95-1). R20-2-807 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-807 recodified to R3-7-807 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-808 Recodified

History

Reserved Section R20-2-807 recodified to R3-7-807 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-809 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-809 recodified from R4-31-809 (Supp. 95-1). R4-2-809 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-809 recodified to R3-7-809 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-810 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-810 recodified from R4-31-810 (Supp. 95-1). R20-2-810 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-810 recodified to R3-7-810 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-811 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted with changes effective June 22, 1992 (Supp. 92-2). R20-2-811 recodified from R4-31-811 (Supp. 95-1). R20-2-811 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-811 recodified to R3-7-811 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-812 Recodified

History

Emergency rule adopted effective July 17, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency rule adopted again without change effective October 16, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency rule adopted again without change effective January 9, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Emergency rule adopted again without change effective April 22, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-2). Adopted effective June 22, 1992 (Supp. 92-2). R20-2-812 recodified from R4-31-812 (Supp. 95-1). R20-2-812 repealed effective October 8, 1998 (Supp. 98-4). Repealed Section R20-2-812 recodified to R3-7-812 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 9 RECODIFIED

Ariz. Admin. Code § R20-2-901 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-901 recodified from R4-31-901 (Supp. 95-1). Section R20-2-901 repealed; new Section R20-2-901 renumbered from R20-2-902 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-901 recodified to R3-7-901 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-902 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-902 recodified from R4-31-902 (Supp. 95-1). R20-2-902 renumbered to R20-2-901; new Section R20-2-902 renumbered from R20-2-903 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-902 recodified to R3-7-902 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-903 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-903 recodified from R4-31-903 (Supp. 95-1). R20-2-903 renumbered to R20-2-902; new Section R20-2-903 renumbered from R20-2-904 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-903 recodified to R3-7-903 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-904 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted effective August 31, 1993 (Supp. 93-3). R20-2-904 recodified from R4-31-904 (Supp. 95-1). R20-2-904 renumbered to R20-2-903; new Section R20-2-904 renumbered from R20-2-905 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-904 recodified to R3-7-904 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-905 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-905 recodified from R4-31-905 (Supp. 95-1). R20-2-905 renumbered to R20-2-904; new Section R20-2-905 adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). R20-2-905 recodified to R3-7-905 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-906 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-906 recodified from R4-31-906 (Supp. 95-1). R20-2-906 renumbered to R20-2-907; new Section R20-2-906 adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-906 recodified to R3-7-906 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-907 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted effective August 31, 1993 (Supp. 93-3). R20-2-907 recodified from R4-31-907 (Supp. 95-1). R20-2-907 renumbered to R20-2-908; new Section R20-2-907 renumbered from R20-2-906 and amended effective October 8, 1998 (Supp. 98-4). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-907 recodified to R3-7-907 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-908 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Permanent rule adopted effective August 31, 1993 (Supp. 93-3). R20-2-908 recodified from R4-31-908 (Supp. 95-1). R20-2-908 renumbered to R20-2-909; new Section R20-2-908 renumbered from R20-2-907 and amended effective October 8, 1998 (Supp. 98-4). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-908 recodified to R3-7-908 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-909 Recodified

History

Emergency rule adopted effective November 23, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-4). Emergency rule adopted again effective February 22, 1993 (Supp. 93-1). Emergency expired. Emergency rule adopted again effective June 1, 1993 (Supp. 93-1). Section R4-31-909 adopted as an emergency rule permanently adopted and renumbered to R4-31-910, new Section R4-31-909 adopted effective August 31, 1993 (Supp. 93-3). R20-2-909 recodified from R4-31-909 (Supp. 95-1). R20-2-909 renumbered to R20-2-210; new Section R20-2-909 renumbered from R20-2-908 and amended effective October 8, 1998 (Supp. 98-4). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-909 recodified to R3-7-909 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-910 Recodified

History

Section R4-31-910 renumbered from emergency rule R4-31-909 and permanently adopted with changes effective August 31, 1993 (Supp. 93-3). R20-2-910 recodified from R4-31-910 (Supp. 95-1). R20-2-910 renumbered to R20-2-912; new Section R20-2-910 renumbered from R9-2-909 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). Amended by final rulemaking at 16 A.A.R. 1756, effective October 9, 2010 (Supp. 10-3). Amended by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-910 recodified to R3-7-910 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-911 Recodified

History

Adopted effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). R20-2-911 recodified to R3-7-911 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-912 Recodified

History

Section R20-2-912 renumbered from R20-2-910 and amended effective October 8, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 1690, effective June 5, 2004 (Supp. 04-2). R20-2-912 recodified to R3-7-912 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-913 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-913 recodified to R3-7-913 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Article 10 RECODIFIED

Ariz. Admin. Code § R20-2-1001 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1001 recodified to R3-7-1001 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1002 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1002 recodified to R3-7-1002 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1003 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1003 recodified to R3-7-1003 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1004 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1004 recodified to R3-7-1004 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1005 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1005 recodified to R3-7-1005 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1006 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1006 recodified to R3-7-1006 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1007 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1007 recodified to R3-7-1007 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1008 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1008 recodified to R3-7-1008 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1009 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1009 recodified to R3-7-1009 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1010 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1010 recodified to R3-7-1010 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1011 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1011 recodified to R3-7-1011 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1012 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1012 recodified to R3-7-1012 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Ariz. Admin. Code § R20-2-1013 Recodified

History

Adopted by Final rulemaking at 21 A.A.R. 1693, effective 10/3/2015. R20-2-1013 recodified to R3-7-1013 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3).

Chapter 03 Office of Tourism

Article 1 JOINT-VENTURES

Ariz. Admin. Code § R20-3-101 Definitions

The following term applies to this Article. "Joint-venture activity" means a tourism-related, advertising or promotional activity between the Arizona Office Tourism (the Office) and 1 or more private corporations.

History

Adopted effective October 19, 1983 (Supp. 83-5). R20-3-101 recodified from R4-41-101 (Supp. 95-1). Amended effective March 5, 1997 (Supp. 97-1). The phrase "1 year or more" was amended to read "1 or more" to correct a printing error (Supp. 99-3).

Ariz. Admin. Code § R20-3-102 Joint-venture Procedures

A private corporation that wishes to participate in a joint-venture activity shall, on its own initiative or in response to an Office request, submit the following information:

1. The name and mailing address of the applicant corporation;

2. The physical address, if different from the mailing address;

3. The name and telephone number of the project coordinator;

4. The beginning and ending dates of the project;

5. The federal employer identification number;

6. A description of the project;

7. The benefit to the state from engaging in the joint-venture activity;

8. The markets to be reached;

9. The projected numbers of people to be reached; and

10. A projected budget, describing the allocation of monies.

History

Adopted effective October 19, 1983 (Supp. 83-5). R20-3-102 recodified from R4-41-102 (Supp. 95-1). Amended effective March 5, 1997 (Supp. 97-1).

Ariz. Admin. Code § R20-3-103 Standards for Participants

In determining whether to enter into a joint-venture activity, the Office shall consider the following standards:

1. Does the proposal supplement the Office's marketing objectives?

2. Is the proposal for an Arizona market identified in the Office's annual marketing plan?

3. Does the private corporation have experience in marketing a destination in the market selected?

4. Is it in the Office's best financial interest to participate?

5. Is the potential impact of the joint-venture activity beneficial to tourism in Arizona?

6. Is the marketing philosophy of the private corporation compatible with the marketing philosophy of the Office?

History

Adopted effective October 19, 1983 (Supp. 83-5). R20-3-103 recodified from R4-41-103 (Supp. 95-1). Amended effective March 5, 1997 (Supp. 97-1).

Ariz. Admin. Code § R20-3-104 Conditions of Participation

If the Office decides to enter into a joint-venture activity with a private corporation, the corporation shall agree to the following conditions:

1. The private corporation shall supply a minimum of 50% of the monies in cash or in kind for the joint-venture activity.

2. The state shall pay no monies before receipt of the services.

3. The Director of the Office shall be the final authority for all joint-venture activity.

History

Adopted effective October 19, 1983 (Supp. 83-5). R20-3-104 recodified from R4-41-104 (Supp. 95-1). Amended effective March 5, 1997 (Supp. 97-1).

Chapter 04 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - FINANCIAL INSTITUTIONS

Article 1 GENERAL

Ariz. Admin. Code § R20-4-101 Scope of Article

The rules in this Article apply to all activities of the Director and to the interpretation of all Arizona statutes and rules administered by the Director.

History

Former Rule 1. Former R4-4-101 repealed, new R4-4-101 adopted effective August 16, 1991 (Supp. 91-3). R20-4-101 recodified from R4-4-101 (Supp. 95-1). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-102 Definitions

In this Chapter, unless otherwise specified:

1. "Active management" means directing a licensee's activities by a responsible individual, who:

a. Is knowledgeable about the licensee's Arizona activities;

b. Supervises compliance with:

i. The laws enforced by the Department of Insurance and Financial Institutions -Financial Institutions Division as they relate to the licensee, and

ii. Other applicable laws and rules; and

c. Has sufficient authority to ensure compliance.

2. "Affiliate" means the same as defined under A.R.S. § 6-901, 6-941, 6-971, and 6-991.

3. "Attorney General" means the Attorney General or an assistant Attorney General of the state of Arizona.

4. "Back-office location" means a location that:

a. Is dedicated to administrative and operational functions of the licensee that are incidental to the activity requiring licensure;

b. Does not involve interaction with the public whether in-person, telephonically, or electronically;

c. Is subject to the licensee's comprehensive written information security plan; and

d. Is able to produce records associated with the location as part of a Department investigation or examination.

5. "Branch office" means, unless otherwise provided by law, a business location which is not the licensee's principal place of business, is maintained by the licensee, and where the licensee conducts regulated activities. A branch office does not include a "back-office location" or "remote work location" as defined in this Section.

"Compensation" means, in applying that term's definition in A.R.S. §§ 6-901, 6-941, and 6-971, anything received in advance, after repayment, or at any time during a loan's life. This subsection expressly excludes the following items from those definitions of compensation:

a. Charges or fees customarily received after a loan's closing including prepayment penalties, termination fees, reinvestment fees, late fees, default interest, transfer fees, impound account interest and fees, extension fees, and modification fees. However, extension fees and modification fees are compensation if the lender advances additional funds or increases the credit limit on an open-end mortgage as part of the extension or modification;

b. Out-of-pocket expenses paid to independent third parties including appraisal fees, credit report fees, legal fees, document preparation fees, title insurance premiums, recording, filing, and statutory fees, collection fees, servicing fees, escrow fees, and trustee's fees;

~~c. Insurance commissions;~~

~~d. Contingent or additional interest, including interest based on net operating income; or~~

~~e. Equity participation.~~

"Business of a savings and loan association or savings bank" means receiving money on deposit subject to payment by check or any other form of order or request or on presentation of a certificate of deposit or other evidence of debt.

c. Insurance commissions;

d. Contingent or additional interest, including interest based on net operating income; or

e. Equity participation.

"Commercial finance transaction," as that term is used in this Section's definitions of the terms "Engaged in the business of making mortgage loans" and "Engaged in the business of making mortgage loans or mortgage banking loans," means a loan made primarily for other than personal, family, or household purposes.

9. "Control of a licensee," as used in A.R.S. §§ 6-903, 6-944, or 6-978, does not include acquiring additional fractional equity interests in a licensee by any person who already has the power to vote 51% or more of the licensee's outstanding voting equity interests.

10. "Correspondent contract," as that term is used in A.R.S. §§ 6-941, 6-943, 6-971, or 6-973, means an agreement between a lender and a funding source under which the funding source may fund, or is required to fund, loans originated by the lender.

"Directly or indirectly makes, negotiates, or offers to make or negotiate" and "Directly or indirectly making, negotiating, or offering to make or negotiate," as those phrases are used in A.R.S. §§ 6-901, 6-941, or 6-971, mean:

~~a. Providing consulting or advisory services in connection with a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage loan transaction;~~

~~i. To an investor, concerning the location or identity of potential borrowers, regardless of whether the person providing consulting or advisory services directly contacts any potential borrowers; or~~

~~ii. To a borrower, concerning the location or identity of potential investors or lenders; or~~

b. Providing assistance in preparing an application for a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage banking loan transaction, regardless of whether the person providing assistance directly contacts any potential investor or lender; and

~~c. Processing a loan; but~~

~~d. "Directly or indirectly makes, negotiates, or offers to make or negotiate" and "Directly or indirectly making, negotiating, or offering to make or negotiate" do not include:~~

i. Providing clerical, mechanical, or word processing services to prepare papers or documents associated with a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage banking loan transaction;

~~ii. Purchasing, selling, negotiating to purchase or sell, or offering to purchase or sell a mortgage loan, mortgage banking loan, or commercial mortgage banking loan already funded;~~

~~iii. Making, negotiating, or offering to make additional advances on an existing open-ended mortgage loan, mortgage banking loan, or commercial mortgage loan including revolving credit lines;~~

iv. Modifying, renewing, or replacing a mortgage loan, a mortgage banking loan, or a commercial mortgage loan already funded, if the parties to and security for the loan are the same as the original loan immediately before the modification, renewal, or replacement, and if no additional funds are advanced and no increase is made in the credit limit on an open-ended loan. Replacing a loan means making a new loan simultaneously with terminating an existing loan.

"Cushion," as that term is used in R20-4-1811 or R20-4-1908, means funds that a servicer or lender may require a borrower to pay into an escrow or impound account before the borrower's periodic payments are available in the account to cover unanticipated disbursements.

12. "Department" means the same as defined under A.R.S. § 6101(5).

~~"Employee" means a natural person who has an employment relationship with a licensee that is acknowledged by both the person and the licensee, and:~~

~~a. The person is entitled to payment, or is paid, by the licensee;~~

~~b. The licensee withholds and remits, or is liable for withholding and remitting, payroll deductions for all applicable federal and state payroll taxes;~~

~~c. The licensee has the right to hire and fire the employee and the employee's assistants;~~

~~d. The licensee directs the methods and procedures for performing the employee's job;~~

~~e. The licensee supervises the employee's business conduct and the employee's compliance with applicable laws and rules; and~~

~~f. The rights and duties under subsections (13)(a) through (e) belong to the licensee regardless of whether another person also shares those rights and duties.~~

a. Includes any of the following:

i. Providing consulting or advisory services in connection with a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage loan transaction to an investor, concerning the location or identity of potential borrowers if the consulting or advisory services include direct interaction, including by telephone or electronic means, with a potential borrower that results in a request or obtaining a consumer's date of birth, social security number, credit report, employment information, work history, or account information held in any depository, trust, or investment account:

ii. Providing consulting or advisory services in connection with a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage loan transaction to a consumer, concerning the location or identity of potential lenders if the consulting or advisory services include a representation with regard to pre-qualification, approval, rate, terms, or conditions of a loan;

iii. Preparing or providing assistance in preparing an application for a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage banking loan transaction;

iv. Loan processing; or

v. Loan underwriting.

b. Does not include:

i. Providing technological, mechanical, or word processing services to prepare papers or documents associated with a mortgage loan transaction, mortgage banking loan transaction, or commercial mortgage banking loan transaction;

ii. Purchasing, selling, negotiating to purchase or sell, or offering to purchase or sell a mortgage loan, mortgage banking loan, or commercial mortgage banking loan already funded;

iii. Making, negotiating, or offering to make additional advances on an existing open-ended mortgage loan, mortgage banking loan, or commercial mortgage loan including revolving credit lines; or

14. "Director" means the same as defined under A.R.S. § 20-102.

15. "Electronic record" means the same as defined under A.R.S. § 44-7002(7).

16. "Employee" means a natural person who has an employment relationship with a licensee that is acknowledged by both the person and the licensee, and:

a. The person is entitled to payment, or is paid, by the licensee;

b. The licensee withholds and remits, or is liable for withholding and remitting, payroll deductions for all applicable federal and state payroll taxes, if applicable;

c. The licensee has the right to hire and fire the employee and the employee's assistants;

d. The licensee directs the methods and procedures for performing the employee's job;

e. The licensee supervises the employee's business conduct and the employee's compliance with applicable laws and rules; and

f. The rights and duties under subsections (16)(a) through (e) belong to the licensee regardless of whether another person also shares those rights and duties.

17. "Engaged in the business of making mortgage loans," as that phrase is used in A.R.S. § 6-902, and "engaged in the business of making mortgage loans or mortgage banking loans," as that phrase is used in A.R.S. § 6-942, mean the direct or indirect making of a total of more than five mortgage banking loans or mortgage loans, or both in a calendar year. Each loan counts only once as of its closing date. A person is not "engaged in the business of making mortgage loans or mortgage banking loans" if the person makes loans solely in commercial finance transactions in which no more than 35% of the aggregate value of all security taken by the investor on the closing date is a lien, or liens, on real property.

18. "Exclusive contract," as that term is used in A.R.S. §§ 6-912 and 6-991.02, means a written agreement in which a loan originator agrees to perform services as a loan originator subject to supervision and control by a person holding a certificate of exemption issued under A.R.S. § 6-912 on an exclusive basis. The agreement provides that the loan originator is expressly prohibited from performing loan origination or modification services for any other person during the time the agreement is in effect.

19. "Generally accepted accounting principles" means United States Generally Accepted Accounting Principles issued by the Financial Accounting Standards Board or the International Financial Reporting Standards issued by the International Accounting Standards Board.

20. "Loan," as that term is used in A.R.S. §§ 6-126(D)(5) and (7), means all loans negotiated or closed that are secured by Arizona real property.

21. "Loan Processing" means requesting, collecting, receiving, or reviewing a loan application's supporting documents for use in underwriting, and communicating with the consumer to obtain information necessary for making a credit decision.

~~"Reasonable investigation of the background," as that term is used in A.R.S. §§ 6-903, 6-943, or 6-976 means a licensee, at a minimum:~~

~~a. Collects and reviews all the documents authorized by the Immigration Reform and Control Act of 1986, 8 U.S.C. 1324a ;~~

~~b. Obtains a completed Employment Eligibility Verification (Form I-9);~~

~~c. Obtains a completed and signed employment application;~~

~~d. Obtains a signed statement attesting to all of an applicant's felony convictions, including detailed information regarding each conviction;~~

~~e. Consults with the applicant's most recent or next most recent employer, if any;~~

~~f. Inquiries regarding the applicant's qualifications and competence for the position;~~

~~g. If for a loan officer, loan originator, loan processor, branch manager, supervisor, or similar position, obtains a current credit report from a credit reporting agency; and~~

h. Investigates further if any information received in the above inquiries raises questions as to the applicant's honesty, truthfulness, integrity, or competence. An inquiry is sufficient after two attempts to contact a person, including at least one written inquiry.

"Loan underwriting" means analyzing information in connection with the making of a credit decision.

23. "Person" means a natural person, including a sole proprietor, or any legal or commercial entity including a corporation, business trust, estate, trust, partnership, limited partnership, joint venture, association, limited liability company, limited liability partnership, or limited liability limited partnership.

~~"Registered to do business in this state" means:~~

~~a. If an Arizona corporation, it is incorporated under A.R.S. Title 10, Chapter 2, Article 1;~~

b. If a foreign corporation, it either transfers its domicile under A.R.S. Title 10, Chapter 2, Article 2, or obtains authority to transact business in Arizona under A.R.S. Title 10, Chapter 15, Article 1;

~~c. If a business trust, it obtains authority to transact business in Arizona under A.R.S. Title 10, Chapter 18, Article 4;~~

~~d. If an estate, it acts through a personal representative duly appointed by this state's Superior Court, under the provisions of A.R.S. Title 14, Chapter 3 or 4;~~

~~e. If a trust, it delivers to the Superintendent an executed copy of the trust instrument creating the trust together with:~~

~~i. All the current amendments, or~~

~~ii. A true copy of the trust instrument certified accurate and complete by a trustee of the trust before a notary public;~~

~~f. If a general partnership, limited partnership, limited liability company, limited liability partnership, or limited liability limited partnership, it is organized under A.R.S. Title 29;~~

g. If a foreign general partnership, limited partnership, limited liability company, limited liability partnership, or limited liability limited partnership, it is registered with the Arizona Secretary of State's office under A.R.S. Title 29;

~~h. If a joint venture, association, or any entity not specified in this subsection, it is organized and conducts its business in compliance with Arizona law; or~~

~~i. The entity is exempt from registration.~~

"Property insurance," as that term is used in A.R.S. §§ 6-909 and 6-947, does not include flood insurance as that term is used in the Flood Disaster Protection Act of 1973, as modified by the National Flood Insurance Reform Act of 1994. 42 U.S.C. 4001, et seq.

25. "Reasonable investigation of the background," as that term is used in A.R.S. §§ 6-903, 6-943, or 6-976 means a licensee, at a minimum:

a. Collects and reviews all the documents authorized by the Immigration Reform and Control Act of 1986, 8 U.S.C. 1324a;

b. Obtains a completed Employment Eligibility Verification (Form I-9), if applicable;

c. Obtains a completed and signed employment application, if applicable;

d. Obtains a signed statement attesting to all of an applicant's felony convictions, including detailed information regarding each conviction;

e. Consults with the applicant's most recent or next most recent employer, if any;

f. Makes inquiries regarding the applicant's qualifications and competence for the position;

g. If for a loan originator, loan processor, branch manager, supervisor, or similar position, obtains a current credit report from a credit reporting agency; and

26. "Record" means the same as defined under A.R.S. § 447002(13).

~~"Responsible individual" or "responsible person", as those terms are used in A.R.S. §§ 6-903, 6-943, 6-973, and 6-976, means a resident of this state who:~~

~~a. Lives in Arizona during the entire period of designation as the responsible individual on a license;~~

~~b. Is in active management of a licensee's affairs;~~

~~c. Meets the qualifications listed in A.R.S. §§ 6-903, 6-943, or 6-973 ; and~~

~~d. Is an officer, director, member, partner, employee, or trustee of a licensed entity.~~

"Registered Exempt Person" means a person who is exempt from licensure pursuant to A.R.S. § 6-912 and A.R.S. Title 6, Chapter 9, Articles 1, 2 and 3 as a federally chartered savings bank that is registered with the nationwide mortgage licensing system and registry and holds a certificate of exemption.

28. "Registered to do business in this state" means:

a. If an Arizona corporation, it is incorporated under A.R.S. Title 10, Chapter 2, Article 1;

b. If a foreign corporation, it obtains authority to transact business in Arizona under A.R.S. Title 10, Chapter 15, Article 1;

c. If a business trust, it obtains authority to transact business in Arizona under A.R.S. Title 10, Chapter 18, Article 4;

d. If an estate, it acts through a personal representative duly appointed by this state's Superior Court, under the provisions of A.R.S. Title 14, Chapter 3 or 4;

e. If a trust, it delivers to the Director an executed copy of the trust instrument creating the trust together with:

i. All the current amendments, or

ii. A true copy of the trust instrument certified accurate and complete by a trustee of the trust before a notary public;

f. If a general partnership, limited partnership, limited liability company, limited liability partnership, or limited liability limited partnership, it is organized under A.R.S. Title 29;

h. If a joint venture, association, or any entity not specified in this subsection, it is organized and conducts its business in compliance with Arizona law; or

i. The entity is exempt from registration.

29. "Remote work location" means a location at which the employees (including licensed loan originators) of a licensee may conduct licensed activities other than the principal place of business or branch office. Licensed activities from a remote work location are permitted when under the supervision of the licensee and when all of the following apply:

a. The licensee has written policies and procedures for supervision of employees working from their residence or a location other than a licensed location,

b. Access to company platforms and customer information shall be in accordance with the licensee's comprehensive written information security plan; and

c. Physical records shall not be maintained at a remote work location.

30. "Resident of this state" means a natural person domiciled in Arizona.

31. "Responsible individual" or "responsible person", as those terms are used in A.R.S. §§ 6-903, 6-943, 6-973, and 6-976, means a resident of this state who:

a. Is in active management of a licensee's affairs; and

b. Meets the qualifications listed in A.R.S. §§ 6-903, 6-943, or 6-973.

History

Former Rule 2. Former R4-4-102 repealed, new R4-4-102 adopted effective August 16, 1991 (Supp. 91-3). R20-4-102 recodified from R4-4-102 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 2094, effective June 10 (Supp. 99-2). Amended by final rulemaking at 7 A.A.R. 668, effective January 10, 2001 (Supp. 01-1). Amended by final rulemaking at 8 A.A.R. 145, effective December 10, 2001 (Supp. 01-4). Amended by final rulemaking at 18 A.A.R. 2622, effective December 2, 2012 (Supp. 12-4). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-103 [Repealed]

History

Former Rule 3. Former R4-4-103 repealed, new R4-4-103 adopted effective August 16, 1991 (Supp. 91-3). R20-4-103 recodified from R4-4-103 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4670, effective November 14, 2000 (Supp. 00-4). Repealed by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-104 Acceptance of Other Forms

If another entity's applications and forms provide all the information required by Arizona law, the Director has the discretion to accept them, even if another provision of this Chapter requires use of a specific Department form. The Director's exercise of the discretion to accept alternative forms does not limit the Director's power to require additional information necessary to complete an application or other form.

History

Former Rule 4. Former R4-4-104 repealed, new R4-4-104 adopted effective August 16, 1991 (Supp. 91-3). R20-4-104 recodified from R4-4-104 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4670, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-105 Claims Against a Deposit in Place of Bond

A. As used in this Section:

1. "Deposit" means cash or alternatives to cash deposited by a licensee with the Director in place of a bond.

2. "Depositor" means licensee or an employee of the licensee who makes a deposit with the Director.

3. "Verified claim" means a claim filed with the Director under subsection (B).

4. "Award" means an amount of money granted under subsection (F).

B. A person may file a claim against a deposit by delivering documentation of the claim to the Director. The claim shall be based on a final judgment in favor of the claimant, entered by a court of competent jurisdiction. To support a claim, the judgment shall be:

1. Against a depositor;

2. For injury caused by the depositor's wrongful act, default, fraud, or misrepresentation committed in the course of the depositor's licensed business activity; and

3. Documented by:

a. A certified copy of the complaint in the action;

b. A certified copy of the judgment in the action;

c. A statement that execution of the judgment has not been stayed, or an explanation of the terms and reason for any stay;

d. A statement of any amounts recovered on the judgment; and

e. A sworn and notarized statement that the claim is true and correct to the best of the claimant's knowledge and belief.

C. A claimant shall file a claim with the Director, and all required supporting documentation, not more than six months after entry of the judgment asserted in the claim. However, if execution of the asserted judgment is stayed during the first six months after its entry, the claimant may file a verified claim only during the six months after the stay is lifted. The Department shall process a timely-filed verified claim as a request for hearing under A.R.S. § 41-1092.03(B).

D. The claimant shall notify the depositor of the filing of a verified claim under this Section, and make the depositor a party to all proceedings on the claim. To do so, the claimant shall send the depositor a copy of all documents filed under subsection (B). The claimant shall make this delivery no more than 10 days after the original filing with the Director under subsection (B). The Department considers a proceeding on a verified claim to be a contested case, governed by the provisions of 20 A.A.C. 4, Article 12.

E. The Director shall, after a hearing, deny a verified claim if the hearing produces evidence of any of the following circumstances:

1. The judgment is not for an injury caused by the depositor and described in subsection (B)(2);

2. The judgment was awarded by default, stipulation, or consent, and no showing is made in the hearing of an injury caused by the depositor and described in subsection (B)(2);

3. The judgment's execution has been stayed for any reason;

The judgment was procured through fraud or collusion;

5. The judgment has been satisfied from other sources; or

6. The action that produced the judgment was barred by the applicable statute of limitations at the time it was commenced.

F. If the Director grants a verified claim, the Director shall do so in the amount of the compensatory damages awarded against the depositor in the judgment, exclusive of:

1. Attorney's fees, and

2. Amounts previously paid on the judgment.

G. A person injured by a depositor shall give the Director written notice at the time of filing a civil action if the claims alleged could be made as a verified claim under this Section. The written notice shall include a statement of the amount of compensatory damages sought against the depositor. The injured person shall provide further information about the civil action to the Director upon request.

H. If the Director grants a verified claim under subsection (F), the Director shall authorize the State Treasurer, in writing, to release the deposit to the claimant in the amount stated in subsection (F) if the Director has not received notice of another pending civil action under subsection (G).

I. If given notice under subsection (G), the Director shall determine whether the deposit is sufficient to satisfy all claims under subsection (F). The Director shall determine award amounts for each claim of which the Director has notice, and authorize payment, as follows:

1. If the deposit is sufficient to satisfy all claims under subsection (F), the Director shall authorize its release as described in subsection (H).

2. If the deposit is not sufficient to satisfy all claims under subsection (F), the Director shall calculate the award on each claim as follows:

a. Each granted claim shall receive a pro rata share of the total deposit.

b. Each pro rata share shall be a dollar amount calculated by multiplying the total deposit by a fraction.

i. The numerator of the fraction is the amount of the Director's award for the verified claim.

ii. The denominator of the fraction is the sum of the amount of the Director's award for the verified claim plus the total compensatory damages sought in all other civil actions against the same depositor disclosed to the Director under subsection (G).

c. The Director shall authorize the State Treasurer to release the pro rata portion of the deposit calculated for each verified claim.

J. A depositor or former licensee may request return of its deposit if it substitutes a bond for the deposit, or if its license is surrendered, revoked, or expired, and if all statutory conditions for release of the deposit have been satisfied. The Director shall not release any part of a deposit to a depositor or former licensee until the Director determines whether there are any awards on verified claims unsatisfied because of an apportionment under subsection (I). The Director shall use the deposit amount to pay any unsatisfied portion of those awards. If the deposit amount is not sufficient to pay in full all unsatisfied awards, the Director shall pay the remaining amount of the deposit to claimants in the ratio their awards bear to the total of all awards granted against the deposit.

K. The court supervising a licensee in receivership may order the release of a deposit to persons injured by conduct described in subsection (B). In that event, the receiver shall deliver a certified copy of the court's order to the Director. The copy may be uncertified if the receiver is the Director or any other officer or agency of the state of Arizona. The Director shall then authorize the State Treasurer, in writing, to release the deposit to the receiver. The receiver shall distribute the deposit as ordered by the receivership court, rather than under this Section.

History

Adopted effective August 16, 1991 (Supp. 91-3). R20-4-105 recodified from R4-4-105 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4670, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-106 Bankruptcy

An enterprise licensee or consumer lender licensee shall immediately deliver written notice to the Director if it files a voluntary bankruptcy petition, or if its creditors name the licensee a debtor in an involuntary bankruptcy petition. On the date of each of the following documents' filing with the bankruptcy court, the licensee shall deliver to the Director a copy of the:

1. Petition for relief,

2. Schedule of assets and liabilities,

3. Statement of financial affairs,

4. List of creditors, and

5. Plan of reorganization.

History

Adopted effective August 16, 1991 (Supp. 91-3). R20-4-106 recodified from R4-4-106 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 145, effective December 10, 2001 (Supp. 01-4). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Ariz. Admin. Code § R20-4-107 Licensing Time-frames

A. Definitions. The definitions in A.R.S. § 41-1072 and the following definitions apply to this Section.

"Application" means a document specified or described in this Title, or in any statute enforced by the Department, requesting any permit, certificate, approval, registration, charter, or similar permission described in Table A, together with all supporting documentation required by statute or rule.

2. "License" means the same as defined under A.R.S. § 41-1001(13).

B. The time-frames listed in Table A apply to licenses issued by the Department. The licensing time-frames consist of an administrative completeness review, a substantive review, and an overall review. The administrative completeness review time-frame begins to run upon receipt of an application by the Department.

1. Within the administrative completeness review time-frame in Table A, the Department shall notify the applicant in writing whether the application is complete. If the application is incomplete, the notice shall specify the missing information or component.

2. An applicant whose application is incomplete shall supply the missing information within 60 days after the date of the notice. If an applicant shows good cause in writing before the expiration of the 60 day time limit, the Superintendent Director shall extend the period for administrative completion of an application. The administrative completeness review time-frame stops running on the postmark date of the Department's written notice of an incomplete application, and resumes when the Department receives a complete application. If the applicant fails to submit a complete application within the specified time limit, the Department shall reject the application and close the file. An applicant may reapply.

~~3. The substantive review time-frame begins to run on the postmark date of the Department's written notice that the application is administratively complete.~~

4. Within the overall time-frame set forth in Table A the Department shall send the applicant written notice of its decision to approve, conditionally approve, or deny a license, unless the time-frame is extended by mutual agreement under A.R.S. § 411075. If the Department denies an application, it shall provide written justification for the denial and a written explanation of the applicant's right to a hearing or appeal in the form required by A.R.S. § 41-1076 .

~~5. The Department shall calculate time limits prescribed in this Section under R2-19-107 .~~

C. Within the time-frame for the administrative completeness review set forth in Table A, the Department shall notify the applicant in writing whether the application is complete or deficient.

1. If the application is deficient, the Department shall issue a notice of deficiency to the applicant which shall include a comprehensive list of the specific deficiencies. If the Department issues a written notice of deficiency within the administrative completeness review time-frame, the administrative completeness review time-frame and the overall review time-frame are suspended from the date the notice is issued until the date that the Department receives an adequate response from the applicant.

2. The Department is not precluded from issuing additional notices of deficiency during an administrative completeness review.

3. If an applicant does not adequately respond to each specified deficiency in a notice of deficiency issued under subsection (C)(1) within 60 days after the date of a notice of deficiency the application is deemed withdrawn, and the Department is not required to take further action with respect to the application.

D. Within the time-frame for the substantive review set forth in Table A, the Department may issue one comprehensive written request for additional information to the applicant specifying each component or item of information required.

1. If the Department issues a comprehensive written request for additional information within the substantive review time-frame, the substantive review time-frame and the overall time-frame are suspended from the date the written request is issued until the date that the Department receives an adequate response from the applicant.

2. The Department is not precluded from issuing supplemental requests by mutual agreement for additional information, during the substantive review.

3. If an applicant does not adequately respond to each component or item of information required in a comprehensive written request or a supplemental request for additional information, within 60 days after the date of a comprehensive written request, or within 60 days after the date of the supplemental request for additional information, the application is deemed withdrawn, and the Department is not required to take further action with respect to the application.

E. Within the overall time-frames set forth in Table A, unless extended by mutual agreement under A.R.S. § 41-1075, the Department shall notify the applicant in writing that the application is granted or denied. If the application is denied, the Department shall provide to the applicant a written notice that complies with the provisions of A.R.S. § 41-1076.

F. In computing the time periods prescribed in these time-frame rules, the last day of a notice period is included in the computation, unless it is a Saturday, Sunday, or legal holiday.

G. The time-frames in this Section apply solely to actions taken by the Department. Nothing in this Section relieves a licensee or applicant of a duty to fulfill any other legal or regulatory requirement that is a condition of its power and authority to engage in business.

History

Adopted effective September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 8 A.A.R. 145, effective December 10, 2001 (Supp. 01-4). Amended by final rulemaking at 31 A.A.R. 533, effective 4/6/2025.

Article 2 BANK ORGANIZATION AND REGULATION

Ariz. Admin. Code § R20-4-201 Articles of Incorporation

A licensee shall deliver to the Director a copy of each amendment to the licensee's articles of incorporation within 30 days after the amendment is filed with the Arizona Corporation Commission. Before delivery to the Director, an officer of the licensee shall certify the copy delivered in compliance with this Section, in writing, signed by the certifying officer, attesting to the completeness, accuracy, and authenticity of the certified copy.

History

Former Rule 1. R20-4-201 recodified from R4-4-201 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 811, effective January 10, 2001 (Supp. 01-1). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-202 Bylaws

A licensee shall deliver to the Director a copy of each amendment to the licensee's bylaws within 30 days after the amendment is adopted. An officer of the licensee shall certify the copy delivered in compliance with this Section, in writing, attesting to the completeness, accuracy, and authenticity of the certified copy.

History

Former Rule 2. R20-4-202 recodified from R4-4-202 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 811, effective January 10, 2001 (Supp. 01-1). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-203 [Repealed]

History

Former Rule 3; Amended subsection (C) effective September 4, 1981 (Supp. 81-5). R20-4-203 recodified from R4-4-203 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-204 [Repealed]

History

Former Rule 4. R20-4-204 recodified from R4-4-204 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-205 [Repealed]

History

Former Rule 5. R20-4-205 recodified from R4-4-205 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3188, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-206 Bankers Blanket Bond Coverage - A.R.S. Section 6-188

A. Each bank shall carry at least the following basic blanket bond coverage:

| Banks with Deposits of: | Amounts: | | | | --- | --- | --- | --- | | Less than $25,000,000 | $300,000 | | | | 25,000,000 | to | 35,000,000 | 350,000 | | 35,000,000 | to | 50,000,000 | 450,000 | | 50,000,000 | to | 75,000,000 | 550,000 | | 75,000,000 | to | 100,000,000 | 700,000 | | 100,000,000 | to | 150,000,000 | 850,000 | | 150,000,000 | to | 250,000,000 | 1,200,000 | | 250,000,000 | to | 500,000,000 | 1,700,000 | | 500,000,000 | to | 1,000,000,000 | 2,500,000 | | 1,000,000,000 | to | 2,000,000,000 | 4,000,000 | | 2,000,000,000 | to | 5,000,000,000 | 6,000,000 | | 5,000,000,000 | to | 20,000,000,000 | 9,000,000 | | Over 20,000,000,000 | 10,000,000 | | |

B. Each bank shall supplement the bankers blanket bond coverage with at least a $2,000,000 excess fidelity bond.

History

Former Rule 6. R20-4-206 recodified from R4-4-206 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-207 Capital Obligations

A. An applicant for a Director's order of approval to issue a capital obligation shall submit the following documents to the Director and shall not issue any capital obligation before the Director issues the order of approval. The required documents are:

1. A certified copy of the resolution adopted by the Board of Directors, or a certified copy of the unanimous written consent of the Board of Directors, authorizing the sale of the capital obligation;

2. A copy of the agreement underlying the capital obligation;

3. A copy of the note or debenture intended to represent the capital obligation; and

4. A copy of the prospectus, if any, proposed for use in the sale of the capital obligation.

B. Each document evidencing a capital obligation shall:

1. Bear on its face, in bold face type, the following: This obligation is not a deposit and is not insured by the Federal Deposit Insurance Corporation.

2. Have a maturity provision that either:

a. Gives the obligation a maturity of at least five years, or

b. In the case of an obligation or issue that provides for scheduled repayments of principal, gives an average maturity of at least five years. The restriction on maturity stated in this subsection does not apply to any obligation that otherwise meets all the requirements of this rule if the Director determines that exigent circumstances require the issuance of the obligation without regard to any restriction on maturity. The provisions of this subsection do not apply to mandatory convertible debt obligations or issues.

3. State expressly on its face that the obligation:

a. Is subordinated and junior in right of payment to the issuing bank's obligations to its depositors and to the bank's other obligations to its general and secured creditors, and

b. Is ineligible as collateral for a loan by the issuing bank, except as provided in A.R.S. § 6-354.

4. Be unsecured.

5. State expressly on its face that the issuing bank may not retire any part of its capital obligation without the Director's prior written order of approval, and the prior written consent of the Federal Deposit Insurance Corporation.

6. Include, if the obligation is issued to a depository institution, a specific waiver of the right of offset by the lending depository institution.

7. State that, in the event of liquidation, all depositors and other creditors of the bank are to be paid in full before any payment of principal or interest is made on a capital obligation.

C. No payment shall be made under an optional right of payment reserved to the bank without the separate authorization of the Director. The Director may grant that authority in the initial order of approval or in a later order of approval.

History

Former Rule 7. R20-4-207 recodified from R4-4-207 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 2155, effective May 4, 2001 (Supp. 01-2). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-208 [Repealed]

History

Former Rule 8. R20-4-208 recodified from R4-4-208 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3188, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-209 Notice of Permanent Closing of Banking Office

A bank may close fewer than all of its banking offices. Before closing any office, a bank shall deliver a letter to the Director specifying the banking office it plans to close and the closing date. The bank shall ensure that the Director receives the letter at least 10 days before the closing date. Closing the banking office shall terminate the bank's authority to maintain that banking office on the date of the actual closure.

History

Former Rule 9. R20-4-209 recodified from R4-4-209 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 5388, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-210 [Repealed]

History

Former Rule 10. R20-4-210 recodified from R4-4-210 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3188, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-211 Application for a Banking Permit

A. Before an application is filed, the representatives of the potential applicant shall meet with the Director to discuss capitalization, location, and management of the proposed bank.

B. After the meeting required by subsection (A), persons who wish to proceed with the application process shall submit an application in the form the Director prescribes. The applicant shall support the application with sufficient information to enable the Director to make a determination.

History

Former Rule 11. R20-4-211 recodified from R4-4-211 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 3188, effective August 3, 2000 (Supp. 00-3). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Ariz. Admin. Code § R20-4-212 [Repealed]

History

Former Rule 12. Amended effective September 4, 1981 (Supp. 81-4). R20-4-212 recodified from R4-4-212 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-213 [Repealed]

History

Former Rule 13. Repealed effective September 13, 1981 (Supp. 81-5). R20-4-213 recodified from R4-4-213 (Supp. 95-1).

Ariz. Admin. Code § R20-4-214 Preservation of Records

A. Every bank shall keep its corporate and business records as originals or as copies of the originals made by reproduction methods that accurately and permanently preserve the records. Copies complying with this subsection, when satisfactorily identified, have the same evidentiary status as an original. A bank may keep its records as electronic records if the bank can generate all information and copies required by this Section within the timeframe set by the Department for examination or other purposes.

B. A bank shall keep its corporate and business records for the period required by this Section. These periods are measured from the date of the last entry or final action date. A bank shall have and comply with its own record retention schedule that is consistent with this Section. A bank may comply with this Section by complying with a preemptive federal regulation, even if the federal regulation requires a shorter retention period than is listed in this Section. This Section does not prohibit record retention for longer periods than these state-required minimums for any reason, including a retention period established by preemptive federal law or regulation. Likewise, this Section does not prohibit a bank from keeping any type of record not required in subsection (D).

C. Beginning on the effective date of this Section, corporate and business records of a bank operating in the state of Arizona are classified, and their retention periods are prescribed, according to the schedule in subsection (D). Retention periods are listed in subsection (D) using the notations, acronyms, and abbreviations listed in this subsection (C).

1. A numerical designation refers to a period of years unless a shorter period of time is specified in the schedule.

2. "AC" means after closure.

3. "ACH" means automated clearing house.

4. "AE" means after expiration.

5. "ALC" means after last contact.

6. "AP" means after paid.

7. "ATD" means after termination date.

8. "CTR" means a cash transaction report required by the Federal Bank Secrecy Act.

9. "FDIC" means the Federal Deposit Insurance Corporation.

"FHA" means the Federal Housing Administration.

11. "FHLMC" means the Federal Home Loan Mortgage Corporation.

12. "FNMA" means the Federal National Mortgage Association.

13. "GNMA" means the Government National Mortgage Association.

14. "IRS" means the United States Department of the Treasury's Internal Revenue Service.

15. "M" means months.

16. "P" means the bank shall keep the record permanently.

17. "PMI" means private mortgage insurance.

18. "SAR" means a suspicious activity report required by the Federal Bank Secrecy Act.

19. "TTL" means a treasury, tax, and loan account maintained by a bank.

"UCC" means the Uniform Commercial Code as it is in effect in Arizona.

D. Retention Schedule

1. Accounting and Auditing

~~a. Accrual and bond amortization 3~~

~~b. Audit report 6~~

~~c. Audit work papers 3~~

~~d. Bank call, income and dividend report 5~~

~~e. Bill, statement, or invoice - paid 7~~

~~f. Budget work papers 2~~

~~g. Collateral vault "in-and-out" ticket 1~~

~~h. Daily reserve computation 1~~

~~i. Earnings report 7~~

~~j. Expense voucher or invoice 7~~

~~k. Financial statement 7~~

~~l. Interoffice reconciliation 1~~

~~m. Interoffice transaction 1~~

~~n. Periodic statement for account owned by the bank 2~~

~~o. Reconcilement of deposits-due to bank 2~~

~~p. Reconcilement register-due from bank 2~~

~~q. Return and cash item register 1~~

~~r. Service contract 2~~

~~s. Treasury tax and loan account 2~~

~~t. Unclaimed property record 7~~

| a. | Accrual and bond amortization | 3 | | --- | --- | --- | | b. | Audit report | 6 | | c. | Audit work papers | 3 | | d. | Bank call, income and dividend report | 5 | | e. | Bill, statement, or invoice - paid | 7 | | f. | Budget work papers | 2 | | g. | Collateral vault " in-and-out" ticket | 1 | | h. | Daily reserve computation | 1 | | i. | Earnings report | 7 | | j. | Expense voucher or invoice | 7 | | k. | Financial statement | 7 | | l. | Interoffice reconciliation | 1 | | m. | Interoffice transaction | 1 | | n. | Periodic statement for account owned by bank | 2 | | o. | Reconcilement of deposits - due to bank | 2 | | p. | Reconcilement register - due from bank | 2 | | q. | Return and cash item register | 1 | | r. | Service contract | 2 | | s. | Treasury tax and loan account | 2 | | t. | Unclaimed property record | 5 |

Administration

~~a. Articles of incorporation or association, bylaws, or other record of organization P~~

~~b. Bankers blanket bond-record showing compliance 5 AE~~

~~c. Bank examiner's report 7~~

~~d. Capital note issuance and transfer record P~~

~~e. Depreciation record-office equipment 3~~

~~f. Dividend check and register 7~~

~~g. Dividend check-outstanding P~~

~~h. Expired policy insuring the bank 3 AE~~

~~i. FDIC assessment base, record 5~~

~~j. FDIC certificate P~~

~~k. Insurance policy number, record of premium paid and amount recovered 3 AE~~

~~l. Legal proceedings when completed 5~~

~~m. Minute book of:~~

~~i. Meetings of the board of directors P~~

~~ii. Meetings of committees of the board of directors P~~

~~iii. Shareholders' meetings P~~

~~n. Postage meter record book (from date of final entry) 1~~

~~o. Real estate documentation 5 ATD~~

~~p. Report to directors 3~~

~~q. Stock issuance and transfer record P~~

~~r. Required report to supervisory agency 3~~

~~s. Tax controversy or proceeding when completed 7~~

~~t. Tax record not material to any controversy 7~~

~~u. Voting list and proxies 3~~

| a. | Articles of incorporation or association, bylaws or other record of organization | P | | --- | --- | --- | | b. | Bankers blanket bond-record showing compliance | 5AE | | c. | Bank examiner's report | 7 | | d. | Capital note issuance and transfer record | P | | e. | Depreciation record - office equipment | 3 | | f. | Dividend check and register | 7 | | g. | Dividend check - outstanding | P | | h. | Expired policy insuring the bank | 3 AE | | i. | FDIC assessment base, record | 5 | | j. | FDIC certificate | P | | k. | Insurance policy number, record of premium paid and amount recovered | 3 AE | | l. | Legal proceedings when completed | 5 | | m. | Minute book of: | | | i. | Meetings of the board of directors | P | | ii. | Meeting of committees of the board of directors | P | | iii. | Shareholders' meetings | P | | n. | Postage meter record book (from date of final entry) | 1 | | o. | Real estate documentation | 5 ATD | | p. | Report to directors | 3 | | q. | Stock issuance and transfer record | P | | r. | Required report to supervisory agency | 3 | | s. | Tax controversy or proceeding when completed | 7 | | t. | Tax record not material to any controversy | 7 | | u. | Voting list and proxies | 3 |

Collections

~~a. Collection payment record 1~~

~~b. Collection receipt-carbon 1~~

~~c. Collection register 1~~

~~d. Coupon cash letter-outgoing 1~~

~~e. Coupon envelope 1~~

~~f. Customer file copy 1~~

~~g. Incoming collection letter 1~~

~~h. Incoming contract or note letter 1~~

| a. | Collection payment record | 1 | | --- | --- | --- | | b. | Collection receipt - carbon | 1 | | c. | Collection register | 1 | | d. | Coupon cash letter - outgoing | 1 | | e. | Coupon envelope | 1 | | f. | Customer file copy | 1 | | g. | Incoming collection letter | 1 | | h. | Incoming contract or note letter | 1 |

Customer service

~~a. Broker account holder-identification 5~~

~~b. Broker's confirmation 3~~

~~c. Broker's invoice 3~~

~~d. Broker's statement 3~~

~~e. E-Bond application 2~~

~~f. E-Bond sold or redeemed-record 2~~

~~g. E-Bond transmittal letter 2~~

~~h. Lock box daily receipts 1~~

~~i. Night depository agreement 1 AC~~

~~j. Night depository daily record 1~~

~~k. Safekeeping record and receipt 5~~

~~l. Securities buy order and sell order 3~~

| a. | Broker account holder - identification | 5 | | --- | --- | --- | | b. | Broker's confirmation | 3 | | c. | Broker's invoice | 3 | | d. | Broker's statement | 3 | | e. | E-Bond application | 2 | | f. | E-Bond sold or redeemed - record | 2 | | g. | E-Bond transmittal letter | 2 | | h. | Lock box daily receipts | 1 | | i. | Night depository agreement | 1 AC | | j. | Night depository daily record | 1 | | k. | Safekeeping record and receipt | 5 | | l. | Securities buy order and sell order | 3 |

Data processing (management information systems)

~~a. Back-up data (for reconstruction) daily, end of month, quarter, or year 1~~

~~b. Disaster recovery program P~~

~~c. Film copy of every IRS financial reporting form 6~~

~~d. Program change P~~

~~e. System, program and procedure manual P~~

| a. | Back-up data (for reconstruction) daily, end of month, quarter, or year | 1 | | --- | --- | --- | | b. | Disaster recovery program | P | | c. | Film copy of every IRS financial reporting form | 6 | | d. | Program change | P | | e. | System, program and procedure manual | P |

Deposits

~~a. Account opened and account closed report 1~~

~~b. Certificate of deposit purchase record 7~~

~~c. Check paid, withdrawal slip, and other debits to account 7~~

~~d. Club account check register 1~~

~~e. Club account coupon 1~~

~~f. SAR - for suspicious transaction under $10,000 5~~

~~g. CTR - for transaction exceeding $10,000 5~~

~~h. Customer authorization, resolution, and signature car 6AC~~

~~i. Deposit account record needed to reconstruct 7~~

~~j. Deposit and other credits 7~~

~~k. Dormant account - after closed or escheated 7 ALC~~

~~l. Form 1096, and 1099 reports to IRS 7~~

~~m. Individual retirement account record 7~~

~~n. Interest check or other record of interest payment and reports 7~~

~~o. Internal management reports:~~

~~i. Large balance 1~~

~~ii. Overdraft 1~~

~~iii. Public funds 1~~

~~iv. Service charges 1~~

~~v. Stop payment 1~~

~~vi. Uncollected funds 1~~

~~vii. Unposted item 1~~

~~viii. Zero balance 1~~

~~p. Ledger card 5 AC~~

~~q. Power of attorney document 7 ATD~~

~~r. Receipt for statement held at customer's request 1~~

~~s. Record showing compliance with the following federal regulations. The stated retention period applies unless, and until, it is preempted by federal law:~~

~~i. Regulation CC, Expedited Funds Availability Act 2~~

~~ii. Regulation DD, Truth in Savings Act 2~~

~~iii. Regulation E, Electronic Funds Transfer Act 2~~

~~t. Returned statement and cancelled checks 6~~

~~u. Statement 6~~

~~v. Stop payment order 6 AE~~

~~w. Document used to request and receive Tax Identification Number 6~~

~~x. Transaction journal 6~~

~~y. Trial balance 6~~

| a. | Account opened and account closed | 1 | | --- | --- | --- | | b. | Certificate of deposit purchase record | 7 | | c. | Check paid, withdrawal slip, and other debits to account | 7 | | d. | Club account check register | 1 | | e. | Club account coupon | 1 | | f. | SAR - for suspicious transaction under $10,000 | 5 | | g. | CTR - for transaction exceeding $10,000 | 5 | | h. | Customer authorization, resolution, and signature card | 6 AC | | i. | Deposit account record needed to reconstruct | 7 | | j. | Deposit and other credits | 7 | | k. | Dormant account - after closed or escheated | 7 ALC | | l. | Form 1096 and 1099 reports to IRS | 7 | | m. | Individual retirement account record | 7 | | n. | Interest check or other record of interest payment and reports | 7 | | o. | Internal management reports: | | | i. | Large balance | 1 | | ii. | Overdraft | 1 | | iii. | Public funds | 1 | | iv. | Service charges | 1 | | v. | Stop payment | 1 | | vi. | Uncollected funds | 1 | | vii. | Unposted item | 1 | | viii. | Zero balance | 1 | | p. | Ledger card | 5 AC | | q. | Power of attorney document | 7 ATD | | r. | Receipt for statement held at customer's request | 1 | | s. | Record showing compliance with the following federal regulations. The state retention period applies unless, and until, it is preempted by federal law: | | | i. | Regulation CC, Expedited Funds Availability Act | 2 | | ii. | Regulation DD, Truth in Savings Act | 2 | | iii. | Regulation E, Electronic Funds Transfer Act | 2 | | t. | Returned statement and cancelled checks | 6 | | u. | Statement | 6 | | v. | Stop payment order | 6 AE | | w. | Document used to request and receive Tax Identification N umber | 6 | | x. | Transaction journal | 6 | | y. | Trial balance | 6 |

Due from banks

~~a. Advice from correspondent bank 1~~

~~b. Bank statement 1~~

~~c. Draft-original 7~~

~~d. Draft register or copy 1 AP~~

~~e. Duplicate check-information and documentation pertaining to issuance 7~~

~~f. Reconcilement register 1~~

| a. | Advice from correspondent bank | 1 | | --- | --- | --- | | b. | Bank statement | 1 | | c. | Draft - original | 7 | | d. | Draft register or copy | 1 AP | | e. | Duplicate check - information and documentation pertaining to issuance | 7 | | f. | Reconcilement register | 1 |

Due to banks

~~a. Account opened and account closed-reports 1~~

~~b. Advice-copy 1~~

~~c. Incoming cash letter memo for credit 1~~

~~d. Incoming cash letter for remittance 1~~

~~e. Reconcilement register (TTL) 2~~

~~f. Reconcilement verification 1~~

~~g. Resolution 2 AC~~

~~h. Signature card 6 AC~~

~~i. Trial balance (fiche) 7~~

~~j. Undelivered statement, reconstruction available from bank records 1~~

~~k. Undelivered statement, reconstruction not possible 7~~

| a. | Account opened and account closed - reports | 1 | | --- | --- | --- | | b. | Advice - copy | 1 | | c. | Incoming cash letter memo for credit | 1 | | d. | Incoming cash letter for remittance | 1 | | e. | Reconcilement register (TTL) | 2 | | f. | Reconcilement verification | 1 | | g. | Resolution | 2 AC | | h. | Signature card | 6 AC | | i. | Trial balance (fiche) | 7 | | j. | Undelivered statement, reconstruction available from bank records | 1 | | k. | Undelivered statement, reconstruction not possible | 7 |

General

~~a. Address change order 1~~

~~b. Affidavit from customer including affidavit of loss, forgery, or non-use of cashier's check 1~~

~~c. Writ of attachment or garnishment 5~~

~~d. Attachment, release 5~~

~~e. Armored car receipt 1~~

~~f. Check book order 1~~

~~g. Check book-receipt 1~~

~~h. Court order memorandum record 5~~

~~i. Notice of Protest 1~~

~~j. Travelers check-application 2~~

~~k. Vault record-opening and closing 1~~

~~l. Wire transfer debit entry and credit entry 7~~

| a. | Address change order | 1 | | --- | --- | --- | | b. | Affidavit from customer including affidavit of loss, forgery, or non-use of cashier's check | 1 | | c. | Writ of attachment or garnishment | 5 | | d. | Attachment, release | 5 | | e. | Armored car receipt | 1 | | f. | Check book order | 1 | | g. | Check book - receipt | 1 | | h. | Court order memorandum record | 5 | | i. | Notice of Protest | 1 | | j. | Vault record - opening and closing | 1 | | k. | Wire transfer debit entry and credit entry | 7 |

General ledger

~~a. Daily statement of condition 3~~

~~b. General journal-if byproduct of posting the general ledger 3~~

~~c. General journal-if used as book of original entry with description 3~~

~~d. General ledger 5~~

~~e. General ledger ticket-debit and credit 2~~

| a. | Daily statement of condition | 3 | | --- | --- | --- | | b. | General journal - if byproduct of posting the general ledger | 3 | | c. | General journal - if used as book of original entry with description | 3 | | d. | General ledger | 5 | | e. | General ledger ticket - debit and credit | 2 |

International department

~~a. Broker account holder-identification 5~~

~~b. Cable copy 7~~

~~c. Cable requisition 7~~

~~d. Collection paid 1~~

~~e. Correspondence 2. rat~~

~~g. Foreign collection register 6~~

~~h. Foreign draft application 6~~

~~i. Foreign draft-carbon 2 ATD~~

~~j. Foreign exchange remittance sheet or book 6~~

~~k. Foreign financial account-record 7~~

~~l. Foreign mail transfer application 6~~

~~m. Foreign mail transfer-carbon 2 ATD~~

~~n. Foreign outstanding cash 2~~

~~o. Foreign payment-incoming 2~~

~~p. Letter of credit application 2~~

~~q. Letter of credit ledger sheet 7~~

~~r. Transfer outside of the United States in excess of $10,000 - record 5~~

| a. | Broker account holder - identification | 5 | | --- | --- | --- | | b. | Cable copy | 7 | | c. | Cable requisition | 7 | | d. | Collection paid | 1 | | e. | Correspondence | 2 | | f. | Draft | 7 | | g. | Foreign collection register | 6 | | h. | Foreign draft application | 6 | | i. | Foreign draft - carbon | 2 ATD | | j. | Foreign exchange remittance sheet or book | 6 | | k. | Foreign financial account - record | 7 | | l. | Foreign mail transfer application | 6 | | m. | Foreign mail transfer - carbon | 2 ATD | | n. | Foreign outstanding cash | 2 | | o. | Foreign payment - incoming | 2 | | p. | Letter of credit application | 2 | | q. | Letter of credit ledger sheet | 7 | | r. | Transfer outside of the United States in excess of $10,000 - record | 5 |

Investments

~~a. Bonds~~

~~i. Amortization record 6~~

~~ii. Confirmation 3~~

~~iii. Safekeeping receipt 2~~

~~b. Broker's securities~~

~~i. Broker's invoice 3~~

~~ii. Broker's statement 3~~

~~iii. Report of lost or stolen securities 3~~

~~iv. Safekeeping advice 2~~

~~v. Taxpayer identification number 5~~

~~c. Commercial paper~~

~~i. Broker's advice 2~~

~~ii. Purchase order 2~~

~~iii. Remittance advice 2~~

~~d. Mortgage-backed securities~~

~~i. Buy-and-sell agreement 3~~

~~ii. Commitment letter 7~~

~~iii. FHLMC and FNMA loan file 7~~

~~iv. GNMA certificate 7~~

~~v. Interest accrual record 7~~

~~vi. Monthly remittance report 7~~

| a. | Bonds | | | --- | --- | --- | | i. | Amortization record | 6 | | ii. | Confirmation | 3 | | iii. | Safekeeping receipt | 2 | | b. | Broker's securities | | | i. | Broker's invoice | 3 | | ii. | Broker's statement | 3 | | iii. | Report of lost or stolen securities | 3 | | iv. | Safekeeping advice | 2 | | v. | Taxpayer identification number | 5 | | c. | Commercial paper | | | i. | Broker's advice | 2 | | ii. | Purchase order | 2 | | iii. | Remittance advice | 2 | | d. | Mortgage-backed securities | | | i. | Buy-and-sell agreement | 3 | | ii. | Commitment letter | 7 | | iii. | FHLMC and FNMA loan file | 7 | | iv. | GNMA certificate | 7 | | v. | Interest accrual record | 7 | | vi. | Monthly remittance report | 7 |

Loans. A bank shall keep each loan record listed for the period required by this subsection. These periods are measured from the date of final activity. A bank shall have and comply with its own record retention schedule that is consistent with this subsection. A bank may comply with this subsection by complying with a preemptive federal regulation, even if the federal regulation requires a shorter retention period than is listed in this subsection. This subsection does not prohibit record retention for longer periods than these state-required minimums for any reason, including a retention period established by preemptive federal law or regulation. Likewise, this Section does not prohibit a bank from keeping any type of record not required by this subsection.

~~a. All Loans - general~~

~~i. Application for loan approved 6~~

~~ii. Appraisal 6~~

~~iii. Borrower's financial statement 6~~

~~iv. Charge-off record 10~~

~~v. Charged off note 10~~

~~vi. Collateral file 6~~

~~vii. Correspondence 6~~

~~viii. Credit file - all documentation 6~~

~~ix. Credit report 6~~

~~x. Daily proof and record 6~~

~~xi. Loan committee minutes P~~

~~xii. Miscellaneous loan reports including new loan journal, paid loan journal, past due report, and transaction journal as original entry 6~~

~~xiii. Other documentation for reconstruction of loan 2~~

~~b. Commercial loans~~

~~i. Application for loan denied 12 M~~

~~ii. Bill of sale 6~~

~~iii. Borrowing resolution 3~~

~~iv. Business annual report (fiscal or year end) -after date of report 3~~

~~v. Business cash-flow analysis report - after date of report 3~~

~~vi. Business tax return - after date of return 6~~

~~vii. Commitment letter 6~~

~~viii. Copy of mortgage note or deed of trust 6~~

~~ix. Evidence of insurance 6~~

~~x. Guaranty 6~~

~~xi. Letter of credit 6~~

~~xii. Participation agreement 6~~

~~xiii. Promissory note 6~~

~~xiv. Purchase and sale agreement 6~~

~~xv. Security agreement 6~~

~~xvi. Title documentation 6~~

~~xvii. UCC filing 6~~

~~c. Consumer loans~~

~~i. Application for loan denied, including adverse action notice 25 M~~

~~ii. Collateral record 6~~

~~iii. Hazard insurance record 6~~

~~iv. Invoice 6~~

~~v. Life and disability insurance record 6~~

~~vi. Overdraft loan agreement 6~~

~~vii. Promissory note and modification agreement - copy~~

~~viii. Title documentation 6~~

~~ix. UCC filing - copy 6~~

~~d. Real estate loans~~

~~i. Assignment of escrow 6~~

~~ii. Assumption 6~~

~~iii. Commitment letter 6~~

~~iv. Copy of deed of trust or mortgage note, as it may have been modified 6~~

~~v. Escrow analysis and record 6~~

~~vi. Evidence of any FHA or PMI insurance required 6~~

~~vii. Hazard insurance life of loan viii. Proof of insurance excluding hazard 6~~

~~ix. Sales contract 6~~

~~x. Settlement sheet 6~~

~~xi. Survey 6~~

~~xii. Title documentation 6~~

~~e. Construction loans. In addition to the documents specified in subsection (d), a bank shall keep a record for a construction loan as specified in this subsection:~~

~~i. Certificate of occupancy 6~~

~~ii. Construction progress report 6~~

~~iii. Contractor's cost breakdown 6~~

~~iv. Disbursement documentation 6~~

~~v. Inspection report 6~~

~~vi. Residential construction specifications and material list 6~~

| a. | All loans - general | | | --- | --- | --- | | i. | Application for loan approval | 6 | | ii. | Appraisal | 6 | | iii. | Borrower's financial statement | 6 | | iv. | Charge-off record | 10 | | v. | Charged off note | 10 | | vi. | Collateral file | 6 | | vii. | Correspondence | 6 | | viii. | Credit file- all documentation | 6 | | ix. | Credit report | 6 | | x. | Daily proof and record | 6 | | xi. | Loan committee minutes | P | | xii. | Miscellaneous loan reports including new loan journal, paid loan journal, past due report, and transaction journal as original entry | 6 | | xiii. | Other documentation for reconstruction of loan | 2 | | b. | Commercial loans | | | i. | Application for loan denied | 12 M | | ii. | Bill of sale | 6 | | iii. | Borrowing resolution | 3 | | iv. | Business annual report (fiscal or year end) - after date of report | 3 | | v. | Business cash-flow analysis report - after date of report | 3 | | vi. | Business tax return - after date of return | 6 | | vii. | Commitment letter | 6 | | viii. | Copy of mortgage note or deed of trust | 6 | | ix. | Evidence of insurance | 6 | | x. | Guaranty | 6 | | xi. | Letter of credit | 6 | | xii. | Participation agreement | 6 | | xiii. | Promissory note | 6 | | xiv. | Purchase and sale agreement | 6 | | xv. | Security agreement | 6 | | xvi. | Title documentation | 6 | | xvii. | UCC filing | 6 | | c. | Consumer loans | | | i. | Application for loan denied, including adverse action notice | 25 M | | ii. | Collateral record | 6 | | iii. | Hazard insurance record | 6 | | iv. | Invoice | 6 | | v. | Life and disability insurance record | 6 | | vi. | Overdraft loan agreement | 6 | | vii. | Promissory note and modification agreement - copy | 6 | | viii. | Title documentation | 6 | | ix. | UCC filing - copy | 6 | | d. | Real estate loans | | | i. | Assignment of escrow | 6 | | ii. | Assumption | 6 | | iii. | Commitment letter | 6 | | iv. | Copy of deed of trust or mortgage note, as it may have been modified | 6 | | v. | Escrow analysis record | 6 | | vi. | Evidence of any FHA or PMI insurance required | 6 | | vii. | Hazard insurance | life of loan | | viii. | Proof of insurance excluding hazard | 6 | | ix. | Sales contract | 6 | | x. | Settlement sheet | 6 | | xi. | Survey | 6 | | xii. | Title documentation | 6 | | e. | Construction loans. In addition to the documents specified in subsection (d), a bank shall keep a record for a construction loan as specified in this subsection: | | | i. Certificate of occupancy | 6 | | | ii. Construction progress report | 6 | | | iii. Contractor's cost breakdown | 6 | | | iv. Disbursement documentation | 6 | | | v. Inspection report | 6 | | | vi. Residential construction specifications and material list | 6 | |

Official checks and drafts

~~a. Affidavit, bond, indemnity agreement, other documentation supporting the issuance of a duplicate check or draft 7~~

~~b. Bank draft 3~~

~~c. Cashier's check-cancelled 7~~

~~d. Cashier's check register-copy 7~~

~~e. Expense check-cancelled 7~~

~~f. Expense check register-copy 7~~

~~g. Expense voucher or invoice 7~~

~~h. Money order-bank or personal 7~~

~~i. Money order register-copy 7~~

~~j. Official check outstanding P~~

| a. | Affidavit, bond, indemnity agreement, other documentation supporting the issuance of a duplicate check or draft | 7 | | --- | --- | --- | | b. | Bank draft | 3 | | c. | Cashier's check - cancelled | 7 | | d. | Cashier's check register - copy | 7 | | e. | Expense check - cancelled | 7 | | f. | Expense check register - copy | 7 | | g. | Expense voucher or invoice | 7 | | h. | Money order - bank or personal | 7 | | i. | Money order register - copy | 7 | | j. | Official check outstanding | P |

Personnel Records

~~a. Attendance record, and time card 3~~

~~b. Authorization for payroll deduction 2~~

~~c. Department of labor report 5~~

~~d. Disability record 5~~

~~e. Employee record and personnel folder 5~~

~~f. Employment application 3 AT~~

~~g. Insurance record 2~~

~~h. Payroll check 2~~

~~i. Pension fund record 10~~

~~j. Profit sharing fund record 10~~

~~k. Rejected employee application 2~~

~~l. Salary ledger or electronic data processing printout 4~~

~~m. Salary receipt 2~~

~~n. W-3 reconciliation of income tax withheld from wages 3~~

~~o. W-4 withholding exemption certificate 3~~

~~p. Wage and tax statement record (W-2) 7~~

~~q. Wage differential documentation (Fair Labor Standards Act) 3~~

| a. | Attendance record, and time card | 3 | | --- | --- | --- | | b. | Authorization for payroll deduction | 2 | | c. | Department of labor report | 5 | | d. | Disability record | 5 | | e. | Employee record and personnel folder | 5 | | f. | Employment application | 3 AT | | g. | Insurance record | 2 | | h. | Payroll check | 2 | | i. | Pension fund record | 10 | | j. | Profit sharing fund record | 10 | | k. | Rejected employee application | 2 | | l. | Salary ledger or electronic data processing printout | 4 | | m. | Salary receipt | 2 | | n. | W -3 reconciliation of income tax withheld from wages | 3 | | o. | W -4 withholding exemption certificate | 3 | | p. | Wage and tax statement record (W -2) | 7 | | q. | Wage differential documentation (Fair Labor Standards Act) | 3 |

Registered mail

~~a. Marine insurance book 3~~

~~b. Record of incoming and outgoing registered mail 1~~

~~c. Return receipt card 3~~

| a. | Marine insurance book | 3 | | --- | --- | --- | | b. | Record of incoming and outgoing registered mail | 1 | | c. | Return receipt card | 3 |

Safe deposit vault

~~a. Access ticket or card 6~~

~~b. Court order and correspondence 6~~

~~c. Delivery of will, burial plot deed, insurance policy receipt 6~~

~~d. Forced entry record 6~~

~~e. Lease or contract-closed account 2 AC~~

~~f. Ledger record of account 1~~

~~g. Opened box contents-record and report 7~~

~~h. Rent receipt-copy 1~~

~~i. Sale to satisfy lien-record 7~~

~~j. Signature card, authorization, and resolution 6 AC~~

| a. | Access ticket or card | 6 | | --- | --- | --- | | b. | Court order and correspondence | 6 | | c. | Delivery of will, burial plot deed, insurance policy - receipt | 6 | | d. | Forced entry record | 6 | | e. | Lease or contract - closed account | 2 AC | | f. | Ledger record of account | 1 | | g. | Opened box contents - record and report | 7 | | h. | Rent receipt - copy | 1 | | i. | Sale to satisfy lien - record | 7 | | j. | Signature card, authorization, and resolution | 6 AC |

Tellers

~~a. Mail teller envelope 3 M~~

~~b. Teller's balancing recap or recap book 1~~

~~c. Teller's cash ticket-original and carbons 1~~

~~d. Teller's cash shipment record 1~~

~~e. Teller's exchange ticket 1~~

~~f. Teller's machine tape 1~~

| a. | Mail teller envelope | 3 M | | --- | --- | --- | | b. | Teller's balancing recap or recap book | 1 | | c. | Teller's cash ticket - original and carbons | 1 | | d. | Teller's cash shipment record | 1 | | e. | Teller's exchange ticket | 1 | | f. | Teller's machine tape | 1 |

Transit, proof, and clearing

~~a. ACH entry 6~~

~~b. Advice of correction to deposit 2~~

~~c. Clearinghouse settlement sheet~~

recapitulation of checks delivered to the clearinghouse or federal reserve 2

~~d. Record of items processed 6~~

~~e. Proof machine tape or other record 2~~

~~f. Receipt for transit letter 1~~

~~g. Return item letter 5~~

| a. | ACH entry | 6 | | --- | --- | --- | | b. | Advice of correction to deposit | 2 | | c. | Clearinghouse settlement sheet - recapitulation of checks delivered to the clearinghouse or federal reserve | 2 | | d. | Record of items processed | 6 | | e. | Proof machine tape or other record | 2 | | f. | Receipt for transit letter | 1 | | g. | Return item letter | 5 |

Trust department administration

~~a. Appraisal of real or personal property held as a trust asset~~

~~b. Correspondence 3 AC~~

~~c. Decree or receipt and release 3 AC~~

~~d. Fee record and supporting data 3 AC~~

~~e. Intermediate and final account 3 AC~~

~~f. Legal documentation including judgment, court order, and legal opinion 3 AC~~

~~g. Paid bill 3 AP~~

~~h. Real estate insurance policy 1 AE~~

~~i. Real estate and mortgage document 3 AC~~

~~j. Receipt for asset received or delivered 3 AC~~

~~k. Record of asset tax cost 3 AC~~

~~l. Summary card, original instrument, agreement and amendment, and letters of appointment 3 AC~~

~~m. Synopsis sheet 3 AC~~

| a. | Appraisal of real or personal property held as a trust asset | 3 AC | | --- | --- | --- | | b. | Correspondence | 3 AC | | c. | Decree or receipt and release | 3 AC | | d. | Fee record and supporting data | 3 AC | | e. | Intermediate and final account | 3 AC | | f. | Legal documentation including judgment, court order, and legal opinion | 3 AC | | g. | Paid bill | 3 AP | | h. | Real estate insurance policy | 1 AE | | i. | Real estate and mortgage document | 3 AC | | j. | Receipt for asset received or delivered | 3 AC | | k. | Record of asset tax cost | 3 AC | | l. | Summary card, original instrument, agreement and amendment, and letters of appointment | 3 AC | | m. | Synopsis sheet | 3 AC |

Corporate trust

~~a. Bond registration journal 3 AC~~

~~b. Bond-cancelled 7~~

~~c. Indemnity bond P~~

~~d. Certification 2~~

~~e. Coupon envelope 6 M~~

~~f. Coupon-cancelled 6 M~~

~~g. Customer receipt 7~~

~~h. Dividend and coupon record 3 AC~~

~~i. Dividend and interest disbursement check and list 3 AC~~

~~j. General ledger ticket 2~~

~~k. Legal paper P~~

~~l. Copy of cancelled stock certificate, original returned to customer 1~~

~~m. Stock registration journal 3 AC~~

~~n. Stock transfer memo 1~~

~~o. Stock transfer receipt 1~~

~~p. Tax return 3 AC~~

~~q. Transfer-supporting papers 3 AC~~

~~r. Transfer journal 3 AC~~

~~s. Transfer tax waiver 3 AC~~

~~t. Trust ledger-corporate 7~~

| a. | Bond registration journal | 3 AC | | --- | --- | --- | | b. | Bond - cancelled | 7 | | c. | Indemnity bond | P | | d. | Certification | 2 | | e. | Coupon envelope | 6 M | | f. | Coupon - cancelled | 6 M | | g. | Customer receipt | 7 | | h. | Dividend and coupon record | 3 AC | | i. | Dividend and interest disbursement check and list | 3 AC | | j. | General ledger ticket | 2 | | k. | Legal paper | P | | l. | Copy of cancelled stock certificate, original returned to customer | 1 | | m. | Stock registration journal | 3 AC | | n. | Stock transfer memo | 1 | | o. | Stock transfer receipt | 1 | | p. | Tax return | 3 AC | | q. | Transfer - supporting papers | 3 AC | | r. | Transfer journal | 3 AC | | s. | Transfer tax waiver | 3 AC | | t. | Trust ledger - corporate | 7 |

Personal trust

~~a. Record of previously discharged fiduciary~~

~~i. Accounting 3 AC~~

~~ii. Decree 3 AC~~

~~iii. Receipt and release 3 AC~~

~~b. Accounting - recorded 3 AC~~

~~c. Advice of payment - securities department regarding bond and coupon collection 3 AC~~

~~d. Appraisal~~

~~i. Real property 3 AC~~

~~ii. Personal property 3 AC~~

~~e. Asset delivery receipt 3 AC~~

~~f. Authorization~~

~~i. By co-fiduciary P~~

~~ii. By consultant P~~

~~g. Approval~~

~~i. By co-fiduciary P~~

~~ii. By consultant P~~

~~h. Broker's statement 7~~

~~i. Buy and sell order 7~~

~~j. Cash documentation~~

~~i. Customer cash and asset statement 7~~

~~ii. Cash and security journal 7~~

~~iii. Cash trial balance 1~~

~~k. Common trust fund annual report 10~~

~~l. Correspondence~~

~~i. Transfer letter 3 AC~~

~~ii. Claim letter 3 AC~~

~~m. Coupon collection record 7~~

~~n. Court accounting and petition 7~~

~~o. Daily transaction journal 6 M~~

~~p. Debits and credits-daily 1~~

~~q. Documentation necessary to support account decision 3 AC~~

~~r. Tax Documentation~~

~~i. Federal estate tax return 10~~

~~ii. State estate tax return 10~~

~~iii. Tax-related work papers 10~~

~~iv. Federal gift tax return 10~~

~~s. Fee calculations and supporting data 1~~

~~t. Income tax return~~

~~i. Federal 3 AC. State 3AC~~

~~u. Inventory 3 AC~~

~~v. Investment review and related material 3 AC~~

~~w. Minutes~~

~~i. Investment committee P~~

~~ii. Trust committee P~~

| a. | Record of previously discharged fiduciary | | | --- | --- | --- | | i. | Accounting | 3 AC | | ii. | Decree | 3 AC | | iii. | Receipt and release | 3 AC | | b. | Accounting - recorded | 3 AC | | c. | Advice of payment - securities department regarding bond and | 3 AC | | coupon collection | | | | d. | Appraisal | | | i. | Real property | 3 AC | | ii. | Personal property | 3 AC | | e. | Asset delivery receipt | 3 AC | | f. | Authorization | | | i. | By co-fiduciary | P | | ii. | By consultant | P | | g. | Approval | 5 | | i. | By co-fiduciary | P | | ii. | By consultant | P | | h. | Broker's statement | 7 | | i. | Buy and sell order | 7 | | j. | Cash documentation | | | i. | Customer cash and asset statement | 7 | | ii. | Cash and security journal | 7 | | iii. | Cash trial balance | 1 | | k. | Common trust fund annual report | 10 | | l. | Correspondence | | | i. Transfer letter | 3 AC | | | ii. | Claim letter | 3 AC | | m. | Coupon collection letter | 7 | | n. | Court accounting and petition | 7 | | o. | Daily transaction journal | 6 M | | p. | Debits and credits - daily | 1 | | q. | Documentation necessary to support account decision | 3 AC | | r. | Tax Documentation | | | i. | Federal estate tax return | 10 | | ii. | State estate tax return | 10 | | iii. | Tax-related work papers | 10 | | iv. | Federal gift tax return | 10 | | s. | Fee calculations and supporting data | 1 | | t. | Income tax return | | | i. | Federal | 3 AC | | ii. | State | 3 AC | | u. | Inventory | 3 AC | | v. | Investment review and related material | 3 AC | | w. | Minutes | | | i. | Investment committee | P | | ii. | Trust committee | P |

Other personal trust records

~~a. Legal opinion 3 AC~~

~~b. Correspondence related to legal opinion 3 AC~~

~~c. Paid bill 7~~

~~d. Review and recommendation 3 AC~~

~~e. Safekeeping record and receipt 3 AC~~

~~f. Security ledger sheet P~~

~~g. Trust check 10~~

~~h. Trust entry-original 3 AC~~

~~i. Trust or agency agreement-original 3 AC~~

~~j. Vault withdrawal and deposit ticket 7~~

~~k. Will-certified copy P~~

~~l. Work papers supporting tax return 7~~

| a. | Legal opinion | 3 AC | | --- | --- | --- | | b. | Correspondence related to legal opinion | 3 AC | | c. | Paid bill | 7 | | d. | Review and recommendation | 3 AC | | e. | Safekeeping record and receipt | 3 AC | | f. | Security ledger sheet | P | | g. | Trust check | 10 | | h. | Trust entry - original | 3 AC | | i. | Trust or agency agreement - original | 3 AC | | j. | Vault withdrawal and deposit ticket | 7 | | k. | Will - certified copy | P | | l. | Work papers supporting tax return | 7 |

Trust Investments

~~a. Annual report~~

~~i. Common trust fund 10~~

~~ii. Pooled fund 10~~

~~b. Valuation~~

~~i. Common trust fund 10~~

~~ii. Pooled fund 10~~

~~c. Minutes~~

~~i. Investment committee P~~

~~ii. Administrative committee P~~

~~d. Investment order and broker's confirmation 3 AC~~

~~e. investment review and related material 3 AC~~

~~f. Correspondence 3 AC~~

~~g. Summary of annual account activity 3 AC~~

| a. | Annual report | | | --- | --- | --- | | i. | Common trust fund | 10 | | ii. | Pooled fund | 10 | | b. | Valuation | | | i. | Common trust fund | 10 | | ii. | Pooled fund | 10 | | c. | Minutes | | | i. Investment committee | P | | | ii. Administrative committee | P | | | d. | Investment order and broker's confirmation | 3 AC | | e. | Investment review and related material | 3 AC | | f. | Correspondence | 3 AC | | g. | Summary of annual account activity | 3 AC |

Wire transfer

~~a. Incoming wire log 1~~

~~b. Outgoing wire log 1~~

~~c. Transmission record 7~~

~~d. Wire transfer request 7~~

| a. | Incoming wire log | 1 | | --- | --- | --- | | b. | Outgoing wire log | 1 | | c. | Transmission record | 7 | | d. | Wire transfer request | 7 |

History

Former Rule 14. R20-4-214 recodified from R4-4-214 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4142, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 29 A.A.R. 1023, effective 10/8/2023.

Ariz. Admin. Code § R20-4-215 Trust Business

Each bank authorized to conduct trust business under their banking permit shall comply with the applicable requirements of R20-4-808 through R20-4-816.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-215 recodified from R4-4-215 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 1919, effective 10/8/2023.

Article 3 EXPIRED

Ariz. Admin. Code § R20-4-301 Expired

History

Former Rule 1. R20-4-301 recodified from R4-4-301 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-302 [Repealed]

History

Former Rule 2; Repealed effective January 19, 1984 (Supp. 84-1). R20-4-302 recodified from R4-4-302 (Supp. 95-1).

Ariz. Admin. Code § R20-4-303 Expired

History

Former Rule 3. R20-4-303 recodified from R4-4-303 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-304 Expired

History

Former Rule 4. R20-4-304 recodified from R4-4-304 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-305 [Repealed]

History

Former Rule 5. R20-4-305 recodified from R4-4-305 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-306 [Repealed]

History

Former Rule 6. R20-4-306 recodified from R4-4-306 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-307 [Repealed]

History

Former Rule 7. R20-4-307 recodified from R4-4-307 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-308 [Repealed]

History

Former Rule 8. R20-4-308 recodified from R4-4-308 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-309 Expired

History

Former Rule 9. R20-4-309 recodified from R4-4-309 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-310 Reserved

Ariz. Admin. Code § R20-4-311 [Repealed]

History

Former Rule 11; Repealed effective January 19, 1984 (Supp. 84-1). R20-4-311 recodified from R4-4-311 (Supp. 95-1).

Ariz. Admin. Code § R20-4-312 [Repealed]

History

Former Rule 12. R20-4-312 recodified from R4-4-312 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-313 Reserved

Ariz. Admin. Code § R20-4-314 [Repealed]

History

Former Rule 14. R20-4-314 recodified from R4-4-314 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-315 [Repealed]

History

Former Rule 15. R20-4-315 recodified from R4-4-315 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-316 [Repealed]

History

Former Rule 16. R20-4-316 recodified from R4-4-316 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-317 [Repealed]

History

Former Rule 17; Repealed effective January 19, 1984 (Supp. 84-1). R20-4-317 recodified from R4-4-317 (Supp. 95-1).

Ariz. Admin. Code § R20-4-318 Expired

History

Former Rule 18. R20-4-318 recodified from R4-4-318 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-319 [Repealed]

History

Former Rule 19. R20-4-319 recodified from R4-4-319 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-320 [Repealed]

History

Former Rule 20. R20-4-320 recodified from R4-4-320 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-321 [Repealed]

History

Former Rule 21. R20-4-321 recodified from R4-4-321 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-322 [Repealed]

History

Former Rule 22; Repealed effective January 19, 1984 (Supp. 84-1). R20-4-322 recodified from R4-4-322 (Supp. 95-1).

Ariz. Admin. Code § R20-4-323 [Repealed]

History

Former Rule 23. R20-4-323 recodified from R4-4-323 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-324 Expired

History

Former Rule 24. R20-4-324 recodified from R4-4-324 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-325 Expired

History

Former Rule 25. R20-4-325 recodified from R4-4-325 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-326 Expired

History

Former Rule 26. R20-4-326 recodified from R4-4-326 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-327 Expired

History

Former Rule 27. R20-4-327 recodified from R4-4-327 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-328 Expired

History

Former Rule 28. R20-4-328 recodified from R4-4-328 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-329 [Repealed]

History

Former Rule 29. R20-4-329 recodified from R4-4-329 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-330 Expired

History

Original Rule. R20-4-330 recodified from R4-4-330 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 841, effective March 14, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-4-331 [Repealed]

History

Original Rule. R20-4-331 recodified from R4-4-331 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Article 4 CREDIT UNIONS

Ariz. Admin. Code § R20-4-401 Fidelity Bond Coverage

A. A credit union shall have a fidelity bond in the form and in the amount required to maintain federal insurance on its accounts.

B. A fidelity bond purchased by a credit union to comply with this Section shall include faithful-performance-of-duty coverage.

C. A credit union shall purchase its fidelity bond from an insurer that holds a certificate of authority from the Director to transact surety business in Arizona.

History

Former Rule 1. R20-4-401 recodified from R4-4-401 (Supp. 95-1). Amended effective April 21, 1995 (Supp. 95-2). Amended by final rulemaking at 7 A.A.R. 2229, effective May 3, 2001 (Supp. 01-2). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023.

Ariz. Admin. Code § R20-4-402 [Repealed]

History

Former Rule 2. R20-4-402 recodified from R4-4-402 (Supp. 95-1). Repealed effective April 21, 1995 (Supp. 95-2).

Article 5 CONSUMER LENDERS

Ariz. Admin. Code § R20-4-501 [Repealed]

History

Former Rule 1. R20-4-501 recodified from R4-4-501 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-502 [Repealed]

History

Former Rule 2. R20-4-502 recodified from R4-4-502 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-503 Adjustments in Precomputed Charges

A licensee shall adjust the total precomputed charges if the first installment period is more or less than one month in duration. The licensee's records shall reflect the adjustment's collection in one of three ways.

1. In the first installment payment,

2. Amortized over the life of the contract, or

3. As part of the final payment.

History

Former Rule 3. R20-4-503 recodified from R4-4-503 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-504 [Repealed]

History

Former Rule 4. R20-4-504 recodified from R4-4-504 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-505 [Repealed]

History

Former Rule 5. R20-4-505 recodified from R4-4-505 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-506 [Repealed]

History

Former Rule 6. R20-4-506 recodified from R4-4-506 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-507 [Repealed]

History

Former Rule 7. R20-4-507 recodified from R4-4-507 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-508 Cut-off Date for Computing Refunds upon Early Repayment in Full

If a borrower repays a loan before the due date of the final installment, the licensee shall calculate any refund or credit due on the precomputed loan using the following rules:

1. A licensee shall credit any full repayment, made on or before the 15th day following an installment date, as if received on the last previous installment date.

2. A licensee shall credit any full repayment, made on or after the 16th day following an installment date, as if received on the next installment date.

History

Former Rule 8. R20-4-508 recodified from R4-4-508 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4605, November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-509 [Repealed]

History

Former Rule 9. R20-4-509 recodified from R4-4-509 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-510 [Repealed]

History

Former Rule 10. R20-4-510 recodified from R4-4-510 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-511 [Repealed]

History

Former Rule 11. R20-4-511 recodified from R4-4-511 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-512 Reserved

Ariz. Admin. Code § R20-4-513 [Repealed]

History

Former Rule 13. R20-4-513 recodified from R4-4-513 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-514 [Repealed]

History

Former Rule 14. R20-4-514 recodified from R4-4-514 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-515 [Repealed]

History

Former Rule 15. R20-4-515 recodified from R4-4-515 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-516 [Repealed]

History

Former Rule 16. R20-4-516 recodified from R4-4-516 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-517 [Repealed]

History

Former Rule 17. R20-4-517 recodified from R4-4-517 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-518 Deferral Fee

A. A licensee may collect a deferral fee at the time it agrees to a deferment or at any time after the assessment of a deferral fee. If a licensee receives a payment after it agrees to a deferment, it may apply the payment first to the deferral fee. Any remainder of the payment shall be applied to the balance of the loan.

B. If a licensee receives a payment that is large enough to pay in full a delinquent installment and all allowable delinquency fees, the licensee shall apply the payment first to the delinquent installment and fees. The licensee shall not show the paid installment as deferred, and shall not collect a deferral fee.

History

Former Rule 18. R20-4-518 recodified from R4-4-518 (Supp. 95-1). Section repealed; new Section adopted by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-519 Deferment Statement

A licensee shall give the borrower a statement at the time it agrees to a deferment and shall retain a copy of the statement in the borrower's credit file. The statement shall contain the following information:

1. The amount of the deferral fee,

2. The date of the borrower's next scheduled payment,

3. The amount of the borrower's next scheduled payment, and

4. The extended maturity date of the loan.

History

Former Rule 19. R20-4-519 recodified from R4-4-519 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-520 [Repealed]

History

Former Rule 20. R20-4-520 recodified from R4-4-520 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-521 [Repealed]

History

Former Rule 21. R20-4-521 recodified from R4-4-521 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-522 [Repealed]

History

Former Rule 22. R20-4-522 recodified from R4-4-522 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-523 [Repealed]

History

Former Rule 23. R20-4-523 recodified from R4-4-523 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-524 Books, Accounts, and Records

A. A licensee may keep its books, accounts, and records as electronic records if the licensee can generate all information and copies required by this Section within the timeframe set by the Department for examination or other purposes.

A licensee authorized under A.R.S. Title 6, Chapter 5 shall:

1. Keep its books, accounts, and records of operations separate from the books, accounts, and records of its other business activities; and

In addition to any statutory requirements, the books, accounts, and records of operations shall include the following:

a. A file containing a record of all legal actions brought during the fiscal year which the licensee shall keep until the Department conducts its examination of the licensee;

b. An itemized record of disbursement of the proceeds of each loan which shall also include, if the licensee makes precomputed loans, the amount of refund on each loan that is renewed or refinanced;

c. A record of the receipt of all allowable fees;

d. A record for each borrower and each loan that contains documentary evidence of filing or recording each instrument of record for the loan; and

e. A record of the borrower's voluntary election to purchase any insurance in connection with a loan if that insurance is sold by the licensee.

C. ~~In addition to any statutory requirements, the books, accounts, and records maintained by a Small Loan Company shall include the following:~~

1. A file containing a record of all legal actions brought during the fiscal year. A licensee shall keep the file until the Department of Financial Institutions conducts its examination of the licensee.

2. An itemized record of disbursing the proceeds of each loan. The itemized record shall include the amount of refund on each loan that is renewed or refinanced if the licensee makes precomputed loans.

~~3. A record of the receipt of all allowable fees.~~

~~4. A record for each borrower and each loan that contains documentary evidence of filing or recording each instrument of record for the loan.~~

~~5. A record of the borrower's voluntary election to purchase any insurance in connection with a loan, if that insurance is sold by the licensee.~~

History

Former Rule 24. R20-4-524 recodified from R4-4-524 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-525 [Repealed]

History

Former Rule 25. R20-4-525 recodified from R4-4-525 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-526 [Repealed]

History

Former Rule 26. R20-4-526 recodified from R4-4-526 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-527 [Repealed]

History

Former Rule 27. R20-4-527 recodified from R4-4-527 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-528 [Repealed]

History

Former Rule 28. R20-4-528 recodified from R4-4-528 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-529 [Repealed]

History

Former Rule 29. R20-4-529 recodified from R4-4-529 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-530 [Repealed]

History

Former Rule 30. R20-4-530 recodified from R4-4-530 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4).

Ariz. Admin. Code § R20-4-531 [Repealed]

History

Former Rule 31. R20-4-531 recodified from R4-4-531 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-532 [Repealed]

History

Former Rule 32. R20-4-532 recodified from R4-4-532 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-4-533 Reserved

Ariz. Admin. Code § R20-4-534 Insurance

A. A licensee shall obtain written evidence of the borrower's voluntary election to purchase insurance in connection with a loan if the licensee's sale of insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evidence of voluntary election in its records as required by statute. A document sufficient to comply with this Section shall read substantially as follows:

TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE INSURANCE IN THE AMOUNT OF $ ____________.

I UNDERSTAND THAT MY TOTAL LOAN OBLIGATION IS THE SUM OF $ ____________.

B. A licensee shall obtain written evidence of the borrower's voluntary election to purchase property insurance in connection with a loan if the licensee's sale of property insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evidence of voluntary election in its records as required by statute. A document sufficient to comply with this Section shall read substantially as follows:

TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE PROPERTY INSURANCE IN THE AMOUNT OF $ ____________.

I UNDERSTAND THAT MY TOTAL LOAN OBLIGATION IS THE SUM OF $ ____________.

I ATTEST THAT THE VALUE OF MY PROPERTY INSURED IN CONNECTION WITH THIS LOAN IS THE SUM OF $ ____________.

History

Former Rule 34. R20-4-534 recodified from R4-4-534 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4605, effective November 14, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1942, effective 10/7/2023.

Ariz. Admin. Code § R20-4-535 Reserved

Ariz. Admin. Code § R20-4-536 [Repealed]

History

Former Rule 36. R20-4-536 recodified from R4-4-536 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 3380, effective August 3, 2000 (Supp. 00-3).

Article 6 DEBT MANAGEMENT COMPANIES

Ariz. Admin. Code § R20-4-601 [Repealed]

History

Former Rule 1; Former Section R4-4-601 repealed, new Section R4-4-601 adopted effective October 26, 1978 (Supp. 78-5). R20-4-601 recodified from R4-4-601 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-602 Applications

A. An applicant for a debt management company license shall send the Department an application on the form required by the Director. If the Director determines that a credit report is required as authorized under A.R.S. § 6-704(A), the applicant shall order a credit report from a credit reporting agency disclosing the credit history of the applicant's principals or managing agents and submit the credit report to the Department. A complete application shall include the credit report required by this Section and all of the following:

1. The surety bond required by A.R.S. § 6-704(B);

2. Fidelity bonds if required by the Director under A.R.S. § 6-704(D);

3. The nonrefundable application fee specified in A.R.S. § 6-126(A)(14);

4. An original license fee described in A.R.S. §§ 6-126(B), 6-126(D)(2), and 6-706;

5. A sample of the contract intended to be used by the applicant required by A.R.S. § 6-704(E):

6. Current financial statements as described in Section R20-4-604(A)(5);

7. A copy of the current articles of incorporation, by-laws, partnership agreement or other organizing documents used to form the applicant business entity;

8. The name and address information required under A.R.S. § 6-704(A); and

9. A background check, on the form required by the Department, for each of the applicant's principals, principal officers, trustees, partners, and managing agents.

B. A debt management company applying to operate a branch office or use an agency shall send the Department an application on the form required by the Director.

C. A debt management company applying to renew a license shall deliver, on or before June 15 of each year, an application to the Department on the form required by the Director. A debt management company shall apply separately to renew each authorized business location. With each application for renewal, a debt management company shall include the renewal fee described in A.R.S. § 6-706 and specified in A.R.S. § 6-126(D)(2).

D. The Department may require additional information the Director considers necessary in connection with an application under this Section.

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-602 recodified from R4-4-602 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-603 Reports

A. Each debt management company and each nonprofit corporation or association exempt from licensure under A.R.S. § 6-702(4) and (5), shall send the Department an annual report of its business and operations for each place of business during the previous year beginning July 1 and ending June 30, using the form required by the Director. A debt management company shall deliver its report to the Department on or before August 15.

B. Each debt management company organized as a corporation shall send the Department a copy, date-stamped by the Arizona Corporation Commission, of each annual report and certificate of disclosure filed under the authority of A.R.S. § 10-202 or 10-1622 within ten days of filing the report and certificate with the Arizona Corporation Commission.

C. Each debt management company shall notify the Department of any change in its ownership or in the names of its officers, directors, trustees, partners, or managing agents within 30 days of the change.

History

Adopted effective January 1, 1979 (Supp. 78-5). R20-4-603 recodified from R4-4-603 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-604 Records

A. A debt management company shall keep books, accounts, and records adequate to provide a clear and readily understandable record of all its business activity. A debt management company may keep its books, accounts, and records as electronic records if the debt management company can generate all information and documentation required by this Section in the timeframe set by the Department for examination or other purposes. A debt management company's books, accounts, and records shall include:

1. A file for each account containing:

a. A copy of all correspondence concerning the account;

b. Evidence of the notice given to creditors of the debt management contract;

c. A subsidiary ledger disclosing all financial transactions concerning the account;

d. A copy of each written statement of account given to the debtor;

e. The original budget analysis required under Section R20-4-607; and

f. The original contract between the debt management company and the debtor, including all amendments.

2. A trust account general ledger, which is kept current daily, which reflects each deposit to and disbursement from the trust account.

3. Each reconciliation of the debt management company's trust account, prepared at least once a month.

4. A general ledger, kept current monthly, which reflects each financial transaction by the debt management company except those recorded in its trust account general ledger.

5. A financial statement produced in accordance with generally accepted accounting principles at least once every three months, or more frequently if directed by the Director, which reflects the financial condition of the debt management company. The financial statement shall include:

a. A balance sheet,

b. A statement of income and retained earnings,

c. A statement of changes in financial condition, and

d. Appropriate footnotes that either:

i. Explain entries in the documents listed in subsections (A)(5)(a), (b), and (c);

ii. Contain material information not required or not reportable in documents listed in subsections (A)(5)(a), (b), or (c); or

iii. Contain other disclosures required by generally accepted accounting principles.

6. A record of all litigation naming the debt management company as a party including :

a. For pending litigation:

i. A copy of the complaint;

ii. A copy of any answer filed by the debt management company in response to the complaint; and

iii. A copy of any motion filed by the debt management company; and

b. For any litigation that is no longer pending, a copy of any judgment showing the settlement date, dismissal, or other final order disposing of the litigation.

B. All records required under this Section may be maintained at the debt management company's office in Arizona. A debt management company may keep its records outside this state if it:

1. Makes the records available to the Director, for examination or other purposes, in this state not more than three business days after demand; and

Allows its debtor customers to call toll free to obtain information from the records that are not available from the debt management company's office in Arizona.

C. Each debt management company shall preserve its books, accounts, and records for the period required by A.R.S. §§ 6-709(J) and 6710(1).

History

Adopted effective January 1, 1979 (Supp. 78-5). R20-4-604 recodified from R4-4-604 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-605 Reserved

Ariz. Admin. Code § R20-4-606 Reserved

Ariz. Admin. Code § R20-4-607 Budget Analysis

A. A debt management company shall not accept an account unless it first concludes that the debtor can reasonably meet the payments agreed upon by the debt management company and the debtor. The debt management company's conclusion shall be supported by a written budget analysis kept in the company's records.

B. The written budget analysis shall either be part of an application form or a separate document. The debtor shall date and sign the written budget analysis before the debt management company draws any conclusions from the budget analysis.

C. The budget analysis shall disclose the disposable income available for payment to the debt management company after the debtor pays their reasonable and necessary living expenses including taxes, insurance, child support, alimony, and residential rent or mortgage payments.

History

Adopted effective January 1, 1979 (Supp. 78-5). R20-4-607 recodified from R4-4-607 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-608 Reserved

Ariz. Admin. Code § R20-4-609 [Repealed]

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-609 recodified from R4-4-609 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-610 [Repealed]

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-610 recodified from R4-4-610 (Supp. 95-1). Repealed effective September 19, 1996 (Supp. 96-3).

Ariz. Admin. Code § R20-4-611 Advertising

A. A debt management company shall send the Department copies of all advertising, communication, or sales material at least five days before the company uses the advertising, communication, or sales material to promote the sale of the company's services. This requirement applies to every type of promotional material used, whether the company will publish, exhibit, broadcast, or personally distribute the material by any other method or medium.

B. A debt management company shall not use advertising, communication, or sales material that contains:

1. A false, misleading, or deceptive statement about the debt management company's services or charges. A statement is a violation of this Section if the person making the statement does not state a material fact necessary to make the statement true, in light of the circumstances under which it is made;

2. A claim, direct or implied, that the debt management company consolidates debts or makes loans; or

3. A schedule of payments in any form.

C. B. A debt management company's advertising, communication, and sales material shall contain the following legend, conspicuously displayed in at least 12 point type and in bold print:

"NOT A LOAN COMPANY."

D. ~~The Department's failure to object to the advertising, communication, or sales material filed with it is not and shall not be represented as an approval of the material or the statements it contains.~~

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-611 recodified from R4-4-611 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-612 Solvency and Minimum Liquid Assets

A. A debt management company shall not operate if it is insolvent. For purposes of this Section "insolvent" has the same meaning as in A.R.S. § 47-1201(23).

B. To determine compliance with A.R.S. § 6-709(A), a debt management company's liquid assets include funds held in its trust account. Liquid assets do not include goodwill and other intangible assets. A debt management company's total liquid assets shall exceed by $2,500.00 the total of all its current business liabilities together with all balances held for debtors as reflected in the company's subsidiary ledgers.

C. Except as otherwise provided by this Section, or in a specific ruling by the Director, a debt management company shall use generally accepted accounting principles to compute assets and liabilities.

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-612 recodified from R4-4-612 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.

Ariz. Admin. Code § R20-4-613 Reserved

Ariz. Admin. Code § R20-4-614 Reserved

Ariz. Admin. Code § R20-4-615 Reserved

Ariz. Admin. Code § R20-4-616 Reserved

Ariz. Admin. Code § R20-4-617 Reserved

Ariz. Admin. Code § R20-4-618 Reserved

Ariz. Admin. Code § R20-4-619 Reserved

Ariz. Admin. Code § R20-4-620 [Repealed]

History

Adopted effective October 26, 1978 (Supp. 78-5). R20-4-620 recodified from R4-4-620 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2).

Article 7 ESCROW AGENTS

Ariz. Admin. Code § R20-4-701 Change in Location of Business

An escrow agent shall submit to the Director notice of any change in the location of the escrow agent's business. The escrow agent shall ensure that the Director receives the notice at least five days before the escrow agent conducts business at the new location. The escrow agent shall remit the fee required by A.R.S. § 6-126(A), to the Director with the notice of the location change.

History

Former Rule 1. R20-4-701 recodified from R4-4-701 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1949, effective 10/2/2023.

Ariz. Admin. Code § R20-4-702 Account Practices and Records

An escrow agent shall maintain records to enable the Director to reconstruct the details of each escrow transaction. The records shall include the following:

1. The seller's name and address;

2. The buyer's name and address;

3. The lender's name and address, if any;

4. The borrower's name and address, if any;

5. The real estate agent's name and address, if any;

6. Complete escrow instructions;

7. Records and supporting documentation for each receipt and disbursement made through the escrow; and

8. A copy of the escrow settlement.

History

Former Rule 2. R20-4-702 recodified from R4-4-702 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1949, effective 10/2/2023.

Ariz. Admin. Code § R20-4-703 Preservation of Records

An escrow agent shall preserve the records, books, and accounts pertaining to each escrow transaction for at least three years following the final settlement date of the transaction. An escrow agent may keep its records as electronic records if the escrow agent can generate all information and copies of documents required by A.R.S. § 6-831 within the timeframe set by the Department for examination or other purposes.

History

Former Rule 3. R20-4-703 recodified from R4-4-703 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1949, effective 10/2/2023.

Ariz. Admin. Code § R20-4-704 Subsidiary Account Records

An escrow agent shall maintain subsidiary account records that identify the funds deposited in each escrow account. The total of all credit balances in the subsidiary accounts shall always equal the balance of the general ledger control account.

History

Former Rule 4. R20-4-704 recodified from R4-4-704 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1949, effective 10/2/2023.

Ariz. Admin. Code § R20-4-705 Reserved

Ariz. Admin. Code § R20-4-706 [Repealed]

History

Former Rule 6. R20-4-706 recodified from R4-4-706 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-4-707 Expired

History

Adopted effective June 25, 1993 (Supp. 93-2). R20-4-707 recodified from R4-4-707 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 21 A.A.R. 411, effective September 30, 2014 (Supp. 15-1).

Ariz. Admin. Code § R20-4-708 Financial Condition and Resources

The Director shall consider the following criteria in evaluating an escrow agent's, other escrow agent's, or applicant's financial condition and resources under A.R.S. § 6-817:

1. Amount of positive net worth,

2. Amount of tangible net worth,

3. Amount of liquid assets,

4. Amount of cash provided by operations,

5. Ratio of debt to net worth,

6. Owner's personal financial resources,

7. Outside resources available,

Profitability,

9. Projected operating results,

10. Status as agent for a title insurance company, and

11. Sources of new business.

History

New Section made by final rulemaking at 7 A.A.R. 5385, effective November 9, 2001 (Supp. 01-4). Amended by final rulemaking at 29 A.A.R. 1949, effective 10/2/2023.

Article 8 TRUST COMPANIES

Ariz. Admin. Code § R20-4-801 Definitions

In addition to the definitions provided in A.R.S. § 6-851, the following terms apply to this Article unless the context otherwise requires:

"Account" means the trust, estate, or other fiduciary relationship established with a trust department or trust company.

"Affiliate" has the meaning stated at A.R.S. § 6-801.

~~"Certificate" has the meaning stated at A.R.S. § 6-851 .~~

"Director" has the meaning stated at A.R.S. § 20-102.

~~"Fiduciary" has the meaning stated at A.R.S. § 6-851 .~~

"Governing instrument" means a document, and all its operative amendments, that:

a. Creates a trust and regulates the trustee's conduct,

b. Creates an agency relationship between a trust department or trust company and a client, or

c. Otherwise evidences a fiduciary relationship between a trust department or trust company and a client.

"Investment responsibility" means full and unrestricted discretion to invest trust funds without direction from anyone as to any matter, including the terms of the trade or the identity of the broker.

"Person" has the meaning stated at A.R.S. § 20-105.

~~"Superintendent" has the meaning stated at A.R.S. § 6-851 .~~

"Trust asset" means any property or property right held by a trust department or trust company for the benefit of another.

~~"Trust business" has the meaning stated at A.R.S. § 6-851 .~~

~~"Trust company" has the meaning stated at A.R.S. § 6-851 .~~

"Trust department" means a permittee under both A.R.S. § 6-201 et seq. and Article 2 of this Chapter that possesses a banking permit authorizing it to engage in trust business.

"Trust funds" means any money held by a trust department or trust company for the benefit of another.

"Trustor" means a person who creates or funds a trust, or both.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-801 recodified from R4-4-801 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-802 Reserved

Ariz. Admin. Code § R20-4-803 Reserved

Ariz. Admin. Code § R20-4-804 [Repealed]

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-804 recodified from R4-4-804 (Supp. 95-1). Repealed by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2).

Ariz. Admin. Code § R20-4-805 Reports

A. Within 90 days following each December 31, each trust department and trust company shall file an annual report of trust assets with the Director on the form prescribed by the Director. The annual report shall include the current market value of all trust assets held by the trust department or trust company as of December 31. The report shall also identify and briefly describe all transactions conducted in the report period that are regulated by subsections R20-4-812(E) through R20-4-812(G).

B. Each trust company shall deliver a copy of its annual report and certificate of disclosure to the Director within 10 days of filing the report and certificate at the Arizona Corporation Commission. A report or certificate covered by this subsection is one filed under the authority of A.R.S. §§ 10-202 or 10-1622. A copy delivered to the Director, as required in this subsection, shall be date-stamped by the Arizona Corporation Commission to confirm the actual filing date.

C. Each trust company shall notify the Director of any change in the directors or officers of the company within 10 days of the change. Any trust company with more than 25 officers may, after obtaining the Director's written approval, limit the officers covered by this subsection to those with substantial involvement in the trust company's corporate operations or in the trust company's trust business in this state.

History

Adopted effective September 1, 1977 (Supp. 77-3). R20-4-805 recodified from R4-4-805 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-806 Records

A. Every trust company shall keep its records as originals or as copies of the originals made by reproduction methods that accurately and permanently preserve the records. A trust company may keep its records as electronic records if the trust company can generate all information and copies required by this Section within the timeframe set by the Department for examination or other purposes.

B. A trust department or trust company shall keep books, accounts, and records adequate to provide clear and readily understandable evidence of all business conducted by the trust department or trust company, including the following:

1. A file for each account that includes:

a. The governing instrument,

b. All contracts and other legal documents,

c. Copies of all correspondence,

d. Accounting records disclosing all the financial transactions, and

e. A listing of all the account's assets and liabilities.

2. An investment file for each account that includes:

a. All original documentary evidence of the account's assets; or

b. Copies of the original documentary evidence of the account's assets, together with written evidence of custody or receipt of the originals by an authorized holder; and

c. A record of the initial and annual investment reviews for the account.

3. The corporate general ledger kept current on a daily basis. This record shall identify and segregate all financial transactions conducted by the trust department or trust company for itself, distinguishing them from those relating to the trust department's or trust company's trust business;

Unaudited financial statements. A trust department or trust company shall produce these statements quarterly or more frequently when required by the Director. The financial statements shall include at least:

a. A balance sheet; and

b. A statement of income, expenses, and retained earnings.

Adequate records of all pending litigation that names the trust department or trust company as a party.

C. A trust department shall keep its fiduciary records separate and distinct from the trust department's corporate records.

D. A trust department or trust company shall keep records described in subsections (B)(1) and (B)(2) for at least three years after closing an account. If litigation occurs concerning a particular account, the trust department or trust company shall keep that account's records, described in subsections (B)(1) and (B)(2), for three years after the litigation is resolved.

History

Adopted effective September 1, 1977 (Supp. 77-3). R20-4-806 recodified from R4-4-806 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-807 Unsafe or Unsound Condition

For purposes of A.R.S. §§ 6-863 and 6-865, a trust company conducts business in an unsafe manner or its affairs are in an unsound condition if it:

1. Violates any fiduciary duty or obligation, including those listed in Sections R20-4-809 through R20-4-815;

2. Violates any state or federal requirement for operating or maintaining trusts, common trust funds, or other accounts;

3. Violates any applicable federal or state law or regulation regarding corporations or securities;

4. Employs an officer or director who violates a corporate fiduciary duty;

5. Is insolvent; or

6. Engages in any conduct that the Director determines constitutes an unsafe or unsound business practice jeopardizing the trust company's financial condition or the interests of a stockholder, creditor, trustor, beneficiary, or trust company's principal.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-807 recodified from R4-4-807 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-808 Administration of Fiduciary Powers

A. The board of directors and the officers share responsibility for the exercise of fiduciary powers by a trust department or trust company. The board of directors is responsible for determining policy; investing and disposing of trust assets; and directing and reviewing the actions of all directors, officers, and committees of the board that exercise fiduciary powers. The board of directors may delegate the necessary power and authority to perform the trust department's or trust company's duties as a fiduciary to selected directors, officers, employees, or committees of the board if the delegation is consistent with the corporate charter. The minutes of the board's meetings shall duly reflect all those delegations.

B. A trust department or trust company shall not accept a new account without first obtaining the board's approval, or that of the directors, officers, or committees that the board may have authorized to approve new accounts. The trust department or trust company shall keep a written record of each new account approval and of the closing of each account. The trust department or trust company shall conduct an asset review within 60 days after it accepts each new account if it has investment responsibility for that account. The trust department's or trust company's board shall ensure that an annual review of account assets is conducted for each account in which the trust department or trust company has investment responsibility, to determine whether to retain or dispose of the assets.

C. A trust department or trust company exercising fiduciary powers shall use independent legal counsel admitted to practice in Arizona to advise and inform the trust department or trust company on fiduciary matters and all other legal issues presented to the trust department or trust company by the conduct of its trust business.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-808 recodified from R4-4-808 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-809 Fiduciary Duties

A trust department or trust company shall perform all fiduciary duties imposed upon it by law, including the following:

1. Administer accounts strictly according to the governing instrument and solely in the account beneficiary's interests;

2. Use reasonable care and skill to make the account productive;

3. Provide complete and accurate information about the nature and amount of assets held to each account's beneficiary or principal and permit the beneficiary, principal, or any person duly authorized by the beneficiary or principal to inspect the account's records at any time during normal business hours. The information provided in compliance with this subsection shall be delivered at least quarterly, unless:

a. The trust department or trust company and its account's beneficiary, principal, or authorized person agree otherwise in writing;

b. The governing instrument provides otherwise; or

c. A different frequency is established by a lawful course of dealing before the effective date of this rule; and

4. Comply with all lawful provisions of the governing instrument.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-809 recodified from R4-4-809 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-810 Funds Awaiting Investment or Distribution

A. Trust funds held by a trust department or trust company awaiting investment or distribution shall not remain uninvested or undistributed any longer than is reasonable for the account's proper management.

B. A trust department or trust company may keep trust funds in deposit accounts maintained by the trust department or trust company unless prohibited by law or by the governing instrument. The trust department or trust company shall set aside collateral security for all deposited trust funds under a third party's control. The collateral shall be the following types of securities, in any combination:

1. Direct obligations of the United States or any agency, department, division, or administration of the federal government;

2. Any other obligations fully guaranteed by the United States government as to principal and interest;

3. Obligations of a Federal Reserve Bank;

Obligations of any state, political subdivision of a state, or public authority organized under the laws of a state; or

5. Readily marketable securities that either:

a. Qualify as investment securities under the Investment Securities regulations of the Comptroller of the Currency, 12 CFR, Chapter 1, Part 1 ; or

b. Satisfy state pledging requirements under A.R.S. § 6-245(C).

C. The securities set aside under subsection (B) shall, at all times, have a market value no less than the amount of trust funds deposited. No collateral security is required to the extent the Federal Deposit Insurance Corporation, or its successor, insures the deposited trust funds.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-810 recodified from R4-4-810 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-811 Investment of Trust Funds

A. A trust department or trust company shall invest trust funds according to:

1. The governing instrument; and

2. All applicable laws, including A.R.S. §§ 6-862, 14-7402, and 14-7501 through 14-7512

B. A trust department or trust company shall make any collective investment of trust funds exclusively under the terms of Section R20-4-815.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-811 recodified from R4-4-811 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-812 Self-dealing

A. A trust department or trust company shall not invest trust funds in the following types of property unless expressly authorized by the governing instrument, applicable state or federal law, or court order:

1. Its own securities;

2. Other types of property acquired from the trust department or trust company;

3. Property acquired from the trust department's or trust company's directors, officers, or employees;

4. Property acquired from the trust department's or trust company's affiliates;

5. Property acquired from its affiliates' directors, officers, or employees; or

6. Property acquired from other individuals or organizations with an interest in the trust department or trust company if that interest might affect the trust department's or trust company's exercise of discretion to the detriment of its trust clients.

B. A trust department or trust company may use trust funds to purchase its own securities, or its affiliates' securities:

1. If the trust department or trust company has authority under subsection (A), and

2. If those securities are offered pro rata to all stockholders of the trust department or trust company.

C. A trust department or trust company shall not sell or loan trust property to itself, or to the following types of persons, unless expressly authorized by the governing instrument, applicable state or federal law, or court order:

1. Its directors, officers, or employees;

2. Its affiliates;

3. Its affiliates' directors, officers, or employees; or

4. Other individuals or organizations with an interest in the trust department or trust company if that interest might affect the trust department's or trust company's exercise of discretion to the detriment of its trust clients.

D. However, a trust department or trust company may sell or loan trust property to persons prohibited by subsection (C) if either:

1. Its counsel has advised in writing that, by holding certain property, the trust department or trust company has incurred a contingent or potential liability for breach of fiduciary duty; and

a. The proposed sale or loan avoids the contingent or potential liability;

b. Its board of directors authorizes the sale or loan by an action duly noted in the trust department's or trust company's minutes;

c. Its board of directors' action expressly authorizes reimbursement to the affected account; and

d. The affected account is reimbursed, in cash, at no loss to that account; or

2. The Director requires or approves, in writing, the sale or loan to otherwise prohibited parties.

E. A trust department or trust company may sell trust property held in one account to another of its accounts if:

1. The transaction is fair to both accounts; and

2. The transaction is not prohibited by the governing instruments, applicable state or federal law, or court order.

F. A trust department or trust company may loan trust property held in one account to another of its accounts if:

1. The transaction is fair to both accounts; and

2. The transaction is not prohibited by the governing instruments, applicable state or federal law, or court order.

G. A trust department or trust company may make a loan to a trust account, taking trust assets of the borrowing account as security for repayment, if:

1. The transaction is fair to the borrowing account; and

2. The transaction is not prohibited by the governing instrument, applicable state or federal law, or court order.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-812 recodified from R4-4-812 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-813 Custody of Investments

A. A trust department or trust company shall keep each account's investments separate from its own assets. A trust department or trust company shall place each account's assets in the joint control of at least two officers or employees of the trust department or trust company designated in writing for that purpose by:

1. The trust department's or trust company's board of directors, or

2. One or more officers authorized by the trust department's or trust company's board of directors to make the designation.

B. A trust department or trust company shall either:

1. Keep each account's investments separate from all other accounts' investments, except as provided in Section R20-4-815; or

2. Adequately identify each account's property in the trust department's or trust company's records.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-813 recodified from R4-4-813 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-814 Compensation

A. A trust department or trust company acting as a fiduciary may charge a reasonable fee for its services. The trust department or trust company shall receive the fee allowed by the court when it is acting under a court appointment. Any agreement as to fees in the governing instrument shall control the fee unless contrary to law, regulation, or court order.

B. A trust department or trust company shall not permit any of its officers or employees to take any compensation for acting as a co-fiduciary with the trust department or trust company in the administration of an account.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-814 recodified from R4-4-814 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-815 Collective Investments

A. All collective investments made by a trust department or trust company shall be in a common trust fund established under A.R.S. § 6871 and maintained by the trust department or trust company exclusively for the collective investment and reinvestment of funds contributed by the trust department or trust company acting as a fiduciary. A trust department or trust company shall not establish a common trust fund unless it first:

Prepares a written plan regarding the common trust fund; and

2. Obtains its board of directors' approval of the plan, evidenced by a duly adopted resolution or the board's unanimous written consent.

B. The plan shall describe the common trust fund's operational details, including a description of:

1. The trust department's or trust company's investment powers and investment policy over all funds deposited in the common trust fund,

2. The manner for allocating the common trust fund's income and losses,

3. The criteria for admission to or withdrawal from participating in the common trust fund, and

4. The method for valuing assets in the common trust fund and the frequency of valuation.

C. A trust department or trust company shall advise all persons having an interest in its common trust fund of the existence of the plan described in subsection (B), and shall provide a copy of the plan upon request.

D. The annual report required under Section R20-4-805(A) shall include all common trust funds operated by the trust department or trust company.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-815 recodified from R4-4-815 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Ariz. Admin. Code § R20-4-816 Termination of Trust or Fiduciary Powers and Duties

A. Any trust department that wants to surrender its trust powers shall file with the Director a certified copy of the appropriate resolution of its board of directors or of the board's unanimous written consent. If, after investigation, the Director concludes that the trust department has no remaining fiduciary duties, the Director shall notify the trust department that it no longer has authority to exercise trust powers.

B. Any trust company that wants to surrender its certificate of authority to conduct trust business and wind up its affairs shall file with the Director a certified copy of the appropriate resolution of its board of directors or of the board's unanimous written consent. Upon receipt of the resolution or consent, the Director shall cancel the trust company's certificate of authority, and the trust company shall not accept new trust accounts.

C. After winding up its affairs, any trust company that wants to surrender its rights and obligations as a fiduciary and remove itself from the Director's supervision shall file with the Director a certified copy of the appropriate resolution of its board of directors or of the board's unanimous written consent. If, after investigation, the Director concludes that the trust company has no further fiduciary duties, the Director shall notify the trust company that it no longer has authority to exercise fiduciary powers.

D. Any trust department or trust company that surrenders its powers, rights, obligations, or certificate under this Section or that has them cancelled, suspended, or revoked shall continue to be regulated under A.R.S. § 6-864 and this Article until it winds up its affairs. No action under this Section impairs any liability or cause of action, existing or incurred, against any trust department or trust company or its stockholders, directors, or officers.

History

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-816 recodified from R4-4-816 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.

Article 9 MORTGAGE BROKERS

Ariz. Admin. Code § R20-4-901 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-901 recodified from R4-4-901 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-902 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-902 recodified from R4-4-902 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-903 Exemption for an Entity Regulated by an Agency of this State, Other States, or by the United States

A. The exemption under A.R.S. § 6-902(A)(1) only applies to a person whose offers to make or negotiate a mortgage loan, as defined in A.R.S. § 6-901, and all mortgage loans made or negotiated by the person are regulated directly by an agency of this state, any other state, or the United States.

B. The required regulation of the transactions listed in subsection (A) includes:

1. Rules governing a claimant's accounting and recordkeeping practices;

2. The authority to examine a claimant's books and records relating to its mortgage lending activities; and

3. The ability to place a claimant in a receivership or conservatorship with regard to the claimant's mortgage lending activities.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-903 recodified from R4-4-903 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-904 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-904 recodified from R4-4-904 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-905 [Repealed]

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-905 recodified from R4-4-905 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-906 Equivalent and Related Experience

A. An applicant may satisfy the three years' experience requirement of A.R.S. § 6-903 by the types of lending-related experience listed in this subsection. The Department counts each month in the following types of work experience toward the three years required for a mortgage broker license, under A.R.S. § 6-903(B), or as a responsible individual, under A.R.S. § 6-903(E). The Department counts a fractional month of experience, at least 15 days long, as a full month.

1. Mortgage broker with an Arizona license, responsible individual, or branch manager for a licensee;

2. Mortgage banker with an Arizona license, responsible individual, or branch manager for a licensee;

3. Loan officer with responsibility primarily for loans secured by lien interests on real property;

4. Lender's branch manager with responsibility primarily for loans secured by lien interests on real property;

5. Mortgage broker with license from another state, or responsible individual for a mortgage broker licensed in another state;

6. Mortgage banker with license from another state, or responsible individual for a mortgage banker licensed in another state;

7. Attorney certified by any state as a real estate specialist.

B. An applicant with insufficient actual experience of the types listed in subsection (A) may satisfy the remainder of the three years' experience requirement of A.R.S. § 6-903 by the types of related experience listed in this subsection. The Department counts each month in the following types of work experience according to the ratio listed below, of actual experience to equivalent experience, credited towards qualifying for a license, under A.R.S. § 6-903(B), or as a responsible individual, under A.R.S. § 6-903(E). The Department counts a fractional month of experience, at least 15 days long, as a full month. An applicant receives credit in only one area listed and for not more than three years' actual experience. The remaining years of experience required to qualify for a license shall be obtained from types of work experiences listed in subsection (A).

Attorney without state bar certified real estate specialty...3:2

2. Paralegal with experience in real estate matters...3:2

3. Loan underwriter ...3:2

4. Mortgage broker or mortgage banker from another state without license...3:2

5. Real estate broker with an Arizona license or license from a state with substantially equivalent licensing requirements...3:2

6. Escrow officer ...3:2

7. Trust officer with a title company...3:2

8. Executive, supervisor, or policy

maker involved in administering or

operating a mortgage-related business...3:1.5

9. Title officer with a title company...3:1.5

10. Real estate broker, not qualified under

subsection (B)(5)...3:1.5

11. Loan processor with responsibility primarily for loans secured by lien interests on real property...3:1.5

12. Lender's branch manager with responsibility primarily for loans not secured by lien interests on real property...3:1.5

13. Real property salesperson with an Arizona license or a license from a state with substantially equivalent licensing requirements...3:1

14. Loan officer, with responsibility primarily for loans not secured by lien interests on real property...3:1

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-906 recodified from R4-4-906 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-907 Course of Study

A. A course of study shall be satisfactorily completed if the applicant has:

1. Attended at least 24 hours of class, and

2. Received a passing grade on the final exam.

B. A course of study shall meet all the following requirements:

1. The following items shall be submitted by the school to the Superintendent on an annual basis:

a. Course materials;

b. Class content outlines on a session-by-session basis; and

c. Sample final exam.

The following subjects shall be taught:

a. Mortgage, deed of trust, and security agreement law;

b. Negotiable instrument law;

c. Mortgage broker law;

d. Escrow agent law;

e. Recordkeeping requirements of R20-4-917;

f. Federal Housing Administration, Veterans Administration, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation requirements;

g. Ethics;

h. Principal and agent law;

i. Arithmetical computations common to mortgage brokerage;

j. Real estate lending principles;

k. Real estate law;

l. Real Estate Settlement Procedures Act, 12 U.S.C. 2601 through 2617, and Consumer Credit Protection Act, 15 U.S.C. 1601 through 1666 j; and

m. Securities law.

3. A final exam shall be given that substantially tests the student's knowledge of the subjects described above.

C. The Superintendent shall review the items submitted to the Department and determine within 60 days of submission whether the proposed course of study is satisfactory. The Superintendent may audit a course of study at any time. If the Superintendent finds that a course of study is unsatisfactory, or if the Superintendent has not received the course materials, course content outlines, and sample final exam within the prior 13 months, the Superintendent may withhold or suspend approval.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-907 recodified from R4-4-907 (Supp. 95-1).

Ariz. Admin. Code § R20-4-908 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-908 recodified from R4-4-908 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-909 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-909 recodified from R4-4-909 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-910 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-910 recodified from R4-4-910 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-911 Qualified Replacement Responsible Individual

If a licensee chooses an individual to serve as a replacement responsible individual and that individual has not satisfactorily completed the course of study required by A.R.S. § 6-903(B)(2) or passed the mortgage broker examination required by A.R.S. § 6-903(B)(3), and is not given the opportunity to do so prior to the expiration of the 90-day time period provided in A.R.S. § 6-903(F), but otherwise meets the requirements of A.R.S. § 6-903(B), the individual shall be qualified as a replacement responsible individual until the next course of study has been held and, if the person successfully completes the course of study, until the mortgage broker examination next following the completion of the course of study has been held and the results of the examination are available. If the individual fails to satisfactorily complete the course of study or fails the mortgage broker examination, the licensee shall then have a new 90-day time period within which to place itself under the active management of a qualified responsible individual. Notwithstanding the foregoing, a licensee shall have no longer than 180 days within which to place the license under the active management of a qualified responsible individual unless the Superintendent grants additional time to the licensee for good cause shown.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-911 recodified from R4-4-911 (Supp. 95-1).

Ariz. Admin. Code § R20-4-912 Restrictions on the Term of a Cash Alternative

If an applicant or a licensee elects to place with the Superintendent a deposit in the form of a certificate of deposit or investment certificate, in addition to the requirements of A.R.S. § 6-903(J), the certificate of deposit or investment certificate shall not be renewable, nor expire, earlier than 12 months from the date of issuance.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-912 recodified from R4-4-912 (Supp. 95-1).

Ariz. Admin. Code § R20-4-913 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-913 recodified from R4-4-913 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-914 Reserved

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-914 recodified from R4-4-914 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-915 Requirements for a Person Intended to Oversee a Branch Office

A person designated to oversee the operations of a branch office shall be knowledgeable about the branch activities of the licensee, shall supervise compliance by the branch with applicable law and rules, and shall have sufficient authority to ensure such compliance. One person may oversee more than one branch.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-915 recodified from R4-4-915 (Supp. 95-1).

Ariz. Admin. Code § R20-4-916 Notification of Change of Address

If the address of the principal place of business or of any branch office is changed, the licensee shall notify the Superintendent of the change within five business days after the occurrence of the change of location. Together with such notice, the licensee shall provide to the Department the license for the office changing addresses together with the fee required by A.R.S. § 6-126 for changing the address of an office. A copy of such license shall continue to be displayed at the place of business until a new license is issued.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-916 recodified from R4-4-916 (Supp. 95-1).

Ariz. Admin. Code § R20-4-917 Recordkeeping Requirements

A. The Superintendent shall approve a licensee's use of a computer or mechanical recordkeeping system if the licensee gives the Superintendent advanced written notice that it intends to do so. The Department shall not require a licensee to keep a written copy of the records if the licensee can generate all information required by this Section in a timely manner for examination or other purposes. A licensee may add, delete, modify, or customize an approved computer or mechanical recordkeeping system's hardware or software components. When requested, or in response to a written notice of an examination, a licensee shall report to the Superintendent any alteration in the approved system's fundamental character, medium, or function if the alteration changes:

1. Any approved computer or mechanical system back to a paper-based system;

2. An approved mechanical system to a computer system; or

3. An approved computer system to a mechanical system.

B. In addition to any statutory requirement regarding records, a record maintained by a mortgage broker shall include the following:

1. A list of all executed loan applications or executed fee agreements that includes the following information:

a. Applicant's name;

b. Application date;

c. Amount of initial loan request;

d. Final disposition date;

e. Disposition (funded, denied, etc.); and

f. Name of loan officer;

2. A record, such as a cash receipts journal, of all money received in connection with a mortgage loan including:

a. Payor's name;

b. Date received;

c. Amount; and

d. Receipt's purpose, including identification of a related loan, if any;

3. A sequential listing of checks written for each bank account relating to the mortgage broker business, such as a cash disbursement journal, including:

a. Payee's name;

b. Amount;

c. Date; and

d. Payment's purpose, including identification of a related loan, if any;

4. Bank account activity source documents for the mortgage broker business including receipted deposit tickets, numbered receipts for cash, bank account statements, paid checks, and bank advices.

5. A trust subsidiary ledger for each borrower that deposits trust funds showing:

a. Borrower's name or co-borrowers' names;

b. Loan number, if any;

c. Amount received;

d. Purpose for the amount received;

e. Date received;

f. Date deposited into trust account;

g. Amount disbursed;

h. Date disbursed;

i. Disbursement's payee and purpose; and

j. Balance;

6. A file for each application for a mortgage loan containing:

a. The agreement with the customer concerning the broker's services, whether as a loan application, fee agreement, or both;

b. Document showing the application's final disposition, such as a settlement statement, or a denial or withdrawal letter;

c. Correspondence sent, received, or both by the licensee;

d. Contract, agreement, and escrow instructions to or with any depository;

e. Documents showing compliance with the Consumer Credit Protection Act's (15 U.S.C. §§ 1601 through 1666j) and the Real Estate Settlement Procedures Act's (12 U.S.C. §§ 2601 through 2617) disclosure requirements, to the extent applicable;

f. If the loan is funded by an investor that is not a financial institution, an enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust or, an insurance company, the documents provided to the investor under A.R.S. § 6-907, a copy of the executed note and executed deed of trust or mortgage, and any assignment by the broker to the investor;

g. If the loan is closed in the mortgage broker's name, a copy of all closing documents including: closing instructions, any applicable rescission notice, HUD-1 settlement statement, final truth-in-lending disclosure, executed note, executed deed of trust or mortgage, and each assignment of beneficial interest by the licensee; and

h. Itemized list of all fees taken in advance including appraisal fee, credit report fee, and application fee;

7. Samples of every piece of advertising relating to the mortgage broker's business in Arizona;

8. Copies of governmental or regulatory compliance reviews;

9. If the licensee is not a natural person, a file containing:

a. Organizational documents for the entity;

b. Minutes;

c. A record, such as a stock or ownership transfer ledger, showing ownership of all proportional equity interests in the licensee, ascertainable as of any given record date; and

d. Annual report, if required by law;

10. If the licensee or anyone directly or indirectly owning more than 20% of the licensee has a felony conviction, a copy of the judgment or other record of conviction;

11. If the licensee or anyone directly or indirectly owning more than 20% of the licensee has, in the previous seven years, been named a defendant in any civil suit, a copy of the complaint, any answer filed by the licensee, and any judgment, dismissal, or other final order disposing of the action; and

12. If the Superintendent has granted approval to maintain records outside this state, the specific address where the records are kept, and a person's name to contact for them.

C. If 10 or fewer transactions have occurred during the prior calendar quarter, a licensee shall reconcile and update all records specified in subsection (B) at least once each calendar quarter. A licensee shall reconcile and update all records specified in subsection (B) monthly if more than 10 transactions occurred during the prior calendar quarter. In addition to reconciling each trust bank account, a licensee shall verify each trust balance to each trust subsidiary ledger at each reconciliation.

D. A licensee shall retain the documents described in subsections (B)(1) and (B)(6) for the length of time provided in A.R.S. § 6-906. For the purposes of A.R.S. § 6-906, a mortgage loan's closing date, on a loan application that did not result in the making of a loan, is either:

1. The date a licensee receives a written cancellation notice from an applicant; or

2. The date a licensee mails written notice to an applicant that the application has been denied, as required by federal law.

E. A licensee shall maintain all records described in this Section, and not included in subsection (D), for at least two years.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-917 recodified from R4-4-917 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-918 [Repealed]

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-918 recodified from R4-4-918 (Supp. 95-1). Section repealed by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-919 Deposit of Monies Received by a Mortgage Broker

All monies received by a mortgage broker which are required to be deposited into an escrow account with an escrow agent licensed pursuant to A.R.S. § 6-801 et seq. shall be so deposited by 5:00 p.m. on the next business day after receipt of the funds.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-919 recodified from R4-4-919 (Supp. 95-1).

Ariz. Admin. Code § R20-4-920 Requirements for the Testing Committee

A. No licensee shall submit more than five names as nominees to serve on the testing committee. The resumes of the nominees shall be included. The names and resumes shall be submitted to the Superintendent no later than August 1 of each even- numbered year. On or before September 30 of each even- numbered year, the Superintendent shall appoint four persons from the nominees submitted and one employee of the Department as members of the testing committee. A person may serve more than one two-year term. If the Superintendent does not find at least four persons from the list to be acceptable, the Superintendent shall solicit additional nominees from licensees.

B. In the event of a vacancy on the testing committee, the remaining members of the committee shall submit a list of nominees within 45 days of the vacancy to the Superintendent containing not less than two nominees for each vacancy. The Superintendent shall then appoint a nominee from the list to fill each vacancy for the remainder of the term. If the Superintendent does not find at least one person from the list to be acceptable to fill each vacancy, the remaining members of the committee shall, upon request, submit an additional list of nominees to the Superintendent.

C. The Superintendent may remove any member of the committee at any time without cause.

D. The committee shall review and revise questions on the test not less than once every two years. All questions used on the test shall first be submitted to and approved by the Superintendent.

E. The committee shall inform the applicant of the applicant's score on the test in writing within 30 days of administration of the test.

F. The handbook for mortgage brokers shall be updated by the committee as necessary to reflect changes in the law.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-920 recodified from R4-4-920 (Supp. 95-1).

Ariz. Admin. Code § R20-4-921 Authorizations to Complete Blank Spaces

An authorization, under A.R.S. § 6-909, allowing a licensee or escrow agent to complete certain blank spaces in a document after it is signed by a party to the transaction shall:

1. Specifically identify the document and the blank spaces to be completed;

2. Be in writing, dated, and signed by the authorizing parties; and

3. Contain the following notice, conspicuously printed on its face: YOUR SIGNATURE BELOW AUTHORIZES YOUR MORTGAGE BROKER OR ESCROW AGENT TO FILL IN SPACES YOU LEFT BLANK IN SPECIFIED LOAN DOCUMENTS YOU ARE ABOUT TO SIGN OR MAY HAVE ALREADY SIGNED. UNDER STATE LAW YOU CAN GIVE THIS AUTHORITY, BUT YOU ARE NOT REQUIRED TO DO SO. YOU CAN REFUSE TO SIGN ANY DOCUMENTS UNTIL ALL BLANKS ARE COMPLETELY FILLED IN.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-921 recodified from R4-4-921 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-922 Determining Loan Amounts

In determining the amount of a mortgage loan pursuant to A.R.S. § 6-909(D) or (G), only the principal amount of the loan shall be considered and not any points, interest, finance charges, insurance premiums of any kind, compensation paid to third parties or compensation retained by the mortgage broker or its agents.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-922 recodified from R4-4-922 (Supp. 95-1).

Ariz. Admin. Code § R20-4-923 Delay or Cause Delay

A mortgage broker shall not be deemed to have delayed or caused delay if such delay occurs due to events outside the control of the mortgage broker.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-923 recodified from R4-4-923 (Supp. 95-1).

Ariz. Admin. Code § R20-4-924 Receipt and Disbursement of Monies

A licensee is not receiving or disbursing monies in servicing or arranging a mortgage loan if the licensee, at the request of the lender or servicing agent, on an infrequent basis, assists in the collection or servicing of a mortgage loan by receiving from the borrower a check or draft payable to the lender or servicing agent and forwarding such instrument to the lender or servicing agent not later than 5:00 p.m. on the next business day after receipt by the licensee. For the purposes of this rule, an infrequent basis means, with regard to a particular loan, for not more than 25% of the regularly scheduled payments of the mortgage loan during any calendar year.

History

Adopted effective August 14, 1991 (Supp. 91-3). R20-4-924 recodified from R4-4-924 (Supp. 95-1).

Ariz. Admin. Code § R20-4-925 Waiver of Examination and Course of Study

The Superintendent's waiver of the examination and course of study requirement under A.R.S. § 6-903 extends to a person designated as a responsible individual by either an applicant or a licensee under A.R.S. § 6-903.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-926 Acquisition of Additional Interest in Licensee by Majority Owner

A person that owns 51% or more of a licensee's outstanding voting equity interests, and that acquires the power to vote additional fractional equity interests, shall deliver written notice of the acquisition to the Superintendent. The person shall deliver the notice before completing the acquisition. Within 10 days after completing the acquisition, the person shall deliver documentation evidencing the acquisition to the Superintendent.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-927 Conversion to Commercial Mortgage Broker License

A. Under A.R.S. § 6-913, a mortgage broker licensee shall only be permitted to convert his or her license to a commercial mortgage broker license during the renewal period established by A.R.S. § 6-904.

B. The licensee seeking conversion shall not be subject to the 12 continuing education units as prescribed by A.R.S. § 6-903(V).

C. The licensee seeking conversion shall submit:

1. The renewal fees required by A.R.S. § 6-126 for commercial mortgage brokers, and

2. The information and documents required by A.R.S. § 6-903.

History

New Section adopted by final rulemaking at 18 A.A.R. 2622, effective December 2, 2012 (Supp. 12-4).

Ariz. Admin. Code § R20-4-928 Certificate of Exemption Application and Renewal

A. Under A.R.S. § 6-912(C), upon application for a certificate of exemption, an applicant shall pay a nonrefundable fee of $300.

B. A person holding a certificate of exemption shall pay a renewal fee of $150.00 on or before December 31 of each year. Certificates of exemption not renewed by December 31 are automatically suspended, and the certificate holder shall not act as a registered exempt person until the certificate is renewed or a new certificate is issued pursuant to A.R.S. § 6-912. While the certificate is suspended, the licensed loan originators sponsored by the registered exempt person may not transact business as a loan originator. A registered exempt person may renew an automatically suspended certificate by paying the renewal fee plus $25.00 for each day after December 31 that a renewal fee is not received by the Superintendent and applying for renewal as prescribed by the Superintendent. A certificate of exemption that is not renewed by January 31 expires. A certificate of exemption shall not be granted to the holder of an expired certificate of exemption except as provided in A.R.S. § 6-912 for the issuance of an original certificate of exemption. Each licensed loan originator that is sponsored by a registered exempt person whose certificate has expired shall have his or her license placed on inactive status and shall not transact business in Arizona as a loan originator pursuant to A.R.S. § 6-991.02(M).

C. In addition to the application fee, on issuance of the certificate of exemption, the Superintendent shall collect the first year's renewal fee prorated according to the number of quarters remaining until the date of the next annual renewal, as required by A.R.S. § 6-126(B).

D. The following fees are payable to the Department:

1. To change the name of the federally chartered savings bank on a certificate of exemption: $250.00.

2. To change the responsible individual for the exempt entity: $250.00.

3. To issue a duplicate or replace a lost certificate of exemption: $100.00.

4. To change the address of the federally chartered savings bank on a certificate of exemption: $50.00.

History

New Section adopted by final rulemaking at 18 A.A.R. 2622, effective December 2, 2012 (Supp. 12-4).

Article 10 SAFE DEPOSIT AND SAFEKEEPING CODE

Ariz. Admin. Code § R20-4-1001 Notice of Change of Location of Safe Deposit Repository

A. A corporation or association that moves a repository shall give written notice of the location change to the Director and to its customers.

1. A corporation or association shall provide notice of the location change to the Director by mailing the notice required under this subsection by first class mail no less than 30 days before the scheduled moving date. The corporation or association shall include a copy of the notice to customers required under subsection (B).

2. A corporation or association shall provide notice of the location change to its customers by:

a. Publishing notice of the change of location in:

i. An English language newspaper of general circulation in the county where the repository will be closed,

ii. In a weekly newspaper for two consecutive publications, or

iii. In a daily newspaper for three consecutive days; and

b. Publishing the notice no more than 90 days, and no less than 30 days, before the scheduled moving date.

B. The corporation or association shall include all the following information in the notice:

1. The date the corporation or association intends to move the repository,

The earliest date a customer can remove contents and transact other business related to the move,

3. The latest date a customer can remove contents and transact other business related to the move,

4. The street address of the repository to be closed, and

5. The street address of the new repository.

History

Former Rule 1. R20-4-1001 recodified from R4-4-1001 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 5227, effective February 4, 2003 (Supp. 02-4). Preceding Historical Note entry corrected to read 2003 instead of 2002 (Supp. 03-1). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023.

Article 11 PUBLIC DEPOSITORIES FOR PUBLIC MONIES

Ariz. Admin. Code § R20-4-1101 Capital Structure of Banks; Defined

"Capital structure" as the term is applied to banks under Article 2.1, Chapter 2, Title 35, Arizona Revised Statutes, means the sum of the following reserves and capital accounts of the institution as stated in the institution's report of condition required by the supervisory banking authority for the year end next preceding the institution's bid for deposit:

1. Reserve for bad debt losses on loans,

2. Other reserves on loans,

3. Reserves on securities,

4. Capital notes and debentures,

5. Preferred stock -- total par value,

6. Common stock -- total par value,

Surplus,

8. Undivided profits, and

9. Reserve for contingencies and other capital reserves.

History

Adopted as an emergency effective July 29, 1975 (Supp. 75-1). Amended effective December 26, 1975 (Supp. 75-2). R20-4-1101 recodified from R4-4-1101 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023

Ariz. Admin. Code § R20-4-1102 Expired

History

Adopted as an emergency effective July 29, 1975 (Supp. 75-1). Amended effective December 26, 1975 (Supp. 75-2). R20-4-1102 recodified from R4-4-1102 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 382, effective February 5, 2020 (Supp. 20-1).

Article 12 RULES OF PRACTICE AND PROCEDURE BEFORE THE DIRECTOR

Ariz. Admin. Code § R20-4-1201 Scope of Article; Definitions

A. Scope. This Article, Title 6, Title 32, Chapters 9 and 36, and Title 44, Chapter 2.1 of the Arizona Revised Statutes govern administrative hearings before the Department. The Department shall use the authority of A.R.S. Title 41, Chapter 6, Article 10, the Office of Administrative Hearings' procedural rules and this Article to govern the initiation and conduct of administrative hearings. In an administrative hearing, special procedural requirements in state statute or another Section in this Article shall also govern the proceedings unless the requirements are inconsistent with either A.R.S., Title 41, Chapter 6, Article 10, the Office of Administrative Hearings' rules, or this Article. Except as otherwise provided in Section R20-4-1220 for rulemaking petitions, this Article does not apply to rulemaking or to investigative proceedings before the Director. Unless expressly applicable by rule or statute, the Arizona Rules of Civil Procedure do not apply to administrative hearings.

B. In addition to the definitions provided in A.R.S. §§ 41-1001 and 41-1092, the following terms apply to this Article:

"Administrative Hearing" means an appealable agency action as defined by A.R.S. § 41-1092(3) or a contested case as defined by A.R.S. § 41-1001(5) subject to A.R.S. Title 41, Chapter 6, Article 10.

"Attorney General" means the Attorney General of Arizona, and the Attorney General's assistants and special agents.

"Department" means the Arizona Department of Insurance and Financial Institutions - Financial Institutions Division.

"Director" has the meaning stated at A.R.S. § 20-102.

"Party" has the meaning prescribed at A.R.S. § 41-1001(16) and includes any person or entity subject to the jurisdiction of the Department under A.R.S. Title 6, Title 32 - Chapter 9, Title 32 - Chapter 36, and Title 44 - Chapter 2.1.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1201 recodified from R4-4-1201 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1202 Appearance and Practice before the Director for Administrative Hearings

~~In this Article, unless the context otherwise requires:~~

~~"Administrative law judge" has the meaning stated at A.R.S. § 41-1092(1) .~~

~~"Appealable agency action" has the meaning stated at A.R.S. § 41-1092 3).~~

~~"Contested case" has the meaning stated at A.R.S. § 41-1001(4) .~~

~~"Department" means the Arizona State Department of Financial Institutions.~~

~~"License" has the meaning stated at A.R.S. § 41-1001(10) .~~

~~"Party" means:~~

~~The Department;~~

~~The Superintendent;~~

~~Each person either named or admitted as a party, and~~

~~Each person properly seeking, and entitled, to be a party.~~

~~"Superintendent" has the meaning stated in A.R.S. § 6-101(16) .~~

A. A party may appear on their own behalf or through counsel.

B. When an attorney other than the Attorney General appears or intends to appear before the Director or the Department, they shall promptly disclose their name and contact information and the name and contact information of the party on whose behalf they intend to appear.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1202 recodified from R4-4-1202 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1203 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1203 recodified from R4-4-1203 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1204 Filing; Service

A. A document filed by a party with the Department is filed on the date it is received by the Department as established by the Department's earliest stamped date on the face of the document or by some other method of affixing a received date by the Department.

B. If a party is represented by an attorney, service is effectuated by service upon the attorney unless additional service upon the represented party is required by an administrative law judge or the Department.

C. A document is served upon a party as provided for under A.R.S. § 41-1092.04 and Section R2-19-108. A party effectuating service is responsible for producing proof of service if requested by the Department.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1204 recodified from R4-4-1204 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended to correct a typographical error in subsection (B) (Supp. 01-4). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1205 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1205 recodified from R4-4-1205 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1206 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1206 recodified from R4-4-1206 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1207 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1207 recodified from R4-4-1207 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1208 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1208 recodified from R4-4-1208 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Repealed by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1209 Answer to Notice of an Administrative Hearing

A. The Department may, in a notice of hearing, direct one or more parties to file a written answer to the allegations contained in the notice of hearing. Even if not directed to do so, any party to the proceeding may file an answer.

B. A party directed to file an answer shall do so within 20 days after issuance of a notice of hearing, unless the notice of hearing states a different period for the answer. The Department may require any party to answer, in a reasonable time, amendments to the assertions in the notice made after service of the original notice.

C. An answer filed under this Section shall briefly state the party's position or defense to the proceeding and shall specifically admit or deny each of the allegations in the notice of hearing. An answering party who does not have, or cannot easily obtain, knowledge or information sufficient to admit or deny an allegation shall state that inability which shall have the effect of a denial. Any allegation not denied is admitted. A party who intends to deny only a part of an allegation, shall expressly admit as much of that allegation as is true and shall deny the remainder.

D. A party who fails to file an answer required by this Section within the time allowed is in default. The Director may resolve the proceeding against a defaulting party. In doing so, the Director may regard any allegations in the notice of hearing as admitted by the defaulting party.

E. Defenses not raised in the answer are waived.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1209 recodified from R4-4-1209 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1210 Stay Pending a Hearing

A person aggrieved by the Department's action or order who files a timely written request for a hearing may ask, in the request for a hearing, that the Director stay an action or any part of an order that will become effective before a hearing. The Director may, in the Director's discretion, stay the legal effectiveness of any action or order until the matter can be heard and finally decided if the aggrieved person's request demonstrates that:

1. The person has a reasonable defense that might prevail on the merits at the hearing,

2. The person will suffer irreparable injury unless the Director grants the stay,

3. The stay would not substantially or irreparably harm other interested persons, and

4. The stay would not jeopardize the public interest or contravene public policy.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1210 recodified from R4-4-1210 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1211 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1211 recodified from R4-4-1211 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Repealed by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1212 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1212 recodified from R4-4-1212 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1213 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1213 recodified from R4-4-1213 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1214 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1214 recodified from R4-4-1214 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1215 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1215 recodified from R4-4-1215 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1216 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1216 recodified from R4-4-1216 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1217 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1217 recodified from R4-4-1217 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1218 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1218 recodified from R4-4-1218 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-4-1219 Request for Rehearing or Review

A. Any party aggrieved by an administrative decision may file with the Director within time limits and other procedural guidelines contained in A.R.S. § 411092.09, a written motion for rehearing or review of the decision specifying the particular reason for the request.

B. A party filing a motion under this Section may amend the motion at any time before a response to the motion is filed. An amended motion tolls the time for filing a response and the time for rendering a decision on the motion.

C. A request for rehearing or review which is not timely filed is deemed waived for the purpose of judicial review.

~~1. Irregularity in the proceedings before the Superintendent, in any order, or any abuse of discretion that deprives the moving party of a fair hearing;~~

~~2. Misconduct of the Superintendent, the Superintendent employees, the administrative law judge, or the prevailing party;~~

~~3. Accident or surprise that could not have been prevented by ordinary care;~~

~~4. Newly discovered material evidence that could not reasonably have been discovered and produced at the original hearing;~~

~~5. Excessive or insufficient penalties;~~

~~6. Error in admitting or rejecting evidence or other legal errors occurring at the hearing;~~

~~7. The decision is not justified by the evidence or is contrary to law.~~

D. A motion for rehearing or review shall specify which of the grounds listed in subsection (G) it is based upon and shall set forth the specific facts and laws in support of the motion. A motion may cite relevant portions of testimony from the hearing if a transcript is provided with the motion and may cite hearing exhibits by reference to the exhibit number. The motion shall specify the relief sought by the request, such as a different finding of fact, conclusion of law or order and may seek multiple forms of relief in the alternative. When a motion for rehearing or review is based on an affidavit, the moving party shall attach the affidavit to the motion.

E. A party may file a separate request for a stay of the Director's decision. Filing a stay request or a motion for rehearing or review does not stay an order filed by the Director. The Director may stay an order pending the resolution of a motion for rehearing or review.

F. Each party served with a motion for rehearing or review shall be permitted to file a written response within 15 days after the motion has been filed. Affidavits may be attached to and filed with a response. A response may cite relevant portions of testimony from the hearing if a transcript is provided with the response and may cite hearing exhibits by reference to the exhibit number. The Director has the discretion to hear oral argument to consider a request for rehearing or review.

G. The Director may grant a motion for rehearing or review for any of the following causes:

1. Irregularity in the proceedings before the Department, in any order, or any abuse of discretion that deprives the moving party of a fair hearing;

Misconduct by the Department, the administrative law judge, or the prevailing party;

3. Accident or surprise that could not have been prevented by ordinary care;

4. Newly discovered material evidence that could not reasonably have been discovered and produced at the original hearing;

5. Excessive or insufficient penalties;

6. Error in admitting or rejecting evidence or other legal errors occurring at the hearing; and

7. The decision is not justified by the evidence or is contrary to law.

H. The Director may affirm or modify the decision or grant a rehearing as to all or any of the parties and on all or part of the issues for any reason listed in subsection (G). An order granting a rehearing shall specify the reason for granting the rehearing, and the rehearing shall cover only those matters specified.

~~1. An express finding that the decision needs to be made immediately effective to preserve the public peace, health, and safety; and 2. An express finding that a rehearing or review is:~~

~~a. Impossible,~~

~~b. Unnecessary, or~~

~~c. Contrary to the public interest.~~

I. The Director, within the time for filing a motion for rehearing, may without a motion for rehearing, order a rehearing for any reason that would allow the granting of a motion for rehearing by a party. The order for rehearing, granted without a motion, shall specify the reason for granting the rehearing.

J. The Director may grant a motion for rehearing, timely served, for a reason not stated in the motion. The order for rehearing, granted for a reason not stated in the motion, shall specify the reason for granting the rehearing.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1219 recodified from R4-4-1219 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Ariz. Admin. Code § R20-4-1220 Petition for Rulemaking Action

A. The following definitions apply in this Section.

"Petitioner" means a person who petitions the Department for Rulemaking action as authorized under A.R.S. § 41-1033(A).

2. "Rule" has the meaning stated at A.R.S. § 41-1001 and is enforceable by the Department.

3. "Rulemaking action" means the process for formulation and finalization of a new rule, or amendment or repeal of an existing rule.

4. "Substantive Policy Statement" has the meaning stated at A.R.S. § 41-1001, is advisory only, and is not enforceable by the Department.

B. Any person may petition the Department under A.R.S. § 41-1033(A) to either:

~~1. Waiving any right to seek judicial review challenging the judgment's or order's validity,~~

~~2. Waiving findings of fact and conclusions of law,~~

~~3. Stating that the agreement is signed only to settle the matter and not as an admission that the defendant or respondent has violated the law.~~

1. Make, amend, or repeal a final Rule; or

2. Review an existing agency practice or Substantive Policy Statement that the Petitioner alleges to constitute a Rule.

C. A person who files a petition pursuant to A.R.S. § 41-1033(A), shall include the following information in the petition:

1. The Petitioner's name and contact information;

2. The name and address of any organization the Petitioner represents;

3. Whether the Petitioner is petitioning the Department to:

a. Make, amend, or repeal a final Rule; or

b. Review an existing agency practice or Substantive Policy Statement that the Petitioner alleges to constitute a Rule;

4. A detailed explanation of Petitioner's basis for submitting the petition;

5. If the Petitioner is petitioning the Department to make a Rule, the language of the proposed new Section and the specific authority for the requested Rulemaking action;

6. If the Petitioner is petitioning the Department to amend an existing Rule, a citation to the existing Section to be amended, the language of the proposed Rule amendment, and the specific authority for the requested Rulemaking action;

7. If the Petitioner is petitioning the Department to repeal an existing Rule, a citation to the existing Section or subsection to be repealed, and an explanation of why the Rule should be repealed including, if applicable, how the Rule does not meet the requirements of A.R.S. § 41-1030;

8. If the Petitioner is petitioning the Department to review an existing agency practice that the Petitioner alleges to constitute a Rule, a description of the Department's practice, an explanation of how the Department's practice constitutes a Rule being enforced by the Department, the language of the proposed new Rule, and the specific authority for the requested Rulemaking action;

9. If the petitioner is petitioning the Department to review a Substantive Policy Statement that the Petitioner alleges to constitute a Rule, a citation to the Substantive Policy Statement, an explanation of how the Substantive Policy Statement is being enforced by the Department as a Rule, the language of the proposed new Rule, and the specific authority for the requested Rulemaking action; and

10. The Petitioner's dated signature.

D. The petitioner may submit additional supporting information, including:

1. Statistical data; and

2. A list of other persons and entities likely to be affected by the proposed Rulemaking action, with an explanation of the likely effects.

E. Within 60 days of the date the Department receives the petition, the Director shall send the petitioner a written decision indicating whether the Department is denying the petition or will initiate the requested Rulemaking action, with the reasons for the decision.

History

Adopted effective February 7, 1978 (Supp. 78-1). R20-4-1220 recodified from R4-4-1220 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 4262, effective September 12, 2001 (Supp. 01-3). Amended by final rulemaking at 28 A.A.R. 3620, effective 1/1/2023.

Article 13 LOAN ORIGINATORS

Ariz. Admin. Code § R20-4-1301 Scope of Article

This Article applies to:

1. All loan originating activities of any person licensed under Arizona law as a loan originator, and

2. The conduct of any applicant for a loan originator license.

History

New Section made by emergency rulemaking at 16 A.A.R. 839, effective April 27, 2010 for 180 days (Supp. 10-2). Section renewed by emergency rulemaking and amended at 16 A.A.R. 2165, effective October 24, 2010 for 180 days (Supp. 10-4). Emergency expired April 21, 2011; new Section made by final rulemaking at 16 A.A.R. 2401, effective April 22, 2011 (Supp. 10-4).

Ariz. Admin. Code § R20-4-1302 Course of Study to Qualify for Licensure

A. The Superintendent shall, under the authority of A.R.S. § 6-991.03(B)(1), approve a course of study that includes only those courses reviewed and approved by the Nationwide Mortgage Licensing System pursuant to A.R.S. § 6-991.03(E) and (F) and the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 U.S.C. 5101 through 5116).

B. An applicant for a loan originator license shall satisfactorily complete a course of study by:

1. Attending at least 20 hours of instruction, and

2. Receiving a passing grade of not less than 75 percent correct answers on both the national and Arizona state exam required by A.R.S. § 6-991.07 and the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 U.S.C. 5101 through 5116).

C. A pre-licensure course of study shall include 20 hours of instruction in the following areas:

1. Federal law and regulation, including the Real Estate Settlement Procedures Act ("RESPA"), the Truth in Lending Act ("TILA"), good faith estimates, federal privacy laws, fair lending laws including the Equal Credit Opportunity Act ("ECOA") and the Fair Credit Reporting Act ("FCRA"): Three hours;

2. Business ethics, including fraud, consumer protection laws, and fair lending practices: Three hours;

3. Non-traditional mortgage product lending standards: Two hours;

4. Arizona real estate and mortgage lending law, including loan origination and processing, Arizona law relating to agency and the obligations between principal and agent, and state privacy laws: Four hours;

5. The remaining eight hours should be comprised of instruction in:

a. The obligations between principal and agent;

b. The statutory and regulatory laws governing loan originators;

c. Arithmetical computations common to mortgage lending;

d. Principles of real estate lending;

e. The purpose and effect of mortgages, deeds of trust, and security agreements;

f. The terms and conditions of conforming and non-conforming residential mortgages;

g. Real estate appraisal; and

h. The principles of appraisal independence.

D. A continuing education course of study shall include eight hours of instruction each year in the following areas:

2. Business ethics, including fraud, consumer protection laws, and fair lending practices: Two hours;

3. Non-traditional mortgage product lending standards: Two hours;

History

New Section made by emergency rulemaking at 16 A.A.R. 839, effective April 27, 2010 for 180 days (Supp. 10-2). Section renewed by emergency rulemaking and amended at 16 A.A.R. 2165, effective October 24, 2010 for 180 days (Supp. 10-4). Emergency expired April 21, 2011; new Section made by final rulemaking at 16 A.A.R. 2401, effective April 22, 2011 (Supp. 10-4).

Ariz. Admin. Code § R20-4-1303 Financial Responsibility

An applicant for a loan originator license shall demonstrate financial responsibility, as required by A.R.S. § 6-991.03, by either:

1. Depositing with the Superintendent a bond as specified by A.R.S. § 6-991.03(B)(4) and paying to the Superintendent, for deposit into the Mortgage Recovery Fund, the sum of $100 at the time of filing an original or a renewal application pursuant to A.R.S. § 6-991.03(B)(6); or

2. Depositing with the Superintendent a bond as specified by A.R.S. § 6-991.03(B)(4) and depositing with the Superintendent a bond as specified by A.R.S. § 6-991.03(B)(6).

History

New Section made by emergency rulemaking at 16 A.A.R. 839, effective April 27, 2010 for 180 days (Supp. 10-2). Section renewed by emergency rulemaking at 16 A.A.R. 2165, effective October 24, 2010 for 180 days (Supp. 10-4). Emergency expired April 21, 2011; new Section made by final rulemaking at 16 A.A.R. 2401, effective April 22, 2011 (Supp. 10-4).

Ariz. Admin. Code § R20-4-1304 Fees

Loan Originator program fees:

1. Initial application fee (non-refundable) pursuant to A.R.S. § 6-126(A)(33): $350,

2. Initial license fee (prorated according to the number of quarters remaining until the next annual renewal) pursuant to A.R.S. § 6-126(B): $150,

3. Annual renewal fee pursuant to A.R.S. § 6-126(C)(12) or fee for change to inactive status pursuant to A.R.S. §§ 6-126(C)(13) and 6-991.04(G): $150,

4. Transfer license to new employer fee pursuant to A.R.S. § 6-126(A)(34): $50,

5. Change of residence address fee pursuant to A.R.S. § 6-991.04(J): $50,

6. Examination fee pursuant to A.R.S. § 6-991.07(E): the amount charged by the vendor,

7. Late renewal fee pursuant to A.R.S. § 6-991.04(E): $25 per day after the filing deadline.

History

New Section made by emergency rulemaking at 16 A.A.R. 839, effective April 27, 2010 for 180 days (Supp. 10-2). Section renewed by emergency rulemaking and amended at 16 A.A.R. 2165, effective October 24, 2010 for 180 days (Supp. 10-4). Emergency expired April 21, 2011; new Section made by final rulemaking at 16 A.A.R. 2401, effective April 22, 2011 (Supp. 10-4).

Ariz. Admin. Code § R20-4-1305 Practice and Procedure

Loan originators shall follow the practice outlined in 20 A.A.C. 4, Article 12 (Rules of Practice and Procedure Before the Superintendent) for challenging information the Superintendent enters into the Nationwide Mortgage Licensing System and Registry pursuant to A.R.S. §§ 6-991.03(K) and 6-991.04(M).

History

New Section made by emergency rulemaking at 16 A.A.R. 839, effective April 27, 2010 for 180 days (Supp. 10-2). Section repealed; new Section made by renewed emergency rulemaking at 16 A.A.R. 2165, effective October 24, 2010 for 180 days (Supp. 10-4). Emergency expired April 21, 2011; new Section made by final rulemaking at 16 A.A.R. 2401, effective April 22, 2011 (Supp. 10-4).

Article 14 INVESTIGATIONS

Ariz. Admin. Code § R20-4-1401 Definitions

In this Article, unless the context otherwise requires:

1. "Examination" means reviewing an applicant's or licensee's operations, books, and records for any lawful purpose, including those listed in A.R.S. § 6-124(A).

2. "Investigation" means an inquiry, other than an examination, into the affairs of a licensed or unlicensed entity including a review of the entity's operations, books, and records, conducted by the Director for any lawful purpose, including those listed in A.R.S. § 6-124(A).

3. "Licensee" means a financial institution or enterprise licensed with the Department.

History

Adopted effective February 7, 1978 (Supp. 78-1). Former Section R4-4-1401 repealed, new Section R4-4-1401 renumbered from R4-4-1402 and amended effective August 14, 1991 (Supp. 91-3). Amended effective August 14, 1991 (Supp. 91-3). R20-4-1401 recodified from R4-4-1401 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 4653, effective December 6, 2003 (Supp. 03-4). Amended by final rulemaking at 29 A.A.R. 1958, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1402 [Repealed]

History

Former Section R4-4-1402 renumbered to R4-4-1401, new Section R4-4-1402 adopted effective August 14, 1991 (Supp. 91-3). R20-4-1402 recodified from R4-4-1402 (Supp. 95-1). Section repealed by final rulemaking at 9 A.A.R. 4653, effective December 6, 2003 (Supp. 03-4).

Ariz. Admin. Code § R20-4-1403 Subpoenas: Service; Amendment; Investigation or Examination not a Condition of the Director's Subpoena Power

The Director may serve a subpoena using any means intended to effectuate delivery of the subpoena. A Department employee, or an attorney or agent of the Attorney General's office, may accomplish service for the Director. The Director may amend a subpoena at any time, and may serve the amended subpoena as provided in this Section. Under A.R.S. §§ 6-123(3), 6-124(B), and 12-2212, the Director may compel testimony or document production, by subpoena or other means, regardless of whether an examination or investigation is in progress.

History

Adopted effective February 7, 1978 (Supp. 78-1). Former Section R4-4-1403 repealed, new Section R4-4-1403 renumbered from R4-4-1407 and amended effective August 14, 1991 (Supp. 91-3). R20-4-1403 recodified from R4-4-1403 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 4653, effective December 6, 2003 (Supp. 03-4). Amended by final rulemaking at 29 A.A.R. 1958, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1404 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). Repealed effective August 14, 1991 (Supp. 91-3). R20-4-1404 recodified from R4-4-1404 (Supp. 95-1).

Ariz. Admin. Code § R20-4-1405 Background Information

A. In connection with an examination or investigation, the Director may investigate the following persons' background:

1. An applicant or a licensee, or a person whom the Director reasonably believes may be violating any statute or rule administered by the Director; and

2. An officer, director, agent, employee, partner, joint venturer, affiliate, or other person associated with a person described in subsection (A)(1), if the other person has or had any involvement in or control over the activities of the person described in subsection (A)(1).

B. In connection with an examination or investigation, the Director may require a person described in A.R.S. § 6-123.01(A) or (E) to submit a statement of personal history to the Department.

History

Adopted effective February 7, 1978 (Supp. 78-1). Former Section R4-4-1405 repealed, new Section R4-4-1405 renumbered from R4-4-1409 and amended effective August 14, 1991 (Supp. 91-3). R20-4-1405 recodified from R4-4-1405 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 4653, effective December 6, 2003 (Supp. 03-4). Amended by final rulemaking at 29 A.A.R. 1958, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1406 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). Repealed effective August 14, 1991 (Supp. 91-3). R20-4-1406 recodified from R4-4-1406 (Supp. 95-1).

Ariz. Admin. Code § R20-4-1407 Renumbered

History

Adopted effective February 7, 1978 (Supp. 78-1). Renumbered to R4-4-1403 effective August 14, 1991 (Supp. 91-3). R20-4-1407 recodified from R4-4-1407 (Supp. 95-1).

Ariz. Admin. Code § R20-4-1408 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). Repealed effective August 14, 1991 (Supp. 91-3). R20-4-1408 recodified from R4-4-1408 (Supp. 95-1).

Ariz. Admin. Code § R20-4-1409 Renumbered

History

Adopted effective February 7, 1978 (Supp. 78-1). Renumbered to R4-4-1405 effective August 14, 1991 (Supp. 91-3). R20-4-1409 recodified from R4-4-1409 (Supp. 95-1).

Ariz. Admin. Code § R20-4-1410 [Repealed]

History

Adopted effective February 7, 1978 (Supp. 78-1). Repealed effective August 14, 1991 (Supp. 91-3). R20-4-1410 recodified from R4-4-1410 (Supp. 95-1).

Article 15 COLLECTION AGENCIES

Ariz. Admin. Code § R20-4-1501 Definitions

In this Article, unless the context otherwise requires:

1. "Account" means a contractual arrangement between a client and a collection agency that obligates the collection agency to attempt to collect one or more debts on the client's behalf.

2. "Active Manager" means the person who is in active management of the conduct of the collection agency's business, and who meets the qualifications listed in A.R.S. § 32-1023(A).

3. "Client" means a person who has hired a collection agency to collect a debt.

4. "Collection agency" has the meaning in A.R.S. § 32-1001(2).

5. "Contact" means to communicate with, and includes attempted communications.

6. "Credit bureau" or "credit reporting agency" means any person engaged exclusively in the business of gathering, recording, and disseminating information about the credit-worthiness, financial responsibility, paying habits, and character of persons being considered for credit extension.

7. "Creditor" means a person who offers or extends credit creating a debt, or to whom a debt is owed. The term does not include a person that receives an assignment or transfer of a defaulted debt solely for use in collecting the debt for someone else.

8. "Debt" means a debtor's actual or claimed obligation to pay money, whether or not the obligation has been reduced to judgment.

"Debtor" means a person obligated to pay a debt. The term also means a person claimed to be obligated to pay a debt.

10. "Director" has the meaning stated at A.R.S. § 20-102.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1501 recodified from R4-4-1501 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1502 Applications

A. An applicant for a license shall complete and file an application, as required by the Department, by delivering the application to the Director, together with the following documents and payment:

1. The bond required by A.R.S. § 32-1021;

2. The nonrefundable investigation fee and original license fee required by A.R.S. § 32-1028 and stated in A.R.S. § 6-126;

3. A current financial statement in the form required by the Department;

4. A certified copy of the current articles of incorporation, by-laws, partnership agreement, or other organizational documents under which the applicant proposes to conduct business; and

5. A statement of personal history for each principal officer, partner, and manager of the applicant, in the form required by the Department.

B. An out-of-state collection agency applying for a license under A.R.S. § 32-1024 shall complete and file the application required by subsection (A), together with a signed statement declaring that:

1. The requirements for securing the out-of-state license were, when issued, substantially the same or equivalent to the requirements imposed under A.R.S. Title 32, Chapter 9, Article 2. The statement shall also contain a complete description of those requirements.

2. The state issuing the out-of-state license extends reciprocity to Arizona licensees under similar circumstances. The statement shall also contain a complete description of the conditions for reciprocity in the other state.

C. A licensee applying for license renewal shall complete and file an application, as required by the Department, by delivering the renewal application to the Director before January 1, together with the renewal fee required by A.R.S. § 32-1028 and stated in A.R.S. § 6-126. An application for renewal shall also include a current financial statement in the form required by the Department.

D. An applicant for a provisional license under A.R.S. § 32-1027 shall complete and file an application as required by the Department, by delivering the application to the Director within 30 days of the event justifying a provisional license. The applicant shall deliver the application together with each of the following:

1. A bond that satisfies the requirements of A.R.S. § 32-1022;

2. A current financial statement as required by the Department;

3. A detailed description of the facts justifying the issuance of a provisional license; and

4. Evidence that the licensee notified the Director as required by A.R.S. § 32-1023, in the event the licensee has terminated its active manager.

E. An applicant for a provisional license shall, in each instance, be appropriate to the circumstances justifying the provisional license, as follows:

1. A licensee's personal representative, or the personal representative's appointee, shall complete and file an application if the licensee, a natural person, has died;

2. The surviving partners shall complete and file an application if the licensee, a partnership, has dissolved;

3. A licensee shall complete and file an application if an active manager's employment was terminated.

F. An applicant for a provisional license shall clearly label the top of the first page with the heading "APPLICATION FOR PROVISIONAL LICENSE UNDER A.R.S. § 32-1027. "

G. The Director may require additional information the Director considers necessary in connection with any application under this rule.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1502 recodified from R4-4-1502 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4742, effective November 13, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1503 Reports

A. A collection agency shall notify the Director in writing of any change in the officers, directors, partners, or active manager of the collection agency not more than 10 days after the change. With the notice, the collection agency shall provide the Director with a Statement of Personal History for each new officer, director, partner, or active manager on a form obtained from the Department.

B. ~~A collection agency shall notify the Superintendent in writing of any change in its place of business not more than 10 days after the change.~~

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1503 recodified from R4-4-1503 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1504 Records

B. All licensees shall keep and maintain books, accounts, and records adequate to provide a clear and readily understandable record of all business conducted by the collection agency, including:

1. Records or books of account listing all clients' accounts. Each account shall reflect its true condition at each calendar month's end, and shall include:

a. The client's name and address;

b. Each debtor's name worked for collection in that month;

c. The amount, description, and date of each debit and each credit to the account; and

d. The balance due to, or owing from, the client.

2. A record and history of each debt for collection that clearly shows:

a. The debtor's name;

b. The debt's principal amount;

c. The interest charged or collected;

d. The amount, and description, of any other charges;

e. The amount, and date, of each payment received or collected; and

f. The current balance due on the debt.

3. An original of each written contract between the licensee and a client, including any contract amendments.

4. A trust general ledger reflecting all deposits to and payments from a trust account. A licensee shall post transactions to its trust general ledger at least every five business days. A licensee shall bring its trust general ledger current within 24 hours when requested by the Director.

5. The licensee's trust account reconciliation, prepared at least once a month.

6. Books, records, and files maintained so that the Director can easily conduct an unannounced spot check, as well as the examinations and investigations required by A.R.S. §§ 6-122 and 6-124.

7. A copy of all pleadings in pending litigation that names the collection agency as a defendant.

8. A record of fictitious names used by the agency's debt collectors as required by Section R20-4-1520.

C. A person issuing a receipt for a collection agency shall sign the receipt using that person's true name. Each receipt shall also show the collection agency's name.

D. A licensee shall maintain all records required under this Section and shall make them available for examination, investigation, or audit in Arizona within three working days after the Director demands the records.

E. A licensee shall retain the records required by this Section for the following periods:

1. A licensee shall retain all records described in subsections (B)(1), (B)(3), (B)(4), (B)(5), (B)(6), (B)(7), and (B)(8) for at least seven years following their creation.

2. A licensee shall retain all records described in subsection (B)(2) for at least three years from an account's assignment to the licensee. If a licensee collects any money on an account, the licensee shall retain the records described in subsection (B)(2) for at least three years from the last collection date.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). Amended effective December 18, 1979 (Supp. 79-6). R20-4-1504 recodified from R4-4-1504 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4742, effective November 13, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1505 Trust Account

A. A licensee that maintains an office in Arizona shall deposit all funds collected for a client in a trust account at a federally insured depository institution in Arizona. A licensee that does not maintain an office in Arizona shall deposit all funds collected for a client in a trust account at a federally insured depository institution in the state where the licensee maintains its principal office. A licensee shall deposit all client funds before the close of its business on the third business day after the licensee receives the funds. Client funds shall remain on deposit as required by this Section until:

1. Paid over to a client, or

2. Otherwise paid as provided in this Section.

B. A licensee shall pay funds from the trust account either:

1. By prenumbered printed checks, or

2. By electronic payment.

C. A licensee shall deposit in its trust account only the funds it has collected for its client. A licensee, its officers, directors, partners, managers, members, or employees shall not commingle, or permit the commingling of, their own funds with client funds. This prohibition includes any funds that a licensee, or any officer, director, partner, manager, member, or employee claims an interest in if that interest arises outside the licensee's contract with a client.

D. A licensee shall keep unpaid client funds in its trust account. A licensee may maintain a separate trust account for dormant accounts into which the licensee deposits unpaid funds such as those of a client that cannot be located, or any trust account check issued to a client that is returned without being negotiated. As to all those unpaid funds, under A.R.S. § 44-307, a licensee shall file an abandoned property report at the Arizona Department of Revenue as and when required by law.

E. A licensee shall withdraw from its trust account all fees and commissions due the licensee under its contract with a client and deposit them directly into its own operating account.

F. A licensee shall not pay funds from its trust account except as:

1. Provided in this Section,

2. Expressly authorized in its contract with a client, or

3. Authorized in writing by the Director.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1505 recodified from R4-4-1505 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 4742, effective November 13, 2000 (Supp. 00-4). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1506 Articles of Incorporation; Bylaws; Organizing Documents

A. A collection agency organized as a corporation shall file with the Director a copy of each amendment to its articles of incorporation within 30 days after the amendment is adopted. Before filing with the Director, an officer of the collection agency shall certify the copy filed in compliance with this Section, in writing, signed by the certifying officer, attesting to the completeness, accuracy, and authenticity of the certified copy.

B. A collection agency organized as a corporation shall file with the Director a copy of each amendment to its bylaws within 10 days after the amendment is adopted. An officer of the collection agency shall certify the copy filed in compliance with this Section, in writing, attesting to the completeness, accuracy, and authenticity of the certified copy.

C. A collection agency not organized as a corporation shall file with the Director a copy of each amendment to its organizing documents within 10 days after the amendment is adopted. A partner, active manager, or agent of the collection agency shall certify the copy filed in compliance with this Section, in writing, attesting to the completeness, accuracy, and authenticity of the certified copy.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1506 recodified from R4-4-1506 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1507 Representations of Collection Agency's Identity

In all communications with debtors, either orally or in writing, all the following rules apply:

1. A collection agency shall represent itself as a collection agency,

2. A collection agency shall not directly or indirectly claim to be a credit reporting agency or credit bureau if it is not,

3. A collection agency shall not directly or indirectly claim to be a law enforcement agency, and

4. A collection agency shall not directly or indirectly claim to be a law firm.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1507 recodified from R4-4-1507 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1508 Representations of the Law

A collection agency shall not:

1. Misrepresent the state of the law to a debtor;

2. Send a debtor written material that simulates legal process; or

3. Represent or imply that a debtor is, or may be, subject to criminal prosecution or arrest because of a failure to pay the debt.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1508 recodified from R4-4-1508 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1509 Representations as to Fees, Costs, and Legal Proceedings; Disinterested Counsel Required

A. A collection agency shall not threaten to collect, or attempt to collect, an attorney's fee, collection cost, or other fee that the debtor is not obliged to pay under the debtor's contract with the collection agency's creditor client.

B. A collection agency shall not inform a debtor that legal proceedings have been started unless, in fact, a lawsuit has been filed against the debtor.

C. A collection agency shall not threaten to start legal proceedings against a debtor unless the collection agency actually intends, at the time of the threat, to sue.

D. A collection agency shall not threaten to turn an account over to a lawyer unless the collection agency actually intends to do so at the time of the threat.

E. A collection agency shall not file a lawsuit against a debtor unless the lawsuit is filed by an attorney who has no personal or financial interest in the collection agency filing the lawsuit against the debtor.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1509 recodified from R4-4-1509 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1510 Representations as to Rights Waived or Remedies Available

A. A collection agency shall not inform a debtor that:

B. ~~A collection agency shall not inform a debtor that the collection agency has the power or right to bypass the legal process.~~

1. The debtor waives any legal right or legal defense by a failure to contact the collection agency, and

2. The collection agency has the power or right to bypass the legal process.

C. B. A collection agency shall not misrepresent the remedies available to the collection agency.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1510 recodified from R4-4-1510 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1511 Prohibition of Harassment

A. A collection agency shall not use unauthorized or oppressive tactics designed to harass any person to pay a debt.

B. A collection agency shall not use written or oral communications that ridicule, disgrace, or humiliate any person, or tend to ridicule, disgrace, or humiliate any person.

C. A collection agency shall not state, imply, or tend to imply, in written or oral communications, that any person is guilty of fraud or any other crime.

D. A collection agency shall not permit its agents, employees, representatives, debt collectors, or officers to use obscene or abusive language in efforts to collect a debt.

E. A collection agency or its agents, employees, representatives or officers are subject to penalties listed in A.R.S. § 32-1056(B) for any violation of this Article, as well as other liabilities imposed under any other provision of law.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1511 recodified from R4-4-1511 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1512 Contacts with Debtors and Others

A. A collection agency shall contact a debtor by telephone only during reasonable hours. A collection agency shall make a reasonable attempt to contact a debtor at the debtor's residence. A collection agency may contact a debtor at the debtor's place of employment if a reasonable attempt to contact the debtor at the debtor's residence has failed.

B. A collection agency shall not threaten to or contact a third party, including a debtor's friend, relative, neighbor, or employer and:

1. Inform the third party of the debt;

2. Ask the third party to pressure the debtor into paying the debt ; or

3. Ask the third party to pay the debt, unless the third party is legally obligated to pay the debt.

C. ~~A collection agency shall not threaten to contact a third party listed in subsection (B) for any purpose listed in subsection (B).~~

D. C. Despite the other provisions of this Section, a collection agency may make lawful service on third parties, including employers, of a writ of garnishment or other writ in aid of execution after judgment has been entered against a debtor.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1512 recodified from R4-4-1512 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1513 Cessation of Communication with the Debtor

A. A collection agency shall stop contacting a debtor, directly or indirectly, if the debtor tells the collection agency that the debtor is represented by a lawyer and wants the collection agency to communicate with the debtor through the debtor's lawyer. The collection agency may later contact the debtor if the collection agency contacts the lawyer named by the debtor and learns that the lawyer does not represent the debtor.

B. A collection agency shall stop contacting a debtor, directly or indirectly, if the debtor gives the collection agency written notice that the debtor:

1. Refuses to pay the debt, or

2. Wants the collection agency to stop all further communication with the debtor.

C. Despite the provisions of subsection (B), a collection agency may contact a debtor to inform the debtor that:

1. The collection agency has stopped trying to collect the debt, or

2. The collection agency or the creditor may invoke specific remedies that are customarily used by the collection agency or the creditor.

D. The debtor's written notice under subsection (B) is effective upon receipt by the collection agency if delivered by mail.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). Amended effective December 18, 1979 (Supp. 79-6). R20-4-1513 recodified from R4-4-1513 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1514 Disclosure of Information to Debtor

A. Within five days after the initial communication with the debtor, a collection agency shall obtain and be able to inform the debtor of:

1. The name of the creditor;

2. The time and place of the creation of the debt;

3. The merchandise, services, or other value provided in exchange for the debt; and

4. The date when the account was turned over to the collection agency by the creditor.

B. A collection agency shall give the debtor access to any of the collection agency's records that contain the information listed in subsection (A).

C. At the debtor's request, the collection agency shall give the debtor, free of charge, a copy of any document from its records that contains the information listed in subsection (A).

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1514 recodified from R4-4-1514 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1515 Aiding and Abetting

A collection agency shall not help or encourage, directly or indirectly, any person to evade or violate any provision of:

1. This Article, or

2. A.R.S. Title 32, Chapter 9.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1515 recodified from R4-4-1515 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1516 Advertising

A collection agency shall not use any form of communication to state or imply that the collection agency is:

1. Approved, bonded by, or affiliated with the state of Arizona;

2. A state agency;

3. The director of any state agency; or

4. Authorized to practice law.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1516 recodified from R4-4-1516 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1517 [Repealed]

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1517 recodified from R4-4-1517 (Supp. 95-1). Section repealed by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2).

Ariz. Admin. Code § R20-4-1518 Agreements with Clients

A collection agency's records shall document each client's account in writing. The records for an account shall include either a written agreement between the client creditor and the collection agency, or a written direction from the creditor to the collection agency concerning a specific debt placed for collection. The collection agency shall keep records that are specific, easily understood, and unambiguous. A provision of a written agreement or written direction that suggests the collection agency has authority to represent the client in court, or to practice law in any other way, is void and prohibited by this Section. The records for an account shall separately state:

1. The names of the parties to the agreement or written direction,

2. The terms or rate of compensation paid to the collection agency,

3. The length of time the agreement or written direction is intended to be in effect, and

4. Any conditions regarding collection of a particular debt.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1518 recodified from R4-4-1518 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1519 Licensee Names and Control

A. The Department shall not issue a license with a name that is:

1. Similar to, or that may be confused with, any federal, state, county, or municipal government function or agency;

2. Descriptive of any business activity that the applicant does not actually conduct;

3. The same as, or similar to, the name of any existing collection agency, or

4. Otherwise deceptive or misleading.

B. The Department may permit the use of a name otherwise prohibited under subsection (A)(3) based on its analysis of whether the name includes geographic or other information that distinguishes it from the existing collection agency.

C. A collection agency shall not use a collection agency license to do business under more than one name. Each collection agency shall apply for and obtain a separate license for each business name it intends to use in Arizona.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1519 recodified from R4-4-1519 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1520 Representations of Collection Agency Employees' Identity or Position

A. A collection agency shall not allow its debt collector, agent, representative, employee, or officer to:

1. Misrepresent the person's true position with the collection agency;

2. Claim to be, or imply that the person is, an attorney unless the person is licensed to practice law;

3. Claim to be, or imply that the person is, a public official, peace officer, or any other type of public employee; or

4. Claim to be, or imply that the person is, any other third party.

B. In any communication with a debtor, a person working for a collection agency shall indicate that the person is a debt collector.

C. A collection agency shall keep a record of all fictitious names used by its debt collectors during their employment. The collection agency shall record the information required by this subsection before permitting the use of a fictitious name. The collection agency shall file a copy of the record of fictitious names with the Department on July 1 and December 31 of each year. After filing the initial report, a collection agency shall identify all changes to the record on July 1 and December 31 of each year. The collection agency's record of fictitious names shall include:

1. The true name of each debt collector that uses a fictitious name;

2. Each fictitious name used by the debt collector, together with the dates when the name is used; and

3. The residential street address and residential mailing address of each debt collector that uses a fictitious name.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1520 recodified from R4-4-1520 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1521 Duty of Investigation

A collection agency shall give copies of its evidence of the debt to the debtor or the debtor's attorney upon request. After providing the evidence, but before continuing its collection efforts against the debtor, the collection agency shall investigate any claim by the debtor or the debtor's attorney that:

1. The debtor has been misidentified,

2. The debt has been paid,

3. The debt has been discharged in bankruptcy, or

Based on any other reasonable claim, the debt is not owed.

History

Adopted effective December 18, 1979 (Supp. 79-6). R20-4-1521 recodified from R4-4-1521 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1331, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 29 A.A.R. 1961, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1522 Reserved

Ariz. Admin. Code § R20-4-1523 Reserved

Ariz. Admin. Code § R20-4-1524 Reserved

Ariz. Admin. Code § R20-4-1525 Reserved

Ariz. Admin. Code § R20-4-1526 Reserved

Ariz. Admin. Code § R20-4-1527 Reserved

Ariz. Admin. Code § R20-4-1528 Reserved

Ariz. Admin. Code § R20-4-1529 Reserved

Ariz. Admin. Code § R20-4-1530 [Repealed]

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978 (Supp. 78-6). R20-4-1530 recodified from R4-4-1530 (Supp. 95-1). Section repealed by final rulemaking at 6 A.A.R. 4742, effective November 13, 2000 (Supp. 00-4).

Article 16 ACQUIRING CONTROL OF FINANCIAL INSTITUTIONS

Ariz. Admin. Code § R20-4-1601 Definitions

In addition to the definitions provided in A.R.S. § 6-141, the following terms apply to this Article unless the context otherwise requires:

"Acquiring party" means a person who intends to acquire control of a bank, trust company, savings and loan association, or controlling person under A.R.S. Title 6, Chapter 1, Article 4.

~~"Acquisition of control" has the meaning stated in A.R.S. § 6-141 .~~

"Bank" has the meaning stated in A.R.S. § 6-101.

~~"Control" has the meaning stated in A.R.S. § 6-141 .~~

~~"Controlling person" has the meaning stated in A.R.S. § 6-141 .~~

"Director" has the meaning stated in A.R.S. § 6-101(7).

~~"Person" has the meaning stated in A.R.S. § 6-141 .~~

"Savings and loan association" means a person required to possess a permit issued by the Director under A.R.S. Title 6, Chapter 3.

~~"Superintendent" has the meaning stated in A.R.S. § 6-101 .~~

"Target company" means a bank, savings and loan association, trust company, or controlling person to be acquired by an acquiring party.

"Trust company" has the meaning stated in A.R.S. § 6-851.

~~"Voting security" has the meaning stated in A.R.S. § 6-141 .~~

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective January 12, 1979 (Supp. 79-1). R20-4-1601 recodified from R4-4-1601 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 5055, effective January 3, 2004 (Supp. 03-4). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1602 Application for Approval to Acquire Control of Financial Institution

A. An applicant seeking approval to acquire control of a bank, savings and loan association, or controlling person of a bank or savings and loan association, under A.R.S. Title 6, Chapter 1, Article 4, shall file with the Director copies of all application documents filed with federal regulatory agencies in connection with the planned acquisition of control.

B. As used in this subsection, "executive officer" includes the chairman of the board, president, each vice president, cashier, secretary, treasurer, and every other person who participates in major policymaking functions of the applicant. Under A.R.S. § 6-145(A), an applicant seeking approval to acquire control of a trust company or controlling person of a trust company, under A.R.S. Title 6, Chapter 1, Article 4 shall supply all information the Director requires under this subsection. The Director may require an applicant to supplement or amend its application based on issues raised by the initial submission. The initial application shall consist of the following items:

1. A copy of the signed purchase agreement;

The applicant's audited financial statement;

3. A personal history statement, on a form supplied by the Department, for each executive officer and each director of the acquiring party;

4. Each executive officer's and each director's personal financial statement;

5. A full set of fingerprints for each executive officer and each director; and

6. A copy of each executive officer's and each director's driver's license.

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective January 12, 1979 (Supp. 79-1). R20-4-1602 recodified from R4-4-1602 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 5055, effective January 3, 2004 (Supp. 03-4). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023

Ariz. Admin. Code § R20-4-1603 [Repealed]

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective January 12, 1979 (Supp. 79-1). R20-4-1603 recodified from R4-4-1603 (Supp. 95-1). Section repealed by final rulemaking at 9 A.A.R. 5055, effective January 3, 2004 (Supp. 03-4).

Ariz. Admin. Code § R20-4-1604 [Repealed]

History

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective January 12, 1979 (Supp. 79-1). R20-4-1604 recodified from R4-4-1604 (Supp. 95-1). Section repealed by final rulemaking at 9 A.A.R. 5055, effective January 3, 2004 (Supp. 03-4).

Article 17 ARIZONA INTERSTATE BANK AND SAVINGS AND LOAN ASSOCIATION ACT

Ariz. Admin. Code § R20-4-1701 Definitions

In addition to the definitions provided in A.R.S. § 6-321, the following terms apply to this Article unless the context otherwise requires:

~~"Acquire" has the meaning stated at A.R.S. § 6-321(1) .~~

"Applicant" means an out-of-state financial institution that intends to acquire control of an in-state financial institution.

~~"Control" has the meaning stated at A.R.S. § 6-321(2) .~~

"Director" has the meaning stated in A.R.S. § 6-101(7).

~~"In-state financial institution" has the meaning stated at A.R.S. § 6-321(5) .~~

~~"Out-of-state financial institution" has the meaning stated at A.R.S. § 6-321(6) .~~

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1701 recodified from R4-4-1701 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023

Ariz. Admin. Code § R20-4-1702 Notice to the Director of Intent to Acquire Control of an In-state Financial Institution; Surrender of an Acquired Financial Institution's Charter

A. An applicant shall give written notice of an acquisition to the Director in the form of a courtesy copy of its federal application. The acquiring entity shall ensure that the notice is delivered to the Director not less than ten days before the effective date of the acquisition. No other application is required under the provisions of A.R.S. Title 6, Chapter 2, Article 7, the Arizona Interstate Bank and Savings and Loan Association Act. The Director may impose conditions on an acquisition under the authority of A.R.S. §§ 6-324 and 6-328.

B. An acquired in-state financial institution shall surrender, by delivery to the Director, all permits and certificates issued by the Director within ten days after the effective date of the acquisition unless the acquired institution intends to continue operating, after the acquisition, as a stand-alone subsidiary under the authority of its existing Arizona banking permit.

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1702 recodified from R4-4-1702 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1703 [Repealed]

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1703 recodified from R4-4-1703 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2).

Ariz. Admin. Code § R20-4-1704 Public Notice

A. An applicant shall transmit to the Director one copy of each notice and the publisher's affidavit of publication required by the Federal Reserve Board, the Federal Deposit Insurance Corporation, or other regulatory authority that has concurrent jurisdiction.

B. An applicant shall provide the Director copies of any protests known to have been received by the Federal Reserve Board, the Federal Deposit Insurance Corporation, or other regulatory authority that has concurrent jurisdiction.

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1704 recodified from R4-4-1704 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2). Amended by final rulemaking at 29 A.A.R. 1937, effective 10/2/2023.

Ariz. Admin. Code § R20-4-1705 [Repealed]

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1705 recodified from R4-4-1705 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2).

Ariz. Admin. Code § R20-4-1706 [Repealed]

History

Adopted effective October 1, 1986 (Supp. 86-5). R20-4-1706 recodified from R4-4-1706 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 2031, effective July 2, 2005 (Supp. 05-2).

Article 18 MORTGAGE BANKERS

Ariz. Admin. Code § R20-4-1801 Exemption for an Entity Regulated by an Agency of This State, Other States, or by the United States

A. The exemption under A.R.S. § 6-942(A)(1) only applies to a person whose offers to make or negotiate a "mortgage banking loan" or a "mortgage loan," as those terms are defined in A.R.S. § 6-941, and all mortgage banking loans and mortgage loans made or negotiated by the person are regulated directly by an agency of this state, any other state, or the United States.

B. The required regulation of the transactions listed in subsection (A) includes:

1. Rules governing a claimant's accounting and recordkeeping practices;

2. The authority to examine a claimant's books and records relating to its mortgage banking activities or mortgage lending activities, or both; and

3. The ability to place a claimant in a receivership or conservatorship with regard to the claimant's mortgage banking activities, mortgage lending activities, or both.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1802 Equivalent and Related Experience

A. An applicant may satisfy the three years' experience requirement of A.R.S. § 6-943 by the types of lending-related experience listed in this subsection. The Department counts each month in the following types of work experience toward the three years required either for a mortgage banker license, or as a responsible individual, both under A.R.S. § 6-943(C). The Department counts a fractional month of experience, at least 15 days long, as a full month.

1. Mortgage banker with an Arizona license, responsible individual, or branch manager for a licensee;

2. Mortgage broker with an Arizona license, responsible individual, or branch manager for a licensee;

3. Loan officer with responsibility primarily for loans secured by lien interests on real property;

4. Lender's branch manager with responsibility primarily for loans secured by lien interests on real property;

5. Mortgage banker with license from another state, or responsible individual for the mortgage banker;

6. Mortgage broker with license from another state, or responsible individual for the mortgage broker;

7. Attorney certified by any state as a real estate specialist.

B. An applicant with insufficient actual experience of the types listed in subsection (A) may satisfy the remainder of the three years' experience requirement of A.R.S. § 6-943 by the types of related experience listed in this subsection. The Department counts each month in the following types of work experience according to the ratio listed below, of actual experience to equivalent experience, credited toward qualifying for a license, or as a responsible individual, both under A.R.S. § 6-943(C). The Department counts a fractional month of experience, at least 15 days long, as a full month. An applicant receives credit in only one area listed and for not more than three years' actual experience. The remaining years of experience required to qualify for a license shall be obtained from types of work experiences listed in subsection (A).

Attorney without state bar

certified real estate specialty...3:2

2. Paralegal with experience in real estate matters...3:2

3. Loan underwriter...3:2

4. Mortgage banker or mortgage broker from

another state without license...3:2

5. Real estate broker with an Arizona

license or license from a state with

substantially equivalent licensing requirements...3:2

6. Escrow officer...3:2

7. Trust officer with a title company...3:2

8. Executive, supervisor, or policy maker

involved in administering or operating a

mortgage-related business...3:1.5

9. Title officer with a title company...3:1.5

10. Real estate broker, not qualified under

subsection (B)(5)...3:1.5

11. Loan processor with responsibility

primarily for loans secured by lien interests

on real property...3:1.5

12. Lender's branch manager with

responsibility primarily for loans not secured by lien interests on real property...3:1.5

13. Real property salesperson, with an

Arizona license or a license from a state with substantially equivalent

licensing requirements...3:1

14. Loan officer, with responsibility primarily

for loans not secured by lien interests on real property...3:1

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1803 Restrictions on the Term of a Cash Alternative to a Surety Bond

A licensee or applicant shall not place a certificate of deposit or investment certificate as a cash alternative to a surety bond with the Superintendent that is renewable or expires earlier than 12 months from the date of issuance.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1804 Requirements for a Person Intended to Oversee a Branch Office

A person designated to oversee the operations of a branch office shall be knowledgeable about the branch activities of the licensee, supervise compliance by the branch with applicable law and rules, and have sufficient authority to ensure such compliance. One person may oversee more than one branch.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1805 Notification of Change of Address

If a licensee changes the licensee's principal place of business, or the location of a branch office, the licensee shall notify the Superintendent at least five business days before the address change. With the notice, a licensee shall provide the Superintendent with the license for the office changing its address and the fee required by A.R.S. § 6-126 for changing an office address. A copy of the license shall continue to be displayed at the place of business until a new license is issued.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2). Amended by final rulemaking at 8 A.A.R. 145, effective December 10, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-4-1806 Recordkeeping Requirements

1. Any approved computer or mechanical system back to a paper-based system; or

An approved mechanical system to a computer system; or

3. An approved computer system to a mechanical system.

B. In addition to any statutory requirement regarding records, a record maintained by a mortgage banker shall include the following:

1. A list of all executed loan applications or executed fee agreements that includes the following information:

a. Applicant's name;

b. Application date;

c. Amount of initial loan request;

d. Final disposition date;

e. Disposition (funded, denied); and

f. Name of loan officer;

2. A record, such as a cash receipts journal, of all money received in connection with mortgage banking loans or mortgage loans including:

a. Payor's name;

b. Date received;

c. Amount; and

d. Receipt's purpose including identification of a related loan, if any;

3. A sequential listing of checks written for each bank account relating to the mortgage banker business, such as a cash disbursement journal, including:

a. Payee's name;

b. Amount;

c. Date; and

d. Payment's purpose including identification of a related loan, if any;

4. Bank account activity source documents for the mortgage banker business including receipted deposit tickets, numbered receipts for cash, bank account statements, paid checks, and bank advices;

5. A trust subsidiary ledger for each borrower that deposits trust funds showing:

a. Borrower's name or co-borrowers' names;

b. Loan number, if any;

c. Amount received;

d. Purpose for the amount received;

e. Date received;

f. Date deposited into trust account;

g. Amount disbursed;

h. Date disbursed;

i. Disbursement's payee and purpose; and

j. Balance;

6. A file for each application for a mortgage banking loan or a mortgage loan containing:

a. The agreement with the customer concerning the mortgage banker's services, whether as a loan application, fee agreement, or both;

b. Document showing the application's final disposition, such as a settlement statement, or a denial or withdrawal letter;

c. Correspondence sent, received, or both by the licensee;

d. Contract, agreement and escrow instructions to or with any depository;

f. If the loan is closed in the licensee's name, and funded by a lender that is not an institutional investor as defined at A.R.S. § 6-943, a copy of the executed note, executed deed of trust or mortgage, and each assignment of beneficial interest by the licensee, if any. If any of the documents listed in this subsection have been recorded, the file shall also contain legible copies of the recorded documents, and;

g. Itemized list of all fees taken in advance including appraisal fee, credit report fee, and application fee;

7. Samples of every piece of advertising relating to the mortgage banker's business in Arizona;

8. Copies of governmental or regulatory compliance reviews;

9. If the licensee is not a natural person, a file containing:

a. Organizational documents for the entity;

b. Minutes;

c. A record, such as a stock or ownership transfer ledger, showing ownership of all proportional equity interests in the licensee, ascertainable as of any given record date; and

d. Annual report, if required by law;

10. If the licensee or anyone directly or indirectly owning more than 20% of the licensee has a felony conviction, a copy of the judgment or other record of conviction;

12. If the Superintendent has granted approval to maintain records outside this state, the specific address where the records are kept, and a person's name to contact for them;

13. If a licensee does business in other states, it must be able to separate Arizona loan information from information relating to other states to enable the Superintendent to conduct an examination.

14. A licensee shall produce a trial balance of the general ledger monthly to evidence the mortgage banker's net worth.

D. A licensee shall retain the documents described in subsections (B)(1) and (6) for the length of time provided in A.R.S. § 6-946. For the purposes of A.R.S. § 6-946, the mortgage banking loan's closing date, on a loan application that did not result in the making of a loan, is either:

The date a licensee receives a written cancellation notice from an applicant; or

2. The date a licensee mails written notice to an applicant that an application has been denied, as required by federal law.

E. A licensee shall maintain all other records described in this Section, and not included in subsection (D), for at least two years.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1807 Providing Copies of Records

For each loan closed in an Arizona mortgage broker's name with a concurrent assignment of beneficial interest to a mortgage banker, the mortgage banker licensee shall provide to the mortgage broker in whose name the loan closed a copy of:

1. The closing instructions;

2. Any applicable rescission notice;

3. The HUD-1 settlement statement;

4. The final truth-in-lending disclosure;

5. The note;

6. The executed deed of trust or mortgage; and

7. Each assignment of beneficial interest by the mortgage banker licensee.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1808 Authorization to Complete Blank Spaces

An authorization, under A.R.S. § 6-947, allowing a licensee or escrow agent to complete certain blank spaces in a document after it is signed by a party to the transaction shall:

1. Specifically identify the document and the blank spaces to be completed;

2. Be in writing, dated, and signed by the authorizing parties, and

3. Contain the following notice, conspicuously printed on its face: YOUR SIGNATURE BELOW AUTHORIZES YOUR MORTGAGE BANKER OR ESCROW AGENT TO FILL IN SPACES YOU LEFT BLANK IN SPECIFIED LOAN DOCUMENTS YOU ARE ABOUT TO SIGN OR MAY HAVE ALREADY SIGNED. UNDER STATE LAW YOU CAN GIVE THIS AUTHORITY, BUT YOU ARE NOT REQUIRED TO DO SO. YOU CAN REFUSE TO SIGN ANY DOCUMENTS UNTIL ALL BLANKS ARE COMPLETELY FILLED IN.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1809 Determining Loan Amounts

The amount of a mortgage banking loan or a mortgage loan under A.R.S. § 6-947(E) or 6-947(K), is the principal amount of the loan and does not include any points, interest, finance charges, insurance premiums of any kind, compensation paid to third parties, or compensation retained by a mortgage banker or its agents.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1810 Delay or Cause Delay

A mortgage banker does not delay or cause delay if the delay occurs due to events outside the control of the mortgage banker.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1811 Impound Account

The total of all funds retained by a mortgage banker from all periodic payments made by a borrower to maintain a cushion, as defined in R20-4-102, shall not exceed 1/6th of the estimated total annual payments from the impound account.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1812 Acquisition of Additional Interest in Licensee by Majority Owner

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1813 Conversion to Mortgage Broker License

Under A.R.S. § 6-949 to apply for a conversion from a mortgage banker license to a mortgage broker license, the applicant shall submit during the renewal period all applicable renewal documents and renewal fees required by A.R.S. §§ 6-126 and 6-903 for mortgage brokers.

History

New Section adopted by final rulemaking at 18 A.A.R. 2622, effective December 2, 2012 (Supp. 12-4).

Article 19 COMMERCIAL MORTGAGE BANKERS

Ariz. Admin. Code § R20-4-1901 Exemption for an Institutional Investor

A. The exemption from the licensure requirement for an institutional investor, solely as that term is used in A.R.S. §§ 6-971, 6-972, and this Article, applies only if a person claiming the exemption meets all the following criteria:

1. The claimant originates or directly or indirectly makes, negotiates, or offers to make or negotiate commercial mortgage loans that are all exclusively funded by the claimant's own resources, as defined in A.R.S. § 6-971;

2. The claimant does so in the regular course of business;

3. The claimant makes only commercial mortgage loans, as defined in A.R.S. § 6-971;

4. The claimant makes each loan on the security of commercial property, as defined in A.R.S. § 6-971; and

5. The claimant makes only loans of more than $250,000.

B. If a claimant makes even one commercial mortgage loan that does not satisfy all the above criteria, any claim of exemption is invalid, and that person shall not engage in any lending activity before obtaining a license.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1902 Exemption for an Entity Regulated by an Agency of This State, Other States, or by the United States

A. The exemption under A.R.S. § 6-972(9) only applies to a person whose offers to make or negotiate a "commercial mortgage loan," as that term is defined in A.R.S. § 6-971, and all commercial mortgage loans made or negotiated by the person are regulated directly by an agency of this state, any other state, or the United States.

B. The required regulation of the transactions listed in subsection (A) includes:

1. Rules governing a claimant's accounting and recordkeeping practices;

2. The authority to examine a claimant's books and records relating to its commercial mortgage lending activities;

3. The ability to place a claimant in a receivership or conservatorship with regard to the claimant's commercial mortgage lending activities.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1903 Equivalent and Related Experience

A. An applicant may satisfy the three years' experience requirement of A.R.S. § 6-973 by the types of lending-related experience listed in this subsection. The Department counts each month in the following types of work experience towards the three years required either for a commercial mortgage banker license, or as a responsible individual, both under A.R.S. § 6-973(D). The Department counts a fractional month of experience, at least 15 days long, as a full month.

1. Commercial mortgage banker with an Arizona license, or Responsible Individual or branch manager for a licensee;

2. Mortgage broker with Arizona license, or Responsible Individual or branch manager for a licensee;

3. Mortgage banker with an Arizona license, or Responsible Individual or branch manager for a licensee;

4. Loan officer, with responsibility primarily for loans secured by lien interests on commercial real property;

5. Lender's branch manager, with responsibility primarily for loans secured by lien interests on commercial real property;

Commercial mortgage banker with license from another state, or Responsible Individual for the commercial mortgage banker;

7. Mortgage broker with license from another state, or Responsible Individual for the mortgage broker;

8. Mortgage banker with license from another state, or responsible individual for the mortgage banker;

9. Attorney certified by any state as a real estate specialist.

B. The experience of an applicant with insufficient actual experience of the types listed in subsection (A) is reviewed and evaluated on a case by case basis.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1904 Restrictions on the Term of a Cash Alternative to a Surety Bond

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1905 Requirements for a Person Intended to Oversee a Branch Office

A Person designated to oversee the operations of a branch office shall be knowledgeable about the branch activities of the licensee, supervise compliance by the branch with applicable law and rules, and have sufficient authority to ensure such compliance. One Person may oversee more than one branch.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1906 Notification of Change of Address

If a licensee changes the licensee's principal place of business, or the location of a branch office, the licensee shall notify the Superintendent within five business days after the address change. With the notice, a licensee shall provide the Superintendent with the license for the office changing its address and the fee required by A.R.S. § 6-126 for changing an office address. A copy of the license shall continue to be displayed at the place of business until a new license is issued.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1907 Recordkeeping Requirements

A. The Superintendent shall approve a licensee's use of a computer or mechanical recordkeeping system if the licensee gives the Superintendent advanced written notice that it intends to do so. The Department shall not require a licensee to keep a written copy of the records if the licensee can generate all information required by this Section in a timely manner for examination or other purposes. A licensee may add, delete, modify, or customize an approved computer or mechanical recordkeeping system's hardware or software components. When requested, or in response to a written notice of an examination, a licensee shall report to the Superintendent any material alteration in the approved system's fundamental character, medium, or function if the alteration changes:

1. Any approved computer or mechanical system back to a paper-based system; or

An approved mechanical system to a computer system; or

3. An approved computer system to a mechanical system.

B. In addition to any statutory requirement regarding records, a record maintained by a commercial mortgage banker shall include the following:

1. A list of all executed loan applications or executed fee agreements that includes the following information:

a. Applicant's name;

b. Application date;

c. Amount of initial loan request;

d. Final disposition date;

e. Disposition (funded, denied); and

f. Name of loan officer;

2. A record, such as a cash receipts journal, of all money received in connection with commercial mortgage loans including:

a. Payor's name;

b. Date received;

c. Amount; and

d. Receipt's purpose including identification of a related loan, if any;

3. A sequential listing of checks written for each bank account relating to the commercial mortgage banker business, such as a cash disbursement journal, including:

a. Payee's name;

b. Amount;

c. Date; and

d. Payment's purpose including identification of a related loan, if any;

4. Bank account activity source documents for the commercial mortgage banker business including receipted deposit tickets, numbered receipts for cash, bank account statements, paid checks, and bank advices.

5. A trust subsidiary ledger for each borrower that deposits trust funds showing:

a. Borrower's name or co-borrowers' names;

b. Loan number, if any;

c. Amount received;

d. Purpose for the amount received;

e. Date received;

f. Date deposited into trust account;

g. Amount disbursed;

h. Date disbursed;

i. Disbursement's payee and purpose, and

j. Balance.

6. A file for each application for a commercial mortgage loan containing:

a. The agreement with the customer concerning the commercial mortgage banker's services, whether as a loan application, fee agreement, or both;

b. The documents showing the application's final disposition, such as a settlement statements, a denial or withdrawal letter, or internal memorandum;

c. Correspondence sent, received, or both by the licensee;

d. Contract, agreement, and escrow instructions to or with any depository;

e. If the loan is closed in the licensee's name, a copy of all closing documents including: closing instructions, copy of the executed note, executed deed of trust or mortgage, and each assignment of beneficial interest by the licensee, if any. If any of the documents listed in this subsection have been recorded, the file shall also contain legible copies of the recorded documents, and

f. Itemized list of all fees taken in advance including appraisal fee, credit report fee, and application fee.

7. Samples of every piece of advertising relating to the commercial mortgage banker's business in Arizona;

8. Copies of governmental or regulatory reviews;

9. If the licensee is a not a natural person, a file containing:

a. Organizational documents for the entity;

b. Minutes;

c. A record, such as a stock or ownership transfer ledger, showing ownership of all proportional equity interests in the licensee, ascertainable as of any given record date; and

d. Annual report, if required by law;

10. If the licensee or anyone directly or indirectly owning more than 20% of the licensee has a felony conviction, a copy of the judgment or other record of conviction.

12. If the Superintendent has granted approval to maintain records outside this state, the specific address where the records are kept, and a person's name to contact for them.

13. If a licensee does business in other states, it must be able to separate Arizona loan information from information relating to other states to enable the Superintendent to conduct an examination.

14. A licensee shall produce a trial balance of the general ledger monthly to evidence the commercial mortgage banker's net worth.

D. A licensee shall retain the documents described in subsections (B)(1) and (6) for the length of time provided in A.R.S. § 6-983. For the purposes of A.R.S. § 6-983, the commercial mortgage loan's closing date, on a loan application that did not result in the making of a loan, is either:

The date a licensee receives a written cancellation notice from the applicant; or

2. The date a licensee mails written notice to an applicant that an application has been denied; or

3. The date of a licensee's internal memorandum closing a loan file.

E. A licensee shall maintain all other records described in this Section, and not included in subsection (D), for at least two years.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1908 Impound Accounts

The total of all funds, if any, retained by the commercial mortgage banker from all periodic payments made by the borrower to maintain a Cushion, as defined in R20-4-102, is limited only by the written agreement of the parties, if at all.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1909 Authorization to Complete Blank Spaces

An authorization, under A.R.S. § 6-984, allowing a licensee or escrow agent to complete certain blank spaces in a document after it is signed by a party to the transaction shall:

1. Specifically identify the document and the blank spaces to be completed;

2. Be in writing, dated, and signed by the authorizing party, and

3. Contain the following notice, conspicuously printed on its face: YOUR SIGNATURE BELOW AUTHORIZES YOUR COMMERCIAL MORTGAGE BANKER OR ESCROW AGENT TO FILL IN SPACES YOU LEFT BLANK IN SPECIFIED LOAN DOCUMENTS YOU ARE ABOUT TO SIGN OR MAY HAVE ALREADY SIGNED. UNDER STATE LAW YOU CAN GIVE THIS AUTHORITY, BUT YOU ARE NOT REQUIRED TO DO SO. YOU CAN REFUSE TO SIGN ANY DOCUMENTS UNTIL ALL BLANKS ARE COMPLETELY FILLED IN.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1910 Delay or Cause Delay

A commercial mortgage banker does not delay or cause delay if the delay occurs due to events outside the control of the commercial mortgage banker.

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Ariz. Admin. Code § R20-4-1911 Acquisition of Additional Interest in Licensee by Majority Owner

History

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).

Chapter 05 INDUSTRIAL COMMISSION OF ARIZONA

Article 1 WORKERS' COMPENSATION PRACTICE AND PROCEDURE

Ariz. Admin. Code § R20-5-101 Application of the Article; Notice of Rules; Part of Record

A. This Article applies to all actions and proceedings before the Commission resulting from:

1. Injuries that occurred on or after January 1, 1969;

2. Petitions to Reopen or Petitions for Readjustment or Rearrangement of Compensation filed on or after that date; and

3. Requests for hearing under A.R.S. §§ 23-907(H), (I), and (J).

B. This Article is part of the record in each action or proceeding without reference to the Article.

C. The Commission deems all parties to have knowledge of this Article.

D. The Commission shall provide a copy of this Article upon request to any person free of charge.

History

Former Rule 1. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-101 recodified from R4-13-101 (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). Amended by final rulemaking at 14 A.A.R. 4530, effective, December 2, 2008 (Supp. 08-4).

Ariz. Admin. Code § R20-5-102 Definitions

In this Article, unless the context otherwise requires:

"Act" means the Arizona Workers' Compensation Act, A.R.S. Title 23, Ch. 6, Articles 1 through 11.

"Authorized representative" means an individual authorized by law to act on behalf of a party who files with the Commission a written instrument advising of the individual's authority to act on behalf of the party.

"Carrier" or "insurance carrier" means the state compensation fund and every insurance carrier authorized by the Arizona Department of Insurance to underwrite workers' compensation insurance in Arizona.

"Claimant" means an employee who files a claim for workers' compensation.

"Filing" means actual receipt of a report, document, instrument, videotape, audiotape, or other written matter at a Commission office during office hours as set forth in R20-5-103.

"Physician" means a licensed physician or other licensed practitioner of the healing arts.

"Self-insured employer" means an employer or workers' compensation pool granted authority by the Commission to self- insure for workers' compensation.

"Uninsured employer" or "noncomplying employer" means an employer that is subject to and fails to comply with A.R.S. §§ 23-961 or 23-962.

"Working days" means all days except Saturdays, Sundays, and state legal holidays.

History

Former Rule 2. R20-5-102 recodified from R4-13-102 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-103 Location of Industrial Commission Offices and Office Hours

The main office of the Industrial Commission of Arizona is located in Phoenix, Arizona. An office is also located in Tucson, Arizona. The offices are open for business from 8:00 a.m. until 5:00 p.m. every day except Saturdays, Sundays, and state legal holidays.

History

Former Rule 3. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-103 recodified from R4-13-103 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-104 Address of Claimant and Uninsured Employer

A. A claimant shall advise the Commission and carrier or self-insured employer of the claimant's current mailing address and place of residence. If a claimant files a workers' compensation claim against an uninsured employer, the claimant shall advise the special fund division of the claimant's current mailing address and place of residence.

B. An uninsured employer against whom a claimant files a workers' compensation claim shall advise the special fund division of the uninsured employer's current mailing address and place or places of residence.

C. Providing the address of a claimant's or uninsured employer's attorney or authorized representative is not sufficient to meet the requirements of this Section.

History

Former Rule 4. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-104 recodified from R4-13-104 (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).

Ariz. Admin. Code § R20-5-105 Filing Requirements; Time for Filing; Computation of Time; Response to Motion

A. A report, document, instrument, videotape, audiotape, or other written matter required to be filed with the Commission under A.R.S. § 23-901 et seq. and this Article shall be filed at a Commission office within the time required by law and this Article.

B. For purposes of computing time under this Article, the following applies:

1. The Commission shall not include in the computation of time the day of the act or event from which the designated period begins to run.

2. The Commission shall include in the computation of time the last day of the designated period, unless the last day is a Saturday, Sunday, or state legal holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or state legal holiday.

3. If this Article or other law requires that a report, document, instrument, videotape, audiotape, or other written matter be filed within a designated period of time before hearing, the Commission shall not include the day of the act or event from which the designated period of time begins to run. The Commission shall include the last day of the designated period unless that day is a Saturday, Sunday, or state legal holiday, in which event the period runs to the end of the next day that is not a Saturday, Sunday, or state legal holiday.

4. If the period of time prescribed is less than 11 days, the Commission shall not include intermediate Saturdays, Sundays, or state legal holidays in the computation of time.

C. The Commission shall deem a report, document, instrument, videotape, audiotape, or other written matter filed at the Tucson office as filed at the main office for purposes of computing time.

D. A person upon whom a motion to join is filed under this Article may file a response to the motion within 10 days after the motion is filed.

E. The Commission shall not consider a discovery motion unless the moving party attaches a separate statement to the discovery motion certifying that after good faith efforts to do so, the moving party has been unable to satisfactorily resolve the matter giving rise to the discovery motion with the opposing party.

History

Former Rule 5. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-105 recodified from R4-13-105 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-106 Commission Forms

A. The following forms shall be used when applicable:

1. Employer's report of industrial injury (form 101) shall contain:

a. Employee, employer, and carrier identification;

b. Description of employment;

c. Description of accident and injury;

d. Description of medical treatment received by employee;

e. Employee's wage data;

f. Date, signature, and title of employer or the employer's representative; and

g. Statement doubting the validity of the claim, if the employer doubts the validity of the claim.

2. The physician's portion of the worker's and physician's report of injury (form 102) shall contain:

a. Name and address of physician;

b. Information regarding preexisting conditions;

c. Information regarding the industrial injury, treatment, and prognosis;

d. Statement authorizing the attachment of a medical report that contains the information required in form 102; and

e. Physician's signature and date.

Notice of supportive medical benefits (form 103) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Description of authorized medical benefits;

c. Date the notice is mailed;

d. Name and telephone number of the individual issuing the notice; and

e. Statement regarding reopening and appeal rights including filing requirements.

4. Notice of claim status (form 104) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Status of the claim;

c. Date the notice is mailed;

d. Name and telephone number of the individual issuing the notice; and

e. Statement of a party's hearing and appeal rights including filing requirements.

5. Notice of suspension of benefits (form 105) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Effective date of the suspension;

c. Reasons for the suspension;

d. Date the notice is mailed;

e. Name and telephone number of the individual issuing the notice; and

f. Statement of a party's hearing and appeal rights including filing requirements.

6. Notice of permanent disability or death benefits (form 106) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Applicable statutory authority under which compensation is paid;

c. Disability and compensation information;

d. Date the notice is mailed;

e. Name and telephone number of the individual issuing the notice; and

f. Statement regarding hearing and appeal rights including filing requirements.

7. Notice of permanent disability and request for determination of benefits (form 107) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Type of disability;

c. Applicable statutory authority for designated disability;

d. Designation of dependents where death is involved;

e. Designation of advanced payments and amount of the advance;

f. Date the notice is mailed; and

g. Name and telephone number of the individual issuing the notice.

8. Carrier's recommended average monthly wage calculation (form 108) shall contain:

a. Employee, employer, insurance carrier, and claim identification;

b. Employment and wage history;

c. Designation of dependents; and

d. Carrier's calculations for the recommended average monthly wage and the basis for the calculation.

9. Notice of permanent compensation payment plan (form 111) shall contain:

a. Employee, employer, and carrier identification;

b. Amount of permanent compensation and description of payment plan;

c. Name of the responsible entity contracted by the carrier to administer the payment plan;

d. Statement that the carrier remains the responsible party for payment;

e. Statement regarding supportive care and reopening rights;

f. Date the notice is mailed; and

g. Name and telephone number of the individual issuing the notice.

10. Report of insurance coverage (form 0006) shall contain:

a. Name and address of the carrier;

b. Legal name of entity that the carrier insures;

c. All other insured names or subsidiary entities under which the carrier's insured does business in Arizona;

d. Address of all insured entities with insurance policy information for each address; and

e. Employer Identification Number (EIN), Taxpayer Identification Number (TIN), or Federal Identification Number (FIN) assigned to each insured person or entity.

11. Report of significant work exposure to bodily fluids or other infectious material shall contain:

a. The requirements set forth in A.R.S. §§ 23-1043.02(B), 23-1043.03(B), and 23-1043.04(B);

b. Employee identification,

c. Employer identification,

d. Source of exposure person identification (if known),

e. Details of the exposure including:

i. Date of exposure,

ii. Time of exposure,

iii. Place of exposure,

iv. How exposure occurred,

v. Type of bodily fluid or fluids,

vi. Source of bodily fluid or fluids,

vii. Part or parts of body exposed to bodily fluid or fluids,

viii. Presence of break or rupture in skin or mucous membrane, and

ix. Witnesses (if known), and

f. Dated signature of employee or the employee's authorized representative.

12. The medical treatment preauthorization form (MRO-1.1) shall contain five sections, as follows:

a. Section I (Provider Request for Preauthorization) shall contain:

i. Injured employee identification, including name, date of injury, date of birth, and payer claim number (if known);

ii. Provider identification, including name, phone number, provider medical specialty, preferred method of contact, and contact information;

iii. Payer identification, including name and contact information (i.e., mailing address, fax number, or e-mail address);

iv. Information regarding requested medical treatment and/or services, including:

(1) Applicable diagnosis and/or ICD codes;

(2) A detailed statement of the treatment or services requested;

(3) Applicable Current Procedural Terminology (CPT) codes and/or National Drug Codes (NDC);

(4) Type of request (i.e., routine or urgent); and

(5) An indication as to whether the provider has attached documentation to support the medical necessity and appropriateness of the requested treatment and/or services; and

v. Dated signature or electronic signature of provider or provider's authorized representative.

b. Section II (Payer Decision on Request for Preauthorization) shall contain:

i. Payer's preferred method of contact and contact information;

ii. Date request for preauthorization is received;

iii. The Commission claim number;

iv. The payer's decision (i.e., approved, partial denial, denied, request for preauthorization incomplete, or IME requested);

v. An indication as to whether the payer has attached a statement of what treatment and/or services have been authorized, including, if applicable, a partial authorization, and, if the request for preauthorization is denied, in whole or in part, a statement of explanation that includes the medical reason supporting the payer's decision; and

vi. Dated signature or electronic signature of payer or payer's authorized representative.

c. Section III (Provider or Employee Request for Reconsideration of Payer Decision) shall contain:

i. An indication as to whether the provider or injured employee has attached a statement of the specific reasons and justifications to support the request for reconsideration;

ii. An indication as to whether the provider or injured employee has attached documentation to support the medical necessity and appropriateness of the requested treatment and/or services, if not previously provided; and

iii. Dated signature or electronic signature of provider, provider's authorized representative, injured employee, or injured employee's authorized representative.

d. Section IV (Payer Decision on Request for Reconsideration) shall contain:

i. Date request for reconsideration received;

ii. The payer's decision (e.g., approved, partial denial, denied, or IME requested);

iii. An indication as to whether the payer has attached a statement of what has been authorized, including if applicable, a partial authorization, and, if the request for preauthorization is denied, in whole or in part, a statement of explanation that includes the medical reason supporting the payer's decision; and

iv. Dated signature or electronic signature of payer or payer's authorized representative.

e. Section V (Provider or Employee Request for Administrative Peer Review) shall contain:

i. An indication of the basis for the request for administrative peer review (e.g., payer non-response, denial (in whole or in part) of requested treatment or services, the payer's decision on the request for preauthorization denied treatment or services that are subject to R20-5-1304(B));

ii. An indication as to whether the provider or injured employee has attached copies of relevant medical records and, if applicable, documentation related to the payer's non-response;

iii. An indication as to whether the provider or injured employee has attached all documentation and statements previously attached to Sections I-IV; and

iv. Dated signature or electronic signature of provider, provider's authorized representative, injured employee, or injured employee's authorized representative.

B. The following forms may be used:

1. The workers' portion of the worker's and physician's report of injury (form 102) requests:

a. Employee, employer, insurance carrier, and physician identification;

b. Description of the accident, including date of injury; and

c. Date and signature of the employee or the employee's authorized representative.

2. Worker's report of injury (form 407) requests:

a. Employee and employer identification,

b. Job title,

c. Employment description,

d. Employee's wage data,

e. Date of injury,

f. Accident and injury descriptions,

g. Medical treatment information,

h. Information concerning prior injuries of the employee,

i. Disability income, and

j. Date and signature of the employee or the employee's authorized representative.

3. Worker's annual report of income (form 110-A) requests:

a. Employee, employer, insurance carrier, and claim identification;

b. Employment and wage history for the preceding 12 months;

c. Date and signature of the employee or the employee's authorized representative attesting to the truthfulness of the employment and wage information; and

d. Statement that failure to submit an annual report of income may result in a suspension of benefits by the carrier or self-insured employer.

4. Notice of intent to suspend (form 110-B) requests:

a. Employee, employer, insurance carrier, and claim identification;

b. Employment and wage history for the preceding 12 months;

c. Date and signature of the employee or the employee's authorized representative attesting to the truthfulness of the employment and wage information;

d. Statement that failure to submit an annual report within 30 days of the date of the notice shall result in a suspension of benefits by the carrier or self-insured employer.

5. Request for hearing requests:

a. Names of the employee, employer, and insurance carrier;

b. Claim identification;

c. Identification of the award, notice, order, or determination protested and reason(s) for the protest;

d. Estimated length of time for hearing and city or town in which hearing is requested;

e. Name and address of any witness for whom a subpoena is requested; and

f. Date and signature of party or the party's authorized representative.

6. Petition to reopen requests:

a. Names of the employee, employer, and insurance carrier;

b. Claim identification;

c. Identification or description of the new, additional, or previously undiscovered temporary or permanent disability or medical condition justifying the reopening of the claim; and

d. Employee's medical and employment history.

7. Petition for rearrangement or readjustment of compensation requests:

a. Names of the employee, employer, and insurance carrier;

b. Claim identification;

c. Income and employment history;

d. Medical history; and

e. Statement of the basis for the increase or decrease in earning capacity.

8. Claim for dependent's benefits-fatality form requests:

a. Identification of dependent filing claim;

b. Identification of deceased;

c. Date of death;

d. Date of injury, if different than date of death;

e. Name and address of employer at time of deceased's death;

f. Statement of cause of death;

g. Names and addresses of health care providers rendering treatment to deceased in two years beforedeath;

h. Conditions treated by health care providers in the two years before deceased's death;

i. If claim is for spousal benefits, the form requests:

i. Name, address, and date of birth of spouse;

ii. Copy of marriage certificate;

iii. Date and place of marriage to deceased;

iv. History of prior marriages of deceased and deceased's spouse, including copies of divorce decrees; and

v. Statement of living arrangements at time of deceased's death, including reason for living apart at time of death, if applicable;

j. If claim is for a dependent child, the form requests:

i. Name, date of birth, and address of child at time of deceased's death;

ii. List of children in care and custody of current spouse; and

iii. Statement of whether unborn child is expected and date expected;

k. If claim is for dependent other than a child, the form requests:

i. Name and address of other dependent,

ii. Relationship of other dependent to deceased, and

iii. Statement of the nature and extent of dependency; and

l. Date, telephone number, and signature of dependent or authorized representative of dependent.

9. Request to leave the state form requests:

a. Employee, insurance carrier, and claim identification;

b. Reason for requesting to leave Arizona;

c. Dates leaving and returning to Arizona;

d. Out-of-state address;

e. Name and telephone number of attending physician; and

f. Date and signature of the employee or the employee's authorized representative.

10. Request to change doctors form requests:

a. Employee, insurance carrier, and claim identification;

b. Reason for requesting change of doctor;

c. Name and phone number of claimant's current doctor;

d. Name and phone number of doctor claimant requests to change to; and

e. Date and signature of the employee or the employee's authorized representative.

Complaint of bad faith and unfair claim processing practices requests:

a. Employee, employer, and insurance carrier identification;

b. Description of the alleged bad faith or unfair claim processing practices;

c. Date of the complaint; and

d. Name, address, and telephone number of the person signing the complaint.

12. Certification of employer's drug and alcohol testing policy requests:

a. Employer's certification as described under A.R.S. § 23-1021(F),

b. Name and federal identification number of the employer, and

c. Name of all subsidiaries and locations of the employer.

C. Optional use of a form described in subsection (B) does not affect any requirement under the Act or this Article.

D. Forms or format for the forms described in this Section are available from the Commission.

E. Forms prescribed under this Section shall not be changed, amended, or otherwise altered without the prior written approval of the Commission.

History

Former Rule 6. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-106 recodified from R4-13-106 (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). Amended by final rulemaking at 15 A.A.R. 991, effective June 2, 2009 (Supp. 09-2). Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-107 Manner of Completion of Forms and Documents

A. An individual completing a form or document shall fill out the form or document legibly in ink or by typewriter.

B. A party or a party's authorized representative shall sign any form or document that is required by the Act, this Article, or other law to be signed.

C. Unless otherwise provided in this Article, if a party is required to sign a form or document, the Commission shall not accept a typewritten name or stamped signature.

D. If, within the time period prescribed by law, a party files an incomplete form or document, or files an instrument other than a form or document when a form or document is required, the Commission shall serve notice to the party that the form or document fails to comply with this Section. The Commission deems the report or document timely filed if the party files a properly completed and signed form or document within 14 days after the Commission serves the notice described in this subsection.

History

Former Rule 7. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-107 recodified from R4-13-107 (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).

Ariz. Admin. Code § R20-5-108 Confidentiality of a Commission Claims File; Reproduction and Inspection of a Commission Claims File

A. Except as provided in this Section, a claims file maintained by the Commission is private and confidential and the Commission shall not make the claims file available for inspection and copying. For purposes of this Section, "claims file" means the official record maintained by the Commission for a claimant's industrial injury including the worker's report of injury, employer's report of injury, worker and physician's report of injury, and all other reports, records, instruments, videotapes, audiotapes, transcripts, and other matters scanned or otherwise placed into the file.

B. Except as provided in subsections (D) and (E), the Commission shall make a Commission claims file relating to a current or prior claim of a claimant available for inspection and copying by any party to any proceeding currently or previously before the Commission involving the same claimant.

C. Except as provided in subsections (D) and (E), the Commission shall not make a Commission claims file available to a non-party for inspection and copying unless the Commission receives a court order or written authorization signed by the affected claimant or the affected claimant's authorized representative.

D. The Commission shall make a transcript contained in a Commission claims file available for inspection and copying if:

1. The person requesting to inspect and copy the transcript is a person authorized under subsections (B) or (C); and

2. The transcript concerns a hearing related to a claim that is not in litigation.

E. The Commission shall make a transcript contained in a Commission claims file available only for inspection if:

1. The person requesting to inspect and copy the transcript is a person authorized under subsections (B) or (C); and

2. The transcript concerns a hearing related to a claim currently in litigation.

F. The Commission shall provide copies at a charge of $.25 per page.

G. A Commission claims file shall not be removed from a Commission office unless in the custody of an authorized representative of the Commission.

History

Former Rule 8. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-108 recodified from R4-13-108 (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).

Ariz. Admin. Code § R20-5-109 Admission into Evidence of Documents Contained in a Commission Claims File

A. If a party or an administrative law judge considers a document contained in a Commission claims file, including a transcript of a prior proceeding, necessary or appropriate for hearing purposes, the administrative law judge shall receive a copy of the document into evidence if the document is otherwise admissible.

B. With the permission of the administrative law judge, instead of submitting a copy of the document into evidence, a party may refer to the document's location on the Commission's optical disk imaging system by providing an accurate description of the document that includes the claimant's claim number and image document identification number the Commission assigns to the document.

History

Former Rule 9. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-109 recodified from R4-13-109 (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).

Ariz. Admin. Code § R20-5-110 Employer Duty to Report Fatality

If an employee dies as a result of an injury by accident arising out of and in the course of employment, the employer shall report the death to the Commission's claims division by telephone, telegram, or electronic filing, no later than the next business day following the death. The report shall state the name of the employee, when, how, and where the accident occurred, and the nature of the condition causing the accident. This Section does not limit or affect an employer's duty to report a death to the Arizona Occupational Safety and Health Division of the Commission as required under R20-5-637.

History

Former Rule 10. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-110 recodified from R4-13-110 (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).

Ariz. Admin. Code § R20-5-111 Request for Autopsy

If a claim is filed for compensation for death from an industrial injury and an autopsy is requested, the expense of the autopsy shall be borne by the requesting party.

History

Former Rule 11. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-111 recodified from R4-13-111 (Supp. 95-1).

Ariz. Admin. Code § R20-5-112 Physician' Initial Report of Injury

A. A physician shall complete and file with the Commission a physician's initial report of injury under A.R.S. § 23-908(A) within eight days after first providing treatment to an injured worker. The physician shall report the injury:

1. Using Commission form 102 (worker's and physician's report of injury), or

2. Attaching to form 102 a medical report that contains the information required in form 102.

B. The physician shall sign and date form 102 or the medical report attached to form 102. The signature of the physician may be typewritten or stamped on this form.

C. If a claimant uses form 102 to initiate a claim, either the injured worker or the injured worker's authorized representative shall sign the worker's portion of form 102.

History

Former Rule 12. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-112 recodified from R4-13-112 (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).

Ariz. Admin. Code § R20-5-113 Physician's Duty to Provide Signed Reports; Rating of Impairment of Function; Restriction against Interruption or Suspension of Benefits; Change of Physician

A. If a claimant's disability extends beyond seven days, every physician who attends, treats, or examines the claimant shall provide to the insurance carrier, self-insured employer, or special fund division, at least once every 30 days while the claimant's disability continues, a personally signed report describing the:

1. Claimant's condition,

2. Nature of treatment,

3. Expected duration of disability, and

4. Claimant's prognosis.

B. When a physician discharges a claimant from treatment, the physician:

1. Shall determine whether the claimant has sustained any impairment of function resulting from the industrial injury. The physician should rate the percentage of impairment using the standards for the evaluation of permanent impairment as published by the most recent edition of the American Medical Association in Guides to the Evaluation of Permanent Impairment, if applicable; and

Shall provide a final signed report to the insurance carrier, self-insured employer, or special fund division that details the rating of impairment and the clinical findings that support the rating.

C. A carrier, self-insured employer, and special fund division shall not interrupt or suspend a claimant's temporary disability compensation benefits because a physician fails to comply with any requirement of subsection (A).

D. A carrier, self-insured employer, and special fund division may withhold payment to a physician for services rendered to a claimant until the physician complies with subsection (A).

E. Upon application of a party, the Commission shall authorize a change of physician if:

1. The Commission determines that the health, life, or recovery of a claimant is retarded, endangered, or impaired;

2. The attending physician agrees to the change or is unavailable to continue treatment;

3. The Commission determines that the relationship between the attending physician and claimant renders further progress or improvement unlikely;

4. The Commission determines that the claimant's recovery may be expedited by a change of physician or conditions of treatment; or

5. The insurance carrier agrees to the change.

F. Except as provided in A.R.S. § 23-1070 and this subsection, a claimant who is examined by a physician under A.R.S. § 23-908(E) is not required to obtain written authorization to change to another physician. If, however, the claimant continues to see, or treat with, a physician who the claimant initially saw or treated with under A.R.S. § 23-908(E), then that physician is an attending physician and the claimant shall obtain written authorization to change under A.R.S. § 23-1071(B) if the claimant seeks to change to another physician.

History

Former Rule 13. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-113 recodified from R4-13-113 (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).

Ariz. Admin. Code § R20-5-114 Examination at Request of Commission, Carrier or Employer; Motion for Relief

A. If the Commission or a party requests an examination of a claimant by a physician, the party requesting the examination shall serve the claimant, or if represented, the claimant's attorney, with notice of the time, date, place, and physician conducting the examination at least 15 days before the scheduled date of the examination.

B. If a claimant unreasonably fails to attend or promptly advise of the claimant's inability to attend an examination under this Section, the party requesting the examination may charge the claimant or deduct from the claimant's entitlement to present or future temporary or permanent disability compensation, any reasonable expense of the missed appointment.

C. A party adverse to a party who schedules a medical examination may offer into evidence the report of any medical examination as provided in R20-5-155 or within five days after the adverse party receives the report, subject to the right of cross-examination by the party who scheduled the examination.

D. If a carrier, self-insured employer, or special fund division requests an examination of a claimant's mental or physical condition under A.R.S. § 23-1026, the carrier, self-insured employer, or special fund division shall immediately, upon receipt of the report of the examination, provide a copy of the report to the claimant or the claimant's authorized representative. If the mental condition of an unrepresented claimant is examined under A.R.S. § 23-1026, the carrier, self-insured employer, or special fund division may, in its discretion, provide the report to the claimant's treating physician rather than to the claimant.

E. To protect a claimant from annoyance, embarrassment, oppression, or undue burden or expense, the Commission may order, upon good cause shown, one or both of the following:

1. That the examination not be held; or

2. That the examination may be conducted only on specified terms and conditions, including a designation of the time, place, and examining physician.

F. A claimant requesting protection under subsection (E) shall file a motion with the presiding administrative law judge or chief administrative law judge if a judge has not been assigned to the case, within three days after the claimant receives notice of the examination. The claimant shall serve a copy of the motion on all parties. The party requesting the examination shall have three days after receiving the motion to file a response. The party shall serve the response on the claimant or, if represented, the claimant's attorney of record.

History

Former Rule 14. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-114 recodified from R4-13-114 (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).

Ariz. Admin. Code § R20-5-115 Request to Leave the State

A. The effective date of an order granting or denying a request to leave the state under A.R.S. § 23-1071(A) is the date a claimant files a request to leave the state with the Commission.

B. For purposes of A.R.S. § 23-1071(A):

1. "While the necessity of having medical treatment continues" means the period of time in which a claimant asserts an entitlement to temporary compensation, or active medical, surgical, or hospital benefits;

2. "Leave the state" means to travel across the state border, except when the logical or nearest medical facility is situated across the state border; and

3. "From the date the employee first requested the written approval" means from the date the claimant's request is filed with the Commission.

History

Former Rule 15. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-115 recodified from R4-13-115 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-116 Payment of Claimant's Travel Expenses when Directed to Report for Medical Examination or Treatment

A. If a claimant is directed by a carrier, self-insured employer, or special fund division to report for a medical examination or treatment in a locality other than either the claimant's current place of residence or employment, the carrier, self-insured employer, or special fund division shall pay, in advance, the claimant's travel expenses from either the claimant's current place of residence or employment, whichever route of travel is required.

B. For purposes of this Section, "travel expenses" means those expenses required to be paid under A.R.S. § 23-1026.

C. The carrier, self-insured employer, or special fund division shall calculate travel expenses using the current rates applicable to state employees.

History

Former Rule 16. Amended subsections (A) and (B) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Correction to subsection (A) as certified effective March 1, 1987 (Supp. 88-4). R20-5-116 recodified from R4-13-116 (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).

Ariz. Admin. Code § R20-5-117 Medical, Surgical, Hospital, and Burial Expenses

A. A carrier, self-insured employer, or special fund division, shall pay bills for medical, surgical, and hospital benefits provided under A.R.S. § 23-901 et seq. according to applicable medical and surgical fee schedules adopted by the Commission and in effect at the time the services are rendered. A physician or provider of nursing, hospital, drug or other medical services shall itemize and submit a bill for payment only to the responsible carrier, self-insured employer, or special fund division.

B. A claimant shall not be responsible to pay any disputed amounts between the medical provider and the carrier, self-insured employer, or special fund division.

C. If a claimant pays a bill described in subsection (A), the responsible carrier, self-insured employer, or special fund division shall reimburse the claimant the amount allowed by the fee schedules, provided that the claimant presents receipted vouchers or other proof of payment to support the claim for reimbursement.

D. If an insured employer pays a bill described in subsection (A), the responsible carrier or self-insured employer shall reimburse the employer the amount allowed by the fee schedules, provided that the employer presents receipted vouchers or other proof of payment to support the claim for reimbursement.

E. An insurance carrier, self-insured employer, or special fund division may pay any authorized burial expenses directly to the funeral service professional.

F. If an employee's dependent pays burial expenses, the responsible carrier, self-insured employer, or special fund division shall reimburse the dependent the amount authorized by A.R.S. § 23-1046 provided that the dependent presents proof of payment to support the claim for reimbursement.

G. If an insured employer pays burial expenses, the responsible carrier or self-insured employer shall reimburse the employer to the extent authorized by A.R.S. § 23-1046 provided that the employer presents proof of payment to support the claim for reimbursement.

History

Former Rule 17. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-117 recodified from R4-13-117 (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).

Ariz. Admin. Code § R20-5-118 Effective Date of Notices of Claim Status and Other Determinations; Attachments to Notices of Claim Status; Form of Notices of Claim Status

A. If a notice of claim status accepting a claim for benefits is final, any subsequent notice of claim status that changes a claimant's amount of, or entitlement to, compensation or medical, surgical, or hospital benefits shall not have a retroactive effect for more than 30 days from the date a carrier or self-insured employer issues the subsequent notice of claim status. This subsection does not apply to a subsequent notice that affects the entitlement to or amount of death benefits. The Commission may for good cause relieve a carrier or self-insured employer of the effect of this subsection.

B. If a notice of claim status or other determination issued by a carrier, self-insured employer, or special fund division, is based upon a physician's report:

1. The carrier or self-insured employer shall attach a copy of the physician's complete report to the notice of claim status or other determination sent to the Commission; and

2. The carrier, self-insured employer, or special fund division shall attach a copy of the physician's complete report to the notice of claim status or other determination served on a party, except as provided in R20-5-114(D).

C. If a carrier, self-insured employer, or special fund division pays compensation to a claimant:

1. The carrier or self-insured employer shall close the claim by issuing a notice of claim status; and

2. The special fund division shall close the claim by issuing a notice of determination.

D. The inadvertent failure of a carrier, self-insured employer, or special fund division to comply with subsection (B) shall not affect the validity of a notice or determination if the carrier, self-insured employer, or special fund division issuing the notice or determination had in its possession at the time the notice or determination is issued a medical report consistent with the notice or determination.

History

Former Rule 18. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-118 recodified from R4-13-118 (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).

Ariz. Admin. Code § R20-5-119 Notice of Third-party Settlement

A. Except as otherwise provided by law, if an employer is insured for workers' compensation insurance and a claimant, or in the event of death, the claimant's dependent, elects to proceed against a third party, the claimant shall notify the appropriate workers' compensation carrier, or self-insured employer, of any settlement or judgment in the third party suit and the basis upon which the claimant and third party agree to disburse the proceeds of the settlement or judgment.

B. If an employer is uninsured for workers' compensation insurance and a claimant, or in the event of death, the claimant's dependent, elects to proceed against a third party, the claimant shall notify the special fund division of any settlement or judgment in the third party suit and the basis upon which the claimant and third party agree to disburse the proceeds of the settlement or judgment.

C. If a lawsuit is filed against a third party, the claimant or the claimant's attorney shall provide copies of pleadings and all offers of settlement to the workers' compensation carrier, self-insured employer, or special fund division to whom notice is required under subsections (A) and (B).

History

Former Rule 19. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-119 recodified from R4-13-119 (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).

Ariz. Admin. Code § R20-5-120 Settlement Agreements, Compromises and Releases

A. No settlement agreement, compromise, or waiver of rights of a workers' compensation claim, will be valid unless approved by the Commission.

B. The acceptance of any payments or the signing of a settlement agreement, compromise, release or waiver of rights, unless approved by the Commission, shall not release the employer or his insurance carrier from any obligation imposed by the Workers' Compensation Law.

C. The carrier or employer shall not be entitled to a credit for any sums paid to an employee under a settlement agreement which has not been approved by the Commission.

History

Former Rule 20. Amended subsections (A) and (B) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-120 recodified from R4-13-120 (Supp. 95-1).

Ariz. Admin. Code § R20-5-121 Present Value and Basis of Calculation of Lump Sum Commutation Awards

A. The Commission shall calculate the present value of an award that is commuted to a lump sum under R20-5-122. The Commission shall not include in the present value calculation compensation paid before the filing of a lump sum commutation petition. The Commission shall use the filing date of a lump sum commutation petition to compute the present value of an award.

B. The Commission shall calculate the present value of an award at least annually, whether payable for a period of months or based upon the life of the employee, using the United States Life Tables, 2003, National Vital Statistics Reports, Vol. 54, Number 14, April 19, 2006, revised March 28, 2007, Table 1 incorporated by reference, and discounted at the rate established by the Commission. This incorporation does not include any later amendments or editions of the incorporated matter. A copy of this referenced material is available for review at the Commission and may be obtained from the U.S. Department of Health and Human Services, Centers for Disease Control. The rate established by the Commission is based on the following formula: The mean average of the three-month Treasury Bill rate on December 31 of each of the five years prior to July 1 of the current year. The rate, once calculated, is effective until the Commission calculates a new rate under this subsection. The discount rate is published in the minutes of the Commission meeting establishing the rate and is available upon request from the Commission.

History

Former Rule 21. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-121 recodified from R4-13-121 (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). Amended by final rulemaking at 10 A.A.R. 724, effective February 3, 2004 (Supp. 04-1). Amended by final rulemaking at 11 A.A.R. 2973, effective July 12, 2005 (Supp. 05-3). Amended by final rulemaking at 13 A.A.R. 4139, effective November 6, 2007 (Supp. 07-4).

Ariz. Admin. Code § R20-5-122 Lump Sum Commutation

A. A petition for a lump sum commutation in an unscheduled case shall not be approved unless the carrier approves of such petition.

B. If the lump sum commutation petition is approved by the carrier, the Commission's primary consideration in passing upon the petition will be whether more net income per month will be generated after receipt of the lump sum than the applicant is presently receiving. The granting of a lump sum petition will only be granted if the facts demonstrate a reasonable basis for financial betterment or rehabilitation of the claimant.

C. The burden of proving that the commutation of compensation satisfies the criteria in (B) is on the applicant.

History

Former Rule 22. Amended subsections (A) and (B) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-122 recodified from R4-13-122 (Supp. 95-1).

Ariz. Admin. Code § R20-5-123 Rejection of the Act

If an employee serves upon an employer written notice under A.R.S. § 23-906, rejecting the provisions of the Act, the employer shall keep one copy of the rejection in the employer's business records.

History

Former Rule 23. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-123 recodified from R4-13-123 (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).

Ariz. Admin. Code § R20-5-124 Rejection Not Applicable to New Employment

A. An election by an employee to reject the Act is not binding upon the employee in a new employment by another employer or following re-employment by the same employer.

B. If an employee is continuously employed and the employer changes workers' compensation insurance carriers, or form of doing business, the prior rejection is valid and remains in full force and effect.

History

Former Rule 24. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-124 recodified from R4-13-124 (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).

Ariz. Admin. Code § R20-5-125 Rejection before an Employer Complies with A.R.S. Sections 23-961(A) and 23-906(D)

An employee's rejection of the Act received by an employer before the employer complies with the requirements of A.R.S. §§ 23-961(A) or 23-906(D) is valid and continues in full force and effect whether the employer subsequently obtains workers' compensation coverage under A.R.S. § 23-961(A), posts the notice required under A.R.S. § 23-906(D), or makes available the forms required under A.R.S. § 23-906(D).

History

Former Rule 25. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-125 recodified from R4-13-125 (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).

Ariz. Admin. Code § R20-5-126 Revocation of Rejection

A. An employee who rejects the Act may revoke that rejection by serving upon the employee's employer an original and one copy of a written notice of revocation. The written revocation shall state that the employee revokes the employee's prior rejection of the Act.

B. Within five days after receiving a written notice of revocation, an insured employer shall file with the employer's carrier, or workers' compensation pool, a copy of the notice of revocation. The employee has all rights to compensation and benefits provided by the Act for any injury that occurs after the employee serves the revocation notice upon the employer.

History

Former Rule 26. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-126 recodified from R4-13-126 (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).

Ariz. Admin. Code § R20-5-127 Insurance Carrier Notification to Commission of Coverage

A. Every insurance carrier authorized to underwrite workers' compensation insurance in Arizona shall, within five days after undertaking to insure an employer, report that information to the Commission. The carrier shall provide the information on or in the same format as Commission form 0006. Form 0006 is available upon request from the Commission.

B. Failure to comply with this Section does not affect the validity of coverage.

History

Former Rule 27. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-127 recodified from R4-13-127 (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).

Ariz. Admin. Code § R20-5-128 Medical Information Reproduction Cost Limitation; Definition of Medical Information

A. A health care provider shall not charge more than $.25 per page plus $10 per hour in associated clerical costs for reproduction of medical information when a party, an authorized representative of a party, or an entity that is authorized by a claimant in a workers' compensation matter makes a request for that information under A.R.S. § 23-908(C).

B. This Section applies to all A.R.S. § 23-908(B) health care providers providing medical services to injured claimants including health care providers that contract with copying services, recordkeeping services, or other similar services for the reproduction of medical information. For purposes of this Section, fees for reproduction of medical information charged by these services are considered the same as if the reproduction fees are charged by a health care provider.

C. For purposes of this Section, "medical information" means:

1. A communication recorded in any form or medium and maintained for the purpose of patient care, diagnosis, or treatment, including a report, note, order, test result, photograph, videotape, X-ray, and billing record;

2. A report of an independent medical examination that describes patient care or treatment;

3. A psychological record;

4. A medical record held by a health care provider including a medical record prepared by another provider; and

5. A recorded communication between emergency medical personnel and medical personnel concerning the care or treatment of a person.

D. For purposes of this Section, "medical information" does not include:

1. Materials that are prepared in connection with utilization review, peer review, or quality assurance activities, including records that a health care provider prepares under A.R.S. §§ 36-441, 36-445 or 36-2402; and

2. Recorded telephone and radio calls to and from a publicly operated emergency dispatch office relating to requests for emergency services or reports of suspected criminal activity.

History

Former Rule 28. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-128 recodified from R4-13-128 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-129 Carrier or Workers' Compensation Pool Determinations Binding upon Its Insured or Member; Self-rater Exception

A. The Commission deems an insurance carrier or workers' compensation pool the agent of an employer insured by the carrier or workers' compensation pool.

B. The Commission also deems any action or determination taken or made by the insurance carrier or workers' compensation pool binding upon the employer. The employer may not protest or petition the Commission for relief concerning an action or determination taken by the employer's insurance carrier or workers' compensation pool unless the employer notifies the carrier or workers' compensation pool, and the Commission in writing that the employer disagrees with the carrier's or worker's compensation pool's action or determination within the time described in A.R.S. § 23-947.

C. This Section does not apply to employers insured under a Self-Rating Insurance Plan.

History

Former Rule 29. Amended subsection (A) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-129 recodified from R4-13-129 (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).

Ariz. Admin. Code § R20-5-130 Claims Office Location and Function; Requirements of Maintaining an Out-of-state Claims Office

A. Except as provided in subsection (B), each carrier that has or is underwriting workers' compensation insurance in Arizona, and each employer and workers' compensation pool that has been granted authority to act as a self-insurer by the Commission, shall maintain a workers' compensation claims office in Arizona. A carrier, self-insured employer, and self-insured workers' compensation pool shall process and pay workers' compensation claims and maintain the workers' compensation claims files described in R20-5-131 in its Arizona office. A carrier, self-insured employer, and self-insured workers' compensation pool shall notify the claims division of the Commission of the address of the Arizona claims office.

B. Except as provided in subsections (C) and (D), a carrier or self-insured employer may request authorization from the Commission to maintain an out-of-state claims office. The Commission shall grant a carrier or self-insured employer authorization to maintain an out-of-state claims office no later than 20 days after the carrier or self-insured employer provides satisfactory evidence of the following:

1. Existence of a toll-free telephone line to the out-of-state claims office;

Completion of Commission claims division's training by the individuals responsible for claims processing at the out-of-state office; and

3. Designation of a financial institution located in Arizona that will cash on demand checks issued by the out-of-state claims office.

C. The Commission shall not permit a self-insured workers' compensation pool to maintain a claims office out-of-state.

D. The Commission shall rescind its authorization to maintain an out-of-state claims office if a carrier or self-insured employer no longer meets the requirements of subsection (B) or fails to process and pay claims as required under the Act and this Article.

E. A carrier or self-insured employer maintaining an out-of-state claims office shall print the carrier's or self-insured employer's toll-free telephone number to the out-of-state claims office on all notices of claim status or other determinations issued by the out-of-state claims office. Failure to print the toll-free telephone number on a notice or other determination as required by this subsection does not affect the validity of the notice or determination.

F. For claims processing purposes, a carrier, self-insured employer, or self-insured workers' compensation pool may have more than one designated representative provided the carrier, self-insured employer, or self-insured workers' compensation pool:

1. Notifies the Commission at the time an insurance policy is issued or authorization to self-insure is granted; and

2. Notifies the Commission each time that the insurance policy or authorization to self-insure is renewed.

History

Former Rule 30. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-130 recodified from R4-13-130 (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).

Ariz. Admin. Code § R20-5-131 Maintenance of Carrier and Self-insured Employer Claims Files; Contents; Inspection and Copying; Exchange of Medical Reports; Authorization to Obtain Medical Records

A. A carrier and self-insured employer shall maintain a workers' compensation claims file for each claimant. A carrier and self-insured employer shall include in a workers' compensation claims file all employer's reports, medical and hospital reports, awards, orders, notices of claims status, wage data, and all other items affecting the claim required by law to be maintained by a carrier or self-insured employer.

B. Subject to subsection (C), all parties, authorized representatives of parties, and authorized representatives of the Commission may inspect and copy items contained in a carrier's or self-insured employer's claims file within five days from the date the item is filed in the claims file.

C. If a carrier or self-insured employer maintains a claims file at an out-of-state claims office, the carrier or self-insured employer shall make the claims file available for copying and inspection to the persons listed in subsection (B) within 10 days after receiving a request for the file at a location in Arizona designated by the carrier or self-insured employer.

D. A carrier or self-insured employer shall furnish copies of a claims file within 10 days after receiving a request from any party, authorized representative of a party, and authorized representative of the Commission at a charge not to exceed $.25 per page. A carrier or self-insured employer may require prepayment of the copying charges if the requester or authorized representative has an account with the carrier or self-insured employer that is more than 30 days overdue.

E. A carrier or self-insured employer is not required to maintain in a claims file, or produce for inspection and copying:

1. Documents or matters representing the work product of the carrier or self-insured employer;

2. Documents or matters representing the work product of a carrier's or self-insured's attorney; or

3. Investigation and rehabilitation reports.

F. All medical records concerning a claimant's mental or physical condition that are in a party's possession shall be furnished, upon request, to another party in the same Commission proceeding.

G. Within 10 days of a request, a claimant shall provide to a party in a Commission proceeding involving the claimant, a release of information authorizing any attending, treating, or examining physician to provide records described in A.R.S. § 23-908(C).

History

Former Rule 31. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-131 recodified from R4-13-131 (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).

Ariz. Admin. Code § R20-5-132 Parties' Notice to Commission of Intention to Impose Liability upon A.R.S. Section 23-1065 Special Fund

If the notices required by A.R.S. § 23-1065 are not given to the Commission, the Commission shall not be bound by the testimony and evidence presented at a hearing as it relates to the imposition of liability upon the special fund.

History

Former Rule 32. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-132 recodified from R4-13-132 (Supp. 95-1).

Ariz. Admin. Code § R20-5-133 Claimant's Petition to Reopen Claim

A. A petition to reopen filed with the Commission under A.R.S. § 23-1061(H) shall be in writing, signed, and dated by the claimant or the claimant's authorized representative. A petition to reopen form is available from the Commission upon request.

B. A claimant shall provide to the Commission a copy of a medical report supporting the disability or condition justifying the reopening of the claim.

C. If the Commission does not receive the medical report described in subsection (B) within 14 days of receipt of a petition to reopen, the Commission shall notify all parties, in writing, that it has received a petition to reopen without the required medical report. A carrier or self-insured employer is not required to act on a petition to reopen that is received without the required medical report.

D. If the Commission receives a medical report in support of a petition to reopen and a claimant does not file a petition to reopen within 14 days of receipt of the medical report, the Commission shall forward the medical report to the carrier or self-insured employer for information purposes only. A carrier or self-insured employer is not required to take any action upon receipt of the medical report.

E. If the Commission receives a medical report in support of a petition to reopen from an out-of-state physician and a party objects to the report at least 20 days before a scheduled hearing, the Commission shall not consider the report or place the report in evidence unless the party submitting the report produces the author of the report for cross-examination either at the hearing or at a deposition. The party submitting into evidence the medical report prepared by an out-of-state physician shall pay the expenses of a deposition under this subsection.

History

Former Rule 33. Amended subsections (A), (C), (D) and (E) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-133 recodified from R4-13-133 (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).

Ariz. Admin. Code § R20-5-134 Petition for Rearrangement or Readjustment of Compensation Based upon Increase or Reduction of Earning Capacity

A. A petition for rearrangement or readjustment of compensation filed with the Commission under A.R.S. § 23-1044(F) shall be in writing. A form is available from the Commission upon request.

B. A party or a party's authorized representative shall sign a petition for rearrangement or readjustment and include in the petition:

1. A statement of the basis upon which the rearrangement or readjustment of compensation is sought, and

2. Documentation in support of the petition.

C. The petition shall be signed by the employee or the employee's authorized representative, the employer, or, in the case of an insurance carrier, by its authorized representative, and shall include a statement of the basis upon which the rearrangement of compensation is sought accompanied by supportive documentary evidence.

D. If a self-insured employer, carrier, special fund division, or uninsured employer requests a hearing protesting the Commission's determination under A.R.S. § 23-1044(F) and the claimant resides outside of Arizona, the Commission may order the self-insured employer, carrier, special fund division, or uninsured employer to pay the claimant's transportation and living expenses to attend any scheduled hearing.

History

Former Rule 34. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-134 recodified from R4-13-134 (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).

Ariz. Admin. Code § R20-5-135 Requests for Hearing; Form

A. Any interested party or the party's authorized representative, except as otherwise provided by law or this Article, may request a hearing on a claim. A request for hearing shall be in writing.

B. A Request for Hearing form is available upon request from the Commission and requests the following:

1. Employee, employer, insurance carrier, authorized representative, and claim identification;

2. Issue upon which the request for hearing is filed;

3. Requests for subpoenas of witnesses;

4. Desired location and length of time for the hearing;

Signature and address of requesting party.

History

Former Rule 35. Amended subsections (A) and (B) effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). Amended effective August 28, 1992 (Supp. 92-3). R20-5-135 recodified from R4-13-135 (Supp. 95-1).

Ariz. Admin. Code § R20-5-136 Expired

History

Former Rule 36. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-136 recodified from R4-13-136 (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 expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3475, effective November 8, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-5-137 Service of a Request for Hearing

A party filing a request for hearing shall serve a copy of the party's request for hearing upon all other parties at the same time that the party files the request for hearing with the Commission. The failure to serve a copy of a request for hearing upon other parties does not affect the validity of the hearing request.

History

Former Rule 37. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-137 recodified from R4-13-137 (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).

Ariz. Admin. Code § R20-5-138 Hearing Calendar and Assignment to Administrative Law Judge; Notification of Hearing

A. The chief administrative law judge shall maintain a hearing calendar. The chief administrative law judge shall ensure that a request for hearing filed in accordance with this Article is:

1. Placed on the hearing calendar, and

Assigned to an administrative law judge who is designated as the presiding administrative law judge.

B. A presiding administrative law judge may hold a hearing at an earlier date than required under A.R.S. § 23-941(D), if all parties to the proceeding agree.

History

Former Rule 38. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-138 recodified from R4-13-138 (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).

Ariz. Admin. Code § R20-5-139 Administrative Resolution of Issues by Stipulation before Filing a Request for Hearing

A. At any time before the filing of a request for hearing, parties may resolve issues by written stipulation. The parties shall file the stipulation with the Commission for approval or other action as may be appropriate.

B. If the Commission determines that a written stipulation is reasonably supported by the facts, the Commission may approve the stipulation or enter an appropriate award without a request for hearing or hearing.

History

Former Rule 39. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-139 recodified from R4-13-139 (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).

Ariz. Admin. Code § R20-5-140 Informal Conferences

A. A presiding administrative law judge may hold an informal conference to:

1. Resolve and dispose of disputed issues;

2. Narrow or limit the scope of the issues to be considered at a subsequent hearing;

3. Simplify the method of proof at a hearing; or

4. Eliminate the need for hearing if the facts appear to be uncontested.

B. A party may request that a pending hearing be disposed of by an informal conference, by filing a written request that:

1. Specifies the purpose for the conference consistent with subsection (A), and

2. Does not contain any argument regarding the merits of the case.

C. If the presiding administrative law judge determines that an informal conference is appropriate, the judge shall give notice to the parties of the time and place of the conference. The presiding administrative law judge may, without a request from a party, schedule an informal conference by giving five days notice to the parties of the time, place, and subject matter of the informal conference. The parties may waive the five day notice requirement of this subsection.

D. If a presiding administrative law judge disposes of issues in controversy at an informal conference, the presiding administrative law judge may enter an award without convening a hearing.

E. If a presiding administrative law judge disposes of, narrows, or limits some, but not all issues in controversy, the presiding administrative law judge shall prepare and mail to the parties a statement setting forth the issues to be resolved at a hearing. The presiding administrative law judge shall limit the hearing to the issues contained in the statement unless at the hearing all parties and, the presiding administrative law judge agree that the judge may consider issues beyond the scope of the statement.

F. Upon request by a party or upon a presiding administrative law judge's own motion, the presiding administrative law judge may order the parties to file a joint statement listing the disputed issues to be considered at formal hearing. The presiding administrative law judge shall give the parties at least 10 days to file the statement and shall order the parties to file the statement three to 10 days before the first scheduled hearing.

History

Former Rule 40. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-140 recodified from R4-13-140 (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).

Ariz. Admin. Code § R20-5-141 Subpoena Requests for Witnesses; Objection to Documents or Reports Prepared by Out-of-state Witness

A. Subpoena requests for witnesses.

1. Subpoena request for non-medical witness. A party may request a presiding administrative law judge to issue a subpoena to compel the appearance of a non-medical witness by filing a written request with the presiding administrative law judge at least 10 days before the date of the first scheduled hearing.

Subpoena request for expert medical witness. A party may request a presiding administrative law judge to issue a subpoena to compel the appearance of an expert medical witness by filing a written request with the presiding administrative law judge at least 20 days before the date of the first scheduled hearing.

3. Statement of expected testimony. In the discretion of the presiding administrative law judge, the judge may order the party requesting a subpoena to file within five days of the order a written statement summarizing the substance of the testimony expected of the witness.

4. Issuance of Subpoena. A presiding administrative law judge shall issue a subpoena requested under this Section if the judge determines that the testimony of the witness is material and necessary and, if applicable:

a. The party files a timely statement under subsection (A)(3); or

b. The party shows at or before the first scheduled hearing that good cause exists for the party's failure to respond timely to the judge's order under subsection (A)(3).

5. Service of a subpoena. The Commission may serve a subpoena by mail unless the party requesting the subpoena requests personal service. If a party requests personal service of a subpoena, the Commission shall prepare the subpoena and the party requesting personal service shall:

a. Ensure that the subpoena is served in the same manner as in a civil action; and

b. Pay all expenses of the service.

B. A presiding administrative law judge shall not grant a party a continued hearing because a subpoenaed witness fails to appear at hearing unless the party filed a timely request for subpoena as required by subsection (A). If a party timely requested a subpoena for a witness who fails to appear at a scheduled hearing, the presiding administrative law judge may grant a continued hearing if the party requesting the subpoena demonstrates that:

The testimony of the witness is material and necessary, and

2. Good cause is shown as to why the witness failed to appear.

C. Witness Fees.

1. If a non-medical witness requests a witness fee, the party requesting the subpoena shall pay the non-medical witness fees and mileage provided for witnesses in civil actions in the Superior Court. If more than one party subpoenas the same witness, the parties shall divide the witness fee equally.

2. The Commission shall pay the witness fee to a medical witness under the Commission's medical fee schedule after the presiding administrative law judge approves the fee.

D. Objection to an out-of-state physician's report.

1. A presiding administrative law judge shall not consider or place into evidence a timely filed physician's report authored by a physician residing outside Arizona if a party files an objection to that report at least 20 days before the scheduled hearing, unless the party submitting the report produces the author for cross-examination either at the hearing or at a deposition.

2. Nothing in R20-5-143(G) precludes a party from taking or submitting into evidence a deposition of a physician taken under this subsection.

3. The party submitting into evidence a report of an out-of-state physician shall pay the expenses of a deposition taken under this subsection.

E. Objection to document prepared by out-of-state non-medical witness.

1. A presiding administrative law judge shall not consider or place into evidence a timely filed document prepared by a non-medical witness who resides outside Arizona if a party files an objection to that document at least seven days before the scheduled hearing unless the party submitting the document produces the author for cross-examination either at the hearing or at a deposition.

2. Nothing in R20-5-143 precludes a party from taking or submitting into evidence a deposition within the time limits set by a presiding administrative law judge.

3. The party submitting into evidence a document prepared by an out-of-state non-medical witness shall pay the expenses of a deposition taken under this subsection.

F. If a presiding administrative law judge approves, the testimony of a party's out-of-state non-medical or expert medical witness may be taken telephonically.

History

Former Rule 41. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-141 recodified from R4-13-141 (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).

Ariz. Admin. Code § R20-5-142 In-state Oral Depositions

A. A party may take the oral deposition of another party or a witness residing in Arizona by serving a Notice of Deposition by Oral Examination upon the deponent and every party at least 10 days before the date of the oral deposition and at least 40 days before the first scheduled hearing.

B. A party may file with the presiding administrative law judge a written objection to the taking of an oral deposition within five days after service of the Notice of Deposition. If no request for hearing has been filed, a party shall file the written objection with the chief administrative law judge. The party objecting to the deposition shall:

1. State the basis for objecting to the deposition; and

2. Serve a copy of the party's objections on all parties.

C. The oral deposition shall not commence until the presiding administrative law judge rules on the written objection. The presiding administrative law judge shall rule on the written objection to the taking of an oral deposition within seven days after a party files a written objection by:

1. Ordering the deposition to proceed;

2. Ordering the deposition not be taken; or

Entering any other appropriate protective order.

D. The party taking the deposition shall comply with the Arizona Rules of Civil Procedure governing the taking of depositions.

E. The expense of any deposition shall be borne by the party taking the deposition but shall not include the expense of any other interested party.

F. A presiding administrative law judge shall not cancel or continue a hearing because a party fails to take or complete a deposition under this Section.

G. A deposition taken under this Section shall only be used to impeach a witness during a hearing, except that, in the exercise of discretion, the presiding administrative law judge may admit a deposition into evidence for another purpose if:

1. The deponent is deceased at the time of the hearing, or

2. All parties agree.

H. A party may take a telephonic deposition under this Section either by agreement of the parties or by order of the presiding administrative law judge in the exercise of the judge's discretion.

History

Former Rule 42. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-142 recodified from R4-13-142 (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).

Ariz. Admin. Code § R20-5-143 Out-of-state Oral Depositions

A. A party shall obtain permission from a presiding administrative law judge before taking an out-of-state oral deposition of another party or a witness by filing a written request with the presiding administrative law judge that contains:

1. The name and address of the party or witness to be deposed, and

2. Each reason why the party's or witness' testimony is necessary.

B. The party requesting permission to take the out-of-state deposition shall serve a copy of the request upon each party.

C. If no objection to the request for permission to take the deposition is filed under subsection (D) the presiding administrative law judge shall, within seven days from the date of the request, grant or deny permission to take the deposition.

D. A party may file with the presiding administrative law judge a written objection to the taking of an out-of-state oral deposition within five days after being served with a request to take the out-of-state deposition. The party objecting to the out-of state deposition shall:

1. State the basis for objecting to the deposition; and

2. Serve a copy of the party's objections on each party.

E. The oral deposition shall not commence until the presiding administrative law judge rules on the written objection. The presiding administrative law judge shall rule on the written objection to the taking of an out-of-state oral deposition within seven days after a party files the written objection by:

1. Ordering the deposition to proceed,

Ordering the deposition not be taken, or

3. Entering any other appropriate protective order.

F. A party shall not take more than two depositions per hearing under this Section unless a presiding administrative law judge, upon a showing of good cause, approves the taking of additional depositions.

G. In the exercise of discretion, the presiding administrative law judge may admit into evidence a deposition taken under this Section if the transcript of the deposition is filed with the Commission at least five days before any scheduled hearing or as otherwise directed by the presiding administrative law judge. If the transcript of the deposition is not timely filed under this subsection, the administrative law judge shall not consider the deposition for any purpose unless the parties and the administrative law judge agree that the deposition may be considered.

H. Parties may take telephonic depositions under this Section either by agreement of the parties or by order of a presiding administrative law judge in the exercise of the administrative law judge's discretion.

I. A party taking a deposition taken under this Section shall comply with R20-5-142(A), (D), (E) and (F).

History

Former Rule 43. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-143 recodified from R4-13-143 (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).

Ariz. Admin. Code § R20-5-144 Written Interrogatories

A. After a party files a request for hearing with the Commission, any party may serve written interrogatories upon another party. A party shall serve written interrogatories at least 40 days before the scheduled hearing.

B. A party shall not serve more than 25 interrogatories, including subsections.

C. A party shall serve answers to the interrogatories upon all parties within 10 days after service of the interrogatories. A party shall not file answers to the interrogatories with the Commission.

D. A presiding administrative law judge shall not cancel or continue a hearing because a party fails to answer interrogatories under this Section.

E. A party shall only use written interrogatories served under this Section to impeach a witness during a hearing, except that, in the exercise of discretion, the presiding administrative law judge may admit the interrogatory answers into evidence for another purpose if the party answering the interrogatories is deceased at the time of the scheduled hearing.

History

Former Rule 44. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-144 recodified from R4-13-144 (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).

Ariz. Admin. Code § R20-5-145 Refusal to Answer or Attend; Motion to Compel; Sanctions Imposed

A. If a party or deponent refuses to answer any question asked at a deposition under R20-5-142 or R20-5-143, the party asking the question shall either complete the deposition in other matters or adjourn the deposition. With notice to all persons affected by the deponent's refusal to answer a question, the party asking the question may apply to the presiding administrative law judge for an order compelling the deponent to answer the question.

B. If a party refuses to answer an interrogatory served under R20-5-144, the party serving the interrogatory may submit the interrogatory to the presiding administrative law judge and apply for an order compelling the answer.

C. If a presiding administrative law judge issues an order compelling an answer under subsection (A) or (B) and finds that a refusal to answer is without substantial justification, the presiding administrative law judge shall require the party or witness refusing to answer or the authorized representative advising that party or witness not to answer, or both of them, to pay to the party asking the question:

1. Reasonable attorney's fees incurred to obtain the order compelling the answer, and

2. Reasonable expenses that will be incurred to obtain the requested answer.

D. If a presiding administrative law judge denies a motion to compel an answer under subsection (A) or (B), and finds that the motion was made without substantial justification, the presiding administrative law judge shall require the party filing the motion, or the parties' authorized representative advising that party to make the motion, or both of them, to pay to the party or witness refusing to answer, reasonable attorney's fees incurred in opposing the motion.

E. In addition to the sanctions authorized under R20-5-157, a presiding administrative law judge may, upon a party's motion, impose the following sanctions upon a party if the party, or an officer or managing agent of that party, willfully fails to appear for a deposition after being served with proper notice of the deposition, or fails to serve answers to interrogatories after proper service of the interrogatories:

1. Strike out all or any part of a document filed by the party;

2. Dismiss the action or proceeding, or any part of the action or proceeding;

3. Order the suspension or forfeiture of compensation; or

4. Preclude the introduction of evidence.

F. The party filing a motion under subsections (A), (B), or (E) shall attach to the motion:

1. The statement required under R20-5-105(E) and

2. A proposed order that includes the relief requested and a service page with the names and addresses of all parties served.

History

Former Rule 45. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-145 recodified from R4-13-145 (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).

Ariz. Admin. Code § R20-5-146 [Repealed]

History

Former Rule 46. R20-5-146 recodified from R4-13-146 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effective August 17, 2001 (Supp. 01-3).

Ariz. Admin. Code § R20-5-147 Videotape Recordings and Motion Pictures

A. A party proposing to offer a videotape recording or motion picture into evidence at a Commission hearing shall provide written notice to the Commission and all parties at least 40 days before the first scheduled hearing.

B. If a party serves a written request to view a videotape recording or motion picture upon the party proposing to submit the videotape recording or motion picture into evidence, the party proposing to offer the videotape recording or motion picture into evidence shall provide the necessary facilities and equipment to allow the other party to view the videotape recording or motion picture no later than 25 days before the first scheduled hearing.

C. A presiding administrative law judge may admit into evidence a videotape recording or motion picture if the videotape recording or motion picture:

1. Is a reasonable and accurate representation of the scene, person, object, or action portrayed; and

2. Will aid in the understanding of the issues before the presiding administrative law judge.

D. The party submitting the videotape recording or motion picture into evidence shall ensure that commentary, interrogation, dialogue, or testimony are not a part of the videotape recording or motion picture.

E. A presiding administrative law judge shall not cancel or continue a hearing because a party fails to view a videotape recording or motion picture as provided in this Section.

F. This Section does not apply to:

1. Videotape recordings or motion pictures obtained by surveillance, or

Videotape recordings or motion pictures of medical procedures performed by a physician.

History

Former Rule 47. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-147 recodified from R4-13-147 (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).

Ariz. Admin. Code § R20-5-148 Burden of Presentation of Evidence; Offer of Proof

A. A party shall rest at the conclusion of the presentation of the party's evidence. If there is a dispute as to which party has the burden of proof, the presiding administrative law judge shall direct who has the burden of proof.

B. If a presiding administrative law judge prohibits a witness from answering a question, the presiding administrative law judge shall permit an offer of proof in the form of an avowal or in writing.

History

Former Rule 48. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-148 recodified from R4-13-148 (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).

Ariz. Admin. Code § R20-5-149 Presence of Claimant at Hearing; Notice of a Parties' Non-appearance at Hearing; Assessment of Hearing Costs for Non-appearance

A. A claimant, whether or not represented by an attorney, shall appear personally at any hearing without the necessity of subpoena unless excused by the presiding administrative law judge.

B. Subject to subsection (A), at least three days before a scheduled hearing a party shall notify the presiding administrative law judge of any non-appearance by a party or party's authorized representative that requires the judge to cancel or reschedule the hearing.

C. If a party fails to notify the presiding administrative law judge as required under subsection (B), the presiding administrative law judge may order the party or the party's authorized representative to reimburse the Commission for hearing expenses and costs incurred by the Commission including fees of expert medical witnesses and other witness fees.

History

Former Rule 49. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-149 recodified from R4-13-149 (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).

Ariz. Admin. Code § R20-5-150 Joinder of a Party

A. An administrative law judge may join as a party any person, firm, corporation, or other entity in favor of whom or against whom a right to relief may exist and over whom the Commission may acquire jurisdiction.

B. Joinder may be made upon application of any party or upon the presiding administrative law judge's own motion.

C. A party seeking to join another person, firm, corporation, or other entity shall file a motion requesting joinder with the presiding administrative law judge at least 30 days before hearing. The moving party shall serve a copy of the motion upon the person, firm, corporation, or other entity for whom joinder is requested, and upon all other parties.

D. If the requirements of this Section are met, the presiding administrative law judge shall join as a party the person, firm, corporation, or other entity for whom joinder is requested and shall issue a notice advising the parties of the joinder.

History

Former Rule 50. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-150 recodified from R4-13-150 (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).

Ariz. Admin. Code § R20-5-151 Special Appearance

Any party against whom a claim may exist under the Act, or against whom a contingent liability may exist under the Act, and over whom the Commission has not acquired jurisdiction, may enter a special appearance. A special appearance made under this Section does not invoke the jurisdiction of the Commission.

History

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).

Ariz. Admin. Code § R20-5-152 Resolution of Issues by Stipulation after the Filing of a Request for Hearing; Notice of Resolution; Assessment of Hearing Costs

A. Subject to the requirement of subsection (D), parties may stipulate to any fact or issue after a party files a request for hearing. The stipulation may be in writing or made orally at the time of hearing.

B. A stipulation is binding upon the parties unless a presiding administrative law judge or the Commission grants the parties permission to withdraw the stipulation.

C. If a stipulation is not reasonably supported by the evidence, a presiding administrative law judge or the Commission, may set aside or refuse to accept the stipulation and proceed to determine the true facts.

D. A party shall notify a presiding administrative law judge of any stipulation, compromise or settlement agreement, or withdrawal of a hearing request that makes a hearing unnecessary at least three days before a scheduled hearing.

E. The presiding administrative law judge may order a party or parties to reimburse the Commission for hearing expenses and costs incurred by the Commission including fees of expert medical witnesses and other witness fees if a party fails to notify the presiding administrative law judge as required under subsection (D).

History

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).

Ariz. Admin. Code § R20-5-153 Exclusion of Witnesses

Any party may request that all other witnesses except the parties be excluded from the hearing until called to testify. The presiding administrative law judge may, in the judge's discretion, grant or deny the request. If the request is granted, the presiding administrative law judge shall admonish each witness not to discuss the witness's testimony with anyone other than attorneys on the case.

History

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).

Ariz. Admin. Code § R20-5-154 Correspondence to Administrative Law Judge

A person submitting correspondence, including subpoena requests, to an administrative law judge concerning a matter pending before the administrative law judge, shall contemporaneously serve a copy of the correspondence upon all other parties, or if represented, the parties' authorized representatives. The administrative law judge shall not consider correspondence or subpoena requests to be evidence except by agreement of all parties to the matter.

History

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).

Ariz. Admin. Code § R20-5-155 Filing of Medical and Non-medical Reports into Evidence; Request for Subpoena to Cross-examine Author of Report Submitted into Evidence; Failure to Timely Request Subpoena for Author

A. Except as provided in R20-5-114(C), a party filing a medical report or hospital record into evidence ("medical report") that is not already contained in the Commission's claims file, shall file the medical report with the presiding administrative law judge at least 25 days before the first scheduled hearing.

B. A party filing into evidence a document, report, instrument, or other written matter not described in subsection (A) ("non-medical report") that is not already contained in the Commission's claims file, shall file the non-medical report with the presiding administrative law judge at least 15 days before the first scheduled hearing.

C. The party filing a medical or non-medical report into evidence shall serve a copy of the report to all other parties.

D. A presiding administrative law judge shall not receive into evidence any medical or non-medical report that is not filed as required under this Section. If the report has been placed in the Commission's claims file, the presiding administrative law judge shall remove the report from the Commission's claims file and return the report to the filing party.

E. The presiding administrative law judge may suspend the requirements of this Section;

Upon a showing of good cause; or

If the parties agree that the judge may accept the medical or non-medical report into evidence.

F. The party filing a medical or non-medical report under this Section shall file a cover letter with the report stating:

1. The party's identity;

2. The reports filed; and

3. Proof of service of the reports upon the other parties.

G. A party seeking to cross-examine the author of any medical or non-medical report filed into evidence shall request a subpoena under R20-5-141.

H. If a party fails to timely request a subpoena under this Section and R20-5-141, the party waives the right to cross-examine the author of any medical or non-medical report filed into evidence and the presiding administrative law judge shall admit the medical or non-medical report in evidence.

History

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).

Ariz. Admin. Code § R20-5-156 Continuance of Hearing

A. A party may request a continuance of a scheduled hearing. If a party shows good cause, a presiding administrative law judge may grant a request that a hearing be continued.

B. If at the conclusion of a hearing a party seeks to continue the hearing to introduce additional evidence, the party shall state specifically and in detail:

1. The nature and substance of the additional evidence,

2. The names and addresses of additional witnesses, and

3. The reason the party was unable to produce the evidence or witnesses at the hearing.

C. A presiding administrative law judge may deny a request for a continuance under subsection (B) if the presiding administrative law judge determines that, with the exercise of due diligence, the evidence or testimony could have been produced or the evidence or testimony would be cumulative, immaterial, or unnecessary.

D. A presiding administrative law judge may, on the judge's own motion, continue a hearing and order further examinations or investigations that the judge determines are warranted.

E. If more than 40 days before the first scheduled hearing, a presiding administrative law judge reschedules the hearing discovery and filing deadlines under this Article shall be calculated with respect to the new hearing date.

F. If less than 40 days before the first scheduled hearing, a presiding administrative law judge reschedules the hearing discovery and filing deadlines under this Article shall be calculated with respect to the original hearing date.

History

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).

Ariz. Admin. Code § R20-5-157 Sanctions

A. A presiding administrative law judge may impose the following sanctions against any party or authorized representative of a party who fails to comply with this Article or fails to comply with an order of the presiding administrative law judge or Commission:

1. Dismissal of the party's request for hearing;

2. Refusal to permit the introduction of evidence by the party; or

3. Assessment of reasonable attorney's fees and costs against the sanctioned party or authorized representative of a party.

B. If a party shows good cause, a presiding administrative law judge or the Commission may relieve a party of sanctions imposed under subsection (A).

History

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).

Ariz. Admin. Code § R20-5-158 Service of Awards and Other Matters

A. An award, decision, order, subpoena, notice, document, or other matter required by the Act, this Article, or other law to be served shall be made upon a party or, if represented, the party's authorized representative. Service upon the authorized representative is service upon the party.

B. Service may be made and is deemed complete by:

Depositing the document or matter in the United States mail, with postage prepaid, addressed to the party served at the address as shown by the records of the Commission; or

2. Personal service in the same manner as a summons is served in a civil action.

C. Proof of service may be made by an affidavit or oral testimony of the person making such service.

History

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).

Ariz. Admin. Code § R20-5-159 Record for Award or Decision on Review

A presiding administrative law judge's award or decision under A.R.S. § 23-942 or award or decision upon review under A.R.S. § 23-943 shall be based upon:

1. The record as it exists at the conclusion of the hearings, and

2. Any memoranda provided under A.R.S. § 23-943(E) or requested by the presiding administrative law judge.

History

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).

Ariz. Admin. Code § R20-5-160 Application to Set Attorney Fees under A.R.S. Section 23-1069

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 parties, including if applicable, the insurance carrier, self-insured employer, or special fund division.

C. Upon the filing of an application, the attorney and claimant shall, provide information to the Commission to enable the Commission to award reasonable attorney's fees.

D. Attorney's fees awarded under this Section shall be set by the Commission, an administrative law judge, or other authorized representative of the Commission.

History

Former Rule 60. Amended effective March 1, 1987, filed February 26, 1987 (Supp. 87-1). R20-5-160 recodified from R4-13-160 (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).

Ariz. Admin. Code § R20-5-161 Stipulations for Extensions of Time

Stipulations for extensions of time in which to file papers or briefs in the various courts shall be received and signed by the Chief Counsel or other members of the Legal Department.

History

Former Rule 61. R20-5-161 recodified from R4-13-161 (Supp. 95-1).

Ariz. Admin. Code § R20-5-162 Legal Division Participation

The chief counsel and other members of the legal staff of the Commission who participate in proceedings or matters under the Act and this Article do so on behalf of the Commission.

History

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).

Ariz. Admin. Code § R20-5-163 Bad Faith and Unfair Claim Processing Practices

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 interposes a defense that is not:

a. Well-grounded in fact;

b. Warranted by existing law; or

c. A good faith argument for the extension, modification, or reversal of existing law;

2. Unreasonably delays:

a. Payment of benefits; or

b. Authorization for, or receipt of, medical benefits or treatment;

3. Unreasonably underpays benefits;

4. Unreasonably terminates benefits;

5. Intentionally misleads a claimant as to applicable statutes of limitation, benefits, or remedies available to the claimant under the Act or under this Article; or

6. Unreasonably interferes with or obstructs the claimant's right to choose the claimant's attending physician, except in cases involving a self-insured employer under A.R.S. § 23-1070.

B. For purposes of A.R.S. § 23-930, an employer, self-insured employer, insurance carrier, or claims processing representative commits "unfair claim processing practices" if the employer, self-insured employer, insurance carrier, or claims processing representative:

1. Unreasonably issues a notice of claim status without adequate supporting information in its possession or available to it;

2. Unreasonably fails to acknowledge communications from the Commission, an unrepresented claimant, or a claimant's attorney with respect to a claim;

3. Fails to act reasonably and promptly upon communications from the Commission, an unrepresented claimant, or a claimant's attorney with respect to a claim;

4. Directly advises a claimant not to consult or obtain the services of an attorney; or

5. Communicates directly, for an improper purpose, with a claimant represented by an attorney.

C. A person alleging bad faith or unfair claim processing practices ("complainant") shall file a written complaint with the claims manager of the Commission. The complainant, or the complainant's authorized representative, shall sign the complaint.

D. The complaint shall describe the specific actions of the employer, self-insured employer, insurance carrier, or claims processing representative, that are alleged to constitute bad faith or unfair claim processing practices. A complaint form is available upon request from the Commission.

E. Upon receipt of a complaint under this subsection, the claims manager of the Commission shall serve the complaint upon all parties.

F. If the Commission acts on its own motion under A.R.S. § 23-930(A), the claims manager shall mail a notice of alleged bad faith or unfair claim processing practices to the claimant or the claimant's authorized representative and the:

Employer;

2. Self-insured employer;

3. Insurance carrier; or

4. Claims processing representative.

G. The person or entity named in a complaint or notice served under A.R.S. § 23-930 and this Section shall file with the claims manager a written response to the complaint or notice, within 30 days after service by the Commission of the complaint or notice.

H. The person or entity filing a written response shall serve a copy of the response upon the complainant, or the complainant's authorized representative, if represented.

I. If the person or entity named in a complaint or notice served under A.R.S. § 23-930 and this Section fails to file a written response, the Commission shall consider the absence of a response a denial of the allegations of the complaint or notice.

J. Upon receipt of a written response, or upon the expiration of 30 days if no response is filed, the Commission shall enter an award as it deems, in its discretion, appropriate under A.R.S. §§ 23-930(B) or (C).

History

Adopted as an emergency effective February 1, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-1). Emergency expired. Amended and readopted as an emergency effective April 29, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-2). Readopted without change as an emergency effective August 1, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-3). Readopted without change as an emergency effective November 9, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-4). Emergency expired. Amended and readopted as an emergency effective July 11, 1989 (Supp. 89-3). Adopted as a permanent rule effective October 4, 1989 (Supp. 89-4). R20-5-163 recodified from R4-13-163 (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).

Ariz. Admin. Code § R20-5-164 Human Immunodeficiency Virus, Hepatitis C, Methicillin-resistant Staphylococcus Aureus, Spinal Meningitis and Tuberculosis; Significant Exposure; Employee Notification; Reporting; Documentation; Forms

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), Spinal Meningitis, or Tuberculosis (TB)" in a conspicuous place immediately next to the "Notice to Employees" notice required under A.R.S. § 23-906(D).

B. Properly posted "Work Exposure to Bodily Fluids" and "Work Exposure to Methicillin-resistant Staphylococcus Aureus (MRSA), Spinal Meningitis, or Tuberculosis (TB)" notices constitute sufficient notice to employees of the requirements of a prima facie case under A.R.S. §§ 1043.02(B), 23-1043.03(B), and 23-1043.04(B).

C. An employer's insurance carrier, claims processor, or workers' compensation pool shall provide the notices specified in subsection (A) to the employer. These notices are also available from the Commission upon request.

D. An employer shall make readily available to its employees the Commission form described in R20-5-106 titled "Report of Significant Work Exposure to Bodily Fluids or Other Infectious Material." An employer's insurance carrier, claims processor, or workers' compensation pool shall provide the "Report of Significant Work Exposure to Bodily Fluids or Other Infectious Material" to the employer. This form is also available from the Commission upon request.

E. If an employee sustains a significant exposure as defined in A.R.S. §§ 23-1043.02(G), 23-1043.03(G), or 23-1043.04(H)(2), the employee shall complete, date, and sign a "Report of Significant Work Exposure to Bodily Fluids or Other Infectious Material" form. The employee or employee's authorized representative shall give to the employer the completed, dated, and signed form. The employer shall return one copy of the completed form to the employee or to the employee's authorized representative. Nothing in this subsection limits the requirements to report an injury or file a claim under the Act.

F. If an employee submits a written report of a significant exposure to an employer, but does not use the Commission form titled "Report of Significant Work Exposure to Bodily Fluids or Other Infectious Material," the employer shall provide the employee the Commission form within five calendar days after receiving the employee's initial written report.

G. The date of the receipt by the employer or its authorized representative of the employee's initial report is the date used to compute the time period prescribed in A.R.S. §§ 23-1043.02(B)(2), 23-1043.03(B)(2), and 23-1043.04(B)(2) if:

1. The initial report contains the information required in the "Report of Significant Work Exposure to Bodily Fluids or Other Infectious Material" form, or

2. The employee gives to the employer the completed Commission form within 10 calendar days after the employee's receipt of the Commission form.

H. Failure or refusal by the employer to provide the Commission form to the employee shall not be a defense to a prima facie claim under A.R.S. §§ 23-1043.02(B), 23-1043.03(B), and 23-1043.04(B).

I. In investigating the circumstances and facts surrounding an employee's report to an employer of a significant exposure under A.R.S. §§ 23-1043.02(C), 23-1043.03(C), and 23-1043.04(C), the employer, or its carrier, or any employees, agents or contractors of either the employer or carrier, shall not disclose to any person, except as authorized or required by law, that the reporting employee, or any witness or alleged source of exposure, may have or did contract the human immunodeficiency virus, acquired immune deficiency syndrome, hepatitis C, methicillin-resistant Staphylococcus aureus, spinal meningitis, or tuberculosis. However, an employer, its carrier or their respective attorneys, may:

1. Direct an agent to investigate the employee's report of significant exposure, and

2. Communicate with the investigating agent about the conduct and results of the investigation.

J. As required under the federal Occupational Safety and Health Standard for Bloodborne Pathogens, 29 CFR 1910.1030, an employer shall pay for the testing required by A.R.S. § 23-1043.02.

History

Adopted effective April 9, 1992 (Supp. 92-2). R20-5-163 recodified from R4-13-163 (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). Amended by final rulemaking at 15 A.A.R. 991, effective June 2, 2009 (Supp. 09-2).

Ariz. Admin. Code § R20-5-165 Calculation of Maximum Average Monthly Wage

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 Workers, by Occupational Group and Industry, All Workers, available at http://www.bls.gov/.

History

New Section made by Final rulemaking at 19 A.A.R. 1925, effective September 7, 2013.

Article 2 [REPEALED]

Ariz. Admin. Code § R20-5-201 [Repealed]

History

Former Rule I. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-201 recodified from R4-13-201 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-202 [Repealed]

History

Former Rule II. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-202 recodified from R4-13-202 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-203 [Repealed]

History

Former Rule III. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-203 recodified from R4-13-203 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-204 [Repealed]

History

Former Rule IV. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-204 recodified from R4-13-204 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-205 [Repealed]

History

Former Rule V. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-205 recodified from R4-13-205 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-206 [Repealed]

History

Former Rule VI; Amended effective February 27, 1975 (Supp. 75-1). Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-206 recodified from R4-13-206 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-207 [Repealed]

History

Former Rule VII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-207 recodified from R4-13-207 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-208 [Repealed]

History

Former Rule VIII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-208 recodified from R4-13-208 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-209 [Repealed]

History

Former Rule IX. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-209 recodified from R4-13-209 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-210 [Repealed]

History

Former Rule X. R20-5-210 recodified from R4-13-210 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-211 [Repealed]

History

Former Rule XI. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-211 recodified from R4-13-211 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-212 [Repealed]

History

Former Rule XII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-212 recodified from R4-13-212 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-213 [Repealed]

History

Former Rule XIII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-213 recodified from R4-13-213 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-214 [Repealed]

History

Former Rule XIV. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-214 recodified from R4-13-214 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-215 [Repealed]

History

Former Rule XV. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-215 recodified from R4-13-215 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-216 [Repealed]

History

Former Rule XVI. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-216 recodified from R4-13-216 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-217 [Repealed]

History

Former Rule XVII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-217 recodified from R4-13-217 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-218 [Repealed]

History

Former Rule XVIII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-218 recodified from R4-13-218 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-219 [Repealed]

History

Former Rule XIX. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-219 recodified from R4-13-219 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-220 [Repealed]

History

Former Rule XX. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-220 recodified from R4-13-220 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-221 [Repealed]

History

Former Rule XXI. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-221 recodified from R4-13-221 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-222 [Repealed]

History

Former Rule XXII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-222 recodified from R4-13-222 (Supp. 95-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-223 [Repealed]

History

Former Rule XXIII. Section repealed effective July 6, 1993 (Supp. 93-3). R20-5-223 recodified from R4-13-223 (Supp. 95-1). New Section adopted October 9, 1998 (Supp. 98-4). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-224 [Repealed]

History

Former Rule XXIV. Section repealed effective July 6, 1993 (Supp. 93-3). R20-5-224 recodified from R4-13-224 (Supp. 95-1). New Section adopted effective October 9, 1998 (Supp. 98-4). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Article 3 EXPIRED

Ariz. Admin. Code § R20-5-301 Expired

History

Former Rule I. R20-5-301 recodified from R4-13-301 (Supp. 95-1). Section R20-5-301 repealed; new Section R20-5-301 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-302 Expired

History

Former Rule II; Amended effective March 9, 1981 (Supp. 81-2). R20-5-302 recodified from R4-13-302 (Supp. 95-1). Section R20-5-302 repealed; new Section R20-5-302 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-303 Expired

History

Former Rule III; Amended effective March 9, 1981 (Supp. 81-2). R20-5-303 recodified from R4-13-303 (Supp. 95-1). Section R20-5-303 repealed; new Section R20-5-303 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-304 Expired

History

Former Rule IV; Amended effective March 9, 1981 (Supp. 81-2). R20-5-304 recodified from R4-13-304 (Supp. 95-1). Section R20-5-304 repealed; new Section R20-5-304 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-305 Expired

History

Former Rule V; Former Section R4-13-305 renumbered and amended as Section R4-13-306, new Section R20-5-305 adopted effective March 9, 1981 (Supp. 81-2). R20-5-305 recodified from R4-13-305 (Supp. 95-1). Section R20-5-305 repealed; new Section R20-5-305 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-306 Expired

History

Former Rule VI. Former Section R4-13-306 renumbered and amended as Section R4-13-307, former Section R4-13-305 renumbered and amended as Section R4-13-306 effective March 9, 1981 (Supp. 81-2). R20-5-306 recodified from R4-13-306 (Supp. 95-1). Section R20-5-306 repealed; new Section R20-5-306 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-307 Expired

History

Former Rule VII. Former Section R4-13-307 renumbered as Section R4-13-309, former Section R4-13-306 renumbered and amended as Section R4-13-307 effective March 9, 1981 (Supp. 81-2). R20-5-307 recodified from R4-13-307 (Supp. 95-1). Section R20-5-307 repealed; new Section R20-5-307 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-308 Expired

History

Former Rule VIII. Former Section R4-13-308 renumbered as Section R4-13-310, new Section R4-13-308 adopted effective March 9, 1981 (Supp. 81-2). R20-5-308 recodified from R4-13-308 (Supp. 95-1). Section R20-5-308 repealed; new Section R20-5-308 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-309 Expired

History

Former Rule IX. Former Section R4-13-309 repealed, former Section R4-13-307 renumbered as Section R4-13-309 effective March 9, 1981 (Supp. 81-2). R20-5-309 recodified from R4-13-309 (Supp. 95-1). Section R20-5-309 repealed; new Section R20-5-309 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-310 Expired

History

Former Rule X. Former Section R4-13-310 renumbered and amended as Section R4-13-312, former Section R4-13-308 renumbered as Section R4-13-310 effective March 9, 1981 (Supp. 81-2). R20-5-310 recodified from R4-13-310 (Supp. 95-1). Section R20-5-310 repealed; new Section R20-5-310 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-311 Expired

History

Former Rule XI. Former Section R4-13-311 repealed, new Section R4-13-311 adopted effective March 9, 1981 (Supp. 81-2). R20-5-311 recodified from R4-13-311 (Supp. 95-1). Section R20-5-311 repealed; new Section R20-5-311 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-312 Expired

History

Former Rule XII. Former Section R4-13-312 renumbered as Section R4-13-314, former Section R4-13-310 renumbered and amended as Section R4-13-312 effective March 9, 1981 (Supp. 81-2). R20-5-312 recodified from R4-13-312 (Supp. 95-1). Section R20-5-312 repealed; new Section R20-5-312 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-313 Expired

History

Former Rule XIII. Former Section R4-13-313 renumbered and amended as Section R4-13-318 effective March 9, 1981 (Supp. 81-2). R20-5-313 recodified from R4-13-313 (Supp. 95-1). New Section adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-314 Expired

History

Former Section R4-13-312 renumbered as Section R4-13-314 effective March 9, 1981 (Supp. 81-2). R20-5-314 recodified from R4-13-314 (Supp. 95-1). Section R20-5-314 repealed; new Section R20-5-314 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-315 Expired

History

Adopted effective March 9, 1981 (Supp. 81-2). R20-5-315 recodified from R4-13-315 (Supp. 95-1). Section R20-5-315 repealed; new Section R20-5-315 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-316 Expired

History

Adopted effective March 9, 1981 (Supp. 81-2). R20-5-316 recodified from R4-13-316 (Supp. 95-1). Section R20-5-316 repealed; new Section R20-5-316 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-317 Expired

History

Adopted effective March 9, 1981 (Supp. 81-2). R20-5-317 recodified from R4-13-317 (Supp. 95-1). Section R20-5-317 repealed; new Section R20-5-317 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-318 Expired

History

Former Section R4-13-313 renumbered and amended as Section R4-13-318 effective March 9, 1981 (Supp. 81-2). R20-5-318 recodified from R4-13-318 (Supp. 95-1). Section R20-5-318 repealed; new Section R20-5-318 adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-319 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-320 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-321 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-322 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-323 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-324 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-325 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-326 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-327 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-328 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Ariz. Admin. Code § R20-5-329 Expired

History

Adopted effective September 9, 1998 (Supp. 98-3). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 297, effective January 3, 2017 (Supp. 17-1).

Article 4 ARIZONA BOILERS AND LINED HOT WATER HEATERS

Ariz. Admin. Code § R20-5-401 Applicability

This Article applies to all Boilers, Lined Hot Water Heaters, and Pressure Vessels operated in Arizona, except the following:

1. Boilers, Lined Hot Water Heaters, and Pressure Vessels regulated by the United States Government;

2. Boilers, Lined Hot Water Heaters, and Pressure Vessels operated in private residences or Apartment Complexes of not more than six units; and

Boilers, Lined Hot Water Heaters, and Pressure Vessels operated on Indian reservations.

4. A Lined Hot Water Heater that does not exceed any of the following:

a. Heat input of 200,000 BTU/hr;

b. Water temperature of 210° F; or

c. Nominal water containing capacity of 120 gallons.

5. An electric Boiler that does not exceed either of the following:

a. Tank volume of one-and-a-half cubic feet; or

b. MAWP of 100 pounds per square inch or less, with a pressure relief system to prevent excess pressure.

History

Former Rules B-1.1 and B-1.2. Former Section R4-13-401 repealed, new Section R4-13-401 adopted effective April 12, 1979 (Supp. 79-2). Section R4-13-401 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-401 recodified from R4-13-401 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-402 Definitions

In addition to the definitions provided in A.R.S. § 23-471, the following definitions apply to this Article:

"Act" means A.R.S. Title 23, Chapter 2, Article 11.

"Alteration" means any change in the item described on the original manufacturer's data report which affects the pressure-containing capability of the Boiler or Pressure Vessel, including but not limited to:

Non physical changes such as an increase in the MAWP either internal or external, or

A reduction in minimum design temperature of a Boiler or Pressure Vessel requiring additional mechanical tests.

"ANSI" means American National Standards Institute, Inc.

"Apartment Complex" means a building with multiple family dwelling units, not used for commercial purposes, including condominiums and townhouses, where Boilers are located in a common area outside of the individual dwelling units, such as a Boiler room.

"Applicant" means an individual requesting permission to act as a Special Inspector under A.R.S. § 23-485.

"ASME " means the American Society of Mechanical Engineers.

"Authorized Inspector" means an Authorized Representative under A.R.S. § 23-471(1) or a Special Inspector under A.R.S. § 23-485.

"Blowdown Tank" or "Blowdown Separator" means an ASME-stamped vessel designed to receive discharged steam or hot water from a Boiler blowoff or blowdown piping system.

"BTU" means British thermal units.

"Condemned" means a Boiler or Lined Hot Water Heater that has been inspected and found to be unsafe by an Authorized Inspector and has been stamped or tagged with the code XXX AZ8 XXX.

"CSD-1" means Controls and Safety Devices for Automatically Fired Boilers, published by ASME, incorporated by reference in R20-5-404(A)(4).

"Direct Fired Jacketed Steam Kettle" means a jacketed steam kettle having its own source of energy, such as gas or electricity for generating steam within the jacket's walls.

"External Inspection" means an examination of a Boiler or Lined Hot Water Heater performed by an Authorized Inspector when the Boiler or Lined Hot Water Heater is in operation.

"Forced Circulation Lined Hot Water Heater" means a Lined Hot Water Heater used for potable water, a Lined Hot Water Heater requiring movement of water to prevent overheating and failure of the tubes or coils, and has no definitive waterline.

"Fully Attended Power Boiler" means a Power Boiler that is operated by an individual who meets the requirements of R20-5-408(D), and whose primary function is the care, maintenance, and operation of the Boiler and the equipment associated with the Boiler system.

"Historical Boilers" means steam Boilers preserved, restored, or maintained for hobby or demonstration use.

"HS" means heating surface.

"Inspection Certificate" means a document issued by the Division for the operation of a Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle when a Certificate Inspection has been successfully completed.

"Internal Inspection" means a complete examination of the internal and external surfaces of a Boiler or Lined Hot Water Heater by an Authorized Inspector after the Boiler or Lined Hot Water Heater is shut down.

"Kw" means kilowatt.

"MAWP" means maximum allowable working pressure.

"National Board Commissioned Inspector" means an individual who holds a valid and current National Board Commission issued by the National Board of Boiler and Pressure Vessel Inspectors.

"National Board Registration Number" means a unique number issued to a Boiler, Lined Hot Water Heater, or Pressure Vessel by the manufacturer and recorded with the National Board of Boiler and Pressure Vessel Inspectors.

"NFPA" means National Fire Protection Association.

"Non-Standard Boiler" means any Boiler, Lined Hot Water Heater, or Pressure Vessel that is not constructed or maintained to the standards incorporated by reference of this Article.

"Out of Service" means to either:

(1) physically sever or disconnect all sources of energy (water, gas, fuel, electricity, etc.); cap all fuel lines; and disconnect or remove all electrical lines from the Boiler, Lined Hot Water Heater, or Pressure Vessel; or

(2) to lock out and tag out the Boiler, Hot Water Heater, or Pressure Vessel per 29 C.F.R. § 1910.147, OSHA, General Industry Regulations.

"Portable Boiler" means a Boiler permanently affixed to a trailer with wheels, that is totally self-contained while operating, and not attached to any other object either by pipe, hose, or wire.

"PVHO" means Pressure Vessels for Human Occupancy.

"Relief Valve" means an ASME-stamped automatic pressure relieving device designed for liquid service which is actuated by the pressure upstream of the valve and opens further with an increase in pressure above the stamped pressure.

"Repairs" means work necessary to restore a Boiler, Lined Hot Water Heater, or Pressure Vessel to operating condition that complies with this Article.

"Safety Relief Valve" means an ASME-stamped automatically pressure-actuated relieving device designed for use either as a Safety Valve or as a Relief Valve.

"Safety Valve" means an ASME-stamped automatic pressure relieving device designed for steam or vapor service which is actuated by the pressure upstream of the valve and characterized by full opening pop-action.

"Secondhand" means a Boiler, Lined Hot Water Heater, or Pressure Vessel that has changed both location and ownership since original installation.

"Serves" means either mailing to the last known address of the receiving party, or transmitting by other means, including electronic transmission, with the written consent of the receiving party.

"Shelter" means a permanent structure that provides protection from the weather.

"Special Inspector" means an inspector who is issued A Special Inspector Certificate under R20-5-420.

"State Identification Number" means a unique number assigned by the Division to a Boiler, Lined Lined Hot Water Heater, or Pressure Vessel installed in Arizona.

"User" means a person or entity that does not have legal title to a Boiler, Lined Hot Water Heater, or Pressure Vessel, but has control and responsibility for the operation of a Boiler, Lined Hot Water Heater, or Pressure Vessel.

History

Former Rules B-2.1 through B-2.6. Former Section R4-13-402 repealed, new Section R4-13-402 adopted effective April 12, 1979 (Supp. 79-2). Amended effective March 31, 1981 (Supp. 81-2). Amended effective May 11, 1981 (Supp. 81-3). Amended effective May 31, 1985 (Supp. 85-3). Section R4-1-402 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-402 recodified from R4-13-402 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-403 [Repealed]

History

Former Rules B-3.1 through B-3.3. Former Section R4-13-403 repealed, new Section R4-13-403 adopted effective April 12, 1978 (Supp. 79-2). Section R4-13-403 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-403 recodified from R4-13-403 (Supp. 95-1). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Repealed by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-404 Standards for Boilers, Lined Hot Water Heaters and Pressure Vessels

A. The following apply to this Article:

1. An Owner, Operator, or User, of a Boiler, Lined Hot Water Heater or Pressure Vessel installed, repaired, replaced, or reinstalled in Arizona, six months after the effective date of this Article shall comply with the 2019 ASME Boiler and Pressure Vessel Code, Sections I, II, IV, V, VI, VII, VIII Division 1, 2, 3, IX, X,, ASME 2020 Code for Pressure Piping B31.1, and 2019 ASME PVHO-1 Safety Standard for Pressure Vessels for Human Occupancy incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from the ASME at Three Park Avenue, New York, NY 10016-5990 or at http://www.asme.org/.

2. An Owner, Operator, or User, of a Boiler, Lined Hot Water Heater, or Pressure Vessel installed, repaired, replaced, or reinstalled in Arizona, before the effective date of this Article shall comply with subsection (A)(1), or the ASME Boiler and Pressure Vessel Code in effect at the time of the last installation, repair, replacement, or reinstallation of the boiler Boiler, Lined Hot Water Heater, or Pressure Vessel in Arizona.

3. An Owner, Operator, or User of a gas-fired Lined Hot Water Heater installed, operated, repaired, replaced, or reinstalled in Arizona shall comply with the American National Standard for Gas Water Heaters, ANSI Z21.10.3 2017, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from ANSI, Customer Service Department, 25 W. 43rd Street, 4th Floor, New York, NY 10036 or at http://www.ansi.org/.

4. An Owner, Operator, or User, of a Boiler installed, repaired, replaced, or reinstalled in Arizona after the effective date of this Article shall comply with the American National Standard for Controls and Safety Devices for Automatically Fired Boilers, ANSI/ASME CSD-1- 2018, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated matter. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from the ASME, Three Park Avenue, New York, NY 10016-5990 or at http://www.asme.org/.

5. An Owner, Operator, or User, of a Boiler installed, repaired, replaced, or reinstalled in Arizona before the effective date of this Article shall comply with the American National Standard for Controls and Safety Devices for Automatically Fired Boilers in effect at the time of the last installation, repair, replacement or reinstallation of a Boiler in Arizona. As an alternative, an Owner, Operator, or User, of a Boiler described in this subsection may comply with subsection (A)(4).

6. A permanent source of outside air shall be provided for each Boiler and Lined Hot Water Heater room to assure complete combustion of the fuel as required by ANSI Z223.1- 2018, NFPA 54, National Fuel Gas Code incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated matter. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from ANSI, at Customer Service Department, 25 W. 43rd Street, 4th Floor, New York, NY 10036 or at http://www.ansi.org/.

7. All new Power Boilers installed after the effective date of this subsection, having power piping, welded or mechanically assembled, (pipe, valves, and fittings) falling within the scope of ASME Code, Section I, shall be designed, constructed and listed on the appropriate ASME Code, Section I, manufacturer's data report, P-2A, P-4A, P-4B, P-6 as applicable, incorporated by reference in R20-5-404(A)(1).

8. An Owner, Operator, or User, of a Boiler installed, repaired, replaced, or reinstalled in Arizona having a capacity equal to or greater than 12,500,000 BTU/hr input after the effective date of this subsection shall comply with ANSI NFPA 85, Boiler and Combustion Systems Hazards Code, 2019 edition, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated matter. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from ANSI, at Customer Service Department, 25 W. 43rd Street, 4th Floor, New York, NY 10036 or at http://www.ansi.org/.

B. The following registration requirements apply to this Article;

1. All Boilers, Lined Hot Water Heaters, and Pressure Vessels, including reinstalled and Secondhand Boilers, shall be registered with the National Board of Boiler and Pressure Vessel Inspectors except for:

a. Non-Standard Boilers installed up to six months after the effective date of this Section,

b. Cast iron Boilers, and

c. Cast aluminum Boilers.

2. All fired and unfired Pressure Vessels installed or reinstalled on or after July 1, 2009, shall be registered with the National Board of Boiler and Pressure Vessel Inspectors.

C. The following installation, maintenance, and repair requirements apply to this Article.

1. An Owner, Operator, or User shall maintain a signed copy of the Manufacturer's Data Report, and Manufac-turer's/Installing Contractors Report for ASME CSD-1, if applicable for a Boiler, Lined Hot Water Heater, or Pressure Vessel at the location of the Boiler Lined Hot Water Heater, or Pressure Vessel and make the reports available for review upon request from an Authorized Inspector.

2. A Boiler shall have masonry or structural supports of sufficient strength and rigidity to safely support the Boiler and its contents without any vibration in the Boiler or its connecting piping.

3. There shall be at least 36 in. (915 mm) of clearance on each side of the Boiler or Lined Hot Water Heater. Alternative clearances according to the manufacturer's recommendations are subject to approval by an Authorized Inspector prior to installation of A Boiler, Lined Hot Water Heater or Pressure Vessel.

4. A Boiler with a manhole shall have at least five feet clearance between the Boiler manhole and any wall, ceiling, or piping.

5. A newly constructed Boiler room in excess of 500 square feet of floor area and containing one or more Boilers with a fuel capacity of 1,000,000 BTU /hr or a heating capacity greater than 285 Kw (electric), shall have at least two exits on each level of the Boiler or Boilers. The Owner, Operator, or User shall ensure each exit is remotely located from other exits.

6. An Owner, Operator, or User shall keep a Boiler, Lined Hot Water Heater, or Pressure Vessel room clean and with no obstructions to the Boiler, Lined Hot Water Heater, or Pressure Vessel.

7. An Owner, Operator, or User shall not store flammable or explosive materials in a Boiler or Lined Hot Water Heater room.

8. An Owner, Operator, or User shall not store combustibles any less than three feet from any part of a Boiler, Lined Hot Water Heater, or Pressure Vessel.

9. If a Boiler, Lined Hot Water Heater, or Pressure Vessel is moved outside Arizona for temporary use or Repairs, the Owner, Operator, or User shall not reinstall the Boiler, Lined Hot Water Heater, or Pressure Vessel in Arizona until receiving verbal or written approval from the Division under R20-5-419. If the Division grants approval the Owner, Operator, or User shall not operate the reinstalled Boiler, Lined Hot Water Heater, or Pressure Vessel until receiving an Inspection Certificate under this Article.

Before a new Power Boiler or Secondhand Boiler or Pressure Vessel is installed, an inspection in accordance with R20-5-408 shall be made by an Authorized Inspector or by a National Board Commissioned Inspector. This inspection is to assess the integrity of the vessel and evaluate the original design specification. Prior to installation, an application shall be filed by the Owner, Operator, or User of the Boiler or Pressure Vessel with the Division for approval. This application shall contain the following information:

a. Name of the Owner, Operator, or User;

b. Mailing address of Owner, Operator, or User;

c. Business telephone number of Owner, Operator, or User;

d. Installation name and address;

e. Installation date;

f. Start up date;

g. Name and address of Boiler or Pressure Vessel insurance company;

h. Arizona serial number of the Boiler or Pressure Vessel being replaced, if applicable;

i. Description of the new, or Secondhand Power Boiler or Pressure Vessel to include:

i. Manufacture's name,

ii. Date manufactured,

iii. MAWP or temperature of Boiler or Pressure Vessel, and

iv. National Board registration number;

j. Name, address, business phone number, cell phone number, fax number and state contractor's license number of company or individual that will be installing the Boiler or Pressure Vessel;

k. Name, title, and phone number of the contact person on the site of installation; and

l. Signature, title, and date of the person submitting the application.

11. Before the Owner, Operator, or User installing a Secondhand Boiler or Pressure Vessel, the Boiler or Pressure Vessel shall pass a hydrostatic test that is witnessed by an Authorized Inspector or by any National Board Commissioned inspector in accordance with R20-5-411.

12. An Owner, Operator, or User of a Portable Boiler shall notify an Authorized Inspector before installing the Portable Boiler and shall not operate the Portable Boiler until the Owner, Operator, or User receives an Inspection Certificate from the Division.

History

Former Rules B-4.1 through B-4.3. Former Section R4-13-404 repealed, new Section R4-13-404 adopted effective April 12, 1979 (Supp. 79-2). Amended subsection (P) by adding paragraph (7) and amended subsection (Q) effective October 3, 1980 (Supp. 80-5). Section R4-13-404 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-404 recodified from R4-13-404 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-405 [Repealed]

History

Former Section R4-13-405 repealed effective April 12, 1979 (Supp. 79-2). New Section R4-13-405 adopted effective June 13, 1980 (Supp. 80-3). Section R4-13-405 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-405 recodified from R4-13-405 (Supp. 95-1). Repealed by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3).

Ariz. Admin. Code § R20-5-406 Repairs and Alterations

A. If Repairs or Alterations may affect the working pressure or safety of a Boiler, Lined Hot Water Heater, or Pressure Vessel, an Owner, Operator, or User shall consult with an Authorized Inspector before having the Repairs or Alterations made. The Authorized Inspector shall provide the Owner, Operator, or User information regarding the best method to repair or alter the Boiler, Lined Hot Water Heater, or Pressure Vessel. The Owner, Operator, or User shall ensure that an Authorized Inspector inspects and approves the Repairs and Alterations after the Repairs or Alterations are made.

B. Repairs and Alterations to Boilers, Lined Hot Water Heaters, or Pressure Vessels shall conform to the applicable provisions of the National Board Inspection Code, ANSI/NB-23- 2019, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007, and may be obtained from the National Board of Boiler and Pressure Vessel Inspectors, at 1055 Crupper Avenue, Columbus, OH 43229-1183 or at http://www.national-board.org/.

C. An Owner, Operator, or User shall not permit an individual to remove or repair a safety appliance of a Boiler, Lined Hot Water Heater, or Pressure Vessel in operation. An Owner, Operator, or User shall not permit a person to remove or repair a safety appliance of a Boiler, Lined Hot Water Heater, or Pressure Vessel not in operation except as provided under the ASME Code. If an Owner, Operator, or User permits a person to remove a safety appliance from a Boiler, Lined Hot Water Heater, or Pressure Vessel as provided under the ASME Code, then the Owner, Operator, or User shall ensure that the safety appliance is reinstalled in proper working order before the Boiler, Hot Water Heater, or Pressure Vessel is placed back into operation.

D. No person shall alter in any manner a Safety Valve, Relief Valve, or Safety Relief Valve, except by an organization qualified in accordance with The National Board Inspection Code, ANSI/NB-23- 2019 Edition, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007, and may be obtained from the National Board of Boiler and Pressure Vessel Inspectors at 1055 Crupper Avenue, Columbus, OH 43229-1183 or at http://www.nationalboard.org/.

E. Repairs of fittings or appliances shall comply with the requirements of the National Board Inspection Code, ANSI/NB-23 2019 Edition, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from the National Board of Boiler and Pressure Vessel Inspectors, at 1055 Crupper Avenue, Columbus, OH 43229-1183 or at http://www.nationalboard.org/.

F. On or after the effective date of this subsection, replacement of fittings or appliances shall comply with the requirements of the 2019 ASME Boiler and Pressure Vessel Code, Sections I, II, IV, V, VI, VII, VIII, Division 1, 2, 3, IX, X and 2018 ASME Code for Pressure Piping B31.1,, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007. A copy of the incorporated material may also be obtained from ASME, Three Park Avenue, New York, NY 10016-5990 or at http://www.asme.org.

History

Former Section R4-13-406 repealed effective April 12, 1979 (Supp. 79-2). New Section R4-13-406 adopted effective June 13, 1980 (Supp. 80-3). Section R4-13-406 repealed, new Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-406 recodified from R4-13-406 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-407 Inspection of Boilers, Lined Hot Water Storage Heaters, Direct Fired Jacketed Steam Kettles and Issuance of Inspection Certificates

A. An Authorized Inspector shall comply with the guidelines set forth in The National Board Inspection Code, ANSI/NB-23- 2019 Edition, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from the National Board of Boiler and Pressure Vessel Inspectors, 1055 Crupper Avenue, Columbus, OH 43229-1183 or at http://www.nationalboard.org/.

B. If an Owner, Operator, or User fails to comply with the requirements for an inspection or pressure test under this Article, the Division shall withhold the Inspection Certificate until the Owner, Operator, or User complies with the requirements.

C. An Authorized Inspector shall not engage in the sale of any object or device relating to, or equipment associated with, Boilers, Lined Hot Water Heaters, or Direct Fired Jacketed Steam Kettles.

D. Under A.R.S. § 23-485(D), the Special Inspector shall file an inspection report within 30 days of an inspection by entering data into the Division's Web-based inspection entry form, by submitting a paper inspection report issued by the Division, or by electronic transfer of data. Whatever form of data transfer a Special Inspector chooses, there shall be no cost to the Division. The inspection report shall contain the following:

1. Whether it is a Certificate or non-Certificate Inspection;

2. Whether it is an Internal Inspection, External Inspection, or both;

Name of location, address and phone number of the object;

4. Name, address and phone number of owner or responsible party;

5. Contact person's name and phone number at the inspection location;

6. State Identification Number;

7. Inspection Certificate due date;

8. Inspection Certificate duration;

9. Install/reinstall date, if known;

9. 10. Whether the object is active, inactive, Out-of-Service, standby, or scrapped;

~~10.~~ 11. MAWP permitted or allowed;

~~11.~~ 12. National Board registration number;

~~12.~~ 13. Name of the manufacturer and the year the object was built;

~~13.~~ 14. Special location in plant, if applicable;

~~14.~~ 15. Boiler type;

~~15.~~ 16. Purpose of the Boiler;

~~16.~~ 17. Specify type of fuel used;

~~17.~~ 18. Whether the firing method is automatic, manual, or unknown;

~~18.~~ 19. Whether the fuel train is in compliance with CSD-1, NFPA 85, Z21.10.3 or other;

~~19.~~ 20. Whether the Boiler is fully attended as per R20-5-408(C);

~~20.~~ 21. Size/ input rate, as applicable;

22. Size classification (HS/BTU/Kw);

~~21.~~ 23. Whether the heating surface type is stamped, computed, or unknown;

~~22.~~ 24. Minimum Safety Valve relief capacity required;

~~23.~~ 25. Whether the minimum Safety Valve relief capacity type is BTU/Hr, lbs/Hr or unknown;

~~24.~~ 26. Number of temperature/pressure controls, as applicable;

~~25.~~ 27. Owner number assigned by the Owner to specifically identify object's location;

~~26.~~ 28. Inspection date;

~~27.~~ 29. Whether the Inspection Certificate is posted;

~~28.~~ 30. Safety Valve total capacity;

31. Safety Valve total capacity type (PPH/Hr or BTU/Hr);

~~29.~~ 32. Safety Valve #1 set pressure;

~~30.~~ 33. Safety Valve #2 set pressure;

~~31.~~ 34. Safety Valve #3 set pressure;

35. Safety Valve code stamping (Example: V,HV,UV,UV3.TV,TD, OR NV);

~~32.~~ 36. Whether the object has been hydro tested;

~~33.~~ 37. Hydro Test (psi), if applicable;

~~34.~~ 38. Whether Pressure/Altitude Gage was tested;

~~35.~~ 39. Whether the condition of the object is okay to issue an Inspection Certificate;

~~36.~~ 40. Inspection comments, condition of Boiler;

~~37.~~ 41. Violations noted;

~~38.~~ 42. Inspector name and Special Inspector number; and

~~39.~~ 43. National Board Commission number .

E. The Division shall issue to an Owner, Operator, or User an Inspection Certificate within 30 calendar days of receipt of an inspection report that documents a Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle that complies with the Act and this Article. An Owner, Operator, or User of a Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle shall post the Inspection Certificate in the establishment where the Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle is located.

F. An Owner, Operator, or User shall ensure that an Authorized Inspector tags or stamps a steam Boiler with an identification number immediately after installing, but before operating, a new steam Boiler, or when an Authorized Inspector performs an initial Certificate Inspection of an existing steam Boiler. The identification number shall be at least 5/16" in height and in the following format: AZ-# # # #.

G. The Division shall mark with a metal dye stamp a Boiler or Lined Hot Water Heater identified by the Division as not safe for further service, with the code "XXX AZ8 XXX" which shall designate that the Boiler or Lined Hot Water Heater is Condemned.

H. For any conditions not covered by this Article, the applicable provisions of the ASME Code that was in effect in Arizona at the time of the installation of the Boiler or Lined Hot Water Heater shall apply.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-407 recodified from R4-13-407 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-408 Frequency of Inspection

A. An Owner, Operator, or User, of an existing Power Boiler or High Temperature Water Boiler shall ensure that an Authorized Inspector performs a Certificate Inspection and/or an External Inspection prior to operating the Power Boiler or High Temperature Water Boiler. A Certificate Inspection shall also be performed every 12 months thereafter and an External Inspection of the Power Boiler or High Temperature Water Boiler shall be performed every 12 months thereafter. An Authorized Inspector shall perform the External Inspection while the Power Boiler or High Temperature Water Boiler is in operation to ensure that safety devices are operating properly.

B. An Authorized Inspector shall perform an Internal Inspection and pressure test on a Boiler, Lined Hot Water Heater, or Pressure Vessel if the Authorized Inspector determines from an External Inspection of the Boiler, Lined Hot Water Heater, or Pressure Vessel that continued operation is a danger to the public or worker safety.

C. The Division shall issue a 12-month Inspection Certificate to an Owner, Operator, or User to operate a Fully Attended Power Boiler if:

An Owner, Operator, or User ensures that an Authorized Inspector performs an External Inspection and audit of the operational methods and logs of the Fully Attended Power Boiler at least every 12 months and performs an Internal Inspection of the Fully Attended Power Boiler at least every 36 months ; and

2. Continuous boiler water treatment is under the direct supervision of persons trained and experienced in water treatment for the purpose of controlling and limiting corrosion and deposits ; and

3. Records are available for review, that indicate:

a. The date, time, and reason the Boiler is Out of Service; and

b. Daily analysis of water samples that adequately show the conditions of the water and elements or characteristics that are capable of producing corrosion or other deterioration to the Boiler or its parts; and

Controls, safety devices, instrumentation, and other equipment necessary for safe operation are current, in service, calibrated, and meet the requirements of an appropriate safety code for the size Boilers, such as NFPA 85, ASME CSD-1 Controls and Safety Devices for Automatically Fired Boilers, National Board Inspection Code ANSI/NB-23, and state requirements; and

5. Inspection reports of an Authorized Inspector document that the Fully Attended Power Boiler complies with the Act and this Article.

D. An Owner, Operator, or User of a Direct-Fired Jacketed Steam Kettle shall ensure that an Authorized Inspector performs a Certificate Inspection at the time of installation, and every 24 months thereafter.

E. An Owner, Operator, or User of a steam heating or process Boiler, not exceeding 15 p.s.i. MAWP, steam or vapor, shall ensure that an Authorized Inspector performs a Certificate Inspection and an External Inspection of the heating or process boiler every 24 months.

F. An Owner, Operator, or User of a hot water heating, hot water supply Boiler, or Lined Hot Water Heater shall ensure that an Authorized Inspector performs a Certificate Inspection and External Inspection of the hot water heating or hot water supply Boiler or Lined Hot Water Heater at installation. An inspection certificate issued by the Division following an inspection under this subsection shall not state an expiration date.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-408 recodified from R4-13-408 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-409 Notification and Preparation for Inspection

A. An Authorized Inspector shall perform a Certificate Inspection at a time mutually agreeable to the Authorized Inspector and the Owner, Operator, or User.

B. Before an Authorized Inspector performs an Internal Inspection of a Boiler, an Owner, Operator, or User shall:

1. Cool the furnace and combustion chambers;

2. Drain the water from the Boiler;

3. Remove the manhole and handhole plates, wash-out plugs, inspection plugs in water column connections, and disassemble all low-water fuel cutoff float chambers or bowls;

4. Remove insulation or brickwork if necessary to determine the condition of the Boiler, headers, furnace, supports, and other parts;

5. Remove the pressure gauge for testing;

6. Prevent any leakage of steam or hot water into the boiler by disconnecting the involved pipe or valve;

7. Close, tag, and padlock the non-return and steam stop valves before opening the manhole or handhole covers and entering any part of the steam generating unit that is connected to a common header with other Boilers. Open the free blow drain or cock between the non-return and steam stop valves;

8. Close, tag, and padlock the blowoff valves after draining the Boiler: and

Open all drains and vent lines.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-409 recodified from R4-13-409 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-410 Report of Accident

An Owner, Operator, or User shall notify the Division within 24 hours of an explosion, severe overheating, or personal injury involving a Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle. A person shall not remove or disturb the involved Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle or parts of the Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle before an investigation by an Authorized Inspector, except for the purpose of preventing personal injury or limiting consequential damage.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-410 recodified from R4-13-410 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-411 Hydrostatic Tests

The Owner, Operator, or User of a Boiler shall perform a hydrostatic or pneumatic pressure test in accordance with the code incorporated by reference in R20-5-404(A) and R20-5-406(B).

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-411 recodified from R4-13-411 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-412 Automatic Low-water Fuel Cutoff Devices or Combined Water Feeding and Fuel Cutoff Devices

A. An Owner, Operator, or User shall ensure that low-water fuel cutoff devices or combined water feeding and fuel cutoff devices do not interfere with an Operator's or Authorized Inspector's ability to safely clean, repair, or inspect a Boiler, Lined Hot Water Heater, or Pressure Vessel.

B. A low-water fuel cutoff device shall have a pressure rating not less than the set pressure of the Safety Valve or Safety Relief Valve.

C. In addition to the requirements of subsections (A) and (B), all low-water fuel cutoffs and flow sensing devices shall be constructed and installed in accordance with applicable ASME Code and standards for Boilers and Direct Fired Jacketed Steam Kettle in R20-5-404(A).

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-412 recodified from R4-13-412 (Supp. 95-1). Amended effective October 9, 1998 (98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-413 Safety and Safety Relief Valves

A. A valve shall not be placed between a Safety Valve, Relief Valve, or a Safety Relief Valve and the Boiler, Lined Hot Water Heater, or Pressure Vessel, or between a Safety Valve, Relief Valve, or a Safety Relief Valve and the discharge pipe attached to the Boiler, Lined Hot Water Heater, or Pressure Vessel.

B. When a Power Boiler is supplied with feed-water directly from a water main without the use of a feeding apparatus, Safety Valves shall not be set at a pressure greater than 94% of the lowest pressure obtained in the water main feeding the Boiler;

C. Safety Valves, Safety Relief Valves, and Relief Valves shall conform to the requirements of the 2019 ASME Boiler and Pressure Vessel Code, Section I, IV or VIII, July, incorporated by reference as applicable. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ and may be obtained from ASME, Three Park Avenue, New York, NY 10016-5990 or at http://www.asme.org/.

D. The resetting, repairing, and restamping of Safety Valves, Relief Valves, and Safety Relief Valves shall be done by a qualified valve repair organization holding a valid "VR" Certificate of Authorization issued by the National Board of Boiler and Pressure Vessel Inspectors. ASME valve manufacturers holding a valid "V," "HV," and "UV" Certificate or Certificates of Authorization may also do this work provided they also have a valid "VR" Certificate of Authorization issued by the National Board of Boiler and Pressure Vessel Inspectors.

E. With jurisdictional approval, Owner, Operators, and Users of Boilers, Lined Hot Water Heaters, and Pressure Vessels may authorize external adjustments to bring installed Safety Valves, Relief Valves, and Safety Relief Valves back to the stamped set pressure when performed by the Owner's, Operator's, or User's trained, qualified, regular, and full-time employees. Refer to Supplement 7.10 of the National Board Inspection Code for guidelines regarding training, documentation, and the implementation of a quality system for the Owner, Operator, or User employees. All such external adjustments shall be resealed with a metal tag showing the identification of the organization making the adjustments and the date. If any valve repairs are required, they shall be done by a qualified "VR" certificate holder.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-413 recodified from R4-13-413 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-414 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-414 recodified from R4-13-414 (Supp. 95-1). Repealed by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3).

Ariz. Admin. Code § R20-5-415 Boiler Blowdown, Blowoff Equipment and Drains

A. Except as provided in this Section, an Owner, Operator, or User of blowdown and blowoff equipment shall comply with the National Board of Boiler and Pressure Vessel Inspectors, A Guide for Blowoff Vessels, NB-27, Revision 1 (1/13), 2012 Edition, incorporated by reference. This incorporation does not include any later amendments or editions of the incorporated material. A copy of this referenced material is available for review at the Industrial Commission of Arizona, 800 W. Washington Street, Phoenix, AZ 85007 and may be obtained from the National Board of Boiler and Pressure Vessel Inspectors, 1055 Crupper Avenue, Columbus, OH 43229-1183 or at http://www.nationalboard.org/.

B. Blowdown from a Boiler is a hazard to life and property.

C. Blowdown from a Boiler shall pass through blowdown equipment that reduces pressure and temperature to levels not exceeding 5 p.s.i.g. and 140° F.

D. The thickness of a blowdown vessel shall be at least 3/16".

E. All blowdown equipment shall be fitted with openings that allow cleaning and inspection of the equipment.

F. Blowdown Separators may be used with Boilers instead of Boiler Blowdown Tanks, provided that Blowdown Separators are operated with a temperature gauge and water cooler to prevent drain water temperature from exceeding 140° F.

G. In addition to the requirements of subsections (A) through (F), the following requirements apply to blowdown piping, valves and drains for Power Boilers: Each Power Boiler and High Temperature Water Boiler shall be installed and maintained according to ASME Code, Section 1 and B31.1, incorporated by reference in R20-5-404, at the time of installation.

H. In addition to the requirements of subsections (A) through (F), the following requirements apply to bottom blowdown or drain valves for heating Boilers and Lined Hot Water Heaters:

1. A hot water heating Boiler or Lined Hot Water Heater shall have a bottom blowdown or drain pipe connection fitted with a valve or cock connected with the lowest available water space with the minimum size of blowdown piping and valves as required by ASME Code, Section IV, incorporated by reference, in R20-5-404(A).

2. Discharge outlets of blowdown pipes, Safety Valves, Relief Valves, or Safety Relief Valves, and other piping shall be located and structurally supported to prevent injury to individuals.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-415 recodified from R4-13-415 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-416 Maximum Allowable Working Pressure

A. The ASME Code under which a Boiler, Lined Hot Water Heater, or Pressure Vessel was constructed and stamped shall determine the MAWP.

B. If components in the Boiler, or hot water system such as valves, pumps, expansion tanks, storage tanks or piping have a lesser working pressure rating than the Boiler or Lined Hot Water Heater, the pressure setting for the Safety Valve Relief Valve, or Safety Relief Valve on the Boiler or Lined Hot Water Heater shall be based upon the component with the lowest MAWP rating.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-416 recodified from R4-13-416 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-417 Maintenance and Operation of Boilers, Lined Hot Water Heaters and Direct Fired Jacketed Steam Kettles

A. An Owner, Operator, or User of a Lined Boiler, Lined Hot Water Heater, or Direct Fired Jacketed Steam Kettle constructed under the ASME Code, Sections I, IV or VIII Division 1, incorporated by reference in R20-5-404(A) shall comply with the manufacturer's maintenance and operation instructions lined.

B. In addition to the requirements of subsection (A), an Owner, Operator, or User of a Boiler constructed under the ASME Code, Sections I, or IV shall comply with the following preventive maintenance schedule if the boiler contains the component or system listed.

1. On a daily basis, the Owner, Operator, or User shall:

a. Test the low-water fuel cutoff and alarm, and

b. Check the burner flame for proper combustion.

2. On a weekly basis, the Owner, Operator, or User shall:

a. Check for proper ignition, and

b. Check the flame failure detection system.

3. On a monthly basis, the Owner, Operator, or User shall:

a. Test all fan and air pressure interlocks,

b. Check the main burner safety shutoff valve,

c. Check the low fire start switch,

d. Test fuel pressure and temperature interlocks of oil-fired units, and

e. Test the high and low fuel pressure switch of gas-fired units.

Every six months, the Owner, Operator, or User shall:

a. Inspect burner components;

b. Check flame failure system components, such as vacuum tubes, amplifier and relays;

c. Check wiring of all interlocks and shutoff valves; and

~~d. Recalibrate all indicating and recording gauges; and~~

e. d. Check steam and blowdown piping and valves.

5. Annually, the Owner, Operator, or User shall:

a. Replace vacuum tubes, scanners, or flame rods in the flame failure system according to the manufacturer's instructions;

b. Check all coils and diaphragms; and

c. Test operating parts of all safety shutoff and control valves.

d. Unless there is other information to assess their accuracy or reliability, all pressure gages shall be removed, tested, and their readings compared to the readings of a calibrated standard test gage or a dead weight tester.

C. An Owner, Operator, or User of a Power Boiler or High Temperature Water Boiler shall designate an individual who meets the requirements of subsection (D) to operate the Boiler. An Owner, Operator, or User may operate the Boiler if the Owner, Operator, or User meets the requirements of subsection (D).

D. An Operator or User of a Power Boiler or High Temperature Water Boiler shall meet the following minimum requirements:

Knowledge of and an ability to explain the function and operation of all safety controls of the Boiler,

2. Ability to start the Boiler in a safe manner,

3. Knowledge of all safe methods of feeding water to the Boiler,

4. Knowledge of and the ability to blow down the Boiler in a safe manner,

5. Knowledge of safety procedures to follow if water exceeds or drops below permissible safety levels, and

6. Knowledge of and the ability to safely shut down the Boiler.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-417 recodified from R4-13-417 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-418 Non-standard Boilers

An Owner, Operator, or User shall remove from service a Boiler, Lined Hot Water Heater, or Pressure Vessel that does not bear an ASME stamp unless a variance is requested under R20-5-429.

History

Repealed effective April 12, 1979 (Supp. 79-2). New Section adopted effective April 9, 1992 (Supp. 92-2). R20-5-418 recodified from R4-13-418 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-419 Request to Reinstall Boiler or Lined Hot Water Heater

A. The Division shall grant or deny approval to reinstall a Boiler or Lined Hot Water Heater within three business days after an Owner, Operator, or User requests approval . The order of the Division granting or denying approval shall be in writing.

B. The Division shall grant approval if the Boiler or Lined Hot Water Heater complies with the Act and this Article. The Division shall deny approval if the Boiler or Lined Hot Water Heater does not comply with A the Act and this Article.

C. An order of the Division denying approval shall be final unless an Owner, Operator, or User requests a hearing under A.R.S. § 23-479 within 15 days after the Division Serves the order. The Owner, Operator, or User requesting a hearing shall have the burden to prove that a Boiler or Lined Hot Water Heater meets the requirements of A the Act and this Article.

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-419 recodified from R4-13-419 (Supp. 95-1). New Section adopted effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-420 Special Inspector Certificate under A.R.S. Section 23-485

A. The Division shall administratively review an Applicant's application for a Special Inspector Certificate under A.R.S. § 23-485 within seven 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 application withdrawn if the Applicant fails to file a complete application within ten days of being notified by the Division that the application is incomplete pursuant to subsection A, unless the Applicant obtains an extension to provide the missing information. An Applicant may obtain an extension to submit the missing information by filing a written request with the Division no later than ten days after the Division Serves notice that the application is incomplete, stating the reasons why the Applicant is unable to meet the ten-day deadline.

C. An application for a Special Inspector Certificate under A.R.S. § 23-485 is deemed complete under subsection (A) when the following is filed with the Division:

1. Written documentation demonstrating that the Applicant holds a current commission issued by the National Board of Boiler and Pressure Vessel Inspectors and

2. Proof of employment as a full-time inspector for a company conducting business in Arizona with a certificate of accreditation as outlined in A.R.S. § 23-485 and whose duties as an inspector include making inspections of Boilers or Lined Hot Water Heaters to be used or insured by such company and not for resale.

D. If an Applicant meets the criteria of A.R.S. § 23-485 and subsection (C) of this Section, the Division shall issue a Special Inspector Certificate to the Applicant within 15 calendar days . If an Applicant fails to meet the criteria of A.R.S. § 23-485 and subsection (C) of this Section, the Division shall issue a written notice denying eligibility to the Applicant. The Commission shall deem the notice denying eligibility final if an Applicant does not request a hearing within 15 calendar days after the Division Serves the notice.

G. E. A Hearing on the denial of eligibility for a Special Inspector Certificate shall be governed by the following provisions:

1. A request for hearing protesting a denial of eligibility shall be in writing and signed by the Applicant or the Applicant's legal representative and filed with the Division.

2. The Commission shall hold a hearing under A.R.S. § 41-1065. The hearing shall be recorded.

3. The chair of the Commission or designee shall preside over hearings held under this Section. The chair shall apply the provisions of A.R.S. § 41-1062 et seq. to hearings held under this Section and shall have the authority and power of a presiding officer as described in A.R.S § 41-1062.

4. A decision of the Commission to deny or grant eligibility for a Special Inspector Certificate shall be based upon the criteria set forth in A.R.S. § 23-485 and this Section and shall be made by a majority vote of the quorum of Commission members present when the decision is rendered at a public meeting. After a decision is rendered at a public meeting, the Commission shall issue a written decision upon hearing which shall include findings of fact and conclusions of law, separately stated. An order of the Commission denying a Special Inspector Certificate is final unless an applicant files a request for review within 15 days after the Commission Serves its order.

5. A request for review shall be based upon one or more of the following grounds which have materially affected the rights of an Applicant:

a. Irregularities in the hearing proceedings or any order or abuse of discretion whereby the Applicant seeking review was deprived of a fair hearing;

b. Misconduct by the Division;

c. Accident or surprise which could not have been prevented by ordinary prudence;

d. Newly discovered material evidence that could not have been discovered with reasonable diligence and produced at the hearing;

e. Excessive or insufficient sanctions or penalties imposed at hearing;

f. Error in the admission or rejection of evidence, or errors of law occurring at, or during the course of, the hearing;

g. Bias or prejudice of the Division; and

h. The order, decision, or findings of fact are not justified by the evidence or are contrary to law.

6. The Commission shall issue a decision upon review no later than 30 days after receiving a request for review.

The Commission's decision upon review is final unless an Applicant seeks judicial review as provided in A.R.S. § 23-483.

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-420 recodified from R4-13-420 (Supp. 95-1). New Section adopted effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-421 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-421 recodified from R4-13-421 (Supp. 95-1).

Ariz. Admin. Code § R20-5-422 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-422 recodified from R4-13-422 (Supp. 95-1).

Ariz. Admin. Code § R20-5-423 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-423 recodified from R4-13-423 (Supp. 95-1).

Ariz. Admin. Code § R20-5-424 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-424 recodified from R4-13-424 (Supp. 95-1).

Ariz. Admin. Code § R20-5-425 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-425 recodified from R4-13-425 (Supp. 95-1).

Ariz. Admin. Code § R20-5-426 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-426 recodified from R4-13-426 (Supp. 95-1).

Ariz. Admin. Code § R20-5-427 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-427 recodified from R4-13-427 (Supp. 95-1).

Ariz. Admin. Code § R20-5-428 [Repealed]

History

Repealed effective April 12, 1979 (Supp. 79-2). R20-5-428 recodified from R4-13-428 (Supp. 95-1).

Ariz. Admin. Code § R20-5-429 Variance

A. Any Owner, Operator, or User may apply to the Director for a variance from the requirements of this Article, upon demonstrating the construction, installation, and operation of the Boiler, Lined Hot Water Heater, or Pressure Vessel will maintain the same level of safety as prescribed by this Article. The Director shall issue a variance if the Director determines that the proponent of the variance has demonstrated the construction, installation, and operation of the Boiler, Lined Hot Water Heater, or Pressure Vessel will maintain the same level of safety as prescribed by this Article. The variance issued shall prescribe the construction, installation, operation, maintenance, and repair conditions that the Owner, Operator, or User shall maintain.

B. A variance may be modified or revoked upon application by an Owner, Operator, or User or the Director, on the Director's own motion at any time after six months from issuance if the owner or user Owner, Operator, or User has not complied with the variance or if the variance does not protect the health and safety of employees or general public.

C. The application for a variance shall be made on the form issued by the Division and contains the following information:

1. Owner, Operator, or User name and company name;

2. Mailing address;

3. Telephone number;

4. Fax number;

5. Contact person;

6. Contact person's telephone number;

7. Address or location of proposed variance;

8. Type of facility to include;

a. Variance description,

b. Justification for variance,

c. Component or system involved,

d. Supporting documentation for variance,

e. Identify the statute, rule, code or standard to justify the variance; and

9. Printed name and title of Owner, Operator, or User, signature of Owner, Operator, or User, and date.

D. If an Owner, Operator, or User does not agree with the variance issued or revoked by the Director, a request for a hearing under A.R.S. § 23-479 can be made with the Commission.

History

New Section made by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-430 Forced Circulation Lined Hot Water Heaters

A. All water tube or coil-type Lined Hot Water Heaters that require forced circulation to prevent overheating and failure of the tubes or coils shall have a safety control, to prevent burner operation at a flow rate inadequate to protect the Lined Hot Water Heater unit against overheating, at all allowable firing rates. The safety control shall shut down the burner and prevent restarting until an adequate flow is restored. The flow sensing device shall be labeled and listed by a nationally recognized testing agency as a standard for limit controls complying with UL 353. This safety control shall be independent of any other operating controls.

B. All water tube or coil-type Lined Hot Water Heaters that require forced circulation to prevent overheating and failure of the tubes or coils, shall have a manually operated remote shutdown switch or circuit breaker and shall be located just outside the Lined Hot Water Heater's room door and marked for easy identification. The shutdown switch shall be installed in a manner to safeguard against tampering. If a Lined Hot Water Heater's room door is on the building exterior, the switch shall be located just inside the door. If there is more than one door to the Lined Hot Water Heater's room, there shall be a switch located at each door. The remote shutdown switch or circuit breaker shall disconnect all power to the burner controls.

History

New Section made by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-431 Code Cases

Code cases approved for use by ASME are allowed to be used in the design, fabrication and testing of Boilers, Lined Hot Water Heaters, and Pressure Vessels provided approval from the boiler chief is obtained prior to use.

History

New Section made by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Ariz. Admin. Code § R20-5-432 Historical Boilers

Historical boilers shall require an initial Certificate Inspection by an Authorized Inspector in accordance with The National Board Inspection Code, followed by a Certificate Inspection every three years thereafter if stored inside a shelter, or annually if stored outdoors. The initial Certificate Inspection shall include ultrasonic thickness testing of all pressure boundaries. Thinning of the pressure retaining boundary shall be monitored and recorded on the inspection report.

History

New Section made by final rulemaking at 15 A.A.R. 1496, effective August 18, 2009 (Supp. 09-3). Amended by final rulemaking at 28 A.A.R. 3952, effective 12/7/2022.

Article 5 ELEVATOR AND CONVEYANCE SAFETY

Ariz. Admin. Code § R20-5-501 [Repealed]

History

Former Rule E-1. Amended effective November 9, 1979 (Supp. 79-6). R20-5-501 recodified from R4-13-501 (Supp. 95-1). Section repealed by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1).

Ariz. Admin. Code § R20-5-502 Definitions

In addition to the definitions provided in A.R.S. § 23-491, the following definitions apply to this Article:

"Alteration" or "altered" means work performed to any conveyance that is not routine maintenance or repair.

1. "ASME" means American Society of Mechanical Engineers.

2. "ANSI" means American National Standard Institute.

"AZFS key" means Arizona Firefighters Service Key, a universal key used by a firefighter to operate a conveyance during an emergency.

3. "Chief" means the head inspector of the Elevator Safety Section of the Division of Occupational Safety and Health.

"Conveyance" defined in A.R.S. § 23-491, also includes employee elevators for construction and demolition operations, material lifts, platform lifts, orchestra lifts and stairway chairlifts.

4. "Elevator Safety Section" means the Elevator Safety Section of the Division of Occupational Safety and Health of the Commission.

"Employee elevator for construction and demolition operations" means an elevator that is not an integral part of a building, is installed inside or outside buildings or structures during construction, alteration, or demolition operations, and is used to raise and lower workers and other personnel.

5. "Inspection" means the official determination by an inspector of the condition of all parts of the equipment on which the safe operation of a conveyance depends.

6. "~~Major Alteration" means work performed to any conveyance that is not routine maintenance or repair.~~

"Orchestra lift" means a lift operating at a speed of 15 (4.6 meters) per minute or less, not designed for passenger use, not for moving during performances, providing an extension of the stage, and providing an extension of the auditorium floor.

"Platform lift" means a powered hoisting and lowering mechanism designed to transport mobility-impaired persons on a guided platform that travels on an incline or vertically.

"Stairway chairlift" means a powered hoisting and lowering mechanism that is guided and equipped with a seat to transport seated passengers along stairways.

7. "State Serial Number" is a unique number assigned by the Chief Elevator Inspector to a conveyance.

History

Former Rule E-2. R20-5-502 recodified from R4-13-502 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-503 [Repealed]

History

Former Rule E-3. R20-5-503 recodified from R4-13-503 (Supp. 95-1). Section repealed by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1).

Ariz. Admin. Code § R20-5-504 Safety Standard for Platform Lifts and Stairway Chairlifts

A. Every owner or operator of a platform lift or stairway chairlift installed, repaired, or altered on or after January 1, 2023, shall comply with ASME A18.1-2020 (Safety Standard for Platform Lifts and Stairway Chairlifts), with amendments as of November 29, 2020, which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. Every owner or operator of a platform lift or stairway chairlift installed, repaired, or altered prior to January 1, 2023, shall comply with either:

(1) ASME A18.1-2005 (Safety Standard for Platform Lifts and Stairway Chairlifts), with amendments as of November 29, 2005; or

(2) ASME A18.1-2020 (Safety Standard for Platform Lifts and Stairway Chairlift), with amendments as of November 29, 2020, which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

C. A copy of The referenced material is available for review at the Industrial Commission of Arizona, 800 West Washington Street, Phoenix, Arizona 85007, and ASME at Three Park Avenue, New York, New York 10016-5990 or at http://www.asme.org.

History

Former Rule E-4. R20-5-504 recodified from R4-13-504 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-505 Certificate of Inspection

The owner or operator of a conveyance shall maintain the Commission's certificate at the same location as the conveyance or related equipment and make the certificate available for inspection and copying upon request. The State Serial Number or certificate shall be posted or displayed in or within close proximity to the conveyance in a location that is easily accessible.

History

Former Rule E-5. R20-5-505 recodified from R4-13-505 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-506 Recordkeeping

A. The Elevator Safety Section shall assign a State Serial Number to every conveyance for recordkeeping purposes. The State Serial Number shall be on a tag that is affixed to the controller or mainline disconnect of the conveyance.

B. The owner or operator of a conveyance shall notify the Elevator Safety Section at least 90 days before installation, relocation, or alteration of a conveyance.

C. The owner or operator of a conveyance shall notify the Elevator Safety Section within 24 hours of every accident resulting in injury to a person or disabling damage to a conveyance. For purposes of this subsection, disabling damage means any damage to a conveyance that impairs normal operations.

History

Former Rule E-6. Amended effective November 9, 1979 (Supp. 79-6). R20-5-506 recodified from R4-13-506 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-507 Safety Code for Elevators, Escalators, Dumbwaiters, Moving Walks, Material Lifts, Special Purpose Personnel Elevators, and Dumbwaiters with Automatic Transfer Devices

A. Every owner or operator of an elevator, escalator, dumbwaiter, moving walk, material lift, special purpose personnel elevator, or dumbwaiter with automatic transfer device installed, repaired, or altered on or after January 1, 2023, shall comply with the ASME A17.1-2019 (Safety Code for Elevators and Escalators) or ASME A17.7-2007 (Performance-Based Safety Code for Elevators and Escalators) as referenced in ASME A17.1-2019, which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

B. Every owner or operator of an elevator, escalator, dumbwaiter, moving walk, material lift, special purpose personnel elevator, or dumbwaiter with automatic transfer device installed, repaired, or altered between May 5, 2009, and December 31, 2022, shall comply with either:

(1) ASME A17.1-2019 (Safety Code for Elevators and Escalators);

(2) ASME A17.1-2007 (Safety Code for Elevators and Escalators); or

(3) ASME A17.7-2007 (Performance-Based Safety Code for Elevators and Escalators), as referenced in ASME A17.1-2019 and ASME A17.1-2007, which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

C. Every owner or operator of an elevator, escalator, dumbwaiter, moving walk, material lift, special purpose personnel elevator, or dumbwaiter with automatic transfer device installed, repaired, or altered before May 5, 2009, shall comply with either:

(1) ASME A17.1-2019 (Safety Code for Elevators and Escalators);

(2) ASME A17.1-2007 (Safety Code for Elevators and Escalators);

(3) ASME A17.7-2007 (Performance-Based Safety Code for Elevators and Escalators), as referenced in ASME A17.1-2019 and A17.1-2007; or

(4) the version of ASME A17.1 (Safety Code for Elevators and Escalators) in effect at the time of installation, which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

D. For installations of a residential elevator, escalator, dumbwaiter, moving walk, material lift, or dumbwaiter with an automatic transfer device, installed after February 6, 2020, the distance between the hoistway face of the hoistway doors and the hoistway edge of the landing sill shall not exceed 19 mm (0.75 in.) for swinging doors and 57 mm (2.25 in.) for sliding doors.

E. A copy of the referenced material is available for review at the Industrial Commission of Arizona, 800 West Washington Street, Phoenix, Arizona 85007, and may be obtained from ASME at Three Park Avenue, New York, New York 10016-5990 or at www.asme.org.

History

Former Rule R4-13-507 repealed, new Section R4-13-507 adopted effective November 9, 1979 (Supp. 79-6). Amended effective March 30, 1981 (Supp. 81-2). Amended effective June 23, 1983 (Supp. 83-3). Amended effective July 24, 1985 (Supp. 85-4). Amended effective September 5, 1989 (Supp. 89-3). Amended effective March 20, 1992 (Supp. 91-2). R20-5-507 recodified from R4-13-507 (Supp. 95-1). Amended effective October 8, 1996 (Supp. 96-4). Amended by final rulemaking at 5 A.A.R. 2935, effective August 4, 1999 (Supp. 99-3). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 25 A.A.R. 2182, effective 8/6/2019. Amended by final rulemaking at 26 A.A.R. 311, effective 2/6/2020. Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-508 Safety Standard for Manlifts

A. Every owner or operator of a manlift installed, repaired, or altered on or after January 1, 2023, shall comply with ASME A90.1-2015 (Safety Standard for Belt Manlifts), which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. Every owner or operator of a manlift installed, repaired, or altered prior to January 1, 2023, shall comply with either:

(1) ASME A90.1-2015 (Safety Standard for Belt Manlifts); or

(2) ASME A90.1-2003 (Safety Standard for Belt Manlifts), which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

History

Adopted effective November 9, 1979 (Supp. 79-6). R20-5-508 recodified from R4-13-508 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-509 Safety Requirements for Personnel Hoists and Employee Elevators for Construction and Demolition Operations

A. Every owner or operator of a personnel hoist or employee elevator for construction and demolition operation installed, repaired, or altered on or after January 1, 2023, shall comply with ANSI A10.4-2016 (Safety Requirements for Personnel Hoists and Employee Elevators for Construction and Demolition Sites), which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. Every owner or operator of a personnel hoist or employee elevator for construction and demolition operation installed prior to January 1, 2023, shall comply with either:

(1) ANSI A10.4-2016 (Safety Requirements for Personnel Hoists and Employee Elevators for Construction and Demolition Sites); or

(2) ANSI A10.4-2007 (Safety Requirements for Personnel Hoists and Employee Elevators for Construction and Demolition Sites), which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

C. A copy of The referenced material is available for review at the Industrial Commission of Arizona, 800 West Washington Street, Phoenix, Arizona 85007, and ANSI at 25 West 43rd Street, 4th Floor, New York, New York, 10036 or at http://www.ansi.org.

History

Adopted effective November 9, 1979 (Supp. 79-6). Amended effective June 23, 1983 (Supp. 83-3). R20-5-509 recodified from R4-13-509 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-510 Safety Requirements for Material Hoists

A. Every owner or operator of a material hoist installed, repaired, or altered on or after January 1, 2023, shall comply with ANSI A10.5-2020 (Safety Requirements for Material Hoists), which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. Every owner or operator of a material hoist installed, repaired, or altered prior to January 1, 2023, shall comply with either:

(1) ANSI A10.5-2020 (Safety Requirements for Material Hoists); or

(2) ANSI A10.5-2006 (Safety Requirements for Material Hoists), which are incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. These incorporations by reference do not include any later amendments or editions of the incorporated matter.

History

Adopted effective November 9, 1979 (Supp. 79-6). Amended effective June 23, 1983 (Supp. 83-3). R20-5-510 recodified from R4-13-510 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-511 [Repealed]

History

Adopted effective March 30, 1981 (Supp. 81-2). R20-5-511 recodified from R4-13-511 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 381, effective March 15, 2003 (Supp. 03-1). Amended by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Repealed by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-512 Expired

History

Adopted effective March 30, 1981 (Supp. 81-2). R20-5-512 recodified from R4-13-512 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 11 A.A.R. 2320, effective May 19, 2005 (Supp. 05-2).

Ariz. Admin. Code § R20-5-513 Firefighters' Emergency Operation

All conveyances equipped with firefighters' emergency operation shall utilize the AZFS key.

History

New Section made by final rulemaking at 15 A.A.R. 872, effective May 5, 2009 (Supp. 09-2). Amended by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-514 Standard for Elevator Suspension, Compensation, and Governor Systems

A. Every owner or operator of an elevator with elevator suspension, compensation, or governor systems installed, repaired, or altered on or after the effective date of this subsection shall comply with ASME A17.6-2017 (Standard for Elevator Suspension, Compensation, and Governor Systems), which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. A copy of the referenced material is available for review at the Industrial Commission of Arizona, 800 West Washington Street, Phoenix, Arizona 85007, and ASME at Three Park Avenue, New York, New York 10016-5990 or at http://www.asme.org.

History

New Section made by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Ariz. Admin. Code § R20-5-515 Safety Requirements for Stage and Orchestra Lifts

A. Every owner or operator of a stage lift installed, repaired, or altered on or after the effective date of this section shall comply with ANSI E1.42-2018 (Entertainment Technology - Design, Installation, and Use of Orchestra Pit Lifts), which is incorporated by reference. For purposes of a repair or alteration, compliance with the specified standard shall apply, to the extent possible, to the scope of the repair or alteration. This incorporation by reference does not include any later amendments or editions of the incorporated matter.

B. A copy of the reference material is available for review at the Industrial Commission of Arizona, 800 West Washington Street, Phoenix, Arizona 85007, and ANSI at 25 West 43rd Street, 4th Floor, New York, New York, 10036 or at http://www.ansi.org.

History

New Section made by final rulemaking at 29 A.A.R. 512, effective 1/9/2023.

Article 6 OCCUPATIONAL SAFETY AND HEALTH STANDARDS

Ariz. Admin. Code § R20-5-601 The Federal Occupational Safety and Health Standards for Construction, 29 CFR 1926

Each employer shall comply with the standards in the Federal Occupational Safety and Health Standards for Construction, as published in 29 CFR 1926, with amendments as of February 24, 2021, incorporated by reference. Copies of these referenced materials are available for review at the Industrial Commission of Arizona and may be obtained from the United States Government Printing Office, Superintendent of Documents, Washington, D.C. 20402. These standards shall apply to all conditions and practices related to construction activity by all employers, both public and private, in the state of Arizona. This incorporation by reference does not include amendments or editions to 29 CFR 1926 published after February 24, 2021.

History

Editorial correction (Supp. 75-1). Amended as an emergency effective November 16, 1977 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Amended as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-601 repealed, former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). Amended effective June 17, 1981 (Supp. 81-3). Amended effective November 14, 1984 (Supp. 84-6). Amended effective March 3, 1987 (Supp. 87-1). Amended effective April 22, 1988; amended effective May 26, 1988 (Supp. 88-2). Amended effective October 14, 1988 (Supp. 88-4). Amended effective September 14, 1989 (Supp. 89-3). Amended effective April 2, 1990 (Supp. 90-2). Amended effective August 6, 1990 (Supp. 90-3). Amended effective February 8, 1991 (Supp. 91-1). Amended effective November 21, 1991 (Supp. 91-4). Amended effective February 28, 1992 (Supp. 91-2). Amended effective October 22, 1992; amended effective December 23, 1992 (Supp. 92-4). Amended effective September 13, 1993 (Supp. 93-3). Amended effective October 21, 1993; amended effective December 17, 1993 (Supp. 93-4). Amended effective May 11, 1994 (Supp. 94-2). Amended effective November 18, 1994 (Supp. 94-4). Amended effective January 12, 1995; R20-5-601 recodified from R4-13-601 (Supp. 95-1). Amended effective August 28, 1996 (Supp. 96-3). Amended effective April 1, 1997 (Supp. 97-2). Amended effective December 12, 1997 (Supp. 97-4). Amended effective August 27, 1998 (Supp. 98-3). Amended by final rulemaking at 6 A.A.R. 592, effective January 14, 2000 (Supp. 00-1). Amended by final rulemaking at 8 A.A.R. 851, effective February 5, 2002 (Supp. 02-1). Amended by final rulemaking at 9 A.A.R. 2108, effective June 2, 2003 (Supp. 03-2). Amended by final rulemaking at 12 A.A.R. 4102, effective December 4, 2006 (Supp. 06-4). Amended by final rulemaking at 13 A.A.R. 1417, effective March 30, 2007 (Supp. 07-1). Amended by final rulemaking at 14 A.A.R. 2711, effective June 17, 2008 (Supp. 08-2). Amended by final rulemaking at 16 A.A.R. 1469, effective September 11, 2010 (Supp. 10-3). Amended by final rulemaking at 17 A.A.R. 1264, effective June 13, 2011 (Supp. 11-2). Amended by final rulemaking at 18 A.A.R. 1492, effective August 5, 2012 by Notice of Public Information at 18 A.A.R. 1653 (Supp. 12-2). Amended by final rulemaking at 18 A.A.R. 3007, effective October 24, 2012 (Supp. 12-4). Amended by final rulemaking at 22 A.A.R. 773, effective 3/16/2016. Amended by final rulemaking at 22 A.A.R. 1391, effective 5/10/2016. Amended by final rulemaking at 24 A.A.R. 2316, effective 7/23/2018. Amended by final rulemaking at 26 A.A.R. 373, effective 2/11/2020. Amended by final rulemaking at 28 A.A.R. 1761, effective 9/4/2022.

Ariz. Admin. Code § R20-5-601.01 Expired

History

New Section made by exempt rulemaking at 18 A.A.R. 1144, effective May 25, 2012 (Supp. 12-2). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 290, effective January 15, 2020 (Supp. 20-1).

Ariz. Admin. Code § R20-5-602 The Federal Occupational Safety and Health Standards for General Industry, 29 CFR 1910

Each employer shall comply with the standards in Subparts B through Z inclusive of the Federal Occupational Safety and Health Standards for General Industry, as published in 29 CFR 1910, with amendments as of July 14, 2020, incorporated by reference. Copies of these reference materials are available for review at the Industrial Commission of Arizona and may be obtained from the United States Government Printing Office, Superintendent of Documents, Washington, D.C. 20402. These standards shall apply to all conditions and practices related to general industry activity by all employers, both public and private, in the state of Arizona; provided that this Section shall not apply to those conditions and practices which are the subject of R20-5-601. This incorporation by reference does not include amendments or editions to 29 CFR 1910 published after July 14, 2020.

History

Editorial correction (Supp. 75-1). Amended as an emergency effective November 16, 1977 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). New Section R4-13-602 adopted effective July 30, 1980 (Supp. 80-4). Amended as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-602 repealed, former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). Amended effective June 17, 1981 (Supp. 81-3). Amended subsection (A) effective October 1, 1981 (Supp. 81-5). Amended subsection (A) effective March 5, 1982 (Supp. 82-2). Amended subsection (A) effective May 6, 1983 (Supp. 83-3). Amended subsection (A) effective April 6, 1984 (Supp. 84-2). Amended subsection (A) effective July 3, 1984 (Supp. 84-4). Amended subsection (A) effective October 18, 1984 (Supp. 84-5). Editorial correction, amendment October 18, 1984, withdrawn for subsequent certification. Amended effective November 14, 1984, and December 14, 1984 (Supp. 84-6). Amended subsection (A) effective June 9, 1986 (Supp. 86-3). Amended subsection (A) effective March 3, 1987 (Supp. 87-1). Amended subsection (A) effective June 26, 1987 (Supp. 87-2). Amended subsection (A) effective April 22, 1988; amended subsection (A) effective May 26, 1988 (Supp. 88-2). Amended subsection (A) effective October 14, 1988 (Supp. 88-4). Amended effective September 14, 1989 (Supp. 89-3). Amended effective April 2, 1990 (Supp. 90-2). Amended effective August 6, 1990 (Supp. 90-3). Amended effective February 8, 1991 (Supp. 91-1). Amended effective November 21, 1991 (Supp. 91-4). Amended effective February 28, 1992 (Supp. 91-2). Amended effective March 20, 1992 (Supp. 91-2). Amended effective June 16, 1992 (Supp. 92-2). Amended effective October 22, 1992; amended effective December 23, 1992 (Supp. 92-4). Amended effective May 14, 1993 (Supp. 93-2). Amended effective September 13, 1993 (Supp. 93-3). Amended effective October 21, 1993; amended effective December 17, 1993 (Supp. 93-4). Amended effective May 11, 1994 (Supp. 94-2). Amended effective July 19, 1994 (Supp. 94-3). Amended effective November 18, 1994 (Supp. 94-4). Amended effective January 12, 1995; Amended effective February 10, 1995; R20-5-602 recodified from R4-13-602 (Supp. 95-1). Amended effective August 28, 1996 (Supp. 96-3). Amended effective April 1, 1997 (Supp. 97-2). Amended effective December 12, 1997 (Supp. 97-4). Amended effective August 27, 1998 (Supp. 98-3). Amended by final rulemaking at 6 A.A.R. 592, effective January 14, 2000 (Supp. 00-1). Amended by final rulemaking at 7 A.A.R. 5137, effective October 19, 2001 (Supp. 01-4). Amended by final rulemaking at 9 A.A.R. 2108, effective June 2, 2003 (Supp. 03-2). Amended by final rulemaking at 11 A.A.R. 576, effective January 4, 2005 (Supp. 05-1). Amended by final rulemaking at 12 A.A.R. 4102, effective December 4, 2006 (Supp. 06-4). Amended by final rulemaking at 13 A.A.R. 1417, effective March 30, 2007 (Supp. 07-1). Amended by final rulemaking at 13 A.A.R. 2927, effective July 31, 2007 (07-3). Amended by final rulemaking at 14 A.A.R. 193, effective January 8, 2008 (Supp. 08-1). Amended by final rulemaking at 14 A.A.R. 2711, effective June 17, 2008 (Supp. 08-2). Amended by final rulemaking at 14 A.A.R. 4337, effective December 30, 2008 (Supp. 08-4). Amended by final rulemaking at 15 A.A.R. 1564, effective August 31, 2009 (Supp. 09-3). Amended by final rulemaking at 16 A.A.R. 1469, effective September 11, 2010 (Supp. 10-3). Amended by final rulemaking at 17 A.A.R. 109, effective January 12, 2011 (Supp. 11-1). Amended by final rulemaking at 17 A.A.R. 1264, effective June 13, 2011 (Supp. 11-2). Amended by final rulemaking at 18 A.A.R. 1492, effective August 5, 2012 by Notice of Public Information at 18 A.A.R. 1653 (Supp. 12-2). Amended by final rulemaking at 18 A.A.R. 3007, effective October 24, 2012 (Supp. 12-4). Amended by final rulemaking at 22 A.A.R. 773, effective 3/16/2016. Amended by final rulemaking at 24 A.A.R. 2316, effective 7/23/2018. Amended by final rulemaking at 26 A.A.R. 373, effective 2/11/2020. Amended by final rulemaking at 28 A.A.R. 1761, effective 9/4/2022.

Ariz. Admin. Code § R20-5-602.01 Subpart T, Commercial Diving Operations

Each employer shall comply with the standards in Subpart T of the Federal Occupational Safety and Health Standards for the General Industry as published in 29 CFR 1910, with amendments as specified in R20-5-602, except that the exemption set forth in 29 CFR 1910.401(a)(2)(ii) shall not apply. Subpart T shall apply to any diving operation performed solely for search, rescue, or related public safety purposes by or under the control of a governmental agency.

History

New Section made by final rulemaking at 14 A.A.R. 193, effective January 8, 2008 (Supp. 08-1).

Ariz. Admin. Code § R20-5-602.02 Subpart U; COVID-19 Healthcare Standards

Unless expired or withdrawn by the Federal Occupational Safety and Health Administration and except as otherwise provided in Arizona Revised Statutes ("A.R.S."), Title 23, Chapter 2, Articles 8 and 8.1 and A.R.S. § 23-425, each covered employer shall comply wi th the standards in Subpart U of the Federal Occupational Safety and Health Standards for the General Industry, as published in 29 CFR 1910(U). For purposes of this section, a "covered employer" means an employer subject to Subpart U, as set forth in 29 CFR 1910.502. Copies of the referenced material is available for review at the Industrial Commission of Arizona and may be obtained from the United States Gov- ernment Printing Office, Superintendent of Documents, Washington, D.C. 20402. This incorporation by reference does not include amend- ments or editions to 29 CFR 1910(U) published after June 21, 2021.

History

Adopted by final rulemaking at 28 A.A.R. 589, effective 2/16/2022.

Ariz. Admin. Code § R20-5-603 The Federal Occupational Safety and Health Standards for Agriculture, 29 CFR 1928

Each employer shall comply with the standards in Subparts A through D inclusive of the Federal Occupational Safety and Health Standards for Agriculture, as published in 29 CFR 1928, with amendments as of March 7, 1996, incorporated by reference and on file with the Office of the Secretary of State. Copies of these referenced materials are available for review at the Industrial Commission of Arizona and may be obtained from the United States Government Printing Office, Superintendent of Documents, Washington, D.C. 20402. This incorporation by reference does not include amendments or editions to 29 CFR 1928 published after March 7, 1996.

History

Adopted effective February 28, 1975 (Supp. 75-1). Former Section R4-13-603 repealed, new Section R4-13-603 adopted as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-603 repealed, former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). Amended effective April 22, 1988 (Supp. 88-2). Amended effective December 17, 1993 (Supp. 93-4). Amended effective May 11, 1994 (Supp. 94-2). Amended effective November 18, 1994 (Supp. 94-4). Amended effective February 10, 1995. R20-5-603 recodified from R4-13-603 (Supp. 95-1). Amended effective April 1, 1997 (Supp. 97-2).

Ariz. Admin. Code § R20-5-604 Rules of Agency Practice and Procedure Concerning Osha Access to Employee Medical Records, 29 Cfr 1913

Each employer pursuant to A.R.S. § 23-403(B) shall comply with Federal Regulations, Title 29, Part 1913, with amendments as of May 23, 1980 (amendments of May 23, 1980 on file with the Secretary of State), which are hereby adopted and incorporated by reference as if set forth fully herein. This regulation applies to OSHA Access to Employee Medical Records.

History

Adopted effective February 28, 1975 (Supp. 75-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Repealed as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Repealed effective March 2, 1981 (Supp. 81-2). New rule adopted effective November 14, 1984 (Supp. 84-6). R20-5-604 recodified from R4-13-604 (Supp. 95-1).

Ariz. Admin. Code § R20-5-605 Hoes for Weeding or Thinning Crops

A. The use of a hoe with a handle less than four feet in length for weeding or thinning crops is prohibited. This prohibition is based upon the existence of other practical and adequate alternatives to the use of these short-handle hoes.

B. This rule does not apply to greenhouse or nursery operations.

History

Adopted effective February 28, 1975 (Supp. 75-1). Repealed as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Repealed effective March 2, 1981 (Supp. 81-2). New Section R4-13-605 adopted effective September 7, 1984 (Supp. 84-5). R20-5-605 recodified from R4-13-605 (Supp. 95-1).

Ariz. Admin. Code § R20-5-606 State Definition of Terms Used in Adopting Federal Standards Pursuant to R20-5-601, R20-5-602, R20-5-603 and R20-5-604

For the purposes of the standards enumerated in the federal occupational safety and health standards incorporated into R20-5-601, R20-5-602, R20-5-603, and R20-5-604 :

1. "Agency" means the Industrial Commission of Arizona.

2. "Assistant Secretary" means the Director of the Arizona Division of Occupational Safety and Health of the Industrial Commission of Arizona.

3. "Assistant Secretary of Labor for Occupational Safety and Health" means the Director of the Arizona Division of Occupational Safety and Health of the Industrial Commission of Arizona.

4. "Office of the Solicitor of Labor" means Legal Counsel for the Industrial Commission of Arizona.

5. "OSHA" means Arizona Division of Occupational Safety and Health.

History

Adopted effective February 28, 1975 (Supp. 75-1). Repealed as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Repealed effective March 2, 1981 (Supp. 81-2). New Section R4-13-606 adopted effective May 31, 1985 (Supp. 85-3). R20-5-606 recodified from R4-13-606 (Supp. 95-1).

Ariz. Admin. Code § R20-5-607 Expired

History

Adopted effective February 28, 1975 (Supp. 75-1). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-607 repealed, former emergency adoption effective October 29, 1980, adopted and amended effective March 2, 1981 (Supp. 81-2). R20-5-607 recodified from R4-13-607 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 5062, effective September 30, 2003 (Supp. 03-4).

Ariz. Admin. Code § R20-5-608 Definitions

A. ~~"Act" means the Arizona Occupational Safety and Health Act of 1972, with amendments effective August 27, 1977 (Arizona Revised Statutes, Title 23, Chapter 2, Article 10).~~

B. ~~The definitions and interpretations contained in A.R.S. § 23-401 of the Act shall be applicable to such terms when used in these rules.~~

In addition to the definitions provided in A.R.S. § 23-401, the following definitions apply to this Article:

"Act" means the Arizona Occupational Safety and Health Act of 1972.

C. "Working days" means Mondays through Fridays but shall not include Saturdays, Sundays, or state holidays. In computing fifteen working days, the day of the receipt of any notice shall not be included, and the last day of the fifteen working days shall be included.

D. "Compliance Safety and Health Officer" means a person authorized by the Occupational Safety and Health Division, Industrial Commission of Arizona, to conduct inspections.

E. "Establishment" means a single physical location where business is conducted or where services or industrial operations are performed. (For example: a factory, mill, stores, hotel, restaurant, movie theatre, farm, ranch, bank, sales office, warehouse, or central administrative office.) Where distinctly separate activities are performed at a single physical location (such as contract construction activities from the same physical location as a lumber yard), each activity shall be treated as a separate physical establishment, and a separate notice or notices shall be posted in each such establishment, to the extent that such notices have been furnished by the Industrial Commission of Arizona, Division of Occupational Safety and Health. Where employers are engaged in activities which are physically dispersed, such as agriculture, construction, transportation, communications, and electric, gas and sanitary services, the notice or notices required by this Section shall be posted at the location to which employees report each day. Where employees do not usually work at, or report to, a single establishment, such as traveling salesmen, technicians, engineers, etc., such notice or notices shall be posted at the location from which the employees operate to carry out their activities. In all cases, such notice or notices shall be posted in accordance with requirements of R20-5-609.

"Working days" means Mondays through Fridays but shall not include Saturdays, Sundays, or state holidays. In computing 15 working days, the day of the receipt of any notice shall not be included, and the last day of the 15 working days shall be included.

History

Adopted effective February 28, 1975 (Supp. 75-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-608 repealed, new Section R4-13-608 adopted effective March 2, 1981 (Supp. 81-2). R20-5-608 recodified from R4-13-608 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-609 Posting of Notice: Availability of the Act, Regulations and Applicable Standards

A. Each employer shall post and keep posted a notice or notices, to be furnished by the Industrial Commission of Arizona, Division of Occupational Safety and Health, informing employees of the protections and obligations provided for in the Act, and that for assistance and information, including copies of the Act and of specific safety and health standards, employees should contact the employer or the nearest office of the Industrial Commission. Such notice or notices shall be posted by the employer in each establishment in a conspicuous place or places where notices to employees are customarily posted. Each employer shall take steps to ensure that such notices are not altered, defaced, or covered by other material.

B. Copies of the Act, all regulations published in this Chapter and applicable standards will be available at all offices of the Arizona Division of Occupational Safety and Health. If an employer has obtained copies of these materials, the employer shall make them available upon request to any employee or the employee's authorized representative for review in the establishment where the employee is employed on the same day the request is made or at the earliest time mutually convenient to the employee or the employee's authorized representative and the employer.

C. Any employer failing to comply with the provisions of this Section shall be subject to citation and penalty in accordance with the provisions of A.R.S. § 23-418.

History

Adopted effective February 28, 1975 (Supp. 75-1). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-609 repealed, former Section R4-13-608 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-609 effective March 2, 1981 (Supp. 81-2). R20-5-609 recodified from R4-13-609 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-610 Authority for Inspection

A. The Director of the Division of Occupational Safety and Health or the Director's authorized representative upon presentation of credentials shall be permitted to enter without delay and at reasonable times any factory, plant, establishment, construction site, or other area, or place of environment where work is performed by an employee of an employer; to inspect and investigate during regular working hours and in a reasonable manner, any such place of employment, and all pertinent conditions, structures, machines, apparatus, devices, equipment and materials therein; to question privately any employer, owner, operator, agent or employee and to review records required by the Act and regulations published in this Article and other records which are directly related to the purpose of the inspection.

B. Representatives of the Secretary of Health, Education, and Welfare are authorized to make inspections and to question employers and employees in order to carry out the functions of the Secretary of Health, Education, and Welfare under the Williams-Steiger Occupational Safety and Health Act. Inspections conducted by Department of Labor Compliance Safety and Health Officers and representatives of the Secretary of Health, Education and Welfare under Section 8 of the Williams-Steiger Occupational Safety and Health Act and pursuant to 29 CFR Part 1903 shall not affect the authority of any state to conduct inspections in accordance with agreements and plans under Section 18 of the Williams-Steiger Occupational Safety and Health Act.

C. Prior to inspecting areas containing information which is classified by an agency of the United States government in the interests of national security, Compliance Safety and Health Officers shall have obtained the appropriate security clearance.

History

Adopted effective February 28, 1975 (Supp. 75-1). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-610 repealed, former Section R4-13-609 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-610 effective March 2, 1981 (Supp. 81-2). R20-5-610 recodified from R4-13-610 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-611 Objection to Inspection

A. Upon a refusal to permit a Compliance Safety and Health Officer, in the exercise of official duties, to enter without delay and at reasonable times any place of employment or any place therein, to inspect, to review records, or to privately question any employer, owner, operator, agent, or employee, in accordance with rule R20-5-610, or to permit a representative of employees to accompany the Compliance Safety and Health Officer during the physical inspection of any workplace in accordance with rule R20-5-615, the Compliance Safety and Health Officer shall terminate the inspection or confine the inspection to other areas, conditions, structures, machines, apparatus, devices, equipment, materials, records, or interviews concerning which no objection is raised. The Compliance Safety and Health Officer shall endeavor to ascertain the reason for such refusal and shall immediately report the refusal and the reason therefore to the Director of the Division. The Director shall immediately consult with the Industrial Commission and its legal counsel, who shall promptly take appropriate action, including compulsory process if necessary.

B. Compulsory process may be sought in advance of an inspection or reinvestigation if, in the judgment of the Director of the Division and the Industrial Commission Chief Legal Counsel, circumstances exist including but not limited to specific evidence of an existing violation or reasonable legislative or administrative standards for conducting an inspection which make pre-inspection process desirable or necessary.

C. With the approval of the Industrial Commission, and the Industrial Commission Chief Legal Counsel, compulsory process may also be obtained by the Director of the Division or the Director's designee.

D. For purposes of this Section, the term compulsory process shall mean the institution of any appropriate action, including ex parte application for an inspection warrant or its equivalent.

History

Adopted effective June 19, 1975 (Supp. 75-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-611 repealed, former Section R4-13-610 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-611 effective March 2, 1981 (Supp. 81-2). R20-5-611 recodified from R4-13-611 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-612 Entry Not a Waiver

Any permission to enter, inspect, review records, or question any person shall not imply or be conditioned upon a waiver of any cause of action, citation, or penalty under the Act. Compliance Safety and Health Officers are not authorized to grant any such waiver.

History

Adopted effective June 19, 1975 (Supp. 75-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-612 repealed, former Section R4-13-611 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-612 effective March 2, 1981 (Supp. 81-2). R20-5-612 recodified from R4-13-612 (Supp. 95-1).

Ariz. Admin. Code § R20-5-613 Advance Notice of Inspections

A. Advance notice of inspections may not be given except in the following situations:

In cases of apparent imminent danger, to enable the employer to abate the danger as quickly as possible;

In circumstances where the inspection can most effectively be conducted after regular business hours or where special preparations are necessary for an inspection;

3. Where necessary to ensure the presence of representatives of the employer and employees or the appropriate personnel needed to aid in an inspection; and

4. In other circumstances where the Division Director determines that the giving of advance notice would enhance the probability of an effective and thorough inspection.

B. In the situations described in subsection (A) of this Section, advance notice of inspections may be given only if authorized by the Division Director. When advance notice is given, it shall be the employer's responsibility promptly to notify the authorized representative of employees of the inspection, if the identity of such representative is known to the employer. (See rule R20-5-615(B) as to situations where there is no authorized representative of employees.) Upon the request of the employer, the Compliance Safety and Health Officer will inform the authorized representative of employees of the inspection, provided that the employer furnishes the Compliance Safety and Health Officer with the identity of such representative and with such other information as is necessary to enable the Compliance Safety and Health Officer promptly to inform such representative of the inspection. An employer who fails to comply with the obligation under this subsection promptly to inform the authorized representative of the employees of the inspection or to furnish such information as is necessary to enable the Compliance Safety and Health Officer to promptly inform such representative of the inspection may be subject to citation and penalty under A.R.S. § 23-408. Advance notice in any of the situations described in subsection (A) of this Section shall not be given more than 24 hours before the inspection is scheduled to be conducted, except in apparent imminent danger situations and other unusual circumstances.

History

Adopted effective July 28, 1975 (Supp. 75-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-613 repealed, former Section R4-13-612 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-613 effective March 2, 1981 (Supp. 81-2). R20-5-613 recodified from R4-13-613 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-614 Conduct of Inspections

A. At the beginning of an inspection, Compliance Safety and Health Officers shall present their credentials to the owner, operator, or agent in charge at the establishment; explain the nature and purpose of the inspection; and indicate generally the scope of the inspection and the records specified in rule R20-5-610 which they wish to review.

B. Compliance Safety and Health Officers shall have authority to take environmental samples and to take or obtain photographs related to the purpose of the inspection, employ other reasonable investigative techniques, and question privately any employer, owner, operator, agent or employee of an establishment.

C. In taking photographs and samples, Compliance Safety and Health Officers shall take reasonable precautions to ensure that such actions with flash, spark producing, or other equipment would not be hazardous. Compliance Safety and Health Officers shall comply with all employer safety and health rules and practices at the establishment being inspected, and they shall wear and use appropriate protective clothing and equipment.

D. The conduct of inspections shall be such as to preclude unreasonable disruption to the operations of the employer's establishment.

E. At the conclusion of an inspection, a Compliance Safety and Health Officer shall confer with the employer or employer representative and informally advise the employer or employer representative of any apparent safety or health violations disclosed by the inspection. During such conference, the employer shall be afforded an opportunity to bring to the attention of the Compliance Safety and Health Officer any pertinent information regarding conditions in the workplace.

F. Small business inspections, qualifying under the Small Business Bill of Rights A.R.S. § 41-1009, shall be subject to the provisions in A.R.S. § 41-1009.

History

Adopted effective March 2, 1976 (Supp. 76-2). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-614 repealed, former Section R4-13-613 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-614 effective March 2, 1981 (Supp. 81-2). R20-5-614 recodified from R4-13-614 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-615 Representatives of Employers and Employees

A. Compliance Safety and Health Officers shall be in charge of inspections and questioning of persons. A Compliance Safety and Health Officer may permit additional employer representatives and additional representatives authorized by employees if it is determined that such additional representatives will further aid the inspection. A different employer and employee representative may accompany the Compliance Officer during each different phase of an inspection if this will not interfere with the conduct of the inspection.

B. Compliance Safety and Health Officers shall have authority to resolve all disputes as to who is the representative authorized by the employer and employees for the purpose of this rule. If there is no authorized representative of employees, or if the Compliance Safety and Health Officer is unable to determine with reasonable certainty who is such representative, the Compliance Safety and Health Officer shall consult with a reasonable number of employees concerning matters of safety and health in the workplace.

C. The representative(s) authorized by employees shall be an employee(s) of the employer. However, if in the judgment of the Compliance Safety and Health Officer, good cause has been shown why accompaniment by a third party who is not an employee is reasonably necessary to the conduct of an effective and thorough physical inspection of the workplace, such third party may accompany the Compliance Safety and Health Officer during the inspection.

D. Compliance Safety and Health Officers are authorized to deny the right of accompaniment under this Section to any person whose conduct interferes with a fair and orderly inspection. The right of accompaniment in areas containing trade secrets shall be subject to the provisions of rule R20-5-616(B). With regard to information classified by an agency of the United States government in the interest of national security, only persons authorized to have access to such information may accompany a Compliance Safety and Health Officer in areas containing such information.

E. An employee of the division or the commission may not:

1. Before, during or after an inspection or investigation, communicate to an employer that the employer should not be represented by an attorney or that the employer may be treated more favorably by the division or the commission if the employer is not represented by an attorney.

Conduct an audio recording of an oral statement provided during an interview without the knowledge and consent of the person being interviewed. The employee of the division or the commission shall inform the person being interviewed of the person's right to receive a copy of the recorded oral statement within a reasonable time.

3. Obtain a written statement during an interview without informing the person of the person's right to receive a copy of the written statement within a reasonable time.

History

Adopted effective March 2, 1976 (Supp. 76-2). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-615 repealed, former Section R4-13-614 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-615 effective March 2, 1981 (Supp. 81-2). R20-5-615 recodified from R4-13-615 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-616 Trade Secrets

A. At the commencement of an inspection, the employer may identify areas in the establishment which contain or which might reveal a trade secret. If the Compliance Safety and Health Officer has no clear reason to question such identification, information obtained in such areas, including all negatives and prints of photographs, environmental samples, shall be labeled "confidential-trade secret" and shall not be disclosed except in accordance with provisions of A.R.S. § 23-426.

B. Upon the request of an employer, any authorized representative of employees under rule R20-5-615 in an area containing trade secrets shall be an employee in that area or an employee authorized by the employer to enter that area. Where there is no such representative or employee, a Compliance Safety and Health officer shall consult with a reasonable number of employees who work in that area concerning matters of safety and health.

History

Adopted effective March 2, 1976 (Supp. 76-2). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-616 repealed, former Section R4-13-615 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-616 effective March 2, 1981 (Supp. 81-2). R20-5-616 recodified from R4-13-616 (Supp. 95-1).

Ariz. Admin. Code § R20-5-617 Consultation with Employees

Compliance Safety and Health Officers may privately consult with employees concerning matters of occupational safety and health to the extent they deem necessary for the conduct of an effective and thorough inspection. During the course of an inspection, any employee shall be afforded an opportunity to bring any violation of the Act, which the employee has reason to believe exists in the workplace, to the attention of the Compliance Safety and Health Officer.

History

Adopted effective January 21, 1976 (Supp. 76-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-617 repealed, former Section R4-13-616 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-617 effective March 2, 1981 (Supp. 81-2). R20-5-617 recodified from R4-13-617 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-618 Complaints by Employees

A. A copy of a complaint submitted pursuant to A.R.S. § 23-408 shall be provided to the employer or the employer's agent by the Director of the Division of Occupational Safety and Health or the employers' representative no later than the time of inspection, except that, upon the request of the person giving such notice, the person's name shall not appear in such copy or in any record published, released, or made available by the Arizona Division of Occupational Safety and Health.

B. If upon receipt of such notification the Division Director determines that the complaint meets the requirements set forth in subsection (A) of this rule, and that there are reasonable grounds to believe that the alleged violation exists, the Division Director shall cause an inspection to be made as soon as practicable, to determine if such alleged violation exists. Inspections under this rule shall not be limited to matters referred to in the complaint.

History

Adopted effective January 21, 1976 (Supp. 76-1). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-618 repealed, former Section R4-13-617 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-618 effective March 2, 1981 (Supp. 81-2). R20-5-618 recodified from R4-13-618 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-619 Inspection Not Warranted; Informal Review

If the Division Director determines that an inspection is not warranted because there are no reasonable grounds to believe that a violation or danger exists with respect to a complaint in accordance with A.R.S. § 23-408, the Division Director shall notify the complaining party in writing of such determination. The complaining party may obtain review of such determination by submitting a written statement of position with the Industrial Commission and, at the same time, providing the employer with a copy of such statement by certified mail. The employer may submit an opposing written statement of position with the Industrial Commission and, at the same time, provide the complaining party with a copy of such statement by certified mail. Upon the request of the complaining party or the employer, the Industrial Commission, at their discretion, may hold an informal conference in which the complaining party and the employer may orally present their views. After considering all written and oral views presented, the Industrial Commission shall affirm, modify, or reverse the determination of the Division Director and furnish the complaining party and the employer a written notification of their decision and the reasons therefore. The decision of the Industrial Commission shall be final and not subject to further review. Such determination shall be without prejudice to the filing of a new complaint meeting the requirements of A.R.S. § 23-408.

History

Adopted effective May 25, 1977 (Supp. 77-3). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-619 repealed, former Section R4-13-618 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-619 effective March 2, 1981 (Supp. 81-2). R20-5-619 recodified from R4-13-619 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-620 Expired

History

Adopted effective May 25, 1977 (Supp. 77-3). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-620 repealed, former Section R4-13-619 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-620 effective March 2, 1981 (Supp. 81-2). R20-5-620 recodified from R4-13-620 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 5062, effective September 30, 2003 (Supp. 03-4).

Ariz. Admin. Code § R20-5-621 Citations: Notices of De Minimis Violations

A. The Division Director shall review the inspection reports of the Compliance Safety and Health Officer. If, on the basis of the report, the Division Director believes that the employer has violated a requirement of A.R.S. § 23-403, of any standard, rule or order promulgated pursuant to A.R.S. § 23-410 of the Act, or of any substantive rule published in these rules, the Division Director shall, if appropriate, consult with the Industrial Commission's counsel and shall issue to the employer either a citation or notice of de minimis violations. An appropriate citation or notice of de minimis violation shall be issued even though after being informed of an alleged violation by the Compliance Safety and Health Officer, the employer immediately abates, or initiates steps to abate, such alleged violation. Any citation or notice of de minimis violations shall be issued with reasonable promptness after termination of the inspection. No citation may be issued under this rule after the expiration of six months following the occurrence of any alleged violation.

B. If a citation or notice of de minimis violation issued for a violation alleged in a request for inspection under A.R.S. § 23-408, a copy of the citation or notice of de minimis violation shall also be sent to the employee or representative of employees who made such request or notification.

C. After an inspection, if the Division Director determines that a citation is not warranted with respect to a danger or violation alleged to exist in a request for inspection under A.R.S. § 23-408, the informal review procedures prescribed in rule R20-5-619 shall be applicable. After considering all views presented, the Industrial Commission shall affirm the determination of the Division Director, order a reinspection, or issue a citation if the Industrial Commission believes that the inspection disclosed a violation. The Industrial Commission shall furnish the complaining party and the employer with a written notification of their determination and the reasons therefore. The determination of the Industrial Commission shall be final and not subject to review.

D. Every citation shall state that the issuance of a citation does not constitute a finding that a violation of the Act has occurred unless there is a failure to contest as provided for in the Act or, if contested, unless a citation is affirmed by the Office of Administrative Hearings or the Review Board.

History

Adopted as an emergency effective May 24, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-3). Repealed as an emergency effective November 16, 1977, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 77-6). Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-620 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-621 effective March 2, 1981 (Supp. 81-2). R20-5-621 recodified from R4-13-621 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-622 Proposed Penalties

A. All employers shall be notified of any proposed penalties, issued pursuant to A.R.S. § 23-418 and A.R.S. § 23-418.01, by certified mail or by a signed verification in person.

B. The Division Director shall determine the amount of any proposed penalty, giving due consideration to the appropriateness of penalty with respect to the size of the business of the employer being charged, the gravity of the violation, the good faith of the employer, quick-fix abatement, and the history of previous violations in accordance with the provisions of A.R.S. § 23-418.

C. Appropriate penalties may be proposed with respect to an alleged violation even though after being informed of such alleged violation by the Compliance Safety and Health Officer, the employer immediately abates, or initiates steps to abate, such alleged violation. Penalties shall not be proposed for de minimis violations which have no direct or immediate relationship to safety or health.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-621 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-622 effective March 2, 1981 (Supp.81-2). R20-5-622 recodified from R4-13-622 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-623 Posting of Citations

A. Upon receipt of any citation under the Act, the employer shall immediately post such citation, or a copy thereof, unedited, at or near each place an alleged violation referred to in the citation occurred, except as provided below. Where, because of the nature of the employer's operations, it is not practicable to post the citation at or near each place of alleged violation, such citation shall be posted, unedited, in a prominent place where it will be readily observable by all affected employees. For example, where employers are engaged in activities which are physically dispersed, the citation may be posted at the location to which the employees report each day. Where employees do not primarily work at or report to a single location, the citation may be posted at the location from which the employees operate to carry out their activities. The employer shall take steps to ensure that the citation is not altered, defaced, or covered by other material. Notices of de minimis violations need not be posted.

B. Each citation, or a copy thereof, shall remain posted until the violation has been abated, or for three working days, whichever is later. The filing by the employer of a notice of intention to contest under A.R.S. § 23-420 shall not affect the posting responsibility under this rule unless and until the Office of Administrative Hearings and/or Review Board issues a final order vacating the citation.

C. An employer to whom a citation has been issued may post a notice in the same location where such citation is posted indicating that the citation is being contested before the Office of Administrative Hearings and/or Review Board, and such notice may explain the reasons for such contest. The employer may also indicate that specified steps have been taken to abate the violation.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-622 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-623 effective March 2, 1981 (Supp. 81-2). R20-5-623 recodified from R4-13-623 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-624 Employer and Employee Contests before the Office of Administrative Hearings

A. All notices to contest citations and/or penalties shall be submitted to the Division Director and immediately transmitted to the Office of Administrative Hearings in accordance with the Rules of Procedure prescribed by the Industrial Commission.

B. Any affected employee or employee representative appealing the period allowed an employer to abate a particular violation shall submit the notice of contest to the Division Director who shall immediately transmit such notice to the Office of Administrative Hearings in accordance with the Rules of Procedure prescribed by the Industrial Commission.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-623 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-624 effective March 2, 1981 (Supp. 81-2). R20-5-624 recodified from R4-13-624 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-625 Failure to Abate a Violation for Which a Citation Has Been Issued

A. All employers failing to abate an alleged violation for which a citation has been issued, within the period permitted for its abatement, shall be notified of such failure and any proposed penalties issued pursuant to A.R.S. § 23-418 by certified mail or by signed verification in person.

B. All notices to contest a notification of failure to abate a violation and of proposed additional penalty shall be submitted to the Division Director and immediately transmitted to the Office of Administrative Hearings in accordance with the Rules of Procedure prescribed by the Industrial Commission.

C. Each notification of failure to abate a violation and of proposed additional penalty shall state that it shall be deemed to be the final order of the Industrial Commission and not subject to review by any court or agency unless within fifteen working days from the receipt of such notification, the employer notifies the Division Director in writing of the intent to contest the notification or the proposed additional penalty before the Office of Administrative Hearings.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-624 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-625 effective March 2, 1981 (Supp. 81-2). R20-5-625 recodified from R4-13-625 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-626 Informal Conferences

At the request of an affected employer, employee, or representative of employees, the Industrial Commission, or their designee, may hold an informal conference for the purpose of discussing any issues raised by an inspection, citation, notice of proposed penalty, or notice of intention to contest. The settlement of any issue at such conference shall be subject to rules and procedures prescribed by the Industrial Commission. If the conference is requested by the employer, an affected employee or an affected employee's representative shall be afforded an opportunity to participate, at the discretion of the Industrial Commission or their designee. If the conference is requested by an employee or representative of employees, the employer shall be afforded an opportunity to participate, at the discretion of the Industrial Commission or their designee. Any party may be represented by counsel in such conference. No such conference or request for such conference shall operate as a stay of any fifteen working day period for filing a notice of intention to contest as prescribed in A.R.S. § 23-417(A).

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-625 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-626 effective March 2, 1981 (Supp. 81-2). R20-5-626 recodified from R4-13-626 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-627 Abatement Verification

A. Scope and application. This Section applies to employers, as defined in A.R.S. § 23-401, who receive a citation for a violation of the Arizona Occupational Safety and Health Act.

B. Definitions

1. Abatement means action by an employer to comply with a cited standard or rule or to eliminate a recognized hazard, as defined in A.R.S. § 23-401, identified by the Division during an inspection.

2. Abatement date means:

a. For an uncontested citation item, the later of:

i. The date in the citation for abatement of the violation;

ii. The date approved by the Division as a result of a petition for modification of the abatement date (PMA); or

iii. The date for abatement completion as established in a citation by an informal conference agreement.

b. For a contested citation item for which an administrative law judge has issued a final decision affirming the violation, the later of

i. The date identified in the final decision for completion of abatement;

ii. The date computed by adding the original period allowed for abatement in the citation to begin 15 days from the final decision date of an administrative law judge; or

iii. The date established by a formal settlement agreement.

3. Affected employee means an employee who is exposed to the hazard identified as a violation in a citation.

4. Final order date means:

a. The date on which an uncontested citation is deemed final under A.R.S. § 23-417(A); or

b. For a contested citation item: The date on which a decision or order of an administrative law judge becomes final under A.R.S. § 23-421 or § 23-423.

5. Movable equipment means a hand-held or non-hand-held machine or device, powered or unpowered, that is used to do work and is moved within or between workplaces.

C. Abatement certification.

1. Within 10 calendar days after the abatement date, an employer shall certify to the Division that the employer has abated each cited violation except as provided in subsection (C)(2). An employer may use Appendix A to certify abatement.

2. An employer is not required to certify abatement if a Compliance Safety and Health Officer, during an onsite inspection:

a. Observes, within 24 hours after a violation is identified, that abatement has occurred; and

b. Notes the abatement action on the citation.

3. An employer's certification that abatement is complete shall include, for each cited violation, in addition to the information required by subsection (H), the completion date and method of abatement and a statement that affected employees and their representatives have been informed of the completed abatement.

D. Abatement documentation.

1. Within 10 days after the abatement date, an employer shall submit to the Division, documents which evidence that abatement is complete for each willful or repeat violation and for any serious violation for which abatement documentation is required.

2. Documents which evidence that abatement is complete may include documents for purchase or repair of equipment, photographs or videos of the abatement, or other written records.

E. Abatement plans.

1. The Division may require an employer to submit an abatement plan, except for a nonserious violation, when the time permitted for abatement is more than 90 days. The citation shall state that an abatement plan is required. An employer may use Appendix B for an abatement plan.

2. An employer shall submit an abatement plan for each cited violation within 25 days from the date of a final order when the citation states that a plan is required. In the abatement plan, the employer shall identify:

a. The violation,

b. The steps necessary to achieve abatement,

c. A schedule for completing abatement, and

d. How the employer will protect employees from the violative condition until abatement is complete.

F. Progress reports.

1. The Division may require an employer who submits an abatement plan under subsection (E), to submit periodic progress reports for each cited violation. If the Division requires a periodic progress report, the citation shall include the following information:

a. Periodic progress reports are required and the cited violations for which periodic progress reports are required;

b. The date on which an initial progress report must be submitted. The date of the initial progress report shall be no sooner than 30 days after the submission date required for abatement;

c. Whether additional progress reports are required; and

d. The date on which additional progress reports shall be submitted.

2. For each violation, the employer shall summarize in the progress report, the action taken to achieve abatement and the date the action was taken.

G. Employee notification.

1. An employer shall inform affected employees and the employees' representative of abatement activities covered by this Section by posting a copy of each document submitted to the Division or a summary of the document at the location of the cited violation.

2. For employers who have mobile work operations, the employer shall:

a. Post each document or a summary of the document submitted to the Division in a conspicuous place where it can be readily seen by employees and the employee representative; or

b. Take other steps to communicate fully to affected employees and the employees' representative about abatement actions.

3. The employer shall inform employees and the employees' representative of the right to examine and copy all abatement documents submitted by the employer to the Division.

a. An employee or an employee representative shall submit a written request to examine and copy all abatement documents within three working days of receiving notice that the documents have been submitted to the Division.

b. An employer shall comply with an employee's or employee representative's written request to examine and copy abatement documents within five working days of receiving the request.

An employer shall ensure that notice in subsection (G)(1) to employees and a employee representative is provided at the same time or before the information is provided to the Division and that abatement documents are:

a. Not altered, defaced, or physically covered by other material; and

b. Remain posted for at least three working days after submission to the Division.

H. Transmitting abatement documents.

1. An employer shall include, in each submission required by this Section, the following information:

a. The employer's name and address;

b. The inspection number to which the submission relates;

c. The citation, item number, and location to which the submission relates;

d. A statement that the information submitted is accurate; and

e. The signature of the employer or the employer's authorized representative.

2. The date of postmark is the date of submission for mailed documents. For documents transmitted by other means, the date the Division receives the document is the date of submission.

I. Movable equipment.

1. For serious, repeat, and willful violations involving movable equipment, an employer shall attach a warning tag or a copy of the citation to the operating controls or to the cited component of equipment that is moved within or between workplaces. The Division shall deem attaching a copy of the citation to the equipment to meet the tagging requirement of subsection (I)(3) and the posting requirement of R20-5-623.

2. The employer shall use a warning tag to warn employees about the nature of the violation involving the movable equipment and identifies the location of the violation. An employer may use the tag in Appendix C to meet this requirement.

3. If a violation has not been abated, an employer shall attach a warning tag or a copy of the citation to the equipment as follows:

a. For hand-held equipment, the employer shall attach a warning tag or copy of the citation within eight hours after the employer receives the citation; and

b. For non-hand-held equipment, the employer shall attach a warning tag or copy of the citation before moving the equipment within or between workplaces.

4. For the construction industry, a tag that is designed and used in accordance with 29 CFR 1926.20(b)(3) and 29 CFR 1926.200(h) is deemed by the Division to meet the requirements of this Section when the information required by subsection (I)(2) is included on the tag.

5. An employer shall ensure that the tag or copy of the citation attached to movable equipment is not altered, defaced, or physically covered by other material.

6. An employer shall ensure that the tag or copy of the citation attached to movable equipment remains attached until:

a. The employer has abated the violation and all abatement verification documents required by this Section have been submitted to the Division;

b. The employer has permanently removed the cited equipment from service or the cited equipment is no longer within the employer's control; or

c. The Division, administrative law judge, or Review Board vacates the citation.

History

Adopted effective June 26, 1998 (Supp. 98-2). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-628 Safe Transportation of Compressed Air or Other Gases

An employer shall not use Polyvinyl Chloride (PVC) piping in a place of employment for the transportation and distribution of compressed air or other compressed gases in an above-ground installation.

History

New Section made by final rulemaking at 9 A.A.R. 1161, effective March 11, 2003 (Supp. 03-1).

Ariz. Admin. Code § R20-5-629 The Occupational Injury and Illness Recording and Reporting Requirements, 29 CFR 1904

Each employer shall comply with the standards in the Federal Occupational Safety and Health Standards for Recordkeeping, as published in 29 CFR 1904, with amendments as of July 21, 2023, incorporated by reference. Copies of the incorporated materials are available for review at the Industrial Commission of Arizona and may be obtained from the United States Government Printing Office, Superintendent of Documents, Washington, D.C. 20402. These standards shall apply to all conditions and practices related to recordkeeping by all employers, both public and private, in the state of Arizona. This incorporation by reference does not include amendments or editions to 29 CFR 1904 published after July 21, 2023.

History

New Section made by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4). Amended by final rulemaking at 9 A.A.R. 874, effective February 19, 2003 (Supp. 03-1). Amended by final rulemaking at 10 A.A.R. 318, effective January 1, 2004 (Supp. 03-4). Amended by final rulemaking at 22 A.A.R. 775, effective 3/16/2016. Amended by final rulemaking at 24 A.A.R. 2263, effective 7/23/2018. Amended by final rulemaking at 26 A.A.R. 373, effective 2/11/2020. Amended by final rulemaking at 28 A.A.R. 1761, effective 9/4/2022. Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-630 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-640 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-630 effective March 2, 1981 (Supp. 81-2). R20-5-630 recodified from R4-13-631 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-631 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-631 recodified from R4-13-631 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-632 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-632 recodified from R4-13-632 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-633 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-633 recodified from R4-13-633 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-634 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-634 recodified from R4-13-634 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-635 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-635 recodified from R4-13-635 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-636 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted and amended effective March 2, 1981 (Supp. 81-2). R20-5-636 recodified from R4-13-636 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-637 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). Amended effective December 14, 1994 (Supp. 94-4). R20-5-637 recodified from R4-13-637 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-638 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-638 recodified from R4-13-638 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-639 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former emergency adoption effective October 29, 1980, adopted effective March 2, 1981 (Supp. 81-2). R20-5-639 recodified from R4-13-639 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-640 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-641 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-640 effective March 2, 1981 (Supp. 81-2). R20-5-640 recodified from R4-13-640 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-641 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-642 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-641 effective March 2, 1981 (Supp. 81-2). R20-5-641 recodified from R4-13-641 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-642 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-643 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-642 effective March 2, 1981 (Supp. 81-2). R20-5-642 recodified from R4-13-642 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-643 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-644 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-643 effective March 2, 1981 (Supp. 81-2). R20-5-643 recodified from R4-13-643 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-644 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-645 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-644 effective March 2, 1981 (Supp. 81-2). R20-5-644 recodified from R4-13-644 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-645 [Repealed]

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-646 adopted as an emergency effective October 29, 1980, renumbered and amended as Section R4-13-645 effective March 2, 1981 (Supp. 81-2). R20-5-645 recodified from R4-13-645 (Supp. 95-1). Section repealed by final rulemaking at 8 A.A.R. 364, effective December 31, 2001 (Supp. 01-4).

Ariz. Admin. Code § R20-5-646 Emergency Expired

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Emergency expired. R20-5-646 recodified from R4-13-646 (Supp. 95-1).

Ariz. Admin. Code § R20-5-647 Reserved

Ariz. Admin. Code § R20-5-648 Reserved

Ariz. Admin. Code § R20-5-649 Reserved

Ariz. Admin. Code § R20-5-650 Definitions

As used in rules R20-5-650 through R20-5-669 inclusive, unless the context clearly requires otherwise:

1. "Act" means the Arizona Occupational Safety and Health Act of 1972 (Arizona Revised Statutes, Title 23, Chapter 2, Article 10).

~~2. "Commission" means the Industrial Commission of Arizona.~~

~~3. "Person" means an individual, partnership, association, corporation, business trust, legal representative, an organized group of individuals, or political subdivision.~~

4. "Party" means a person admitted to participate in a hearing conducted in accordance with subsection (3) R20-5-624 . An applicant for relief and any affected employee shall be entitled to be named as parties.

5. "Affected employee" means an employee or authorized employee representatives, such as the employee's collective bargaining agent, who would be affected by the granting or denial of a variance.

"Commission" means the Industrial Commission of Arizona.

"Party" means a person admitted to participate in a hearing conducted in accordance with subsection (3) R20-5-624. An applicant for relief and any affected employee shall be entitled to be named as parties.

"Person" means an individual, partnership, association, corporation, business trust, legal representative, an organized group of individuals, or political subdivision.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-651 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-650 effective March 2, 1981 (Supp. 81-2). R20-5-650 recodified from R4-13-650 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-651 Petitions for Amendments

Any person may at any time petition the Commission in writing to revise, amend, or revoke any provisions of rules R20-5-650 through R20-5-669 inclusive. The petition should set forth either the terms or the substance of the rule desired, with a concise statement of the reasons therefor and the effects thereof.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-652 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-651 effective March 2, 1981 (Supp. 81-2). R20-5-651 recodified from R4-13-651 (Supp. 95-1).

Ariz. Admin. Code § R20-5-652 Effects of Variances

All variances granted hereunder shall have only future effect. In their discretion, the Commission may decline to entertain an application for variance on the subject or issue concerning which a citation has been issued to the employer involved and a proceeding on the citation or a related issue concerning a proposed penalty or period of abatement is pending before the Federal Occupational Safety and Health Review Commission, Office of Administrative Hearings or the Arizona Review Board until the completion of such proceeding.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-654 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-652 effective March 2, 1981 (Supp. 81-2). R20-5-652 recodified from R4-13-652 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-653 Public Notice of a Granted Variance

Every final action granting a variance, shall be published in statewide newspapers. Every such final action shall specify the alternative to the standard involved which the particular variance permits.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-655 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-653 effective March 2, 1981 (Supp. 81-2). R20-5-653 recodified from R4-13-653 (Supp. 95-1).

Ariz. Admin. Code § R20-5-654 Variances; Form of Documents; Subscription; Copies

A. No particular form is prescribed for applications and other papers which may be filed in proceedings pursuant to R20-5-655 and R20-5-656. However, any applications and other papers shall be clearly legible. An original and six copies of any application and other papers shall be filed. The original shall be typewritten. Clear carbon copies or printed or processed copies are acceptable copies.

B. Each application or other paper which is filed in proceedings hereunder shall be signed by the person filing the same or by an attorney or other authorized representative and where required by these regulations shall be verified by the applicant.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-646 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-654 effective March 2, 1981 (Supp. 81-2). R20-5-654 recodified from R4-13-654 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-655 Variances under A.R.S. Section 23-411

A. Any employer, or class of employers, desiring a variance from a standard or regulation or any portion thereof, authorized by A.R.S. § 23-411(B) may file a written application containing the information specified in A.R.S. § 23-411(C) with the Industrial Commission of Arizona, 800 West Washington, Phoenix, Arizona 85007.

B. ~~Contents. An application filed pursuant to subsection (A) of this Section shall contain the information specified in A.R.S. § 23-411(B) and (C) of the Act.~~

C. B. ~~Interim order.~~

1. In accordance with A.R.S. § 23-411(B)(3), an application may also be made for an interim order to be effective until a decision is rendered on the application for the variance filed previously or concurrently. An application for an interim order shall include a verified statement of facts and arguments supporting such application. The Commission may rule ex parte upon the application.

2. Notice of denial of application. If an application filed pursuant to subsection (C)(1) is denied, the applicant shall be given prompt notice of the denial, which shall include, or be accompanied by, a brief statement of the grounds therefore. If an application filed pursuant to subsection (C)(1) is denied, the applicant shall be given prompt notice of the denial, which shall include, or be accompanied by, a brief statement of the grounds therefore.

3. Notice of the grant of an interim order. If an interim order is granted, a copy of the order shall be served upon the applicant for the order and other parties and the terms of the order shall be published in statewide newspapers. It shall be a condition of the order that the affected employer shall give notice thereof to affected employees by the same means to be used to inform them of an application for variance.

C. If an application for a variance is denied, the applicant shall be given prompt notice of the denial, which shall include, or be accompanied by, a brief statement of the grounds therefore.

D. If an interim order is granted, a copy of the order shall be served upon the applicant for the order and other parties and the terms of the order shall be published in statewide newspapers. It shall be a condition of the order that the affected employer shall give notice thereof to affected employees by the same means to be used to inform them of an application for variance.

E. Renewal of rules or orders. Any final rule or order issued under A.R.S. § 23-411 may be renewed or extended as permitted by the applicable Section and in the manner prescribed for its issuance.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-657 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-655 effective March 2, 1981 (Supp. 81-2). R20-5-655 recodified from R4-13-655 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-656 Variances under A.R.S. Section 23-412

A. Any employer, or class of employers, desiring a variance authorized by A.R.S. § 23-412 may file a written application with the Industrial Commission of Arizona, 800 W. Washington, Phoenix, Arizona 85007.

B. An application shall contain the information specified in A.R.S. § 23-412.

C. ~~Interim order~~

1. An application may also be made for an interim order to be effective until a decision is rendered on the application for the variance filed previously or concurrently. An application for an interim order shall include a verified statement of facts and arguments supporting such application. The Commission may rule ex parte upon the application.

3. Notice of the grant of an interim order. If an interim order is granted, a copy of the order shall be served upon the applicant and other parties, and the terms of the order shall be published in statewide newspapers. It shall be a condition of the order that the affected employer shall give notice thereof to affected employees by the same means to be used to inform them of an application for a variance.

D. If an application is denied, the applicant shall be given prompt notice of the denial, which shall include, or be accompanied by, a brief statement of the grounds therefore.

E. If an interim order is granted, a copy of the order shall be served upon the applicant and other parties, and the terms of the order shall be published in statewide newspapers. It shall be a condition of the order that the affected employer shall give notice thereof to affected employees by the same means to be used to inform them of an application for a variance.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-658 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-656 effective March 2, 1981 (Supp. 81-2). R20-5-656 recodified from R4-13-656 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-657 Federal Multi-state Variances

A. Renewal or rules or orders. Any final rule or order issued under A.R.S. § 23-411 of the Act may be renewed or extended as permitted by the applicable Section and in the manner prescribed for its issuance.

B. Where a federal variance has been granted with multi-state applicability, including applicability in this state operating under a state plan approved under Section 18 of the Federal Williams-Steiger Occupational Safety and Health Act of 1970, from a standard or portion thereof identical to this state's standard or rule or portion thereof such variance shall likewise be deemed an authoritative interpretation of the employer(s)' compliance obligation with regard to the state standard or portion thereof provided no objections of substance are found to be interposed by the Commission.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-659 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-657 effective March 2, 1981 (Supp. 81-2). R20-5-657 recodified from R4-13-657 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-658 Action on Applications

A. ~~Defective applications~~

1. If an application filed pursuant to rule R20-5-655, R20-5-656, or R20-5-657 does not conform to the applicable Section, the Commission may deny the application.

~~2. Prompt notice of the denial of an application shall be given to the applicant~~.

~~3. A notice of denial shall include, or be accompanied by, a brief statement of the grounds for denial.~~

~~4. A denial of an application pursuant to this subsection shall be without prejudice to the filing of another application.~~

B. ~~Adequate applications~~

1. the Commission shall cause to be published in statewide newspapers a notice of the filing of an approved application which shall include:

~~2. A notice of the filing of an application~~

a.1. The terms, or an accurate summary, of the application;

b.2. A reference to the Section of the Act under which the application has been filed;

c.3. An invitation to interested persons to submit within a stated period of time written data, views, or arguments regarding the application; and

d.4. Information to affected employers, employees, of any right to request a hearing on the application.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-660 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-658 effective March 2, 1981 (Supp. 81-2). R20-5-658 recodified from R4-13-658 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-659 Request for Hearings on Petition

A. Any employer, employee, authorized employee representative, representative, or other person interested in or affected by an order of the Commission may petition for a hearing on the reasonableness and lawfulness of an order issued under A.R.S. §§ 23-411 or 23-412, by a verified petition filed with the Commission.

B. A request for a hearing filed shall include:

The name and address of the applicant;

2. A concise statement of facts showing how the employer, employee, authorized employee representative, representative, or other person would be affected by the relief applied for;

3. A petition shall set forth specifically and in detail the order upon which a hearing is desired;

4. The reasons why the order is unreasonable or unlawful;

5. The issue to be considered by the Commission on the hearing. Objections other than those set forth in the petition are deemed finally waived.

6. If the applicant is an employer, a certification that the applicant has informed the affected employees of the application by:

a. Giving a copy thereof to their authorized representative;

b. Posting at the place or places where notices to employees are normally posted, a statement giving a summary of the petition specifying where a copy of the full petition may be examined (or, in lieu of the summary, posting the application itself); and

c. Other appropriate means.

7. If the applicant is an affected employee, a certification that a copy of the petition has been furnished to the employer.

C. The Commission may on its own motion proceed to modify or revoke a rule or order issued under A.R.S. §§ 23-411 or 23-412. In such event, the Commission shall cause to be published in statewide newspapers a notice of its intention, affording interested persons an opportunity to submit written data, views, or arguments regarding the proposal and informing the affected employer and employees of their right to request a hearing and shall take such other action as may be appropriate to give actual notice to the affected employees. Any request for a hearing shall include a short and plain statement of:

1. How the proposed modification or revocation would affect the requesting party; and

2. What the requesting party would seek to show on the subjects or issues involved.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-661 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-659 effective March 2, 1981 (Supp. 81-2). R20-5-659 recodified from R4-13-659 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-660 Consolidation of Proceedings

The Commission on its own motion or that of any party may consolidate or contemporaneously consider two or more proceedings which involve the same or closely related issues.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-662 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-660 effective March 2, 1981 (Supp. 81-2). R20-5-660 recodified from R4-13-660 (Supp. 95-1).

Ariz. Admin. Code § R20-5-661 Notice of Hearing

A. Upon request for a hearing as provided in this Section, or upon its own initiative, the Commission shall serve, or cause to be served, a reasonable notice of hearing which

B. shall include:

1. The time, place, and nature of the hearing;

2. The legal authority under which the hearing is to be held;

3. A specification of issues of fact and law.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-663 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-661 effective March 2, 1981 (Supp. 81-2). R20-5-661 recodified from R4-13-661 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-662 Manner of Service

Service of any document upon any party may be made by personal delivery of, or by mailing, a copy of the document to the last known address of the party. The person serving the document shall certify to the manner and the date of the service.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-664 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-662 effective March 2, 1981 (Supp. 81-2). R20-5-662 recodified from R4-13-662 (Supp. 95-1).

Ariz. Admin. Code § R20-5-663 Commission; Powers and Duties

A. The Commissioners shall have all powers necessary or appropriate to conduct a fair, full, and impartial hearing, including the following:

1. To administer oaths and affirmations;

2. To rule upon offers of proof and receive relevant evidence;

3. To provide for discovery and to determine its scope;

4. To regulate the course of the hearing and the conduct of the parties and their counsel therein;

5. To consider and rule upon procedural requests;

6. To hold conferences for the settlement or simplification of the issues by consent of the parties;

7. To make, or to cause to be made, an inspection of the employment or place of employment involved;

8. To make decisions in accordance with A.R.S. §§ 23-405(5), 23-411, 23-412, and 23-945; and

9. To take any other appropriate action authorized by the Act, this Section, or A.R.S. § 23-945.

B. ~~Contumacious conduct; failure or refusal to appear or obey the rulings of the Commission.~~

1. Insubordinate conduct at any hearing before the Commission shall be grounds for exclusion from the hearing.

2. If a witness or a party refuses to answer a question after being directed to do so, or refuses to obey an order to provide or permit discovery, the Commission may make such orders with regard to the refusal as are just and appropriate, including an order denying an application of an applicant or regulating the contents of the record of the hearing.

C. If a witness or a party refuses to answer a question after being directed to do so, or refuses to obey an order to provide or permit discovery, the Commission may make such orders with regard to the refusal as are just and appropriate, including an order denying an application of an applicant or regulating the contents of the record of the hearing.

C. D. On any procedural question not regulated by this Section, the Act, or A.R.S. § 23-945, Commission shall be guided to the extent practicable by any pertinent provisions of the Occupational Safety and Health Rules of Procedure.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-665 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-663 effective March 2, 1981 (Supp. 81-2). R20-5-663 recodified from R4-13-663 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-664 Prehearing Conferences

A. Upon its own motion or the motion of a party, the Commission may direct the parties or their counsel to meet with them for a conference to consider:

1. Simplification of the issues;

2. Necessity or desirability of amendments to documents for purposes of clarification, simplification, or limitation;

3. Stipulations, admissions of fact, and of contents and authenticity of documents;

4. Limitation of the number of parties and of expert witnesses; and

5. Such other matters as may tend to expedite the disposition of the proceeding and to assure a just conclusion thereof.

B. The Commission shall make an order which recites the action taken at the conference, the amendments allowed to any documents which have been filed, and the agreements made between the parties as to any of the matters considered, and which limits the issues for hearings to those not disposed of by admission or agreements; and such order when entered controls the subsequent course of the hearing, unless modified at the hearing, to prevent manifest injustice.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-666 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-664 effective March 2, 1981 (Supp. 81-2). R20-5-664 recodified from R4-13-664 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-665 Consent Findings and Rules or Orders

A. At any time before the reception of evidence in any hearing, or during any hearing, a reasonable opportunity may be afforded to permit the negotiation by the parties of an agreement containing consent findings and a rule or order disposing of the whole or any part of the proceeding. The allowance of such opportunity and the duration thereof shall be in the discretion of the Commission, after consideration of the nature of the proceeding, the requirements of the public interest, the representations of the parties, and the probability of an agreement which will result in a just disposition of the issues involved.

B. Any agreement containing consent findings in rule or other disposing of a proceeding shall also provide:

1. That the rule or order shall have the same force and effect as if made after a full hearing;

2. That the entire record on which any rule or order may be based shall consist solely of the application and the agreement;

3. A waiver of any further procedural steps before the Commission; and

4. A waiver of any right to challenge or contest the validity of the findings and of the rule or order made in accordance with the agreement.

C. On or before the expiration of the time granted for negotiations, the parties or their counsel may:

1. Submit the proposed agreement to the Commission for its consideration; or

2. Inform the Commission that agreement cannot be reached.

D. In the event an agreement containing consent findings and rule or order is submitted within the time allowed therefor, the Commission may accept such agreement by issuing its decision based upon the agreed findings.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-667 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-665 effective March 2, 1981 (Supp. 81-2). R20-5-665 recodified from R4-13-665 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-666 Discovery

A. For reasons of unavailability or for other good cause shown, the testimony of any witness may be taken by deposition.

1. Depositions may be taken orally or upon written interrogatories before any person designated by the Commission and having power to administer oaths.

2. Any party desiring to take the deposition of a witness may make application in writing to the Commission, setting forth:

a. The reasons why such deposition should be taken;

b. The time when, the place where, and the name and post office address of the person before whom the deposition is to be taken;

c. The name and address of each witness; and

d. The subject matter concerning which each witness is expected to testify.

3. Such notice as the Commission may order shall be given by the party taking the deposition to every other party.

4. Each witness testifying upon deposition shall be sworn, and the parties not calling the witness shall have the right to cross-examine the witness. The questions propounded and the answers thereto, together with all objections made, shall be reduced to writing, read to the witness, subscribed by the witness, and certified by the officer before whom the deposition is taken. Thereafter, the officer shall seal the deposition, with two copies thereof, in an envelope and mail the same by registered mail to the presiding hearing examiner. Subject to such objections to the questions and answers as were noted at the time of taking the deposition and would be valid were the witness personally present and testifying, such deposition may be read and offered in evidence by the party taking it as against any party who was present, represented at the taking of the deposition, or who had due notice thereof. No part of a deposition shall be admitted in evidence unless there is a showing that the reasons for the taking of the deposition in the first instance exist at the time of the hearing.

B. Whenever appropriate to a just disposition of any issue in a hearing, the Commission may allow discovery by any other appropriate procedure, such as by written interrogatories upon a party, production of documents by a party, or by entry for inspection of the employment or place of employment involved.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-668 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-666 effective March 2, 1981 (Supp. 81-2). R20-5-666 recodified from R4-13-666 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-667 Variance Hearings

A. Except as may be ordered otherwise by the Commission, the party applying for relief shall proceed first at a hearing.

B. The party applying for relief shall have the burden of proof.

C. A party shall be entitled to present its case or defense by oral or documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts.

1. Any oral or documentary evidence may be received, but the Commission shall exclude evidence which is irrelevant, immaterial, or unduly repetitious.

2. The testimony of a witness shall be upon oath or affirmation administered by the Commission.

D. Official notice may be taken of any material fact not appearing in evidence in the record, which is among the traditional matters of judicial notice: provided that the parties shall be given adequate notice, at the hearing or by reference in the Commission's decision, of the matters so noticed and shall be given adequate opportunity to show the contrary.

E. Minutes shall be taken of the Commission hearings. Copies of the minutes may be obtained by the parties upon written application filed with the secretary of the Commission and upon the payment of fees at the rate provided in the agreement with the Commission.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-669 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-667 effective March 2, 1981 (Supp. 81-2). R20-5-667 recodified from R4-13-667 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-668 Decisions of the Commission

A. Proposed findings of fact, conclusions, and rules or orders. Within 10 days after completion of the hearing or such additional time as the Commission may allow, each party may file with the Commission proposed findings of fact, conclusions of law, and rule or order, together with a supporting brief expressing the reasons for such proposals. Such proposals and brief shall be served on all other parties and shall refer to all portions of the record and to all authorities relied upon in support of each proposal.

B. Decisions of the Commission. Within a reasonable time after the time allowed for the filing of proposed findings of fact, conclusions of law, and rule or order, the Commission shall make and serve upon each party its decision, which shall become final upon the 30th day after service thereof, unless exceptions are filed thereto, as provided in rule R20-5-669. The decision of the Commission shall include:

1. A statement of findings and conclusions, with reasons and basis therefor, upon each material issue of fact, law, or discretion presented on the record, and

2. The appropriate rule, order, relief, or denial thereof. The decision of the hearing examiner shall be based upon a consideration of the whole record and shall state all facts officially notice and relied upon. It shall be made on the basis of a preponderance of reliable and probative evidence.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-670 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-668 effective March 2, 1981 (Supp. 81-2). R20-5-668 recodified from R4-13-668 (Supp. 95-1).

Ariz. Admin. Code § R20-5-669 Judicial Review

Any employer, employee, authorized employee representative, representative, or any person in interest is dissatisfied with an order of the Commission may appeal in accordance with A.R.S. § 23-413.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Former Section R4-13-674 adopted as an emergency effective October 29, 1980, renumbered and adopted as Section R4-13-670 effective March 2, 1980 (Supp. 81-2). R20-5-669 recodified from R4-13-669 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-670 Field Sanitation

A. This Section applies to any agricultural establishment where a crew of five or more employees are engaged on any given day in hand-labor operations in one location.

B. As used in this Section:

1. "Agricultural establishment" means a business operation that uses paid employees in the production of food, fiber or other material such as seed, seedlings, plants or parts of plants.

2. "Crew of employees" means a group of persons who are employed to perform hand-labor operations as a unit at an agricultural establishment. "Crew of employees" does not include the employer and the employer's immediate family members.

3. "Hand-labor operations" means agricultural activities or operations performed in the field by hand or with hand tools. Hand-labor operations include the hand-harvest of vegetables, nuts and fruits, hand-weeding of crops and hand-planting of seedlings. Hand-labor operations do not include such activities as logging operations, irrigation operations, the care or feeding of livestock or hand-labor operations in permanent structure, such as canning facilities or packing houses. Hand-labor operations do not include activities in which persons are acting as equipment operators.

4. "Handwashing facility" means a facility providing either a basin, container or outlet with an adequate supply of potable water, soap and single-use towels.

5. "Potable water" means water that meets the standards for drinking purposes prescribed by the state or local authority having jurisdiction or water that meets the quality standards prescribed by the United States Environmental Protection Agency's National Interim Primary Drinking Water Regulations, published in 40 CFR Part 141 (July 1983), incorporated by reference and on file in the Office of the Secretary of State.

6. "Toilet facility" means a facility designed for the purpose of both defecation and urination, including biological or chemical toilets, combustion toilets or sanitary privies, which is supplied with toilet paper adequate for employee needs. Toilet facilities may be either fixed or portable.

C. Employers shall provide the following for employees engaged in hand-labor operations at an agricultural establishment without cost to the employee:

1. Potable drinking water as follows:

a. Potable water shall be provided and shall be placed in locations readily accessible to all employees.

b. The water shall be suitably cool, no more than 80°F, and in sufficient amounts, a minimum of two gallons per employee, taking into account the air temperature, humidity and the nature of the work performed, to meet employees' need.

c. The water shall be dispensed in single-use drinking cups or by fountains. The use of common drinking cups or dippers is prohibited.

2. Toilet and handwashing facilities as follows:

a. One toilet facility and one handwashing facility shall be provided for each 40 employees or fraction thereof, except as provided in subsection (D) of this Section.

b. Toilet facilities shall have doors that can be closed and latched from the inside and shall be constructed to ensure privacy.

c. Toilet and handwashing facilities shall be accessibly located, in close proximity to each other and within 1/4 mile of each employee's place of work in the field. If it is not feasible to locate facilities accessibly and within the required distance due to the terrain, facilities shall be located at the point of closest vehicular access.

D. Toilet and handwashing facilities are not required for employees who perform field work for a period of three hours or less (including transportation time to and from the field) during the day.

E. Potable drinking water and toilet and handwashing facilities shall be maintained in accordance with appropriate public health sanitation practices, including all of the following:

1. Drinking water containers shall be covered, cleaned and refilled daily.

2. Toilet facilities shall be operational and maintained in clean and sanitary condition and shall be supplied with toilet paper adequate for employee needs.

3. Handwashing facilities shall be maintained in clean and sanitary condition.

Disposal of wastes from facilities shall not cause unsanitary conditions.

F. Employees shall be allowed reasonable opportunities during the workday to use the facilities.

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Adopted effective May 2, 1986 (Supp. 86-3). R20-5-670 recodified from R4-13-670 (Supp. 95-1).

Ariz. Admin. Code § R20-5-671 Reserved

Ariz. Admin. Code § R20-5-672 Reserved

Ariz. Admin. Code § R20-5-673 Reserved

Ariz. Admin. Code § R20-5-674 Emergency Expired

History

Adopted as an emergency effective October 29, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-5). Emergency expired. R20-5-674 recodified from R4-13-674 (Supp. 95-1).

Ariz. Admin. Code § R20-5-675 Reserved

Ariz. Admin. Code § R20-5-676 Reserved

Ariz. Admin. Code § R20-5-677 Reserved

Ariz. Admin. Code § R20-5-678 Reserved

Ariz. Admin. Code § R20-5-679 Reserved

Ariz. Admin. Code § R20-5-680 Protected Activity

A. All complaints pursuant to A.R.S. § 23-425 shall relate to conditions at the workplace. The filing of complaints need not be in writing for purposes of this subsection except that those complaints filed pursuant to R20-5-682 shall comply with R20-5-682. The term "filed any complaint" as used in A.R.S. § 23-425(A) includes:

1. Employee requests for inspection pursuant to A.R.S. § 23-408;

2. Complaints registered with other state, local or federal governmental agencies which have the authority to regulate or investigate occupational safety and health conditions;

3. Complaints lodged with employers; or

4. Complaints filed as specified in R20-5-682.

B. The term "instituted or caused to be instituted any proceeding" as used in A.R.S. § 23-425(A) includes:

1. Inspections of worksites under A.R.S. § 23-408(A);

2. Employee contest of abatement date under A.R.S. § 23-417(D);

3. Employee initiation of proceedings for promulgation of an occupational safety and health standard under A.R.S. § 23-410(A);

4. Employee application for modification or revocation of a variance under A.R.S. § 23-413;

5. Employee judicial challenge to a standard under A.R.S. § 23-410(E);

6. Employee appeal of an Administrative Law Judge order under A.R.S. § 23-421(C);

7. Exercise of rights by any employee pursuant to A.R.S. § 23-418.01;

8. Any other employee action authorized by the Arizona Occupational Safety and Health Act of 1972; or

9. Setting into motion the activities of others which result in the proceedings specified in subsections (B)(1) through (8).

C. The term "testified or is about to testify in any such proceeding" as used in A.R.S. § 23-425(A) includes:

1. Testimony in proceedings instituted or caused to be instituted by the employee; or

2. Any statements given in the course of judicial, quasi-judicial or administrative proceedings. For this purpose, administrative proceedings include inspections, investigations and administrative rulemaking or adjudicative functions.

D. The term "the exercise by such employee on behalf of himself or others of any right afforded by this Article" as used in A.R.S. § 23-425(A) includes:

1. The right to participate as a party in enforcement proceedings pursuant to A.R.S. § 23-408;

2. The right to request information from the Industrial Commission; or

3. To cooperate with inspections or investigations by the Industrial Commission.

E. If the employee, with no reasonable alternative, refuses in good faith to be exposed to a dangerous condition, the employee is engaged in protected activity. The condition causing the employee's apprehension of death or injury must be of such a nature that a reasonable person, under the circumstances then confronting the employee, would conclude there is a real danger of death or serious injury and that there is insufficient time, due to the urgency of the situation, to eliminate the dangers through resort to regular statutory enforcement channels. In addition, in such circumstances, the employee, where possible, must also have sought from the employer and been unable to obtain a correction of the dangerous condition.

F. Employees who refuse to comply with valid occupational safety and health standards or valid safety rules implemented by the employer are not protected by A.R.S. § 23-425.

History

Adopted effective May 3, 1989 (Supp. 89-2). R20-5-680 recodified from R4-13-680 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-681 Elements of a Violation of A.R.S. Section 23-425

To establish a violation of A.R.S. § 23-425(A), the employee shall prove all of the following:

1. The employee was engaged in protected activities as defined in R20-5-680.

2. The employer had actual or implied knowledge of the employee's protected activities prior to the adverse action which the employee claims to be a discharge or discrimination.

3. The action claimed to be discharge or discrimination was adverse to the employee.

4. The alleged discharge or discrimination would not have taken place but for the employee's engagement in the protected activity.

History

Adopted effective May 3, 1989 (Supp. 89-2). R20-5-681 recodified from R4-13-681 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-682 Procedure

A. A complaint of A.R.S. § 23-425(A) discharge or discrimination shall be filed with the Division of Occupational Safety and Health by the employee or by a representative authorized by A.R.S. § 23-408 to do so on the employee's behalf. The complaint shall be written and shall be signed by the person filing the complaint.

B. The date of filing a complaint under A.R.S. § 23-425(B) is the date of receipt of the complaint by the Division. The date of receipt is the date of postmark, date of facsimile transmittal, date of e-mail communication, date of telephone call, date of hand-delivery to a third-party commercial carrier, or date of in-person filing at the Division. If the post-mark is absent or illegible, the date filed is the date the complaint is received by the Division.

C. The Division will accept or deny an employee's withdrawal of a complaint; however the Industrial Commission's investigatory jurisdiction shall not be foreclosed by unilateral action of the employee.

D. The Industrial Commission may resolve an A.R.S. § 23-425 complaint with the employer without the consent of the employee.

E. The Industrial Commission's jurisdiction to investigate and determine A.R.S. § 23-425 complaints is independent of the jurisdiction of other agencies or bodies. The Industrial Commission may defer to the results of other such proceedings where:

1. The rights asserted in those other proceedings are substantially the same as the rights pursuant to A.R.S. § 23-425;

2. The factual issues in such proceedings are substantially the same as the factual issues before the Industrial Commission;

3. The proceedings were fair and regular; and

4. The outcome of the proceedings was not inconsistent with the purposes of this Chapter and the Act.

F. A determination pursuant to A.R.S. § 23-425(C) includes:

1. A decision to not proceed with the case;

2. To defer the case to another forum; or

3. To proceed to litigation in Superior Court.

History

Adopted effective May 3, 1989 (Supp. 89-2). R20-5-682 recodified from R4-13-682 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Ariz. Admin. Code § R20-5-683 Reconsideration of Initial Determination

A. In cases where ADOSH issues an initial determination to not proceed with a complaint filed under A.R.S. § 23-425, the employee can request reconsideration of the initial determination.

B. The request for reconsideration must be filed with, and received by, the ADOSH Director within 15 calendar days from the receipt of the initial determination letter.

C. The reconsideration will be placed upon the agenda for a meeting of the Industrial Commission of Arizona Commissioners.

D. The employee, and the employer will be notified of the reconsideration date, and may appear at the Commissioners' meeting to provide testimony. The employee, and the employer will not be allowed to present documentary evidence.

E. Upon hearing the testimony, and review of the file, the Commissioners may:

1. Affirm the initial determination;

2. Remand the file back to ADOSH for further investigation; or

3. Reverse the initial determination and have a lawsuit filed in the appropriate Superior Court.

F. The decision of the Commissioners will constitute the final determination of the Division.

History

New Section made by final rulemaking at 30 A.A.R. 2109, effective 6/6/2024.

Article 7 [REPEALED]

Ariz. Admin. Code § R20-5-701 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-702 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-703 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-704 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-705 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-706 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-707 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-708 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-709 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-710 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-711 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-712 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-713 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-714 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-715 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 22 A.A.R. 2782, effective 9/30/2016. Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-716 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-717 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-718 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-719 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-720 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-721 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-722 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-723 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-724 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-725 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-726 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-727 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-728 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-729 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-730 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-731 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-732 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-733 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-734 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-735 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-736 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-737 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-738 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-739 [Repealed]

History

Adopted effective September 9, 1998 (Supp. 98-3). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Article 8 OCCUPATIONAL SAFETY AND HEALTH RULES OF PROCEDURE

Ariz. Admin. Code § R20-5-801 Notice of Rules

This Article applies to all actions and proceedings before an administrative law judge pertaining to those issues arising out of Title 23, Chapter 2, Article 10. In the event of a conflict between A.R.S. §§ 23-401 through 23-433 or this Article and the rules of procedure pertaining to OAH, A.R.S. §§ 23-401 through 23-433 and this Article control.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-801 recodified from R4-13-801 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-802 [Repealed]

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-802 recodified from R4-13-802 (Supp. 95-1). Repealed by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-803 Definitions

In addition to the definitions provided in A.R.S. § 23-401, the following definitions apply to this Article:

1. "Act" means the Arizona Occupational Safety and Health Act of 1972.

2. "Affected employee" means an employee of a cited employer who is exposed to the alleged hazard described in a citation, as a result of assigned duties.

3. "Authorized employee representative" means a labor organization which has a collective bargaining relationship with the cited employer and which represents affected employees.

~~4. "Representative" means any person, including an authorized employee representative, authorized by a party to represent him in a proceeding.~~

5. "Citation" means a written communication issued by the Division of Occupational Safety and Health of the Industrial Commission of Arizona pursuant to A.R.S. § 23-415.

~~6. "Notification of proposed penalty" means a written communication issued by the Industrial Commission of Arizona pursuant to A.R.S. § 23-418~~

"OAH" means the Arizona Office of Administrative Hearings.

7. "Party" shall have the same meaning as "interested party," as defined in A.R.S. § 23-401.

"Representative" means any person, including an authorized employee representative, authorized by a party to represent the party under A.R.S. § 23-429 in a proceeding.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-803 recodified from R4-13-803 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-804 Computation of Time

In computing any period of time prescribed or allowed in This Article, the day from which the designated period begins to run shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday, or legal holiday. When the period of time prescribed or allowed is less than seven days, intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-804 recodified from R4-13-804 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-805 Record Address

The initial pleading filed by any interested party shall contain the party's name, address, e-mail address, and telephone number. Any change in such information must be communicated promptly in writing to the Commission, OAH, and all other interested parties. An interested party who fails to furnish such correct and current information shall be deemed to have waived the right to object to the validity of any notice and/or service which has been made to the last known address of the party as shown by the records of the Commission.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-805 recodified from R4-13-805 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-806 Service and Notice

A. At the time of filing pleadings or other documents a copy thereof shall be served by the filing party on every other interested party.

B. Service upon An interested party who has appeared through a representative shall be made only upon such representative.

C. Unless otherwise herein indicated, service may be accomplished by (1) postage prepaid first class mail; (2) by personal delivery; or (3) with an interested party's consent, transmission by e-mail. Service is deemed effected at the time of mailing or e-mailing (if by mail or e-mail) or at the time of personal delivery (if by personal delivery).

D. Proof of service shall be accomplished by a written statement of the same which sets forth the date and manner of service. Such statement shall be filed with the pleading or document.

E. Service and notice to employees represented by an authorized employee representative shall be deemed accomplished by serving the authorized employee representative in the manner prescribed in subsection (C).

F. In the event that there are any affected employees who are not represented by an authorized employee representative, the employer shall, immediately upon receipt of notice of the time and place of hearing, post, where the citation is required to be posted, a copy of the notice of the time and place of hearing and a notice informing such affected employees of their right to appear at the hearing and state their position and of the availability of all pleadings for inspection and copying at reasonable times. A notice in the following form shall be deemed to comply with this subsection: (Name of employer)

Your employer has been cited by the Arizona Division of Occupational Safety and Health for violating the Arizona Occupational Safety and Health Act of 1972. The citation has been contested and will be the subject of a hearing before the Arizona Office of Administrative Hearings. Affected employees are entitled to appear in this hearing under the terms and conditions established by the Industrial Commission and the Arizona Office of Administrative Hearings in published rules of procedure. Notice of Intent to Participate should be sent to:

Arizona Office of Administrative Hearings

1740 West Adams Street, Lower Level,

Phoenix, Arizona 85007.

All papers relevant to this matter may be inspected at:

(Place reasonably convenient to employees, preferably at or near workplace.)

Where appropriate, the second sentence of the above Notice may be deleted and the following sentence will be substituted: The reasonableness of the period prescribed by the Industrial Commission for abatement of the violation has been contested and will be the subject of a hearing before the Arizona Office of Administrative Hearings.

G. Where service is accomplished by posting, proof of such posting shall be filed with OAH not later than five days following the posting.

H. The authorized employee representative, if any, shall be served with the proof of posting set forth in subsection (G) and with a copy of the notice of time and place of hearing.

I. A copy of the Notice of the Date of Hearing shall be served by the employer on affected employees who are not represented by an authorized employee representative by posting a copy of the Notice of such hearing at or near the place where the citation is required to be posted.

J. I. A copy of the notice of time and place of hearing shall be served by the employer on the authorized employee representative of affected employees in the manner prescribed in subsection (C) of this Section, if the employer has not been informed that the authorized employee representative has entered an appearance with OAH as of the date such notice is received by the employer.

K. J. Where a request for hearing is filed by an affected employee who is not represented by an authorized employee representative and there are other affected employees who are represented by an authorized employee representative, the unrepresented employee shall, upon receipt of the notice of time and place of hearing, serve a copy thereof on such authorized employee representative in the manner prescribed in subsection (C) of this Section and shall file proof of such service with OAH.

L. K. Where a request for hearing is filed by an affected employee or an authorized employee representative, a copy of the request for hearing shall be provided to the employer for posting by the employer at the place the citation is required to be posted.

M. L. An authorized employee representative who files a request for hearing shall be responsible for serving any other authorized employee representative whose members are affected employees.

N. M. Where posting is required by this Section, such posting shall be maintained until the commencement of the hearing or until earlier disposition.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-806 recodified from R4-13-806 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-807 Consolidation

Cases may be consolidated on the motion of any interested party, or on the administrative law judge's own motion, where there exist common parties, common questions of law or fact, or both, or in such other circumstances as justice and the administration of the Act require.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-807 recodified from R4-13-807 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-808 Severance

Upon an administrative law judge's own motion, or upon motion of any party, the administrative law judge may, for good cause, order any part of a proceeding severed with respect to some or all issues or parties.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-808 recodified from R4-13-808 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-809 Election to Appear

A. Affected employees may elect to appear at a hearing for the purpose of testifying or stating their position concerning the subject matter of a hearing.

B. An affected employee desiring to appear at a hearing must notify the administrative law judge in writing.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-809 recodified from R4-13-809 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-810 Employee Representatives

A. Affected employees may appear in person or through a representative.

B. An authorized employee representative shall be deemed to control all matters respecting the interest of represented employees during the proceedings.

C. Affected employees who are represented by an authorized employee representative may appear only through the authorized employee representative.

D. Any representative may withdraw from representation by filing a written notice of withdrawal with the administrative law judge and by serving a copy thereof on all interested parties.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-810 recodified from R4-13-810 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-811 Form of Pleadings

A. Except as provided in A.R.S. § 23-420 and this Article, there are no specific requirements as to the form of any pleading or filing. All pleading and filings shall contain a caption sufficient to identify the parties in accordance with R20-5-812. All pleadings and motions shall include the citation number and a clear and plain statement of the relief that is sought, together with the grounds therefor.

B. Pleadings and other filings (other than exhibits and petitions for hearing) shall be typewritten and double spaced, on standard letter size paper.

C. Pleadings and motions shall be signed or electronically signed by the party filing or by the representative. Such signing constitutes a representation by the signer that the signer has read the pleading or motion, that to the best of the signer's knowledge, information and belief the statements made therein are true, and that it is not interposed for delay.

D. OAH may refuse for filing any pleading or document which does not comply with the requirements of subsections (A), (B), and (C) of this Section.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-811 recodified from R4-13-811 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-812 Caption; Titles of Cases

A. Cases initiated by a cited employer filing a request for hearing contesting citations and/or proposed penalties shall be titled:

Arizona Division of Occupational Safety and Health, Complainant, vs. (name of employer), Respondent.

B. Cases initiated by a cited employer filing a request for hearing for modification of the abatement period shall be titled:

(name of employer), Petitioner vs. Arizona Division of Occupational Safety and Health, Respondent.

C. Cases initiated by an affected employee filing a request for hearing for modification of the abatement period shall be titled:

(name of affected employee or authorized employee representative), Petitioner vs. Arizona Division of Occupational Safety and Health, Respondent, and (employer), Respondent.

D. The case titles listed in subsections (A), (B), and (C) of this Section shall appear in the left upper portion of the initial page of any pleading, motion, or filing (other than exhibits).

E. The initial page of any pleading, motion, or filing (other than exhibits and requests for hearing) shall show the citation number at the upper right of the page, opposite the title.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-812 recodified from R4-13-811 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-813 Requests for Hearing

A. Requests for hearing shall be filed with the Arizona Division of Occupational Safety and Health.

B. Requests for hearing shall be in writing and contain a clear and plain statement of the relief that is sought, together with the grounds thereof.

C. The Commission shall, after receipt of a request for hearing, refer the file to OAH for hearing and determination.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-813 recodified from R4-13-813 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-814 Pre-hearing Conference

A. At any time before a hearing, the administrative law judge, sua sponte or on motion of An interested party, may direct the parties, or their representatives, to exchange information or to participate in a pre-hearing conference for the purpose of considering matters which will tend to simplify the issues or expedite the proceedings.

B. The administrative law judge may issue a pre-hearing order which includes the agreements reached by the parties. Such order shall be served on all parties and shall be part of the record.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-814 recodified from R4-13-814 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-815 Payment of Witness Fees and Mileage

Witnesses summoned before OAH shall be paid the same fees and mileage that are paid to witnesses in the courts of Arizona. Witness fees and mileage shall be paid by the party at whose request the witness appears.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-815 recodified from R4-13-815 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-816 Expired

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-816 recodified from R4-13-816 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3475, effective November 8, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-5-817 Failure to Appear - Withdrawal of Request for Hearing

A. The failure of An interested party who has requested a hearing to appear at such scheduled hearing shall be deemed to be an admission of the validity of any citation, abatement period, or penalty issued pursuant to A.R.S. § 23-417(A), and additionally a waiver of all rights except the right to be served with a copy of the decision of the administrative law judge and to request review.

B. Withdrawal of a request for hearing shall be construed as an admission of the validity of any citation, abatement period or penalty issued pursuant to A.R.S. § 23-417(A). No decision need be issued in this case, as the subject instrument is deemed to be admitted.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-817 recodified from R4-13-817 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-818 Duties and Powers of Administrative Law Judges

It shall be the duty of the administrative law judge to conduct a fair and impartial hearing, to assure that the facts are fully elicited, to adjudicate all issues and avoid delay. The administrative law judge shall have authority with respect to assigned cases, between the time a case is assigned and the time a decision is issued, subject to the rules and regulations of the Commission and OAH, to:

1. Administer oaths and affirmations;

2. Rule upon admissibility of exhibits;

3. Rule upon applications for depositions;

4. Regulate the course of the hearing and, if appropriate or necessary, exclude persons or counsel from the hearing for contemptuous conduct and strike all related testimony of witnesses refusing to answer any proper questions;

Call and examine witnesses;

Request the parties at any time during the hearing to state their respective positions concerning any issue in the case or theory in support thereof;

7. Adjourn the hearing as the needs of justice and good administration require;

8. Issue appropriate orders for protection of trade secrets;

9. Take any other action necessary under the foregoing and authorized by the rules and regulations of the Commission and OAH.

History

Adopted effective August 27, 1975 (Supp. 75-1). R20-5-818 recodified from R4-13-818 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-819 Witness Deposition; In State

A. After a request for hearing has been filed with the Commission, any party desiring to take the deposition of any other interested party or witness residing within the State of Arizona shall file with the administrative law judge, a notice of deposition . Copies of such notice shall be served at least five days prior to the date of the deposition upon the deponent and upon every interested party by the party desiring to take the deposition.

B. If any interested party or the deponent has any objection to the taking of a deposition, the objecting party shall file with the administrative law judge and serve on all interested parties written objections thereto setting forth the basis of the opposition to the deposition. Such objection shall be filed with the administrative law judge within two days after the notice of deposition by is received.

C. If objections to the taking of the deposition are filed with the administrative law judge as provided in subsection (B), the administrative law judge shall rule on the objections within five days of the filing of the objections. The taking of the deposition shall be held in abeyance pending the ruling of the administrative law judge. The administrative law judge shall either order the deposition to proceed, order that the deposition not be taken, or enter such other protective order as may be appropriate.

D. The party taking a deposition shall comply with the Arizona Rules of Civil Procedure governing the taking of depositions.

E. The expense of any deposition shall be borne by the party taking the deposition but shall not include the expense of any other interested party.

F. a scheduled hearing shall not be cancelled or continued for failure to timely take or complete a deposition pursuant to the provisions of this Section.

G. Depositions taken pursuant to the provisions of this Section shall only be used at the time of a hearing for impeachment of a witness, unless the deponent is deceased or a non-party witness is unavailable at the time of the scheduled hearing, in which event the deposition transcript may be admitted into evidence. The transcript shall be filed with the administrative law judge at least 15 days prior to the hearing date if an interested party intends to introduce it into evidence. If the deposition transcript is not filed within the time prescribed herein, it shall not be considered for any purpose except by stipulation of all interested parties, and then only with the concurrence of the administrative law judge.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-819 recodified from R4-13-819 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-820 Witness Deposition; Out-of-State

A. After a request for hearing is filed with the Commission, any interested party desiring to take the deposition of any other interested party or witness residing outside the State of Arizona shall file with the administrative law judge, a request for permission to take the deposition. the request shall include the name and address of the witness and set forth the reason why the witness's testimony is necessary for an adjudication of the case. Copies of the request shall be served upon each interested party by the party requesting permission to take the deposition. If no objection to the request for permission to take the deposition is filed as provided in subsection (B), the administrative law judge may, within 10 days, in the administrative law judge's discretion, grant or deny the permission to take the deposition. If the administrative law judge permits the taking of the deposition, the requesting party may proceed in the manner provided by and subject to the limitations of R20-5-819, subsections (A), (D), (E), and (F).

B. If any interested party objects to the taking of the deposition of An interested party or witness, the objecting party shall file with the administrative law judge and serve on all other interested parties written objections thereto setting forth the basis for the opposition to the deposition. Such objection shall be filed with the administrative law judge within five days after the request to take the deposition is served.

C. If objections to the taking of a deposition are filed with the administrative law judge as provided in subsection (B), the hearing officer shall rule on the objections within five days after the filing of the objections. The taking of the deposition shall be held in abeyance pending the ruling of the administrative law judge. The administrative law judge shall either order the deposition to proceed, order that the deposition not be taken, or enter such other protective order as may be appropriate. If the administrative law judge orders that the deposition proceed, the party may proceed to take the deposition in the manner provided by and subject to the limitation of R20-5-819, subsections (A), (D), (E), and (F).

D. The transcript of any deposition taken pursuant to this Section shall be filed with the administrative law judge at least 15 days prior to the hearing date and may be admitted into evidence. If the transcript is not filed within the time prescribed herein, it shall not be considered for any purpose except by stipulation of all interested parties, and then only with the concurrence of the administrative law judge.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-820 recodified from R4-13-820 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-821 Written Interrogatories and Request for Production of Documents

A. After a request for hearing is filed with the Commission, any interested party desiring to issue written interrogatories or a request for production of documents to another interested party shall be limited to 25 in number, inclusive of sub-parts.

B. Answers to written interrogatories or a request for production of documents shall be served on all interested parties by the answering party within 30 days after service of the interrogatories or a request for production of documents, or within 30 days after a ruling by the administrative law judge that the interrogatories must be answered or documents must be produced.

C. No scheduled hearing shall be cancelled or continued for failure of a party to timely issue interrogatories or a request for production of documents to another interested party.

D. Written interrogatories issued pursuant to the provisions of this Section may only be used at the time of hearing for impeachment of a witness unless the answering party is deceased at the time of the scheduled hearing in which event the interrogatory answers may be admitted into evidence.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-821 recodified from R4-13-821 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-822 Refusal to Answer; Refusal to Attend

A. If An interested party or witness refuses to answer any question propounded during deposition pursuant to R20-5-819 and R20-5-820, the deposition shall be completed in other matters, as the proponent of the question may prefer. Thereafter on reasonable notice to all parties and persons affected thereby the proponent of the question may apply to the administrative law judge for an order compelling an answer. Upon the refusal of an interested party to answer any interrogatory submitted under R20-5-821, or produce a document requested under R20-5-821, the proponent of the interrogatory or requestor of the document may on like notice make like application for such an order from the administrative law judge. If the motion is granted and if the administrative law judge finds that the refusal was without substantial justification, the administrative law judge shall require the refusing party, witness, or representative advising the refusal or either of them to pay to the party propounding the interrogatory or requesting the document the amount of the reasonable attorney's fees incurred in obtaining the order and the reasonable expenses which will be incurred to obtain the requested answers or documents. If the motion is denied and if the administrative law judge finds that the motion was made without substantial justification, the administrative law judge shall require the party filing the motion or the representative advising the party to file the motion, or both, to pay to the refusing party or witness the amount of the reasonable attorney's fees incurred in opposing the motion.

B. If An interested party or a representative of An interested party willfully fails to appear for deposition after being served with the proper notice, or fails to serve answers to interrogatories or produce requested documents after proper service of such interrogatories or request for production of documents, the administrative law judge, on motion and notice, may strike out all or any part of any pleading of that party, dismiss the action or proceeding or any part thereof, or preclude the introduction of evidence.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-822 recodified from R4-13-822 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2122, effective 6/6/2024.

Ariz. Admin. Code § R20-5-823 Burden of Proof

A. In all proceedings other than those stated in subsection (B) commenced by the filing of a request for hearing, the burden of proof shall rest with the Arizona Division of Occupational Safety and Health.

B. In proceedings commenced by a request for hearing requesting modification of the abatement period, the burden of establishing the necessity for such modification shall rest with the petitioner.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-823 recodified from R4-13-823 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-824 Intermediary Rulings or Orders by the Administrative Law Judge

No intermediary rulings or orders by the administrative law judge may be appealed to the Review Board, but shall become a part of the record.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-824 recodified from R4-13-824 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-825 Legal Memoranda

Legal memoranda may be filed if authorized by the applicable rules of procedure or the administrative law judge. When authorized, the administrative law judge shall establish reasonable briefing deadlines for all interested parties.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-825 recodified from R4-13-825 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-826 Administrative Law Judge Decisions

A. The decision of the administrative law judge shall be signed, include findings and conclusions of fact and law, and include an order.

B. OAH shall retain jurisdiction to require compliance with the order, or to determine a breach of an approved settlement agreement.

C. A request to determine breach of a settlement agreement shall be filed with the administrative law judge and served upon all interested parties.

D. A request for review by the Review Board shall be filed with the administrative law judge and served upon all interested parties and the Commission.

History

Amended effective August 27, 1975 (Supp. 75-1). R20-5-826 recodified from R4-13-826 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-827 Settlement

A. Settlement is encouraged at any stage of the proceedings where such settlement is consistent with the provisions and objectives of the Act.

B. a settlement agreement submitted by interested parties shall be accompanied by a proposed order which, if appropriate, shall be approved and signed by the administrative law judge.

C. Where parties enter into a settlement agreement, the settlement agreement shall be served upon represented and unrepresented affected employees in the manner set forth in R20-5-806. Proof of such service shall accompany the proposed settlement when submitted to the administrative law judge.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-827 recodified from R4-13-827 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-828 Special Circumstances; Waiver of Rules

In special circumstances, or for good cause shown, the administrative law judge may, upon application by any interested party, or on sua sponte, waive any rule or make such orders as justice or the administration of the Act requires.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-828 recodified from R4-13-828 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Ariz. Admin. Code § R20-5-829 Variances

A. Any hearing concerning variances shall be filed with the Commission and shall be heard by the Commission at a time set by the Commission.

B. Such proceeding shall be informal but shall be transcribed at the expense of the person seeking the variance if a written record of the proceeding is requested.

History

Adopted effective March 20, 1975 (Supp. 75-1). R20-5-829 recodified from R4-13-829 (Supp. 95-1). Amended by final rulemaking at 30 A.A.R. 2123, effective 6/6/2024.

Article 9 YOUTH EMPLOYMENT

Ariz. Admin. Code § R20-5-901 Definitions

In this Article, the definitions of A.R.S. §§ 23-230, 23-231, 23-232, and 23-233 apply. In addition, unless the context otherwise requires, the following definitions shall apply to both the Act and this Article:

"Act" means A.R.S. Title 23, Chapter 2, Article 3.

"Baking" means to cook food with dry heat, especially in an oven.

"Cafeteria" means a restaurant in which the customers are served at a counter and carry their meals on trays to tables.

"Cooking" means to prepare food for eating by applying heat.

"Counter" means a flat surface on which food is prepared or served.

"Department" means the Labor Department of the Industrial Commission of Arizona.

"Director" means the Director of the Department.

"Employee" means every minor in receipt of or entitled to compensation for labor performed for any employer.

"Lunch counter" means a long counter at which lunches are sold.

"Snack bar" means a lunch counter or small restaurant where light meals are served.

"Soda fountain" means a lunch counter in a commercial establishment equipped for preparing and serving soft drinks, ice-cream dishes, or sandwiches.

"Work about" means engage in labor in the area or vicinity.

"Work in" means engage in labor in the occupation or activity.

"Work in connection with" means engage in labor in relation to the occupation or activity.

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-901 repealed, new Section R4-13-901 adopted effective May 27, 1977 (Supp. 77-3). R20-5-901 recodified from R4-13-901 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-902 Forms

The following forms, available at http://www.azica.gov and upon request from the Division, shall be used when applicable:

1. Application for variation;

2. Request for hearing on cease and desist order form;

3. Request for hearing on denied variation, modification, or renewal of variation form;

4. Youth labor complaint form.

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-902 repealed, new Section R4-13-902 adopted effective May 27, 1977 (Supp. 77-3). R20-5-902 recodified from R4-13-902 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-903 Recordkeeping Requirements for Youths Under the Age of 16

An establishment employing youths under the age of 16 must have the following information available:

1. Number of hours the youth is employed in each week,

2. Number of hours the youth is employed in each day,

The dates the youth is enrolled in a session of school,

4. The name of the school district in which the youth is enrolled,

5. The specific hours the youth works at the establishment.

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-903 repealed, new Section R4-13-903 adopted effective May 27, 1977 (Supp. 77-3). R20-5-903 recodified from R4-13-903 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-904 Findings and Order Issued by the Department

A. Upon receipt of a complaint alleging a violation of the Act, the Department shall issue a Findings and Order of its determination.

B. If the Department determines that an employer has violated the Act, the Department shall:

1. Shall direct the employer or other person to cease and desist from the violation and may take action necessary to remedy the violation, and

2. Order the employer to pay a civil penalty to the general fund, consistent with A.R.S. § 23-236.

C. If the Department determines that no violation of the Act has occurred, or if the Department is unable to reach a conclusion based on the evidence submitted, the Department shall notify the parties and shall dismiss the complaint.

D. The Director of the Department shall sign the written Findings and Order issued by the Department.

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-904 repealed, new Section R4-13-904 adopted effective May 27, 1977 (Supp. 77-3). R20-5-904 recodified from R4-13-904 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-905 Conduct Hindering an Investigation

An employer hinders an investigation under the Act if the employer engages in conduct, or causes another person to engage in conduct, that delays or otherwise interferes with the Department's investigation, including:

1. Obstructing or refusing to admit the Department to any place of employment authorized under the Act;

2. Obstructing or refusing to permit interviews authorized under the Act;

3. Failing to make, keep, or preserve records required under the Act or this Article;

4. Failing to permit the review and copying of records required under the Act and this Article; and

5. Falsifying any record required under the Act or this Article.

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-905 repealed, new Section R4-13-905 adopted effective May 27, 1977 (Supp. 77-3). R20-5-905 recodified from R4-13-905 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-906 Hearing Procedure on Cease and Desist Order; Review

A. A request for hearing on a cease and desist order form must be completed in writing and received by the Director no later than 20 days after the issuance of the cease and desist order.

B. The Department has the burden of proof to establish a violation of the Act.

C. An Administrative Law Judge shall preside over hearings held under this Section and shall apply the provisions of A.R.S. § 41-1062 to hearings held under this Section and shall have the authority and power of a presiding officer as described in A.R.S § 41-1062.

D. The Chief Counsel of the Commission, or a designee, shall represent the Division in hearings held under this Section.

E. Except as otherwise provided by law, a party to a hearing may appear on its own behalf or through an authorized legal representative. When an authorized legal representative appears or intends to appear before the Commission, the representative shall file a notice of appearance with the Commission.

F. Upon the completion of a hearing, the ALJ shall issue an order either affirming, modifying, or reversing the cease and desist order.

G. The order issued by the ALJ after the hearing is final unless within thirty days after the date of service of an order a party requests review.

H. A party may request review of the ALJ order by filing with the ALJ a written request for review.

I. Upon the completion of a review, the ALJ shall issue an order upon review either affirming, modifying, or reversing the ALJ order no later than 30 days after receiving a request for review.

J. The order upon review is final unless a party seeks judicial review as provided in A.R.S. § 23-237(C).

History

Adopted effective January 13, 1976 (Supp. 76-1). Former Section R4-13-906 repealed, new Section R4-13-906 adopted effective May 27, 1977 (Supp. 77-3). R20-5-906 recodified from R4-13-906 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-907 Hearing Procedure on Denied Variation, Modification, or Renewal of Variation; Review

A. A request for hearing on denied variation, modification, or renewal of variation form must be completed in writing and received by the Director no later than 30 days after the issuance of the denied variation request.

B. The Department has the burden of proof to establish the application, modification, or renewal for variation does not satisfy the requirements established in A.R.S. § 23-241(A).

D. The Chief Counsel of the Commission, or a designee, shall represent the Division in hearings held under this Section.

F. Upon the completion of a hearing, the ALJ shall issue an order either affirming, modifying, or reversing the denied variation, modification, or renewal of variation.

G. The order issued by the ALJ after the hearing is final unless within thirty days after the date of service of an order a party requests review.

H. A party may request review of the ALJ order by filing with the ALJ a written request for review.

I. Upon the completion of a review, the ALJ shall issue an order upon review either affirming, modifying, or reversing the ALJ order no later than 30 days after receiving a request for review.

J. The order upon review is final unless an action is commenced pursuant to A.R.S. § 12-904.

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-907 recodified from R4-13-907 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-908 Service

A. A determination, order, or other document required by this Article or other law to be served upon a party, shall be made upon the party, or, if represented by legal counsel, the party's legal counsel. Service upon legal counsel is considered service upon the party.

B. Service may be made and is deemed complete by:

1. Depositing the document in regular or certified mail, addressed to the party served at the address shown in the records of the Department, or by personal delivery upon the party.

2. With a party's consent, transmission by e-mail to the email address shown in the records of the Department.

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-908 recodified from R4-13-908 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1). New Section made by final rulemaking at 30 A.A.R. 2130, effective 8/5/2024.

Ariz. Admin. Code § R20-5-909 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-909 recodified from R4-13-909 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Ariz. Admin. Code § R20-5-910 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-910 recodified from R4-13-910 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Ariz. Admin. Code § R20-5-911 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-911 recodified from R4-13-911 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Ariz. Admin. Code § R20-5-912 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-912 recodified from R4-13-912 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Ariz. Admin. Code § R20-5-913 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-913 recodified from R4-13-913 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Ariz. Admin. Code § R20-5-914 Expired

History

Adopted effective May 27, 1977 (Supp. 77-3). R20-5-914 recodified from R4-13-914 (Supp. 95-1). Section expired pursuant to A.R.S. § 41-1056(E), filed in the Office of the Secretary of State February 4, 2000 (Supp. 00-1).

Article 10 WAGE CLAIMS

Ariz. Admin. Code § R20-5-1001 Definitions

In this Article, unless the context otherwise requires:

1. "Claim" means a wage claim pursuant to A.R.S. § 23-356.

2. "Claimant" means an individual who files a claim.

3. "Day" means calendar day.

4. "Department" means the Labor Department of the Industrial Commission of Arizona.

5. "Determination" means a finding by the Department under A.R.S. § 23-357 that a claim is either valid or invalid or that the Department cannot resolve the dispute.

6. "Director" means the Director of the Department.

"Dismissal" means an action by the Department in which the Department dismisses the claim and refers the claimant to other statutory remedies.

8. "Notice" or "notification" when made by the Department or the Director means a written communication served on the employer or claimant, or both.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1001 recodified from R4-13-1001 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1002 Forms

The following forms are available upon request from the Department or from the Industrial Commission of Arizona's web site at www.azica.gov:

1. Wage claim. When making a claim, a claimant shall provide the following information to the Department:

a. Claimant's name, mailing address, e-mail address, telephone number, and date of birth;

b. Employer's name, address, telephone number, and description of business;

c. Claimant's dates of employment, position, and pay;

d. The amount of the wages owed and the time period worked related to the unpaid wages; and

e. Claimant's signature or electronic signature and signature date.

2. Employer response. The employer responding to a claim shall provide the following information to the Department:

a. Employer's legal name, including any trade names, legal domicile state, address, telephone number, description of business, and an e-mail address for the designated representative of employer;

b. Claimant's dates of employment, position, and pay;

c. Whether claimant is owed any wages, and, if so, employer's reason for nonpayment; and

d. Employer's signature or electronic signature and signature date.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1002 recodified from R4-13-1002 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1003 Filing Requirements; Time for Filing; Computation of Time

A. A claimant shall file a claim with the Department within one year of the date of the accrual of the claim.

B. In computing any period of time prescribed or allowed by this Article, the day of the act or event from which the designated period of time begins to run is not included. The last day of the period and Saturdays, Sundays, and legal holidays are included in the computation of time.

C. The date of filing of the claim is the date the claimant's wage claim form is received by the Department.

D. The Department shall deem a form, document, instrument, or other written record filed at the Tucson office as filed at the Phoenix office for the purpose of computing time.

E. An individual filing a form or document related to a claim shall legibly fill out the form or document.

F. If the wage claim form received from a claimant does not include the information required by R20-5-1002(1), the Department shall return the wage claim form to the claimant with a request that the claimant provide the required information and return the completed wage claim form to the Department within 14 days of the date of service of the Department's request. If the Department does not receive the completed wage claim form within 14 days, the Department shall not initiate an investigation of the claim and the Department shall consider the claim withdrawn without prejudice. The claimant may re-file a withdrawn wage claim with the information required by R20-5-1002(1), if the claim is re-filed within one year of the date of the accrual of the claim.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1003 recodified from R4-13-1003 (Supp. 95-1). Former R20-5-1003 renumbered to R20-5-1004; new R20-5-1003 made by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1004 Investigation of Claim

A. The Department shall serve a copy of a claimant's wage claim form on the employer listed on the wage claim, with a request that the employer complete and file the employer response form within 14 days of the date of service of the Department's request.

B. If the Department does not receive the employer response form under subsection (A), the Department shall serve written notice on the employer stating that the employer must pay the amount claimed or file a written response to the wage claim within 14 days of the date of service of the Department's written notice.

C. If the employer timely files the employer response under subsection (A), but the response is incomplete, the Department shall mail the employer a notice requesting that the employer file the required information within 10 days of the date of the Department's notice. If the Department does not receive the required information within 10 days, the Department shall make a determination regarding the claim based on the evidence in the file.

D C. The Department shall serve a copy of the employer's response on the claimant and offer the claimant the opportunity to file a written reply to the employer's response within 14 days from the date of service. If the Department does not receive claimant's reply within 14 days, the Department shall make a determination of the claim based on the evidence in the file.

E D. If the employer fails or refuses to pay the amount claimed or submit a written response to the claim in accordance with subsection (B), the Department shall make a determination of the claim based on the evidence in the file.

F E. Upon request from the Department, and if necessary to complete the Department's investigation, the claimant, the employer, or both, shall submit further written information or meet with the Director or the Director's designee. Except for statements made during settlement, mediation, or an informal conference, the Director or the Director's designee may administer oaths for the purpose of taking affidavits and may record the meeting.

G F. Upon completion of its investigation, the Department shall serve the Department's determination in writing on the parties.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1004 recodified from R4-13-1004 (Supp. 95-1). Former R20-5-1004 renumbered to R20-5-1005; new R20-5-1004 renumbered from R20-5-1003 and amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1005 Mediation of Disputes

A. During the investigation of a claim, the Department may mediate and conciliate a dispute between the claimant and the employer.

B. If mediation results in an informal resolution of the claim, the Director or the Director's designee shall prepare and ensure execution of documents providing for the resolution of the claim.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1005 recodified from R4-13-1005 (Supp. 95-1). Former R20-5-1005 renumbered to R20-5-1006; new R20-5-1005 renumbered from R20-5-1004 and amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2).

Ariz. Admin. Code § R20-5-1006 Dismissal of Claim

A. The Department shall dismiss a claim if:

1. The claim is filed more than one year after the date of the accrual of the claim,

2. The claimant does not comply with R20-5-1003(F) ,

3. The amount of wages owed exceeds $5,000.00,

4. The Department's investigation of the claimant's evidence reveals no possible violation of A.R.S. § 23-350 et seq.,

5. The claimant has filed a civil action regarding the same claim,

6. The employer listed on the claim is in bankruptcy,

7. The Department is unable to locate the employer based on the information provided by the claimant, or

8. The wages in question have been withheld from the claimant pursuant to the claimant's prior written authorization.

B. The Department shall send a notice of dismissal to the claimant and, except as provided in subsections (A)(1) through (A)(3) and (7), the Department shall send a notice of dismissal to the employer. Notices of dismissal shall notify the claimant of the availability of other remedies.

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1006 recodified from R4-13-1006 (Supp. 95-1). Former R20-5-1006 renumbered to R20-5-1007; new R20-5-1006 renumbered from R20-5-1005 and amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1007 Notice of Right of Review

A. A determination issued under A.R.S. § 23-357 shall include a notice informing the parties of their right to seek review under A.R.S. § 23-358 and § 12-901 et seq.

B. ~~The Department shall serve a determination on the parties by regular mail.~~

History

Adopted effective January 26, 1988 (Supp. 88-1). R20-5-1007 recodified from R4-13-1007 (Supp. 95-1). Former R20-5-1007 renumbered to R20-5-1008; new R20-5-1007 renumbered from R20-5-1006 and amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1008 Payment of Claim

A. The Department shall send any payment of a wage claim received by the Department to the claimant by certified mail, return receipt requested, unless the claimant elects to pick up the check in person at the Department.

B. If the Department discovers that payment of a wage claim is alleged to have been made directly to the claimant, the Department shall verify the payment by serving the claimant with notice that payment of the wage claim is alleged to have been made directly to the claimant . If the claimant confirms that payment of the wage claim was made directly to the claimant or does not respond to the Department's notice within 14 days of the date of service of the Department's notice, the Department shall deem the claim to have been paid and shall dismiss the wage claim.

C. Payment of a partial amount of a wage claim does not preclude the Department from completing its investigation of the balance of the claim.

D. In the case of a determination and directive for payment issued by the Department under A.R.S. § 23-357, the Department shall, if the employer agrees and with the written consent of the claimant, enter into a payment agreement with the employer for payment of the amount of wages found to be owed the claimant.

History

New R20-5-1008 renumbered from R20-5-1007; Section amended by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Ariz. Admin. Code § R20-5-1009 Service of Determinations, Notices, and Other Documents

A. A determination, notice, or other document required by this Article or other law to be served upon a party, shall be made upon the party, or, if represented by legal counsel, the party's legal counsel. Service upon legal counsel is considered service upon the party.

B. Service may be made and is deemed complete by:

1. Depositing the document in regular or certified mail, addressed to the party served at the address shown in the records of the Department, or by personal delivery upon the party.

2. With a party's consent, transmission by e-mail to the e-mail address shown in the records of the Department.

History

New Section made by final rulemaking at 12 A.A.R. 1416, effective June 4, 2006 (Supp. 06-2). Amended by final rulemaking at 27 A.A.R. 515, effective 5/14/2021.

Article 11 [REPEALED]

Ariz. Admin. Code § R20-5-1101 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1102 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1103 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1104 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1105 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1106 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1107 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1108 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1109 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1110 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1111 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1112 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1113 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1114 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1115 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1116 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1117 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1118 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1119 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1120 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1121 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1122 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1123 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1124 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1125 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1126 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1127 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1128 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1129 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1130 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1131 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1132 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1133 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1134 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1135 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Ariz. Admin. Code § R20-5-1136 [Repealed]

History

New Section made by final rulemaking at 11 A.A.R. 1008, effective April 4, 2005 (Supp. 05-1). Repealed by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.

Article 12 ARIZONA MINIMUM WAGE AND EARNED PAID SICK TIME PRACTICE AND PROCEDURE

Ariz. Admin. Code § R20-5-1201 Notice of Rules

A. This Article applies to all actions and proceedings before the Industrial Commission of Arizona arising under A.R.S. Title 23, Articles 8 and 8.1.

B. The Industrial Commission of Arizona shall provide a copy of this Article upon request to any person free of charge.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1202 Definitions

In this Article, the definitions of A.R.S. §§ 23-362 (version two), 23-371, and 23-364 apply. In addition, unless the context otherwise requires, the following definitions shall apply to both the Act and this Article:

1. "Act" means A.R.S. Title 23, Chapter 2, Articles 8 and 8.1.

2. "Affected employee" means an employee or employees on whose behalf a complaint may be filed alleging a violation under the Act.

3. "Amount of earned paid sick time available to the employee" means the amount of earned paid sick time or equivalent paid time off that is available to the employee for use in the current year.

4. "Amount of earned paid sick time taken by the employee to date in the year" means the amount of earned paid sick time or equivalent paid time off taken by the employee to date in the current year. Where an employee has used available equivalent paid time off for either the purposes enumerated in A.R.S. § 23-373 or other purposes, the employer may count that usage towards the "amount of earned paid sick time taken by the employee to date in the year."?

5. "Amount of pay the employee has received as earned paid sick time" means the amount of pay the employee has received as earned paid sick time or equivalent paid time off to date in the current year. Where an employee has received pay for equivalent paid time off for the purposes enumerated in A.R.S. § 23-373 or other purposes, the employer may count that pay towards the "amount of pay the employee has received as earned paid sick time."

6. "Authorized representative" means a person prescribed by law to act on behalf of a party who files with the Department a written instrument advising of the person's authority to act on behalf of the party.

7. "Casual Basis," when applied to babysitting services, means employment which is irregular or intermittent.

8. "Commission" means monetary compensation based on:

a. A percentage of total sales,

b. A percentage of sales in excess of a specified amount,

c. A fixed allowance per unit, or

d. Some other formula the employer and employee agree to as a measure of accomplishment.

9. "Communicable disease" has the meaning prescribed by A.R.S. § 36-661.

~~10.~~ "Complainant" means a person or organization filing an administrative complaint under the Act.

~~11.~~ "Department" means the Labor Department of the Industrial Commission of Arizona or other authorized division of the Industrial Commission as designated by the Industrial Commission.

~~12.~~ "Earned sick time" under A.R.S. § 23-364(G) means earned paid sick time.

~~13.~~ "Employee's regular paycheck" means a regular payroll record that is readily available to employees and contains the information required by A.R.S. § 23-375(C), including physical or electronic paychecks or paystubs.

~~14.~~ "Equivalent paid time off" means paid time off provided under a paid leave policy, such as a paid time off policy, that makes available an amount of paid leave sufficient to meet the accrual requirements of the Act that may be used for the same purposes and under the same conditions as earned paid sick time.

~~15.~~"Filing" means receipt of a report, document, instrument, videotape, audiotape, or other written matter at an office of the Department.

~~16.~~ The term "health care professional" in A.R.S. § 23-373(G) has the same meaning as "health care professional," as defined in this Section.

~~17.~~ "Health care professional" means any of the following:

a. A "physician" as defined by A.R.S. § 36-2351;

b. A "physician assistant" as defined by A.R.S. § 32-2501;

c. A "registered nurse practitioner" as defined by A.R.S. § 32-1601.

d. A certified nurse midwife who is a registered nurse practitioner approved by the Arizona State Board of Nursing to provide primary care services during pregnancy, childbirth, and the postpartum period;

e. A dentist licensed under A.R.S. Title 32, Chapter 11, Article 2; or

f. A behavioral health provider practicing as:

i. A psychologist licensed under A.R.S. Title 32, Chapter 19.1;

~~ii.~~ A clinical social worker licensed under A.R.S. § 32-3293;

~~iii.~~ A marriage and family therapist licensed under A.R.S. § 32-3311; or

~~iv.~~ A professional counselor licensed under A.R.S. § 32-3301.

~~18.~~ "Health care provider" has the meaning prescribed by A.R.S. § 36-661.

~~19.~~ "Hours worked" means all hours for which an employee covered under the Act is employed and required to give to the employer, including all time during which an employee is on duty or at a prescribed work place and all time the employee is suffered or permitted to work.

~~20.~~ "Minimum wage" means the lowest rate of monetary compensation required under the Act.

~~21.~~ "Monetary compensation" means cash or its equivalent due to an employee by reason of employment.

~~22.~~ "On duty" means time spent working or waiting that the employer controls and that the employee is not permitted to use for the employee's own purpose.

~~23.~~ "Public benefits" has the same meaning as "state or local public benefit," as prescribed by A.R.S. § 1-502(I).

~~24.~~ "Public health emergency" means a state of emergency declared by the governor in which there is an occurrence or imminent threat of an illness or health condition caused by bioterrorism, an epidemic or pandemic disease or a highly fatal infectious agent or biological toxin and that poses a substantial risk of a significant number of human fatalities or incidents of permanent or long-term disability.

"Salaried" means receiving a fixed amount of pay regardless of how many hours are worked each week.

"Salary" means a fixed compensation paid regularly for employment.

~~25.~~ "Same hourly rate" means the following:

a. For employees paid on the basis of a single hourly rate, "same hourly rate" shall be the hourly rate the employee would have earned for the period of time in which earned paid sick time or equivalent paid time off is used, but shall in no case be less than minimum wage.

b. For employees who are paid multiple hourly rates of pay, "same hourly rate" shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The hourly rate the employee would have earned, if known, for each hour of earned paid sick time or equivalent paid time off used.

~~ii.~~ The weighted average of all hourly rates of pay during the previous pay period.

c. For employees who are paid a salary, no additional pay is due when the employee's use of earned paid sick time or equivalent paid time off results in no reduction in the employee's regular salary during the pay period in which the earned paid sick time or equivalent paid time off is used. "Same hourly rate" for salaried employees shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The wages an employee earns during each pay period covered by the salary divided by the number of hours agreed to be worked during each pay period, if the number of hours to be worked during each pay period was previously established.

~~ii.~~ The wages an employee earns during each workweek covered by the salary in the current year divided by 40 hours.

d. For employees paid on a commission, piece-rate, or fee-for-service basis, "same hourly rate" shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The hourly rate of pay previously agreed upon by the employer and the employee as:

~~(1)~~ A minimum hourly rate for work performed; or

~~(2)~~ An hourly rate for payment of earned paid sick time or equivalent paid time off.

~~ii.~~ The wages that the employee would have been paid, if known, for the period of time in which earned paid sick time or equivalent paid time off is used, divided by the number of hours of earned paid sick time or equivalent paid time off used.

~~iii.~~ A reasonable estimation of the commission, piece-rate, or fee-for-service compensation that the employee would have been paid for the period of time in which the earned paid sick time or equivalent paid time off is used divided by the number of hours of earned paid sick time or equivalent paid time off used.

~~iv.~~ The hourly average of all commission, piece rate, or fee-for-service compensation that the employee earned during the previous 90 days, if the employee worked regularly during the previous 90-day period, based on:

~~(1)~~ hours that the employee actually worked; or

~~(2)~~ a 40-hour workweek.

v. The hourly average of all commission, piece rate, or fee-for-service compensation that the employee earned during the previous 365 days, based on:

~~(1)~~ hours that the employee actually worked; or

~~(2)~~ a 40-hour workweek.

e. "Same hourly rate" includes shift differentials and premiums meant to compensate an employee for work performed under differing conditions (such as hazard pay or a shift differential for working at night) if the employee would have been entitled to the shift differential or premium for the period of time in which earned paid sick time or equivalent paid time off is used.

f. "Same hourly rate" does not include:

i. Additions to an employee's base rate for overtime or holiday pay;

~~ii.~~ Subject to subsection (e), bonuses or other types of incentive pay; and

~~iii.~~ Tips or gifts.

~~26.~~ "Smallest increment that the employer's payroll system uses to account for absences or use of other time" means the smallest increment of time that an employer utilizes, by policy or practice, to account for absences or use of other paid time off.

~~27.~~ "Tip" means a sum that a customer presents as a gift in recognition of some service performed, and includes gratuities. The sum may be in the form of cash, amounts paid by bank check or other negotiable instrument payable at par, or amounts the employer transfers to the employee under directions from a credit customer who designates an amount to be added to a bill as a tip. Gifts in forms other than cash or its equivalent as described in this definition, such as event tickets, passes, or merchandise, are not tips.

~~28.~~ "Violation" means a transgression of any statute or rule, or any part of a statute or rule, including both acts and omissions.

~~29.~~ "Willfully" means acting with actual knowledge of the requirements of the Act or this Article, or acting with reckless disregard of the requirements of the Act or this Article.

~~30.~~ "Workday" means any fixed period of 24 consecutive hours.

~~31.~~ "Workweek" means any fixed and regularly recurring period of seven consecutive workdays.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017. Amended by final rulemaking at 29 A.A.R. 607, effective 2/9/2023.

Ariz. Admin. Code § R20-5-1203 Duty to Provide Current Address

A. A complainant shall provide and keep the Labor Department advised of the complainant's current mailing address and telephone number.

B. An employer under investigation by the Department shall provide and keep the Labor Department advised of the employer's current mailing address and telephone number.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1204 Forms Prescribed by the Department

Forms prescribed by the Department, including the poster required under R20-5-1208, shall not be changed, amended, or otherwise altered without the prior written approval of the Department.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1205 Determination of Employment Relationship

A. Determination of an employment relationship under the Act, which includes whether an individual is an independent contractor, shall be based upon the economic realities of the relationship. Consideration of whether an individual is economically dependent on the employer for which the individual performs work shall be determined by factors showing dependence, which non-exclusive factors shall include those factors identified in A.R.S. §§ 23-902(D) and 23-1601(B).

1. ~~The degree of control the alleged employer exercises over the individual,~~

2. ~~The individual's opportunity for profit or loss and the individual's investment in the business,~~

3. ~~The degree of skill required to perform the work,~~

4. ~~The permanence of the working relationship, and~~

5. ~~The extent to which the work performed is an integral part of the alleged employer's business.~~

B. An individual who works for another person without any express or implied compensation agreement is not an employee under the Act. This may include an individual that volunteers to work for civic, charitable, or humanitarian reasons that are offered freely and without direct or implied pressure or coercion from an employer, provided that the volunteer is not otherwise employed by the employer to perform the same type of services as those which the individual proposes to volunteer

C. An individual who works for another individual as a babysitter on a casual basis and whose vocation is not babysitting, is not an employee under the Act even if the individual performs other household work not related to caring for the children, provided the household work does not exceed 20% of the total hours worked on the particular babysitting assignment.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1206 Payment of Minimum Wage; Commissions; Tips; Front Loading Earned Paid Sick Time; Limitation on Carry Over of Unused Earned Paid Sick Time

A. Subject to the requirements of the Act and this Article, no less than the minimum wage shall be paid for all hours worked, regardless of the frequency of payment and regardless of whether the wage is paid on an hourly, salaried, commissioned, piece rate, or any other basis.

B. If the combined wages of an employee are less than the applicable minimum wage for a work week, the employer shall pay monetary compensation already earned, and no less than the difference between the amounts earned and the minimum wage as required under the Act.

C. The workweek is the basis for determining an employee's hourly wage. Upon hire, an employer shall advise the employee of the employee's designated workweek. Once established, an employer shall not change or manipulate an employee's workweek to evade the requirements of the Act.

D. In computing the minimum wage, an employer shall consider only monetary compensation and shall count tips and commissions in the workweek in which the tip or commission is earned.

E. An employer is allowed to:

1. Require or permit employees to pool, share, or split tips; and

Require an employee to report tips to the employer in order to meet reporting requirements of this Article and federal law

F. An employer who hires an employee after the beginning of the employer's year is not required to provide additional earned paid sick time or equivalent paid time off during that year if the employer provides the employee for immediate use on the employee's ninetieth calendar day after commencing employment an amount of earned paid sick time or equivalent paid time off that meets or exceeds the employer's reasonable projection of the amount of earned paid sick time or equivalent paid time off that the employee would have accrued from the date of hire through the end of the employer's year at a rate of one hour for every 30 hours worked. If the amount of earned paid sick time or equivalent paid time off provided is less than the employee would have accrued based on hours actually worked during the employer's year, the employer shall immediately provide an amount of earned paid sick time or equivalent paid time off that reflects the difference between the employer's projection and the amount of earned paid sick time or equivalent paid time off that the employee would have accrued for hours actually worked in the year.

G. Subject to subsection ( F), an employer with 15 or more employees that provides its employees for immediate use at the beginning of each year 40 or more hours of earned paid sick time or 40 or more hours of equivalent paid time off is not required to provide carryover or additional accrual

H. Subject to subsection (F) an employer with fewer than 15 employees that provides its employees for immediate use at the beginning of each year 24 or more hours of earned paid sick time or 24 or more hours of equivalent paid time off is not required to provide carryover or additional

I. Unless an employer (1) elects to pay an employee for unused earned paid sick time or equivalent paid time off at the end of a year pursuant to A.R.S. § 23-372(D)(4); or (2) meets the requirements of subsections (G) or (H), unused earned paid sick time and equivalent paid time off may be carried over to the next year as follows:

1. Subject to an employer's entitlement to permit greater carry over, an employee of an employer with 15 or more employees may carry over to the following year up to 40 hours of unused earned paid sick time or equivalent paid time off.

2. Subject to an employer's entitlement to permit greater carry over, an employee of an employer with fewer than 15 employees may carryover to the following year up to 24 hours of unused earned paid sick time or equivalent paid time off.

3. Carry over shall not affect accrual, usage rights, or usage limits under the Act.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1207 Tip Credit toward Minimum Wage

A. In this Section, unless the context otherwise requires, "customarily and regularly" means receiving tips on a consistent and recurrent basis, the frequency of which may be greater than occasional, but less than constant, and includes the occupations of waiter, waitress, bellhop, busboy, car wash attendant, hairdresser, barber, valet, and service bartender.

B. For purposes of calculating the permissible credit for tips under A.R.S. § 23-363(C), the following applies:

1. Tips are customarily and regularly received in the occupation in which the employee is engaged;

2. Except as provided in R20-5-1206(E), the employee actually receives the tip free of employer control as to how the employee uses the tip and the tip becomes the employee's property;

3. Employees who customarily and regularly receive tips may pool, share, or split tips between them, and the amount each employee actually retains is considered the tip of the employee who retains it;

Employer-required sharing of tips with employees who do not customarily and regularly receive tips in the occupation in which the employee is engaged, including management or food preparers, are not credited toward that employee's minimum wage; and

5. A compulsory charge for service imposed on a customer by an employer's establishment are not credited toward an employee's minimum wage unless the employer actually distributes the charge to the employee in the pay period in which the charge is earned.

C. Upon hiring or assigning an individual to a position that customarily and regularly receives tips, an employer intending to exercise a tip credit shall provide written notice to the employee prior to exercising the tip credit. Thereafter, the employer shall notify the employee in writing each pay period of the amount per hour that the employer takes as a tip credit.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1208 Posting Requirements; Small Employer Exemption

A. With the exception of small employers every employer subject to the Act shall place the posters prescribed by the Department informing employees of their rights under the Act in a conspicuous place in every establishment where employees are employed and where notices to employees are customarily placed. The employer shall ensure that the notices are not removed, altered, defaced, or covered by other material.

B. In this Section, unless context otherwise requires, "small employer" means a corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than $500,000 in gross annual revenue.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1209 Records Availability

A. Each employer shall keep the records required under the Act and this Article safe and accessible at the place or places of employment, or at one or more established central recordkeeping offices where the records are customarily maintained. When the employer maintains the records at a central recordkeeping office other than in the place or places of employment, the employer shall make the records available to the Department within 72 hours following notice from the Department.

B. Employers shall make available to the Department any equipment or technology that is is necessary to facilitate inspection and copying of the records.

C. Each employer required to maintain records under the Act shall make enlargement, recomputation, or transcription of the records and shall submit to the Department the records or reports in a readable format upon the Department's written request.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1210 General Recordkeeping Requirements

A. Payroll records required to be kept under the Act include:

1. All time and earning cards or sheets on which are entered the daily starting and stopping time of individual employees, or of separate work forces, or the amounts of work accomplished by individual employees on a daily, weekly, or pay period basis (for example, units produced) when those amounts determine in whole or in part those employees' pay period wages and earned paid sick time or equivalent paid time off;

2. From their last effective date, all wage-rate tables or schedules of the employer that provide the piece rates or other rates used in computing wages; and

3. Records of additions to or deductions from wages paid and records that support or corroborate the additions or deductions.

B. Except as otherwise provided in this Section, every employer shall maintain and preserve payroll or other records containing the following information and data with respect to each employee to whom the Act applies:

1. Name in full, and on the same record, the employee's identifying symbol or number if it is used in place of the employee's name on any time, work, or payroll record;

2. Home address, including zip code;

3. Date of birth, if under 19;

4. Occupation in which employed;

5. Time of day and day of week on which the employee's workweek begins. If the employee is part of a workforce or employed in or by an establishment all of whose workers have a workweek beginning at the same time on the same day, then a single notation of the time of the day and beginning day of the workweek for the whole workforce or establishment is permitted;

Regular hourly rate of pay for any workweek and an explanation of the basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per piece, commission on sales, or other basis, including the amount and nature of each payment;

7. Hours worked each workday and total hours worked each workweek;

8. Total daily or weekly wages due for hours worked during the workday or workweek;

~~9. Total premium pay for overtime hours and an explanation of how the premium pay was calculated exclusive of straight-time wages for overtime hours recorded under subsection (B)(8) of this Section;~~

10 9. Total additions to or deductions from wages paid each pay period including employee purchase orders or wage assignments, including, for individual employee records, the dates, amounts, and nature of the items that make up the total additions and deductions;

11 10. Total wages paid each pay period;

12 11. Date of payment and the pay period covered by payment;

13 12. The amount of earned paid sick time available to the employee;

14 13. The amount of earned paid sick time taken by the employee to date in the year;

15 14. The amount of pay the employee has received as earned paid sick time; and

16. The employee's earned paid sick time balance. "The employee's earned paid sick time balance" means the sum of earned paid sick time or equivalent paid time off that is: (1) carried over to the current year; (2) accrued to date in the current year; and (3) provided to date in the current year pursuant to A.R.S. § 23-372(D)(4) or A.A.C. R20-5-1206(F), (G), or (H).

C. For an employee who is compensated on a salary basis at a rate that exceeds the minimum wage required under the Act and who, under 29 CFR 541, is an exempt bona fide executive, administrative, or professional employee, including an employee employed in the capacity of academic administrative personnel or teachers in elementary or secondary schools, or in outside sales, an employer shall maintain and preserve:

1. Records containing the information and data required under subsections (B)(1) through (B)(5), and (B)(10) through (B)(13) of this Section; and

2. Records containing the basis on which wages are paid in sufficient detail to permit a determination or calculation of whether the salary received exceeds the minimum wage required under the Act, including a record of the hours upon which payment of the salary is based, whether full time or part time.

D. With respect to employees working on fixed schedules, an employer may maintain records showing instead of the hours worked each day and each workweek as required under this Section, the schedule of daily and weekly hours the employee normally works, provided:

1. In weeks in which an employee adheres to this schedule, the employer indicates by check mark, statement, or other method, that the employee actually worked the hours; and

2. In weeks in which more or fewer than the scheduled hours are worked, the employer records the number of hours actually worked each day and each week.

E. With respect to an employee that customarily and regularly receives tips, the employer shall ensure that the records required under this Article include the following information:

1. A symbol, letter, or other notation placed on the pay records identifying each employee whose wage is determined in part by tips;

2. Amount of tips the employee reports to the employer;

3. The hourly wage of each tipped employee after taking into consideration the employee's tips;

4. Hours worked each workday in any occupation in which the employee does not receive tips, and total daily or week straight-time payment made by the employer for the hours;

5. Hours worked each workday in occupations in which the employee receives tips and total daily or weekly straight-time wages for the hours; and

6. Copy of the notice required under R20-5-1207(C).

F. An employer who makes retroactive payment of wages, voluntarily or involuntarily, shall record on the pay records, the amount of the payment to each employee, the period covered by the payment, and the date of payment.

G. For an employee who is signed to a contract to play minor league baseball and is exempt pursuant to 29 U.S.C. 213(a)(19), an employer shall maintain and preserve records containing the information and data required under subsections (B)(1) through (B)(5), (B)(10) and (B)(11) of this Section.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017. Amended by final rulemaking at 29 A.A.R. 607, effective 2/9/2023.

Ariz. Admin. Code § R20-5-1211 Administrative Complaints

A. A person or organization alleging a minimum wage, earned paid sick time, or equivalent paid time off violation shall file a complaint with the Labor Department within one year from the date the wages, earned paid sick time, or equivalent paid time off were due.

B. A person or organization alleging retaliation, discrimination, or a violation of A.R.S. § 23-377 shall file a complaint with the Labor Department within one year from the date the alleged violation occurred or when the employee knew or should have known of the alleged violation.

C. The person or organization filing a complaint with the Labor Department shall sign the complaint.

D. Any person or organization other than an affected employee who files a complaint shall include the names of affected employees.

E. Upon its own complaint, the Department may investigate violations under the Act.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1212 Conduct That Hinders Investigation

1. Obstructing or refusing to admit the Department to any place of employment authorized under the Act;

2. Obstructing or refusing to permit interviews authorized under the Act;

3. Failing to make, keep, or preserve records required under the Act or this Article;

4. Failing to permit the review and copying of records required under the Act and this Article; and

5. Falsifying any record required under the Act or this Article.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1213 Findings and Order Issued by the Department

A. Except as provided in R20-5-1219, after receipt of a complaint alleging a violation of the Act, the Department shall issue a Findings and Order of its determination. The Department shall serve its Findings and Order to both the employer and the complainant. Service may be made and is deemed complete by either depositing the document in regular or certified mail, addressed to the party served at the address shown in the records of the Department, by personal delivery upon the party, or with a party's consent, transmission by email to the email address shown in the records of the Department.

B. If the Department determines that an employer has violated the minimum wage, earned paid sick time, or equivalent paid time off requirements, the Department shall order the employer to pay the employee, and if applicable, affected employees, the balance of the wages, earned paid sick time, or equivalent paid time off owed, including interest at the legal rate and an additional amount equal to twice the underpaid wages, earned paid sick time, or equivalent paid time off owed.

C. If the Department determines that a retaliation, discrimination, confidentiality, or nondisclosure violation has occurred, the Department shall direct the employer or other person to cease and desist from the violation and may take action necessary to remedy the violation, including:

1. Rehiring or reinstatement,

2. Reimbursement of lost wages and interest,

3. Payment of penalty to employees or affected employees as provided for in the Act and this Article, and

4. Posting of notices to employees.

D. If the Department determines that no violation of the Act has occurred, or if the Department is unable to reach a conclusion based on the evidence submitted, the Department shall notify the parties and shall dismiss the complaint without prejudice. After notification of the Department's determination, the complainant may bring a civil action under A.R.S. § 23-364(E).

E. The Department may assess civil penalties for recordkeeping, posting, and other violations under the Act and this Article as part of a Findings and Order issued under subsection (A) or the civil penalties and other violations may be assessed as a separate Findings and Order. If issued as a separate Findings and Order, the Department shall serve, personally or by regular first class mail, the Findings and Order on the employer and, if a complaint has been filed, the complainant.

F. The Director of the Department shall sign the written Findings and Order issued by the Department.

G. If an employer does not comply with a Findings and Order issued by the Department within 10 days following finality of the Findings and Order, the Department may refer the matter to a law enforcement officer.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017. Amended by final rulemaking at 29 A.A.R. 607, effective 2/9/2023.

Ariz. Admin. Code § R20-5-1214 Review of Department Findings and Order; Hearings; Issuance of Decision upon Hearing

A. Except as provided in R20-5-1213(D), a party aggrieved by a Findings and Order issued by the Department may request a hearing by filing a written request for hearing with the Department within 30 days after the Findings and Order is served upon the party. Failure to timely file a request for hearing means that the Findings and Order issued by the Department is final and res judicata to all parties.

B. A request for hearing shall be in writing and contain:

1. The name and address of the party requesting the hearing,

The signature of the party or the party's authorized representative, and

3. A statement that a hearing is requested.

C. Upon receipt of a timely filed request for hearing, the Department shall refer the matter to the Administrative Law Judge Division of the Commission for hearing.

D. Except as otherwise provided in this Section, the hearing shall be conducted under A.R.S. § 41-1061 et seq.

E. A person submitting correspondence or other documents, including subpoena requests, to an administrative law judge concerning a matter pending before the administrative law judge, shall contemporaneously serve a copy of the correspondence or other document upon all other parties, or if represented, the parties' authorized representative.

F. The administrative law judge may dismiss a request for hearing when it appears to the judge's satisfaction that the parties have resolved the disputed issue or issues.

G. The administrative law judge shall issue a written decision upon hearing containing findings of fact and conclusions of law no later than 30 days after the matter is submitted for decision. The decision shall be sent to the parties at their last known addresses served personally or by regular first class mail.

H. A decision issued under this Section is final when entered unless a party files a request for rehearing or review as provided in R20-5-1215 or commences an action in the Superior Court as provided in R20-5-1216 and A.R.S. § 12-901 et seq. The decision shall contain a statement explaining the review rights of a party.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1215 Request for Rehearing or Review of Decision upon Hearing

A. A party may request rehearing or review of a decision issued under R20-5-1214 by filing with the Administrative Law Judge a written request for rehearing or review no later than 15 days after the written decision is served personally or by regular first class mail upon the parties.

B. A request for rehearing or review shall be based upon any of the following causes that materially affected the rights of an aggrieved party:

1. Irregularities in the hearing proceeding or any order, or abuse of discretion that deprives a party seeking review of a fair hearing;

2. Accident or surprise that could not have been prevented by ordinary prudence;

3. Newly discovered material evidence that could not have been discovered with reasonable diligence and produced at the hearing;

4. Error in the admission or rejection of evidence, or errors of law occurring at the hearing;

5. Bias or prejudice of the Department or administrative law judge; and

The findings of fact or conclusions of law contained in the decision are not justified by the evidence or are contrary to law.

C. A request for rehearing or review shall state the specific facts and law in support of the request and shall specify the relief sought by the request.

D. A party shall have 15 days from the date of the filing of a request for rehearing or review to file a written response. Failure to respond shall not be deemed an admission against interest.

E. The administrative law judge shall issue a decision upon review no later than 30 days after receiving a request for review or response, if one is filed.

F. A decision upon review is final unless a party seeks judicial review as provided in R20-5-1216.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1216 Judicial Review of Decision upon Hearing or Decision upon Review

A. A party aggrieved by a decision upon hearing issued under R20-5-1214 or a decision upon review issued under R20-5-1215 may seek review by commencing an action in the Superior Court as provided in A.R.S. § 12-901 et seq. within 35 days from the date a copy of the decision sought to be reviewed is served personally or by regular first class mail upon the party affected.

B. A decision upon hearing issued under R20-5-1214 or a decision upon review issued under R20-5-1215 is final unless a party seeks judicial review as provided under A.R.S. § 12-901 et seq.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1217 Assessment of Civil Penalties under A.R.S. Section 23-364(F)

The Department may assess civil penalties for violations of the Act and this Article, including the assessment of civil penalties for engaging in conduct that hinders an investigation of the Department as specified in R20-5-1212.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1218 Collection of Wages, Earned Paid Sick Time, Equivalent Paid Time Off, or Penalty Payments Owed

A. Upon determination that wages, earned paid sick time, equivalent paid time off, or penalty payments are due and unpaid to any employee, the employee may, or the Department may on behalf of an employee, obtain judgment and execution, garnishment, attachment, or other available remedies for collection of unpaid wages and penalty payments established by a final Findings and Order of the Department.

B. If payment cannot be made to the employee, the Department shall receive monetary compensation or penalty payments on behalf of the employee and transmit monies it receives as payment in a special state fund as provided in A.R.S. § 23-356(C).

C. The Department may amend a Findings and Order to conform to the legal name of the business or the person who is the defendant employer to a complaint under the Act, provided service of the Findings and Order was made on the defendant or the defendant's agent. If a judgment has been entered on the order, the Department may apply to the clerk of the superior court to amend a judgment that has been issued under a final order, provided service was made on the defendant or the defendant's agent.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017.

Ariz. Admin. Code § R20-5-1219 Resolution of Disputes

Notwithstanding any other provision of law, the Department may mediate and conciliate a dispute between the parties.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Ariz. Admin. Code § R20-5-1220 Small Employer Request for Exception to Recordkeeping Requirements

A. In this Section, unless context otherwise requires, "small employer" means a corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than $500,000 in gross annual revenue.

B. A small employer, or any category of small employer that is unreasonably burdened by the recordkeeping requirements of the Act and this Article may file a written petition for exception with the Department requesting relief from certain recordkeeping requirements under this Article. The petition shall:

1. State the reasons for the request for relief;

2. State an alternate manner or method of making, keeping, and preserving records that will enable the Department to determine hours worked and wages paid; and

3. Include the signature of the employer or an authorized representative of the employer.

C. Subject to any conditions or limitations necessary to ensure fulfillment of the purpose and intent of Act, the Department may grant a petition for exception if it finds that:

1. The small employer, or category of small employer is unreasonably burdened by the recordkeeping requirements of the Act and this Article; and

2. The relief requested and alternative proposed will not hinder the Department's enforcement of the Act and this Article.

D. For good cause, the Department may rescind a prior order granting relief under this Section.

E. Relief under this Section is effective upon the Department's written authorization.

History

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4).

Article 13 TREATMENT GUIDELINES

Ariz. Admin. Code § R20-5-1301 Adoption and Applicability of the Article

A. The Industrial Commission of Arizona (Commission) has adopted the Work Loss Data Institute's Official Disability Guidelines - Treatment in Workers Compensation (ODG) as the standard reference for evidence-based medicine used in treating injured workers within the context of Arizona's workers' compensation system. By adopting and referencing the most recent edition (at the time of treatment), and continuously updated Official Disability Guidelines, the Commission can ensure the latest available medical evidence is used in making medical treatment decisions for injured workers.

B. Until further action of the Commission, the guidelines shall apply to all body parts and conditions.

C. The Commission may modify or change the applicability of the guidelines as described in subsection (B) if the Commission determines that modification or changing the applicability of the guidelines will: 1) improve medical treatment for injured workers, 2) make treatment and claims processing more efficient and cost effective, and 3) if the Commission's modification expands the applicability of the guidelines, the guidelines adequately cover the relevant body parts or conditions. Before taking action to modify or change the applicability of the guidelines, the Commission shall provide an opportunity for public comment and hold a public hearing. A decision of the Commission under this subsection shall be made by a majority vote of a quorum of Commission members present at a public meeting.

D. Action taken by the Commission to modify or change the applicability of the guidelines under subsection (C) shall be published in the minutes of the Commission meeting when such action was taken. The minutes of this action shall be published on the Commission's website and shall be available from the Commission upon request.

E. The guidelines shall apply prospectively. Recommendations provided in the guidelines related to the management of chronic pain and the use of opioids for all stages of pain management shall apply to medical treatment or services occurring on or after October 1, 2016. For purposes of this process, chronic pain shall be defined by the guidelines. Recommendations provided in the guidelines related to all other body parts and conditions shall apply to medical treatment or services occurring on or after October 1, 2018.

F. This Article applies to all claims filed with the Commission.

G. This Article only applies to medical treatment and services for body parts and conditions that have been accepted as compensable.

H. The guidelines are to be used as a tool to support clinical decision making and quality health care delivery to injured employees. The guidelines set forth care that is generally considered reasonable and are presumed correct if the guidelines provide recommendations related to the requested treatment or service. This is a rebuttable presumption and reasonable medical care may include deviations from the guidelines. To support a request to deviate from the guidelines, the provider must produce documentation and justification that demonstrates by a preponderance of credible medical evidence a medical basis for departing from the guidelines. Credible medical evidence may include clinical expertise and judgment.

I. The Commission shall provide administrative review and oversight of this Article.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1302 Definitions

In this Article and R20-5-106(A)(12), unless the context otherwise requires:

"Act" means the Arizona Workers' Compensation Act, A.R.S. Title 23, Chapter 6.

"Active Practice" means performing patient care for a minimum of eight hours per week in one of the five preceding years.

"Administrative Law Judge" or "ALJ" means a hearing officer appointed under A.R.S. § 23-108.02.

"Administrative Review" means a process that includes a peer review for preauthorization of a request for medical treatment or services conducted pursuant to R20-5-1311. The administrative review process will be managed by the Medical Resource Office (MRO) at the Industrial Commission of Arizona.

"American Board of Medical Specialties" means the organization that develops a uniform system for specialty boards to administer examinations for certification of physicians within specific medicine specialties.

"American Osteopathic Association" means the organization that develops a uniform system for specialty boards to administer examinations for certification of osteopathic physicians within specific osteopathic medicine specialties.

"Applicability" means the body parts and medical conditions that are covered under this Article and authorized by the Commission under R20-5-1301(B) and (C).

"Claim" means the workers' compensation claim filed by the injured employee under the Act.

"Contractor" means an independent peer review organization accredited by URAC.

"Fast Track ALJ Dispute Resolution Program" or "fast track process" means the voluntary dispute resolution process set forth in R20-5-1312(B).

"International Classification of Diseases Code" or "ICD Code" means a set of medical diagnostic codes that creates a universal language for reporting diseases and injury.

"International Classification of Diseases" or "ICD" means an official list of categories of diseases, physical and mental, that is issued and maintained by the World Health Organization.

"IME" means an independent medical examination scheduled under R20-5-114.

"Injured Employee" means a person defined in A.R.S. § 23-901 whose claim has been accepted for workers' compensation benefits.

"Medical File Review Opinions" means a formal examination of patient data and medical records for the purpose of determining the need for medical treatment, services or both.

"Payer" means an insurance carrier defined under A.R.S. § 23-901, a self-insured employer defined in R20-5-102, a third-party administrator, and the Special Fund of the Industrial Commission of Arizona.

"Peer Review" means an independent medical review conducted by an individual meeting the requirements of R20-5-1311(I).

"Preauthorization" means the written request prescribed by R20-5-1303 from a provider to a payer requesting approval to provide medical treatment or services to an injured employee.

"Provider" means a physician as defined in R20-5-102.

"Reconsideration" means a written request to the payer or identified review organization by an injured employee or medical provider to reconsider a previous payer decision to deny medical treatment or services and that identifies the specific justification to support the request.

"Third-Party Administrator" means an organization that processes insurance or employee benefit claims for a separate entity.

"Treatment Guidelines" or "guidelines" means medical treatment guidelines that are used as a tool to support clinical decision making and quality health care delivery to injured employees.

"URAC" refers to URAC, a non-profit organization formerly known as the Utilization Review Accreditation Commission.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1303 Provider Request for Preauthorization

A. No preauthorization is required under the Act to ensure payment for reasonably required medical treatment or services. While preau-thorization is not required under the Act, a provider may seek preauthorization as provided in this subsection.

B. A provider shall submit a request for preauthorization in writing using Section I (Provider Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12). A provider shall attach documentation to a request for preauthorization that supports the medical necessity and appropriateness of the treatment or services requested, such as office notes and diagnostic reports.

1. ~~Patient information (including date of injury, date of birth, and payer claim number);~~

2. ~~Diagnosis and ICD code;~~

3. ~~Date of request;~~

4. ~~Type of request - Initial, Routine, Urgent, or Life Threatening;~~

5. A statement of the treatment or services requested. Where appropriate, information about quantity, strength, duration and frequency of the treatment or services should be included. Use of the applicable codes should also be included and will facilitate the process; and

6. ~~Documentation, if not already provided, that supports the medical necessity and appropriateness of the treatment or services requested, such as office notes and diagnostic reports.~~

C. A provider may submit the request for preauthorization by mail, electronically or by fax.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1304 Payer Denial of Request for Preauthorization

A. A payer shall not deny a request for preauthorization solely because the guidelines do not address the requested treatment or services.

B. A payer shall not deny a request for preauthorization that is supported by the guidelines, unless the payer can rebut the presumption of reasonableness and correctness with a medical or psychological opinion establishing by a preponderance of the evidence that there is a contraindication or significant medical or psychological reason not to authorize the requested treatment or services. Upon request by the provider or injured employee, a denial of preauthorization in this situation shall be processed as an immediate referral to the Commission for administrative review as provided in R20-5-1311 unless the payer obtains an IME in support of its denial. If the payer obtains an IME which serves as the basis for the denial, then review of the payer's decision shall be processed as a request for investigation under A.R.S. § 23-1061(J) if filed by the injured employee.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Ariz. Admin. Code § R20-5-1305 Payer Denial of Payment for Provided Treatment or Services

A. A payer shall not deny payment for provided treatment or services solely because the guidelines do not address the requested treatment or services.

B. A payer shall not deny payment for provided treatment or services supported by the guidelines, unless the payer can rebut the presumption of reasonableness and correctness with a medical or psychological opinion establishing by a preponderance of the evidence that there is a medical contraindication or significant medical or psychological reason not to pay for the treatment or services.

C. A dispute related to a payer's failure to pay for provided treatment or services may be processed as a request for investigation under A.R.S. § 23-1061(J) if filed by an injured employee.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Ariz. Admin. Code § R20-5-1306 Payer Reversal of Decision to Deny Treatment or Services

A payer may reverse its decision to deny treatment or services at any time throughout the process described in this Article. In this situation, the payer's subsequent authorization or agreement to pay for the treatment or services at issue shall end this process.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Ariz. Admin. Code § R20-5-1307 Payer Decision, In Whole or In Part

A payer may issue a decision approving or denying a request for preauthorization in whole, or in part.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Ariz. Admin. Code § R20-5-1308 Failure to Comply with Required Time Limits

A payer's failure to comply with the required time limits of this process may be considered unreasonable delay under R20-5-163.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Ariz. Admin. Code § R20-5-1309 Payer Decision on Request for Preauthorization

A. Except as provided in subsections (C) or (D), a payer shall communicate to the provider its decision on a request for preau-thorization no later than 7 business days after the request is received. The decision shall be issued in writing using Section II (Payer Decision on Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12). A payer shall attach to the decision a statement of what has been authorized, including, if applicable, a partial authorization, and, if the request for preauthorization is denied, in whole or in part, a statement of explanation that includes the medical reason supporting the payer's decision. For purposes of this Section, the 7 business days begin to run the day after the payer receives the request.

B. If a payer fails to communicate to a provider its decision on request for preauthorization within 7 business days, then the payer's failure to take action is deemed a "no response" and the provider or injured employee may submit a request for administrative review directly to the Commission as provided in R20-5-1311.

C. If a payer receives a request for preauthorization not submitted on Section I (Provider Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12) or an incomplete request for preauthorization using Section I (Provider Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12), the payer shall:

1. No later than 7 business days after the request is received and identified, act on the request for preauthorization pursuant to subsection (A); or

2. No later than 7 business days after the request is received and identified, notify the provider in writing that the request for pre-authorization is incomplete or, if applicable, that a request for preauthorization must be submitted on Section I (Provider Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12).

D. If, no later than 7 business days after a request for preauthorization has been received, a payer provides written notice to the provider that an IME has been requested under R20-5-114 using Section II (Payer Decision on Request for Preauthorization) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12), then the payer's decision on a request for preauthorization shall be issued no later than 7 business days after the final IME report has been received by the payer. The payer shall provide a copy of the final IME report to the provider upon receipt of the IME report.

E. Unless the payer decision was supported by an IME or otherwise falls within subsection R20-5-1304(B), an injured employee or provider may seek reconsideration of a payer decision by submitting a written request to the payer (or review organization identified by the payer) using Section III (Provider or Employee Request for Reconsideration) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12). A provider shall attach to a request for reconsideration a statement of the specific reasons and justifications to support the request. If not previously provided, the injured employee or provider shall attach supporting medical documentation with the request for reconsideration.

F. An injured employee may seek review of a payer decision that is supported by an IME by requesting an investigation under A.R.S. § 23-1061(J).

G. Unless the decision was supported by an IME, an injured employee or provider may seek review of a payer decision issued under R20-5-1304(B) by requesting administrative review by the Commission as provided in R20-5-1311.

H. ~~A payer shall include the following information in its written decision to approve or deny, in whole or in part, the request for preau-thorization to provide treatment or services:~~

1. ~~The date on which the request for preauthorization was received;~~

2. ~~Patient information, including date of injury, date of birth, payer claim number and Commission claim number;~~

3. ~~The date on which an IME was completed, if applicable;~~

4. ~~A statement of what has been authorized, including if applicable, a partial authorization;~~

5. ~~A statement of explanation if the request for preauthorization is denied, in whole or in part, which should include the medical reason supporting the payer's decision;~~

6. A statement of the process under which a provider or injured employee may request reconsideration or review of the payer's denial, in whole or in part, of a request for preauthorization, which shall include the following information;

a. ~~For a decision that is issued without obtaining an IME that is not subject to R20-5-1304(B) :~~

~~"If you wish to request reconsideration of the decision regarding your request for preauthorization to provide treatment~~

~~or services, you must send a written request for reconsideration to:~~

~~Name of Payer or Review Organization Identified by Payer Commission Address~~

~~Phone~~

~~Fax~~

~~E-mail~~

~~You must include the specific reason and justification to support your request. Please include additional supporting medical documentation if not previously provided."~~

b. ~~For a decision that is supported by an IME:~~

"If you wish review of the decision regarding your request for preauthorization to provide treatment or services, then the injured employee is required to file a request for investigation under A.R.S. § 23-1061(J) ."

c. ~~For a decision that is issued without obtaining an IME that is subject to R20-5-1304(B) :~~

"~~If you disagree with this decision and wish to request review by the Industrial Commission of Arizona, then you may submit a request for administrative review under R20-5-1311 to:~~

~~Industrial Commission of Arizona~~

~~Attn: Medical Resource Office~~

~~Commission Address~~

~~Commission Telephone Number~~

The provider shall file this request promptly and include the following information: patient information, including name, address, payer claim number, Commission claim number, and date of injury; diagnosis or ICD code; employer, insurance carrier or TPA information; provider information; information pertaining to request for treatment, including the justification for treatment; applicable treatment guideline or guidelines; denial of treatment by payer; copies of relevant medical information or records; and whether the request for medical treatment or services involves a request for urgent care or a life-threatening condition."

I. H. A payer shall provide a copy of its written decision to deny treatment or services to the injured employee or, if represented, to the injured employee's authorized representative.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1310 Payer Reconsideration on Request for Preauthorization

A. Except as provided in subsection (C), a payer shall communicate to the provider its decision on a request for reconsideration no later than 7 business days after the request is received. This decision shall be issued in writing using Section IV (Payer Decision on Request for Reconsideration) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12). A payer shall attach to the decision a statement of what has been authorized, including, if applicable, a partial authorization, and, if the request for preauthorization is denied, in whole or in part, a statement of explanation that includes the medical reason supporting the payer's decision. For purposes of this subsection, the 7 business days begin to run the day after the payer receives the request for reconsideration.

B. If a payer fails to respond to a request for reconsideration within 7 business days, the provider or injured employee may submit a request for administrative review directly to the Commission as provided in R20-5-1311.

C. If, no later than 7 business days after a request for reconsideration has been received, a payer provides written notice to the provider that an IME has been requested under R20-5-114 using Section IV (Payer Decision on Request for Reconsideration) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12), then the payer's decision on a request for reconsideration shall be issued no later than 7 business days after the final IME report has been received by the payer. The payer shall provide a copy of the final IME report to the provider upon receipt of the report.

D. Commission Review of Payer Reconsideration Decision:

1. An injured employee or provider may seek review of a payer reconsideration decision by requesting an administrative review by the Commission as provided in R20-5-1311 unless the payer decision was supported by an IME.

2. An injured employee may seek review of a payer reconsideration decision that is supported by an IME by requesting an investigation under A.R.S. §; 23-1061(J).

E. ~~A payer shall include the following information in its written decision to approve or deny, in whole or in part, a request for reconsideration of a denial of preauthorization:~~

1. ~~The date on which the request for reconsideration was received;~~

2. ~~Patient information, including date of injury, date of birth, payer claim number and Commission claim number;~~

3. ~~The date on which an IME was completed, if applicable;~~

4. ~~A statement of what has been authorized including, if applicable, a partial authorization;~~

5. ~~A statement of explanation if the request for treatment is denied, in whole or in part; and~~

6. A statement of the process under which a provider or injured employee may request Commission review of the payer's denial, in whole or in part, of a request for preauthorization, which shall include the following information:

a. ~~For a reconsideration decision that is issued without obtaining an IME:~~

~~"If you disagree with this reconsideration decision and wish to request review by the Commission, then you may submit a request for administrative review under R20-5-1311 to:~~

~~Industrial Commission of Arizona~~

~~Attn: Medical Resource Office~~

~~Commission Address~~

~~Commission Telephone Number.~~

The provider shall file this request promptly and include the following information: patient information, including name, address, payer claim number, Commission claim number, and date of injury; diagnosis or ICD code; employer, insurance carrier or TPA information; provider information; information pertaining to request for treatment, including the justification for treatment; applicable treatment guideline and denial of treatment by payer; copies of relevant medical information or records; copies of relevant documentation related to the payer reconsideration decision; and whether the request for medical treatment or services involves a request for urgent care or a life-threatening condition."

b. ~~For reconsideration of a decision that is supported by an IME:~~

"~~If you disagree with this reconsideration decision and wish review by the Commission, then the injured employee is required to file a request for investigation under A.R.S. § 23-1061(J) ."~~

F. E.A payer shall provide a copy of its written reconsideration decision to deny treatment or services to the injured employee or, if represented, to the injured employee's authorized representative.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1311 Administrative Review by Commission

A. Absent further action of the Commission under R20-5-1301(C), administrative review under this Article is available for requests for medical treatment or services related to all body parts and conditions.

B. A request for administrative review shall be in writing using Section V (Provider or Employee Request for Administrative Peer Review) of the Medical Treatment Preauthorization Form approved by the Commission under R20-5-106(A)(12). A request for administrative review must attach copies of relevant medical information or records and copies of all documentation related to the payer's decision or non-response. A request for administrative review must be submitted to the Commission by mail, electronically or by fax.

1. ~~Identifying information of the injured employee and claim, including the injured employee's name, address, commission claim number, and date of injury;~~

2. ~~Diagnosis and ICD code;~~

3. ~~Identifying information of the employer, insurance carrier or TPA ;~~

4. ~~Identifying information of the provider;~~

5. ~~Information pertaining to request for treatment, such as the justification for treatment, applicable treatment guideline and, if applicable, the payer's denial of treatment;~~

6. ~~Copies of relevant medical information or records;~~

7. ~~Copies of documentation related to the payer's decision or non-response; and~~

8. ~~Whether the request for medical treatment or services involves a request for urgent care or a life-threatening condition.~~

C. Upon receipt of a request for administrative review, the Commission shall determine whether the administrative review is available under this Article.

1. If administrative review is not available, then no later than three business days after receiving a request for administrative review, the Commission shall send notice to the injured employee and payer that administrative review is not available.

2. If administrative review is available, then no later than three business days after receiving the request, the Commission shall send notice to the payer that a request for administrative review has been received and provide information on how to participate in the process.

D. The administrative review conducted under this Section shall apply the guidelines as described in this Article and include a peer review performed by an individual meeting the requirements of subsection (I). The peer review shall consist of a records review and, when possible as described in subsection (I)(5), a conversation between the provider and individual conducting the peer review.

E. The Commission may enter into an agreement with one or more contractors, who shall be URAC accredited, to provide the review described in subsection (D).

F. The payer shall pay for the costs of the peer review conducted by the contractor.

G. To assist in its review, the Commission or its contractor may request or receive additional information and documentation from the provider, injured employee or payer, who shall cooperate and provide the Commission or its contractor with any necessary medical information, including information pertaining to the payer's decision.

H. Before the Commission or its contractor issues a determination denying the request for treatment or services, a good faith effort shall be made to conduct a peer review with the provider requesting authorization to perform the treatment or services.

I. The individual conducting the peer review shall:

1. Hold an active, unrestricted license or certification to practice medicine or a health profession and be involved in the active practice of medicine or a health profession during the five preceding years. For purposes of this subsection, "active practice" means performing patient care for a minimum of eight hours per week in one of the five preceding years;

2. Be licensed in Arizona, unless the Commission or its contractor is unable to find such an individual, in which case the peer review may be conducted by an individual who is licensed in another state of the United States and who meets the other requirements of this subsection;

3. For a review of a request from an allopathic or osteopathic physician, nurse practitioner, physician assistant, or other mid-level provider, hold a current certification from the American Board of Medical Specialties or the American Osteopathic Association in the area or areas appropriate to the condition, procedure or treatment under review;

4. Be in the same profession and the same specialty or subspecialty as typically performs or prescribes the medical procedure or treatment requested; and

5. Make a good faith effort to contact the provider requesting the preauthorization. This good faith effort shall include making telephone contact during the provider's normal business hours and offering to schedule the peer review at a time convenient for the provider.

J. A provider may bill the payer for time spent participating in a peer review under this Section.

K. The Commission or its contractor shall issue a written determination of its administrative review that contains the name and title of the person that performed the administrative review, and includes the following information:

1. Whether the request for treatment or services is authorized or denied, in whole or in part;

2. The information reviewed;

3. The principle reason for the decision; and

4. The clinical basis and rationale for the decision.

L. An interested party dissatisfied with the administrative review determination may request that the dispute be referred to the Commission's Administrative Law Judge Division for hearing. This request for hearing shall:

1. Be in writing;

2. Filed no later than 10 business days after the administrative review determination is issued; and

3. State whether the party requests to participate in the Fast Track ALJ Dispute Resolution Program by stipulation, or declines to participate in the Fast Track ALJ Dispute Resolution Program.

M. If a timely request for hearing is filed, the administrative review determination is deemed null and void and shall serve no evidentiary purpose.

N. The information provided by the parties under this Section and the determination issued by the Commission shall become a part of the Commission claims file for the injured employee.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016. Amended by final rulemaking at 24 A.A.R. 2069, effective 10/1/2018.

Ariz. Admin. Code § R20-5-1312 Hearing Process

A. A referral of a request for hearing under R20-5-1311(L) shall be processed as provided for in the Act unless all parties agree to participate in the fast track process.

B. The following applies only to the Fast Track ALJ Dispute Resolution Program:

1. Parties must agree to participate in the Fast Track ALJ Dispute Resolution Program with the understanding that a short form decision will be issued.

Review by the presiding ALJ shall be limited to the treatment or service dispute considered at the administrative review under R20-5-1311.

3. The presiding ALJ shall issue a notice of hearing within 10 business days of the receipt of the fully executed agreement to participate and certificate of readiness.

4. The hearing shall be held within 30 calendar days from the day that the notice of hearing is issued to the extent practicable.

5. Discovery is limited to five interrogatories and no depositions are permitted.

6. The presiding ALJ shall take all lay witness testimony at the time of the hearing and will not hold any further hearings.

7. The presiding ALJ shall consider documentary medical evidence only; no medical testimony shall be taken.

8. Medical file review opinions shall be deemed to constitute substantial evidence to support the requested treatment or service.

All documentary evidence shall be submitted no later than 10 business days before the scheduled hearing.

The hearing shall be recorded, but not transcribed, unless one or more of the parties files a request for review under A.R.S. § 23-942 and A.R.S. § 23-943.

11. The presiding ALJ shall issue a short form decision within five business days after the matter is deemed submitted.

History

Adopted by final rulemaking at 22 A.A.R. 1730, effective 10/1/2016.

Article 14 MUNICIPAL FIREFIGHTER CANCER REIMBURSEMENT FUND AND FIREFIGHTER AND FIRE INVESTIGATOR CANCER CLAIM REPORTING

Ariz. Admin. Code § R20-5-1401 Application of the Article and Definitions

A. This Article applies to reimbursement claims submitted to the Municipal Firefighter Cancer Reimbursement Fund under Arizona Revised Statutes ("A.R.S."), Title 23, Chapter 11, and firefighter and fire investigator cancer claim reporting under A.R.S. § 23-971.

B. The definitions in A.R.S. § § 23-1701 and 23-901.09 apply in this Article.

C. "Cancer-related claims" as used in A.R.S. § 23-971 and this Article shall mean Arizona workers' compensation claims involving any disease, infirmity, or impairment of health that is caused by cancer.

C D. "Fiscal year" or "reporting period" shall mean the 12-month cycle that begins on July 1 and ends on June 30.

E. "Loss valuation date" shall mean the last day of the reporting period and the date on which firefighter and fire investigator cancer claim data shall be determined for reporting purposes.

F. An "open" claim shall mean a workers' compensation claim that is eligible for temporary compensation and/or active medical treatment. A "closed" claim shall mean a workers' compensation claim in which temporary compensation and active medical treatment have been terminated.

History

Adopted by final exempt rulemaking at 27 A.A.R. 2920, effective 1/1/2022. Amended by final rulemaking at 28 A.A.R. 1481, effective 6/10/2022.

Ariz. Admin. Code § R20-5-1402 Reimbursement Claims

A. A Municipal Payor seeking reimbursement from the Fund shall submit a reimbursement claim in writing on the Municipal Firefighter Cancer Reimbursement Form approved by the Commission.

B. The Municipal Firefighter Cancer Reimbursement Form shall include the following attestations, which shall be made by an autho- rized representative of a Municipal Payor seeking reimbursement from the Fund:

1. The reimbursement request includes only eligible compensation and benefits paid under A.R.S. § 23-1702(A) on municipal fire- fighter or municipal fire investigator workers' compensation claims accepted under A.R.S. § 23-901.09.

2. The reimbursement request only includes amounts actually paid by th e Municipal Payor for comp ensation and benefits under A.R.S. § 23-1702(A) during the immediately preceding fiscal year.

3. The reimbursement request does not include amounts paid for expenses relating to case management, vocational rehabilitation, or similar nonmedical costs.

4. The information included in, or submitted with, the Municipal Firefighter Cancer Reimbursement Form is true and correct.

C. The Municipal Firefighter Cancer Reimbursement Form shall not be changed, amended, or otherwise altered without the prior written approval of the Commission.

D. A Municipal Payor seeking reimbursement from the Fund for compensation and benefits paid during a fiscal year shall submit a reim- bursement claim to the Commission between July 1 and August 31 immediately following the applicable fiscal year.

E. Failure to timely submit a reimbursement claim for compensation and benefits paid during a fiscal year before the claim submission deadline in subsection D will be deemed a waiver of the right of the Municipa l Payor to request reim bursement for amounts paid during the applicable fiscal year. Failure to include all eligible compensation or benefits in a reimbursement claim before the claim submission deadline in subsection D will be deemed a waiver of the right of the Muni cipal Payor to request reimbursement for an y omitted amounts paid during the applicable fiscal year.

F. The Commission shall process reimbursements pursuant to A.R.S. § 23-1702(C) on or before December 31 of each year.

G. The maximum annual amount of aggregate reimbursements paid by the Fund shall in no ev ent exceed the total amount of monies in the Fund as of close of business on June 30 of the applicable fiscal year.

History

Adopted by final exempt rulemaking at 27 A.A.R. 2920, effective 1/1/2022.

Ariz. Admin. Code § R20-5-1403 Recordkeeping and Record Inspections

A. Municipal Payors seeking reimbursement from the Fund shall maintain all records suppor ting amounts included in a reimbursement claim for at least ten years after the reimbursement claim is filed.

B. Municipal Payor records supporting amounts included in a reimbursement claim shall always be open for inspection by the Commis- sion or representatives of the Commission to ascertain information necessary for its administration of A.R.S. §§ 23-1701 through 23- 1703. Upon request, a Municipal Payor shall make such records available to the Commission within 30 days.

History

Adopted by final exempt rulemaking at 27 A.A.R. 2920, effective 1/1/2022.

Ariz. Admin. Code § R20-5-1404 Fund Overpayments

A. A Municipal Payor that discovers an error in a reimbursement claim which may result or has resulted in an overpayment from the Fund shall notify the Commission of the error within three business days of discovery of the error.

B. Overpayments made by the Fund to Municipal Payors that are di scovered through inspection of records, or otherwise, shall be returned to the Fund by the applicable Municipal Payor within 30 days of notification by the Commission.

History

Adopted by final exempt rulemaking at 27 A.A.R. 2920, effective 1/1/2022.

Ariz. Admin. Code § R20-5-1405 Cancer Claim Reporting Method; Frequency; Deadlines; Duration

A. Cancer-related claim reporting under A.R.S. § 23-971 and this Article shall be performed electronically through the commission's electronic claims portal. Insurance carriers, self-insured employers, self-insurance pools, or a designee (including third-party administrators or an adjuster) are authorized to complete required claim reporting. Duplicate reporting of the same claim information is prohibited.

B. Subject to the claim reporting durations specified in subsection D of this section, insurance carriers, self-insured employers, and self-insurance pools subject to A.R.S. § 23-971 shall annually report the data elements specified in R20-5-1407 and R20-5-1408 for cancer-related claims filed by or on behalf of firefighters and fire investigators.

C. Claim data reported pursuant to subsection B of this section shall be determined as of the loss valuation date for the applicable reporting period.

D. Claim reporting shall be completed within 31 days after each applicable reporting period, i.e. , no later than July 31 of each year.

E. Claim reporting under A.R.S. § 23-971 is subject to the following claim reporting durations:

1. Denied Claims: Reported one time following the reporting period during which the claim is denied by a notice of claim status. Reporting is not required for claims denied prior to July 1, 2021.

2. Claims Accepted on or after July 1, 2021: Reported for the longer of:

(a) the duration the claim remains open plus two additional annual reports after the claim is closed; or

(b) ten annual reports after acceptance of the claim.

3. Claims Accepted before July 1, 2021: If the claim was open on July 1, 2021, the claim shall be reported for the duration the claim remains open plus two additional annual reports after the claim is closed. If the claim was closed as of July 1, 2021, and was accepted on or after July 1, 2011, the claim shall be reported for two annual reports. If the claim was closed as of July 1, 2021, and was accepted prior to July 1, 2011, reporting is not required.

4. Reopened Claims: Reported for the longer of:

(1) the duration the claim remains open (following acceptance of the petition to reopen), plus two additional annual reports after the claim is closed; or

(2) ten annual reports after acceptance of the petition to reopen.

5. Claims that Develop into Cancer-Related Claims: If a claim develops into a cancer-related claim, reporting should begin following the reporting period in which the claim developed into a cancer-related claim. In these circumstances, the claim shall be reported for the longer of:

(1) the duration the claim remains open plus two additional annual reports after the claim is closed; or

(2) ten annual reports.

Non-Cancer-Related Claims: If a cancer-related claim develops into a claim that no longer meets the definition of a cancer-related claim, no further annual reporting is required.

Informational Claims: Claims that have been filed but have not been accepted or denied as of the applicable loss valuation date shall not be reported.

History

New section made by final rulemaking at 28 A.A.R. 1481, effective 6/10/2022.

Ariz. Admin. Code § R20-5-1406 Cancer Reporting; Required General Data Elements

A. Name of Data Provider ( i.e. , What entity is reporting the data?): The name of the insurance carrier, self-insured employer, self-insurance pool, or designee submitting the cancer-related claim data.

B. Data Provider Type Code: Insurance Carrier; Self-Insured Employer; Self-Insurance Pool; Third-Party Administrator; or Other Designee.

C. Name of Person Submitting Data: The name of the individual submitting the cancer-related claim data.

D. Name of Data Provider Primary Contact: The name of the individual designated by the Data Provider who can be contacted regarding the data submission. (May be the same as the "Name of Person Submitting the Data.")

E. Data Provider Primary Contact Phone Number: The phone number of the Data Provider Primary Contact.

F. Data Provider Primary Contact Email Address: The email address of the Data Provider Primary Contact.

G. Loss valuation date: The last day of the 12-month reporting period.

H. Total Number of New Cancer-Related Claims: Total number of cancer-related claims filed by or on behalf of firefighters and fire investigators during the applicable reporting period (whether or not the claims are included in the detailed reporting).

1. Accepted: Total number of new cancer-related claims accepted during the applicable reporting period.

2. Denied: Total number of cancer-related claims denied during the applicable reporting period.

3. Pending: Total number of cancer-related claims pending decision on the applicable loss valuation date.

History

New section made by final rulemaking at 28 A.A.R. 1481, effective 6/10/2022.

Ariz. Admin. Code § R20-5-1407 Cancer Reporting; Required Claim-Specific Data Elements

A. Unique Claim Identifier: The unique, alphanumeric claim identifier (up to 20 characters, but no less than seven characters) assigned by the carrier, self-insured employer, or self-insurance pool to a specific claim. The claim identifier shall remain the same throughout the life of the claim. Usage of the commission's claim number is prohibited. Usage of claimant name, personally-identifiable information, or carrier/self-insured employer/self-insurance pool name in identifier is prohibited.

B. Transaction Type Code: The code that identifies a report as an initial report (01) or subsequent report (02).

C. Occupational Descriptor Code: (01) = Firefighter (02) = Fire Investigator.

D. Sex Code: The sex of the injured worker. (M = Male, F = Female, N = Not Reported.)

E. Birth Year: The 4-digit birth year of the injured worker.

F. Year Claim Reported: The 4-digit year the claim was reported to the carrier/self-insured employer/self-insurance pool.

G. Year of Loss: The 4-digit year when the injury (cancer) became manifest.

H. Year of Hire: The 4-digit year when the injured worker was hired by the employer as a firefighter or fire investigator (either full-time or part-time). If unknown, enter (U).

I. Name of Carrier, Self-Insured Employer, or Self-Insurance Pool: Complete business name of insurance carrier or self-insured employer/pool responsible for the claim.

J. Employer Name: The complete business name of the employer (including a DBA, if applicable) related to the claim.

K. County Code: The code corresponding to Arizona county primarily served by the employer (01) = Apache; (2) = Cochise; (3) = Coconino; (4) = Gila; (5) = Graham; (6) = Greenlee; (7) = La Paz; (8) = Maricopa; (9) = Mohave; (10) = Navajo; (11) = Pima; (12)= Pinal; (13) = Santa Cruz; (14) = Yavapai; (15) = Yuma.

L. Claim Acceptance Date: The date the claim was first accepted as compensable. If the claim was denied, enter (D).

M. Claim Denial Code: The code corresponding to the reason a claim was denied. (01) = Claim not compensable; (02) No coverage; (03) Other reason. If the claim was accepted, enter (A).

N. Claims Status Code: The code corresponding to the claim's status as of the loss valuation date. (01) = claim is open (not reopened) on the loss valuation date; (02) = claim is closed on the loss valuation date; (03) = claim is reopened on the loss valuation date. If the claim was denied, enter (D).

O. Benefit Code: The code that identifies under which provision of the law benefits are being paid on the loss valuation date. (01) = Death; (02) = Permanent Total Disability; (03) Permanent Partial Disability - Unscheduled; (04) Permanent Partial Disability "" No Loss; (05) Temporary Total Disability; (06) Temporary Partial Disability; (07) Claim Denied.

P. Settlement Code: (00) = Claim not subject to settlement during the reporting period; (01) = Full and final settlement during the reporting period; (03) Stipulated award during the reporting period; (05) Noncompensable settlement during the reporting period; (06) = Compromise settlement during the reporting period; (09) Other settlement during the reporting period; (10) Multiple settlements during the reporting period.

Q. Lump Sum Indicator: Indicates whether the claim has been settled by a lump sum amount. N = No; Y =Yes.

R. Closed Date: If the claim closed during the reporting period, report the date of claim closure. (Required if the claim closed during the reporting period.)

S. Reopened Date: If the claim re-opened during reporting period, report the date of claim reopening. (Required if the claim reopened during the reporting period.)

T. Primary Type of Cancer Code: The primary type of cancer involved in the claim on the loss valuation date. Options are brain (01), bladder (02), rectal (03), colon (04), lymphoma (05), leukemia (06), adenocarcinoma (07), mesothelioma of the respiratory tract (08), buccal cavity (09), pharynx (10), esophagus (11), large intestine (12), lung (13), kidney (14), prostate (15), skin (16), stomach (17), ovarian (18), breast (19), testicular (20), non-Hodgkin's lymphoma (21), multiple myeloma (22), and malignant melanoma (23). Nonlisted cancers may be designated as "other" (30).

U. Secondary Type of Cancer Code: If applicable, the secondary type of cancer involved in the claim on the loss valuation date. Options are brain (01), bladder (02), rectal (03), colon (04), lymphoma (05), leukemia (06), adenocarcinoma (07), mesothelioma of the respiratory tract (08), buccal cavity (09), pharynx (10), esophagus (11), large intestine (12), lung (13), kidney (14), prostate (15), skin (16), stomach (17), ovarian (18), breast (19), testicular (20), non-Hodgkin's lymphoma (21), multiple myeloma (22), and malignant melanoma (23). Non-listed cancers may be designated as "other" (30). (Required if applicable.)

V. Amounts Paid (as of loss valuation date):

1. Indemnity Paid: The total amount of paid indemnity for the claim as of the loss valuation date. These losses consist of all paid benefits due to an employee's lost wages or inability to work, including compensation paid to a deceased claimant prior to death, burial expense, claimant's attorney fees, vocational rehabilitation benefits, indemnity settlement payments, and employer's liability losses and expenses. Allocated loss adjustment expense ("ALAE") for other than employer's liability coverage shall be excluded from indemnity losses.

2. Medical Paid: The total amount of medical losses paid for the claim as of the loss valuation date, including medical settlement payments.

3. ALAE Paid: The total amount of ALAE paid for the claim as of the loss valuation date.

4. Death Benefits Paid: The total amount of death benefits paid for the claim as of the loss valuation date.

W. Incurred Amounts (as of loss valuation date):

1. Incurred Indemnity Amount: The total of "Indemnity Paid" plus the current outstanding reserve indemnity benefits, excluding loss adjustment expenses ( e.g. , ALAE and unallocated loss adjustment expense ("ULAE")).

2. Incurred Medical Amount: The total of "Medical Paid" plus the current outstanding reserve medical benefits, excluding loss adjustment expenses ( e.g. , ALAE and ULAE).

3. Incurred ALAE Amount: The total of "ALAE Paid" plus the current outstanding reserve ALAE.

4. Incurred Death Benefits Amount: The total of "Death Benefits Paid" plus the current outstanding reserve death benefits, excluding loss adjustment expenses ( e.g. , ALAE and ULAE).

History

New section made by final rulemaking at 28 A.A.R. 1481, effective 6/10/2022.

Article 15 WORKERS' COMPENSATION SELF-INSURANCE

Ariz. Admin. Code § R20-5-1501 Definitions

In addition to the definitions provided in A.R.S. § 23-901, the following definitions apply to this Article:

1. "Act" means the Arizona Workers' Compensation Act, A.R.S. § 23-901 et seq.

2. "Administrator" means an individual or organization designated by a Self-Insurance Pool Board to manage the daily operations of a Self-Insurance Pool.

3. "Agreement to Process and Pay" means a written agreement that requires an entity to process and pay or guaranty the payment of another entity's liabilities.

4. "Applicant" means an entity or pool seeking initial or renewal authority to self-insure for workers' compensation, a Self-Insurance Pool seeking to add a new member, or a Self-Insurer seeking to Self-Administer.

5. "Authorization Date" means the date designated by the Commission on which self-insurance authority begins.

6. "Basic Premium Factor" means a factor used in the Retrospective Rating Plan formula to represent expenses of the Self-Insurer, such as acquisition, audit, administration, and profit or contingencies, but not taxes.

7. "Cash Flow Ratio" means a numerical relationship that reflects an entity's ability to meet current financial obligations out of cash flow and is calculated as follows: (cash flow from operations) divided by (current liabilities).

8. "Claim" or "claim" means a workers' compensation claim.

9. "Deviation Rate" means the rate applied to the Manual Premium to calculate a discount from the Manual Premium.

10. "D-Ratio" means a factor used in the Ex-Medical Plan that reflects the ratio of primary expected losses and total expected losses.

11. "Division" means the self-insurance office of the Commission.

"Ex-Medical Plan" means a method of determining the premium upon which taxes are calculated that provides for rate revisions based upon the Self-Insurer operating a medical facility with a program for providing medical, surgical, or hospital services to a majority of the Self-Insurer's employees that complies with the requirements of A.R.S. § 23-1070.

13. "Experience Modification Rate" means a ratio comparing actual losses to expected losses based on a formula determined by an approved Rating Organization or the Commission.

14. "Fiscal Year" or "fiscal year" means a 12-month financial or accounting period.

15. "Fixed Premium Plan" means a method of determining the premium upon which taxes are calculated in which neither losses nor incurred loss reserves are used for the net taxable premium calculation.

16. "Guaranteed Cost Plan" means a method of determining the premium upon which taxes are calculated that provides for a direct relationship, on an annual basis, of the premium for tax purposes and the Experience Modification Rate developed to reflect the loss payment and incurred loss experience of the Self-Insurer.

17. "Local Government Investment Pool" means a pooled investment fund operated by the Arizona State Treasurer according to A.R.S. § 35-326.

18. "Loss Conversion Factor" means a factor used in the Retrospective Rating Plan formula that is used to cover unallocated claims and the costs of the Self-Insurer's claims services.

19. "Manual Premium" means the aggregate payroll by individual Payroll Classification Code multiplied by the Payroll Classification Rate.

20. "Member" or "member" means an employer described in A.R.S. §§ 11-952.01, 15-382 23-961.01, or 41-621.01 that has joined with other employers to operate a Self-Insurance Pool.

21. "Parent Company" means a company that has sufficient ownership in another entity (the Subsidiary) to have control, directly or indirectly, of the Subsidiary.

22. "Payroll" or "payroll" means the total wages and salaries paid by an employer.

23. "Payroll Classification Code" means a four-digit numerical code assigned by a Rating Organization or the Commission to differentiate between the various job duties or scope of work performed by employees.

24. "Payroll Classification Rate" means a rate assigned to an individual Payroll Classification Code by a Rating Organization or the Commission.

25. "Public Entity" means an individual employer that is a state, county, municipality, school district, or any other entity with taxing authority.

"Public Entity Pool" means a workers' compensation pool organized under A.R.S. §§ 11-952.01, 15-382, or 41-621.01.

27. "Public Entity Trust Fund" means an internal service fund or sub-fund dedicated to workers' compensation or risk management established by a Public Entity from which money is used to pay workers' compensation claim liabilities and expenses.

28. "Rating Organization" means an entity that meets the requirements of A.R.S. § 20-363 and is approved by the Department of Insurance and Financial Institutions to establish rates, codes, and formulas used to calculate workers' compensation premiums.

29. "Renewal Date" means the date designated by the Commission by which a renewal application shall be filed with the Division.

30. "Reserves" or "reserves" means an amount of money that is set aside to satisfy the financial and legal obligations associated with a workers' compensation claim or group of claims.

31. "Resolution of Authorization" means a document issued by the Commission that grants authority to self-insure for purposes of workers' compensation.

32. "Retrospective Rating Plan" means a method of determining the premium upon which taxes are calculated that provides for a relationship between the premiums for tax purposes, the Experience Modification Rate developed to reflect the loss payment and incurred loss experience of the Self-Insurer, and the actual incurred losses for the tax year.

33. "Security" or "security" means any financial instrument authorized by R20-5-1521 through R20-5-1524, or appropriate documents renewing, amending, or continuing any of these.

34. "Self-Administer" means the process under which a Self-Insurer administers its own claims, once approved by the Division.

35. "Self-Insurance Pool" means a Public Entity Pool or Similar Industry Pool.

36. "Self-Insurance Pool Board" means a body of individuals that directs a Self-Insurance Pool according to R20-5-1527.

37. "Self-Insurer" means an entity authorized by the Commission to self-insure for workers' compensation and may include a Public Entity, an individual private employer under A.R.S. § 23-961(A)(2), a Public Entity Pool, or a Similar Industry Pool.

38. "Similar Industry Pool" means a pool with members in similar industries as authorized by A.R.S. § 23-961.01.

39. "Subsidiary" means an entity of which a Parent Company has sufficient ownership to have control, directly or indirectly.

"Third-Party Administrator" means an organization that processes workers' compensation claims for a Self-Insurer.

41. "Workers' Compensation Pool Loss Account" means an account or sub-account in the Workers' Compensation Pool Operations Account established by a Self-Insurance Pool from which money is used to pay workers' compensation claims, liabilities, and expenses.

42. "Workers' Compensation Pool Operations Account" means an account or sub-account into which premiums, investment proceeds, and other revenues are deposited for purposes of a Self-Insurance Pool.

History

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

Ariz. Admin. Code § R20-5-1502 Computation of Time; Extension of Time Limits

A. In computing any time period prescribed or allowed by this Article, the day of the event from which the time period begins to run shall not be included, but the last day of the period computed shall be included unless it is a Saturday, Sunday, or legal holiday, in which event the period shall run until the end of the next day that is not a Saturday, Sunday, or legal holiday. When the time period prescribed or allowed is less than 11 days, intermediate Saturdays, Sundays, and legal holidays shall not be included in the computation of time.

B. Except as otherwise precluded by law, the Division may extend time limits prescribed by this Article for good cause. A request for an extension of a time limit shall be filed with the Division in writing and shall state the reasons for the request.

History

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

Ariz. Admin. Code § R20-5-1503 Forms and Reports

The following forms, available at http://www.azica.gov and upon request from the Division, shall be used when applicable:

1. Initial Application for Authority to Self-Insure Form,

2. Self-Insurance Renewal Application Form,

3. New Pool Member Application Form,

Workers' Compensation Liability Form,

5. Application to Self-Administer Form,

6. Self-Provider of Medical Benefits Form,

7. Parent Guaranty Form,

8. Workers' Compensation Guaranty Bond Form,

9. Statutory Deposit Agreement Form,

10. Custody Agreement Form,

11. Request for Waiver of Security Form,

12. Notice of Termination of Self-Insurance Form,

13. Annual Payroll Report Form,

14. Annual Medical Report Form,

15. Annual Injury Report Form,

16. Annual Hospital Report Form,

17. Quarterly Tax Payment Form.

History

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

Ariz. Admin. Code § R20-5-1504 Self-Insurance Criteria

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

1. The Public Entity's annual payroll is at least $2 million; and

2. The Public Entity's total assets are at least $25 million.

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

1. The employer has been engaged in business in Arizona for at least five consecutive years immediately before the prospective Authorization Date;

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. The employer meets one of the following criteria:

a. The employer's total assets are at least $25 million; or

b. The employer's net worth is at least $5 million and Cash Flow Ratio is at least 0.25.

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

1. The requirements set forth in A.R.S. §§ 11-952.01, 15-382, or 41-621.01, as applicable, are satisfied;

2. The combined annual payroll of the members of the Public Entity Pool is at least $2 million; and

3. The combined net worth of the members of the Public Entity Pool is at least $1 million.

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

1. The requirements set forth in A.R.S. § 23-961.01 are satisfied;

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. The combined annual Arizona payroll of the members of the Similar Industry Pool is at least $2 million; and

4. The combined net worth of the members of the Similar Industry Pool is at least $1 million.

History

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

Ariz. Admin. Code § R20-5-1505 Initial Application Requirements

A. An individual employer or pool seeking to apply for initial authority to self-insure shall file with the Division a completed Initial Application for Authority to Self-Insure Form and the documentation and information required in subsection (B).

B. For an initial application to self-insure to be deemed complete, the following documentation and information shall be provided by the Applicant:

1. A resolution of the Applicant's board of directors or governing body, authorizing the filing of the application. If the Applicant does not have a board of directors or governing body, an authorized representative shall sign the resolution.

2. A list of the aggregate payroll by Payroll Classification Code for the most current and prior two fiscal years.

3. A copy of the Applicant's audited financial statements for the most current and prior two fiscal years, including any notes to the financial statements. If audited financial statements for the most current or prior two fiscal years are not reasonably available, internally-reviewed and signed financial statements that conform with Generally Accepted Accounting Principles may be substituted. If a new Self-Insurance Pool does not have the financial statements required by this subsection, the pool shall provide detailed projections for capitalization, cash flow, and liabilities of the pool.

4. A detailed description of the Applicant's loss control program, including a description of existing or planned occupational safety and health requirements and training programs.

5. Except for a new Self-Insurance Pool that does not have the information required by this subsection, a loss run of all claims incurred in Arizona from the most current complete calendar year and the prior three calendar years. The loss run must include the following information, if applicable, for each incurred claim: Payroll Classification Code, Commission claim number, employee name, date of injury, total paid medical, medical reserves, total paid indemnity (including death benefits), and indemnity reserves.

6. If applicable, copies of excess insurance policies that meet the requirements of R20-5-1526, or written confirmation from an authorized insurance company that it will provide excess insurance coverage to the Applicant by the prospective Authorization Date.

7. Except for a new Self-Insurance Pool that does not have the information required by this subsection, if the Applicant's Experience Modification Rate specific to Arizona for the most recent complete fiscal year is greater than 1.10, a written statement describing the causes of the inflated Experience Modification Rate and outlining remedial measures the Applicant has taken or will take to lower the Experience Modification Rate.

8. Except for an Applicant seeking to Self-Administer under R20-5-1510, a copy of a signed agreement between the Applicant and a Third-Party Administrator or, if an agreement has not been completed, a written confirmation from a Third-Party Administrator that it will contract with the Applicant on or before the prospective Authorization Date to process workers' compensation claims for the Applicant.

9. If an Applicant is seeking to Self-Administer, a completed Application to Self-Administer Form and the information and documentation required in R20-5-1510(C).

10. If an eligible Applicant intends to direct medical care under A.R.S. § 23-1070, a completed Self-Provider of Medical Benefits Form, the detailed statement of the arrangements required in A.R.S. § 23-1070(B), and a copy of the current medical or hospital agreements, if applicable.

11. If the Applicant is a Public Entity or a Public Entity Pool seeking a waiver of security under R20-5-1525, a completed Request for Waiver of Security Form and a current actuarial report that satisfies the requirements in R20-5-1513(B).

12. If the Applicant is a Subsidiary:

a. A completed Parent Guaranty Form or an Agreement to Process and Pay signed by a designated representative of the Parent Company that guarantees the payment of the Subsidiary's obligations.

b. A resolution of the Parent Company's board of directors or governing body authorizing the designated representative to complete, sign, and file the Parent Guaranty Form or Agreement to Process and Pay. If the Parent Company does not have a board of directors or governing body, an authorized representative shall sign the resolution.

c. A copy of the Parent Company's audited financial statements for the most current and prior two fiscal years, including any notes to the financial statements. If audited financial statements for the most current or prior two fiscal years are not reasonably available, internally-reviewed and signed financial statements that conform with Generally Accepted Accounting Principles may be substituted.

13. If the Applicant is a Self-Insurance Pool:

a. The contract or agreement required under A.R.S. §§ 11-952.01, 15-382, 23-961.01, or 41-621.01, as applicable, to establish the pool.

b. The articles of incorporation and bylaws governing the pool, if applicable.

c. The participation, coverage, and indemnity agreements between the pool and each member.

d. Written authorization from the board of directors or governing body of each member, authorizing membership in the pool. If a member does not have a board of directors or governing body, an authorized representative shall sign the written authorization.

e. A signed resolution from the Self-Insurance Pool Board approving each member for membership in the pool.

f. An original or a certified copy of fidelity or crime insurance policy that meets the requirements of R20-5-1528 or written confirmation from an authorized insurance company that it will issue the required fidelity or crime insurance policy on or before the prospective Authorization Date.

g. A copy of the signed agreement or contract of hire between the Self-Insurance Pool Board and the designated Administrator.

h. A detailed description of the underwriting program required under R20-5-1529.

i. A current actuarial report that meets the requirements of R20-15-1513(B) and documents the rate structure needed to set member premium levels to adequately cover potential losses and expenses of the pool.

j. For each member, a schedule showing, for the most recent complete fiscal year and the prior two fiscal years, net workers' compensation premiums paid, total workers' compensation losses incurred, and, if available, Experience Modification Rate specific to Arizona.

k. A copy of each member's audited financial statements for the most current and prior two fiscal years, including any notes to the financial statements. If audited financial statements for the most current or prior two fiscal years are not reasonably available, internally-reviewed and signed financial statements that conform with Generally Accepted Accounting Principles may be substituted.

l. If any member's Experience Modification Rate specific to Arizona for the most recent complete fiscal year is greater than 1.10, a written statement describing the causes of the inflated Experience Modification Rate and outlining remedial measures the member has taken or will take to lower the Experience Modification Rate.

History

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

Ariz. Admin. Code § R20-5-1506 Renewal Application Requirements

A. A Self-Insurer seeking to apply for renewal of authority to self-insure shall file with the Division a completed Self-Insurance Renewal Application Form and the documentation and information required under subsection (B) on or before the Renewal Date or, if applicable, the date specified in subsection (D).

B. For a renewal application to be deemed complete, the following documentation and information shall be provided by the Applicant:

1. A copy of the Applicant's most-recent audited financial statements completed according to R20-5-1513(A), including any notes to the financial statement.

2. A completed Workers' Compensation Liability Form.

3. A current loss run of all open claims incurred in Arizona on or after the Authorization Date. The loss run must include the following information, if applicable, for each claim: Payroll Classification Code, Commission claim number, employee name, date of injury, total paid medical, medical reserves, total paid indemnity (including death benefits), indemnity reserves, excess insurance carrier name (if applicable), amount of excess credit expected (if applicable), and excess insurance self-insured retention amount per occurrence (if applicable).

4. If applicable, copies of excess insurance policies that meet the requirements of R20-5-1526 or written confirmation from an authorized insurance company that it will provide excess insurance coverage to the Applicant. For each claim accepted by an excess insurance carrier on or after the Authorization Date, documentation to establish claim acceptance. For each claim submitted to an excess insurance carrier that is pending review by the excess insurance carrier, documentation to establish claim submission.

If the Applicant's Experience Modification Rate specific to Arizona for the most recent complete fiscal year is greater than 1.10, a written statement describing the causes of the inflated Experience Modification Rate and outlining remedial measures the Applicant has taken and will take to lower the Experience Modification Rate.

6. If the Applicant's denial rate exceeds 12% of claims filed during the prior approved period of self-insurance, a written statement from the Applicant identifying the reason or reasons for each denial.

7. Except for Applicants that have been approved to Self-Administer or are seeking to Self-Administer under R20-5-1510, a copy of the signed agreement between the Self-Insurer and a Third-Party Administrator, if different from the last filing approved by the Commission.

8. If an Applicant intends to Self-Administer, regardless of whether the Applicant has been previously approved to Self-Adminis-ter, a completed Application to Self-Administer Form and current information and documentation required under R20-5-1510(C).

9. If an eligible Applicant directs or intends to direct medical care under A.R.S. § 23-1070, a completed Self-Provider of Medical Benefits Form, the detailed statement of the arrangements required in A.R.S. § 23-1070(B), and a copy of the current medical or hospital agreements, if applicable.

10. If the Applicant is a Public Entity or a Public Entity Pool that is seeking a waiver of security under R20-5-1525, a completed Request for Waiver of Security Form and a current actuarial report that satisfies the requirements in R20-5-1513(B).

11. If the Applicant is a Subsidiary, a copy of the Parent Company's most-recent audited financial statements, including any notes to the financial statements. If audited financial statements are not reasonably available, internally-reviewed and signed financial statements that conform with Generally Accepted Accounting Principles may be substituted.

12. If the Applicant is a Subsidiary and the Parent Company has changed since the last application or renewal approved by the Commission:

a. A completed Parent Guaranty Form or Agreement to Process and Pay signed by a designated representative of the Parent Company that guarantees the payment of the Subsidiary's obligations.

b. A resolution of the Parent Company's board of directors or governing body authorizing the designated representative to complete, sign, and file the Parent Guaranty Form or Agreement to Process and Pay. If a Parent Company does not have a board of directors or governing body, an authorized representative shall sign the resolution.

13. If the Applicant is a Self-Insurance Pool:

a. Updated copies of the documentation and information required in R20-5-1505(B)(13)(a) through (c), (g), and (h), if changed since the last filing approved by the Commission.

b. A current actuarial report that meets the requirements of R20-5-1513(B).

c. An original or a certified copy of the Self-Insurance Pool's current fidelity or crime insurance policy that meets the requirements of R20-5-1528.

C. A complete renewal application submitted to the Division before the Self-Insurer's Renewal Date shall serve to extend existing authority to self-insure until the earliest of the following:

1. The date the Commission takes action on the application according to R20-5-1509;

2. The date the Self-Insurer terminates self-insurance under R20-5-1518; or

3. The date the renewal application is withdrawn.

D. Upon written request, the Commission may temporarily extend the duration of an existing authorization to self-insure for up to 90 days after a designated Renewal Date if the Self-Insurer is working in good faith to file a complete renewal application with the Division and additional time is necessary to file a complete renewal application.

E. If a Self-Insurer does not file a complete renewal application on or before the Renewal Date or the date specified in subsection (D), if applicable, or a renewal application is deemed withdrawn, self-insurance authority ceases and the individual employer or each member of the pool shall provide the Commission proof of compliance with A.R.S. § 23-961(A) not later than 10 days after the SelfInsurer's Renewal Date, the date specified in subsection (D), or the date the renewal application is withdrawn, whichever is later.

History

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

Ariz. Admin. Code § R20-5-1507 New Member Application Requirements for Self-Insurance Pools

A. Except as authorized in subsection (C), a previously authorized Self-Insurance Pool seeking to add a new member shall file with the Division a completed New Pool Member Application Form and the documentation and information required in subsection (B).

B. For a new member application to be deemed complete, the following documentation and information shall be provided by the Applicant:

1. A resolution of the Self-Insurance Pool Board authorizing the filing of the New Pool Member Application Form.

The documentation and information listed in R20-5-1505(B)(2), (B)(5), (B)(7), (B)(13)(c) through (e), and (B)(13)(j) through (l) specifically pertaining to the employer seeking to join the Self-Insurance Pool.

C. An approved Self-Insurance Pool in good standing that has operated for one year or more may admit new members without Commission approval. Upon admission of a new member into a Self-Insurance Pool under this subsection, the Self-Insurance Pool shall provide to the Division a list of the new member's coverage locations and the documentation and information listed in R20-5-1505(B)(13)(c) through (e) specifically pertaining to the new member.

History

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

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:

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.

History

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

Ariz. Admin. Code § R20-5-1509 Commission Review of Initial, Renewal, and New Member Applications

A. The Commission shall consider the following before approving or denying an initial, renewal, or new member application:

1. The documentation and information submitted by Applicant according to R20-5-1505, R20-5-1506, R20-5-1507, or R20-5-1508(F);

2. The evaluation, findings, and recommendations of the Division according to R20-5-1508; and

3. 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.

B. The Commission may approve or deny an initial, renewal, or new member application or may remand an application to the Division for further review or to request additional information or documents according to R20-5-5-1508(F). A decision to approve, deny, or remand an application shall be made by a majority vote of a quorum of Commission members present at a public meeting.

C. When approving an initial or renewal application, the Commission shall determine:

(1) the term of self-insurance authorization, which may not be less than one year or more than two years from the date of Commission approval;

(2) whether to grant a waiver of security under R20-5-1525; and

(3) if security is required, the amount of security that must be posted. The Commission shall require an amount of security that reasonably reflects the Self-Insurer's future total estimated liability and is sufficient to fully protect the Special Fund in the event of an assignment under A.R.S. § 23-966, which amount may exceed the amounts specified in R20-5-1520(A).

D. The Commission shall deny an initial, renewal, or new member application if the Commission finds either of the following:

1. The Applicant does not meet the requirements of A.R.S. §§ 11-952.01, 15-382, 23-961, 23-961.01, and 41-621.01 or this Article, as applicable; or

2. The Applicant is unable to process and pay benefits required under the Act.

E. On or before the Authorization Date, following Commission approval of an initial application for self-insurance authority, or within 30 days after Commission approval of a renewal or new member application, a Self-Insurer shall:

Unless the Commission has granted a waiver of security under R20-5-1525, post required security;

2. Secure excess insurance coverage that meets the requirements of R20-5-1526, if applicable;

3. Either obtain Division approval to Self-Administer under R20-5-1510 or complete the process of contracting with a Third-Party Administrator; and

4. For Self-Insurance Pools, secure an active fidelity or crime insurance policy, unless the pool is exempt according to R20-5-1528(C).

F. Upon approval of an initial, renewal, or new Member application, the Division shall serve a Resolution of Authorization on the Applicant no later than 30 days after Commission approval. The Resolution of Authorization approving an initial application shall contain the Authorization Date, the applicable Renewal Date, and the amount of security required. The Resolution of Authorization approving a renewal application shall contain the applicable Renewal Date and the amount of security required. The Resolution of Authorization approving addition of a new member shall contain the amount of additional security the Self-Insurance Pool is required to post. The Resolution of Authorization may be electronically signed by the Commission.

G. If the Commission denies an initial, renewal, or new member application, the Commission shall issue and serve written findings and an order on the Applicant no later than 30 days after the Commission denial. The findings and order may be electronically signed by the Commission.

H. If an Applicant's current Experience Modification Rate specific to Arizona exceeds 1.10, the Commission may approve authorization to self-insure that is contingent upon the Applicant receiving, within six months of the Commission's approval, occupational safety and health services from either the Arizona Division of Occupational Safety and Health or a qualified occupational safety and health professional. Upon written request and for good cause shown, the Division may extend the six-month deadline for receiving safety and health consultation services.

I. A Self-Insurer shall maintain all security, insurance policies, and contracts required under this Article during an approved period of self-insurance and while a renewal application is pending before the Commission.

History

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

Ariz. Admin. Code § R20-5-1510 Processing of Workers' Compensation Claims; Authorization to Self-Administer

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-Administer Form and all documentation and information required under subsection (C).

C. The Division, in consultation with the Claims Division of the Commission, shall authorize a Self-Insurer to Self-Administer if the Self-Insurer provides documentation and information establishing the following:

1. The Self-Insurer has facilities and equipment sufficient to manage, process, and store its own information pertaining to the SelfInsurer's workers' compensation claims;

2. The Self-Insurer's workers' compensation claims are processed by persons with experience, training, and knowledge regarding the processing of Arizona workers' compensation claims and the requirements of the Act and applicable administrative rules; and

3. The persons processing the Self-Insurer's claims have completed the Claims Division's workers' compensation training program within the prior two years.

D. The Division shall administratively review an application to Self-Administer within 20 days of receipt 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 section.

E. The Division shall deem an application to Self-Administer withdrawn if the Applicant fails to file a completed application within 10 days of being notified by the Division that the application is incomplete according to subsection (D).

F. Unless the substantive review time frame is extended under A.R.S. § 41-1075, the Division shall determine whether an application to Self-Administer meets the substantive criteria of subsection (C) within 30 days after the application to Self-Administer is deemed complete.

G. The overall timeframe for processing an application to Self-Administer is 50 days, unless extended under A.R.S. § 41-1072 et seq.

H. Upon approval of an application to Self-Administer, the Division shall serve a certificate of authorization on the Applicant no later than 30 days after approval.

I. The Division shall revoke a certificate of authorization to Self-Administer if the Self-Insurer no longer satisfies the requirements in subsection (C).

J. If the Division denies a request to Self-Administer or revokes a certificate of authorization, the Division shall issue and serve written findings and an order on the Applicant no later than 30 days after the denial or revocation.

K. Authorization to Self-Administer shall continue until any of the following occurs:

(1) self-insurance authority ceases;

(2) the SelfInsurer contracts with a Third-Party Administrator to process workers' compensation claims; or

(3) authority to Self-Administer is revoked by the Division.

History

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

Ariz. Admin. Code § R20-5-1511 Location of Claims Files

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 SelfInsurer shall provide written notice to the Division of the change in location at least 30 days before the files are moved.

History

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

Ariz. Admin. Code § R20-5-1512 Reports, Books, Records, and Data Review by the Commission; Audit

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, and data relating to matters governed by the Act and this Article are accurate and maintained in a legible and understandable manner.

B. The Commission may, upon notice of three days, perform or have performed for its benefit an audit of the reports, books, records, minutes, and data of a Self-Insurer relating to matters governed by the Act and this Article. The Commission shall be responsible for the cost of an audit.

History

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

Ariz. Admin. Code § R20-5-1513 Financial Statements and Actuarial Reports

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 completed by an actuary that is a member of the American Academy of Actuaries (MAAA) or a fellow of the Casualty Actuarial Society (FCAS). At a minimum, actuarial reports must address claim reserves, supplemental reserves, and actuarial liabilities using an expected confidence level and a discount rate consistent with Actuarial Standard of Practice No. 20 (or a successor standard).

C. Upon request, a Self-Insurer shall file its most-recent annual audited financial statements or actuarial report with the Division.

History

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

Ariz. Admin. Code § R20-5-1514 Claim Processing and Reserving

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 practices and maintain claim reserves at the full undiscounted value of each claim, including related claim expenses.

History

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

Ariz. Admin. Code § R20-5-1515 Notice of Adverse Condition, Bankruptcy, Change in Ownership Status, or Change in Business Address

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 under this subsection, the Self-Insurer shall provide a written proposal to correct the actual or potential adverse condition or material change.

B. A Public Entity Pool shall notify the Division within 30 days of receipt of any notification from the Director of the Department of Insurance and Financial Institutions according to A.R.S. §§ 11-952.01(N) and 41-621.01(L).

C. A Self-Insurer shall notify the Division in writing within 10 days of any bankruptcy filing under federal law or insolvency proceeding under any state's laws.

D. A Self-Insurer shall notify the Division in writing within 30 days of any change in the ownership status or business address of the Self-Insurer.

History

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

Ariz. Admin. Code § R20-5-1516 Revocation of Self-Insurance Authorization

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:

Impairment of the solvency of the Self-Insurer;

2. An inability or failure to process and pay benefits required under the Act, including the failure to pay or comply with any award of the Commission;

3. The failure of the Self-Insurer to respond within 10 days to a demand by the Commission to substitute security when the posted security is unsatisfactory or insufficient in amount or character;

4. The failure of the Self-Insurer to pay tax assessments levied by the Commission within 30 days of the due dates prescribed by A.R.S. §§ 23-961 and 23-1065;

5. The failure of the Self-Insurer to promptly provide the Commission with notices or information required under this Article;

6. The failure of the Self-Insurer to comply with the Act or administrative rules contained in Title 20, Chapter 5, Articles 1, 13, 14 and this Article;

7. The willful misstating of material fact in any documentation or information provided to the Commission;

8. The failure of a Public Entity Pool to comply with the recommendations of the Director of the Department of Insurance and Financial Institutions within 60 days of the date of notice issued under A.R.S. §§ 11-952.01(N) and 41-621.01(L); or

9. Except for a Self-Insurer approved to Self-Administer, the failure to contract with or adequately fund a Third-Party Administrator for claim processing and payment.

B. Upon receiving information indicating that any of the grounds for revocation described in subsection (A) may apply, the Division shall conduct an investigation. If, upon completion of the investigation, the Division determines that sufficient evidence exists to warrant revocation of authorization to self-insure, the Division shall promptly present its findings and recommendations to the Commission.

C. The decision of the Commission to revoke authorization to self-insure shall be made by a majority vote of a quorum of Commissioners present at a public meeting. The Commission shall issue and serve written findings and an order revoking self-insurance authority no later than 10 days after the Commission vote. The findings and order may be electronically signed by the Commission.

History

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

Ariz. Admin. Code § R20-5-1517 Retaining Authorization to Self-Insure Through Insolvency or Bankruptcy

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 of the United States Bankruptcy Code. The statement shall discuss in detail the Self-Insurer's financial ability to continue selfinsurance.

B. A Self-Insurer shall file the statement described in subsection (A) with the Division within 10 days of the insolvency or bankruptcy filing. The letter shall be signed by an authorized representative of the Self-Insurer.

C. A Self-Insurer seeking to retain authorization to self-insure through bankruptcy shall ensure that a provision addressing the SelfInsurer's obligations to workers' compensation claimants and the Commission is included in the plan of reorganization filed with the United States Bankruptcy Court.

D. During the period between the initial bankruptcy filing and a final bankruptcy court determination, the Self-Insurer may continue its self-insurance status only after demonstrating to the Commission ongoing ability to process and pay benefits required under the Act. The Commission may require the Self-Insurer to post additional security in an amount the Commission deems appropriate to fully protect the Special Fund in the event of an assignment under A.R.S. § 23-966, which amount may exceed the amount specified in R20-5-1520(A).

E. A Self-Insurer shall file with the Division a copy of any proposed plan of reorganization or liquidation, including amendments, within 10 days of filing.

History

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

Ariz. Admin. Code § R20-5-1518 Voluntary Termination of Self-Insurance Authorization

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 member of a Self-Insurance Pool shall provide the Commission proof of compliance with A.R.S. § 23-961(A) not later than 10 days after the termination is effective.

History

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

Ariz. Admin. Code § R20-5-1519 Withdrawal from a Self-Insurance Pool; Termination of Membership by a Self-Insurance Pool

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 the Commission written notice of a member's intent to withdraw from a Self-Insurance Pool or a Self-Insurance Pool's intent to terminate an employer's membership in a Self-Insurance Pool at least 30 days before the withdrawal or termination is effective.

C. If a member of a Self-Insurance Pool withdraws from a Self-Insurance Pool or a Self-Insurance Pool terminates an employer's membership in a Self-Insurance Pool, the terminated or withdrawing member shall provide the Commission proof of compliance with A.R.S. § 23-961(A) not later than 10 days after the termination or withdrawal is effective.

History

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

Ariz. Admin. Code § R20-5-1520 Security Amount and Type; Apportionment Credit; Excess Insurance Credit; Release

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 requires a different amount according to R20-5-1509(C).

2. A Self-Insurer renewing authority to self-insure shall post security in an amount equal to 125% of its total estimated future indemnity and medical liability as calculated on the Workers' Compensation Liability Form, unless the Commission requires a different amount according to R20-5-1509(C).

3. A Self-Insurance Pool adding a new member shall post security in an amount equal to the prior three-year average of annual total paid medical and indemnity benefits of the new member, unless the Commission requires a different amount according to R20-5-1509(C).

B. Except as provided in R20-5-1525, a Self-Insurer shall post a type of security authorized in R20-5-1521 through R20-5-1524. A SelfInsurer or former Self-Insurer may substitute one type of authorized security with a different type of authorized security.

C. The Commission shall approve a credit for apportionment against the amount of security required under this Article, which credit may not result in an amount of security that is less the minimum security required by A.R.S. § 23-961, if the Self-Insurer provides proof that apportionment has been approved for one or more claims.

D. The Commission shall approve a credit for excess insurance against the amount of security required under this Article, which credit may not result in an amount of security that is less the minimum security required by A.R.S. § 23-961, if:

1. The excess insurance requirements in R20-5-1526(A) are satisfied;

2. The Self-Insurer provides proof that excess insurance coverage exists for incurred claims;

3. The Self-Insurer has timely notified the excess insurance carrier of the incurred claims or the excess insurance carrier has accepted the incurred claims;

4. The excess insurance carrier has not denied coverage for the incurred claims; and

5. The excess insurance carrier is solvent.

E. The Self-Insurer shall calculate apportionment or excess insurance credits using the Workers' Compensation Liability Form.

F. Subject to A.R.S. § 23-961(A)(2), a former Self-Insurer may request a reduction in the amount of security that must remain posted with the Commission by filing a written request with the Division. The written request must attach the information specified in R20-5-1506(B)(1) through (4). The Division may request additional information and documentation reasonably related to the Division's review and evaluation under subsection (G).

G. Upon the filing of a request to reduce the amount of security by a former Self-Insurer, the Division shall review the documentation and information and:

1. Evaluate and determine whether the former Self-Insurer has the financial ability to process and pay benefits required under the Act for claims that were incurred during the period of self-insurance; and

2. Evaluate and determine an appropriate amount of security to fully protect the Special Fund in the event of an assignment under A.R.S. § 23-966.

H. The Division shall present its evaluation, findings, and recommendations according to subsection (G) to the Commission. The Commission may approve a reduction in the amount of security, deny a reduction, or remand an application to the Division for further review or to request additional documentation or information. A decision of the Commission shall be made by a majority vote of a quorum of Commission members present at a public meeting.

History

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

Ariz. Admin. Code § R20-5-1521 Guaranty Bond; Effective Date

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-Insurer and the insurance carrier;

2. Any rider of a guaranty bond is signed and dated by an authorized representative of the insurance carrier and the Self-Insurer;

The penal sum of the guaranty bond or rider is no less than the amount the Self-Insurer is required to post as security under this Article;

4. The insurance carrier issuing the guaranty bond or rider is authorized to transact the business of surety insurance in Arizona by the Department of Insurance and Financial Institutions;

5. The insurance carrier issuing the guaranty bond or rider does not have an affiliate relationship with the Self-Insurer;

6. The insurance carrier issuing the guaranty bond or rider has a rating with A.M. Best of at least A-; and

7. The guaranty bond or rider bears the same effective date as the Authorization Date.

History

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

Ariz. Admin. Code § R20-5-1522 Letter of Credit

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 SELFINSURER'S NAME] of its obligations under the Arizona Workers' Compensation laws"

2. The bank issuing the letter of credit is a federal or Arizona-chartered bank upon which demand may be made and from which funds will be immediately payable on demand;

3. The letter of credit includes the name and address of the Self-Insurer;

4. An authorized representative of the issuing bank executes the letter of credit;

5. The original letter of credit and original amendments to a letter of credit are provided to the Commission;

6. The initial letter of credit is valid for a period of one year from the effective date;

7. The issuing bank does not have an affiliate relationship with the Self-Insurer;

8. The letter of credit includes a provision that the letter of credit automatically extends for consecutive periods of one year, unless the issuing bank provides written notice to the Commission 60 days before the expiration of any one-year term that the issuing bank will not renew the letter of credit for the additional period;

9. The letter of credit states the amount available under the letter of credit, which shall be no less than the amount the Self-Insurer is required to post as security under this Article; and

10. The letter of credit includes a statement that the Commission may make a demand on the letter of credit by providing the issuing bank a signed statement by an official of the Commission stating either that the Self-Insurer has failed to comply with its workers' compensation obligations or failed to renew or substitute acceptable security for its workers' compensation liability 30 days before the expiration of the letter of credit.

B. The written notice required in subsection (A)(8) shall be sent to the Division via e-mail or by mail with delivery confirmation.

History

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

Ariz. Admin. Code § R20-5-1523 Local Government Investment Pool Funds

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 Treasurer, and the Commission; and

2. The funds deposited with the Arizona State Treasurer are no less than the amount the Self-Insurer is required to post as security under this Article.

History

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

Ariz. Admin. Code § R20-5-1524 Federal Money Market Fund or Treasury Note

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; and

2. The amount of the Federal money market fund or treasury note posted shall be no less than the amount the Self-Insurer is required to post as security under this Article.

History

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

Ariz. Admin. Code § R20-5-1525 Waiver from Requirement to Post Security for a Public Entity or Public Entity Pool

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 minimum of five consecutive years;

2. The Public Entity Trust Fund (for a Public Entity) or the Workers' Compensation Pool Loss Account (for a Public Entity Pool) continually maintains a positive fund/account balance; and

3. The Public Entity Trust Fund (for a Public Entity) or the Workers' Compensation Pool Loss Account (for a Public Entity Pool) is continually funded to cover actuarial liabilities of the Self-Insurer's incurred claims in accordance with the February 1996 Governmental Accounting Standards Board Statement No. 30 (Risk Financing Omnibus, An Amendment of GASB Statement No. 10), available from the Governmental Accounting Standards Board. This incorporation by reference does not include any later amendments or editions of the incorporated matter. A copy of the incorporated matter is available from the Commission or may be obtained from the Governmental Accounting Standards Board at 401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116.

C. The decision of the Commission to approve, deny, or revoke a request for waiver of security shall be made by a majority vote of a quorum of Commissioners present at a public meeting.

D. If the Commission grants a waiver of security, the waiver shall be included in the Resolution of Authorization issued under R20-5-1509(F). The Division shall return any security previously posted or provided to the Commission within 30 days after the approval of a waiver of security.

E. A Public Entity or Public Entity Pool which has been granted a waiver of security must file current financial statements and a statement of unpaid liabilities with the Division every six months, beginning six months after a waiver is granted.

F. If the Commission denies a request for waiver of security or revokes a waiver of security, the Commission shall issue and serve written findings and an order on the Applicant no later than 30 days after the Commission denial or revocation. The findings and order may be electronically signed by the Commission.

G. The Commission shall revoke a waiver of security if the Commission determines a Public Entity or Public Entity Pool no longer satisfies the criteria in subsection (B) or does not comply with subsection (E) and the Public Entity or Public Entity Pool does not cure the deficiency within 30 days of being notified by the Division. Within 10 days of service of a written findings and order revoking a waiver of security, a Public Entity or Public Entity Pool must file with the Commission a completed Workers' Compensation Liability Form and post security as required by the Commission.

History

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

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;

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.

History

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

Ariz. Admin. Code § R20-5-1527 Self-Insurance Pool Board; Administrator

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, 41621.01, and this Article, as applicable.

B. The Self-Insurance Pool Board of a Similar Industry Pool shall consist of five or more individuals elected for a stated term of office, at least 60% of which shall be representatives of members of the Similar Industry Pool.

C. The duties of a Self-Insurance Pool Board shall include:

1. Responsibility for all operations of the Self-Insurance Pool;

2. Ensuring compliance with the Act and this Article;

3. Hiring an Administrator to manage the daily operations of the Self-Insurance Pool;

4. Reviewing and acting on applications for membership in the Self-Insurance Pool;

5. Contracting with a Third-Party Administrator, unless the Division has authorized the Self-Insurance Pool to Self-Administer;

6. Ensuring the Self-Insurance Pool complies with statutory accounting principles (SAP) and provides accurate financial information to enable complete and accurate preparation of financial reports;

7. Maintaining all records and documents relating to the formation and ongoing operations of the Self-Insurance Pool;

8. Ensuring that accurate minutes of meetings of the Self-Insurance Pool Board are completed and signed by an authorized representative of the Self-Insurance Pool;

9. Maintaining all reports, books, records, and data relating to matters governed by this Article according to R20-5-1512; and

10. Ensuring that accounts and records of the Self-Insurance Pool are audited as required under R20-5-1513(A).

D. Except as prohibited by law, a Self-Insurance Pool Board may delegate duties to an Administrator. Delegation of duties to an Administrator shall be contained in a signed agreement or contract of hire between the Self-Insurance Pool Board and the Administrator.

E. An Administrator of a Self-Insurance Pool is subject to all of the following requirements:

1. Unless otherwise authorized by law, an Administrator for a Self-Insurance Pool shall not be a member of the Self-Insurance Pool Board.

Unless otherwise authorized by law, an Administrator for a Self-Insurance Pool shall not be a member of the Self-Insurance Pool or an employee of a member of the Self-Insurance Pool.

3. Before a Self-Insurance Pool Board can hire an Administrator, the Self-Insurance Pool shall disclose to the prospective Administrator all existing agreements between the pool and providers of services or insurance coverage and the prospective Administrator shall disclose to the Self-Insurance Pool Board any actual or perceived employment or financial interest that the Administrator or relative (as defined in A.R.S. § 38-502) of the Administrator has in the providers of services or insurance coverage.

4. Before a Self-Insurance Pool enters into an agreement with a provider of services or insurance coverage, the Administrator shall disclose to the Self-Insurance Pool Board any actual or perceived employment or financial interest that the Administrator or a relative (as defined in A.R.S. § 38-502) of the Administrator has in the prospective provider of services or insurance coverage.

F. Self-Insurance Pool Boards and Administrators shall not:

1. Extend credit to members for payment of a premium;

2. Utilize money collected as premiums for any purpose not authorized by this Article;

3. Borrow money from the Self-Insurance Pool;

4. Borrow money in the name and on behalf of the Self-Insurance Pool without providing prior written notice to the Division of the nature and purpose of the loan; and

5. Admit into the Self-Insurance Pool an employer whose admission would impair the ability of the Self-Insurance Pool to process and pay benefits required under the Act.

History

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

Ariz. Admin. Code § R20-5-1528 Self-Insurance Pool Fidelity or Crime Insurance

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 (individual and collective liability);

2. The Administrator of the Self-Insurance Pool;

3. Employees of the Self-Insurance Pool; and

Employees of the Administrator, if applicable.

B. The limit of liability of the fidelity or crime insurance policy required in subsection (A) shall be no less than $1 million per occurrence and shall be sufficient to protect the Self-Insurance Pool from damages resulting from unlawful acts related to of any assets controlled or managed by the Self-Insurance Pool Board, the Administrator, employees of the Self-Insurance Pool, and employees of the Administrator, if applicable.

C. A Self-Insurance Pool that maintains at least $3 million in surplus funds at all times during an approved period of self-insurance is exempt from the requirements in this section.

History

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

Ariz. Admin. Code § R20-5-1529 Self-Insurance Pool Loss Control and Underwriting Programs

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 administered by persons with education, experience, or training in loss control.

B. A Self-Insurance Pool shall maintain during all periods of self-insurance an underwriting program that enables the pool to establish workers' compensation premiums and to fully discharge the Self-Insurance Pool's obligation to process and pay benefits required under the Act. A Self-Insurance Pool shall ensure that the underwriting program is administered by persons with education, experience, or training in underwriting.

History

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

Ariz. Admin. Code § R20-5-1530 Self-Insurance Pool Workers' Compensation Pool Operations Account; Workers' Compensation Pool Loss Account

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 Account, which account shall be maintained in a designated federally-insured depository.

2. A Self-Insurance Pool shall pay all operational expenses of the pool relating to workers' compensation, excluding administrative expenses associated with processing workers' compensation claims, from the Workers' Compensation Pool Operations Account.

3. Funds from the Workers' Compensation Pool Operations Account shall be transferred to the Workers' Compensation Pool Loss Account, as needed, to enable the Self-Insurance Pool to pay from the Workers' Compensation Pool Loss Account all liabilities imposed or arising under the Act and all administrative expenses associated with processing workers' compensation claims.

4. If the Workers' Compensation Pool Operations Account is co-mingled with another account, the activities of the Workers' Compensation Pool Operations Account are segregated in the financial records.

B. A Self-Insurance Pool shall maintain a Workers' Compensation Pool Loss Account, which is subject to all of the following.

1. A Self-Insurance Pool shall maintain its Workers' Compensation Pool Loss Account in a designated federally-insured depository.

2. A Self-Insurance Pool shall pay all workers' compensation claim expenses, including current and contingent workers' compensation claim liabilities of and administrative expenses associated with processing workers' compensation claims, from the Workers' Compensation Pool Loss Account.

3. A Self-Insurance Pool shall ensure that its Workers' Compensation Pool Loss Account is actuarially sound and able to process and pay benefits required under the Act.

4. If the Workers' Compensation Pool Loss Account is co-mingled with another account, the activities of the Workers' Compensation Pool Loss Account are segregated in the financial records.

History

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

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.

History

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

Ariz. Admin. Code § R20-5-1532 Similar Industry Pool; Joint and Several Liability of Members

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 Similar Industry Pool shall ensure that the pool and all members read and agree, in writing, to the following terms:

The members of the pool are jointly and severally liable for the liabilities of the pool to the extent the pool is unable to, or does not, satisfy the liabilities;

2. Member liability under subsection (B)(1) extends to all liabilities incurred by the pool during the member's period of membership in the pool, including all future liabilities that accrued during the member's period of membership in the pool; and

3. In the event that claims are assigned to the Special Fund under A.R.S. § 23-966, the Commission shall have a right of reimbursement against the members jointly and severally for any and all amounts paid by the Special Fund, including costs, necessary expenses, and reasonable attorney's fees, to the extent that such liabilities are not covered by the pool's security or other assets.

History

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

Ariz. Admin. Code § R20-5-1533 Completion of Reports in Support of Tax Rating Plans; Calculation and Payment of Self-Insurance Taxes

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-Insurer is unable to meet the deadline. A request for an extension shall be granted for good cause.

B. After receiving the information required in R20-5-1536, R20-5-1537, R20-5-1538, or R20-5-1539, as applicable, the Division shall determine the annual taxes owed by the Self-Insurer. The Division shall also determine whether the Self-Insurer has overpaid or underpaid its taxes for the previous calendar year. If the total of the quarterly payments is less than the actual taxes for the year, the Self-Insurer shall pay the difference on or before March 31 of the calendar year in which the taxes are due. If the total of the quarterly payments exceeds the amount of the actual taxes for the year, the Division shall refund the amount described in A.R.S. § 23-961 or § 23-1065, as applicable.

C. A Self-Insurer shall pay to the Commission the Self-Insurer's annual workers' compensation premium taxes on or before March 31 based on the net taxable premium calculated for the preceding calendar year. A Self-Insurer shall pay a premium tax of at least $250.00 per calendar year.

D. The Division shall calculate a Self-Insurer's quarterly taxes owed under A.R.S. §§ 23-961 and 23-1065 in one of the following ways:

1. 25% of the tax calculated for the previous year; or

2. A calculation based on actual payroll and losses calculated for each quarter, using the same rating plan to calculate the quarterly payment as used to calculate the taxes required under A.R.S. §§ 23-961 and 23-1065. If the Division selects this method, the Self-Insurer shall submit quarterly payroll and loss information by Payroll Classification Code upon request.

E. Quarterly tax payments are due April 30, July 31, October 31, and January 31 for the periods ending March 31, June 30, September 30, and December 31, respectively.

F. If the Self-Insurer fails to pay the annual or quarterly taxes to the Commission when due, the Self-Insurer shall pay a penalty of $25.00 or 5% of the tax or payment due, whichever is more, plus interest at the rate of 1% per month from the date the tax or payment was due until paid.

History

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

Ariz. Admin. Code § R20-5-1534 Premium Rates; Deviation Rates

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.

B. The Deviation Rate applicable to a Self-Insurer relates directly to the Self-Insurer's safety record, which is measured by the SelfInsurer's Experience Modification Rating specific to Arizona for the prior year. The schedule of Deviation Rates will include the Experience Modification Rate ranges that apply to each Deviation Rate.

C. The Experience Modification Rate for purposes of determining the Deviation Rate shall be calculated as follows:

1. In the first year of self-insurance, the Experience Modification Rate is set at 1.00;

2. In the second and third years of self-insurance, the Division calculates the Experience Modification Rate based upon the payroll and loss data accumulated by the Self-Insurer during its entire term of self-insurance; and

3. In the fourth year of self-insurance and all following years, the Division calculates the Experience Modification Rate based upon the payroll and loss data of the prior three tax years.

D. If the Division cannot calculate an Experience Modification Rate in the second and all following years because the Self-Insurer does not have any injuries, the Self Insurer shall receive the highest Deviation Rate.

E. The lowest Deviation Rate included in the schedule of Deviation Rates shall not be less than 10%.

History

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

Ariz. Admin. Code § R20-5-1535 Basis for Definitions, Classifications, Rating Procedures, and Plans

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.

History

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

Ariz. Admin. Code § R20-5-1536 Fixed Premium Plan; Eligibility; Formula; Necessary Information

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-Insurer may elect to 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 exceeds $100,000.

C. The Division shall calculate the net taxable premium under a Fixed Premium Plan as follows: [(payroll multiplied by the applicable Payroll Classification Rate) multiplied by (1 minus the Deviation Rate)] less premium discounts.

D. The Fixed Premium Plan applies only to operations and payroll in Arizona. The Self-Insurer shall combine all operations in Arizona to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065.

E. A Self-Insurer shall provide the following in support of using a Fixed Premium Plan:

1. Completed Annual Payroll Report Form for the current tax year;

Completed Annual Medical Report Form for the current tax year;

3. Completed Annual Injury Report Forms for current and prior three tax years; and

4. Completed Quarterly Tax Payment Form.

History

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

Ariz. Admin. Code § R20-5-1537 Ex-Medical Plan; Eligibility; Formula; Necessary Information

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 program for providing medical, surgical, or hospital services to a majority of the employees of the Self-Insurer or the employees of the members of a Self-Insurance Pool that complies with the requirements of A.R.S. § 23-1070.

B. The Division shall calculate the net taxable premium under an Ex-Medical Plan on a Payroll Classification Code basis as follows: [(payroll multiplied by the Payroll Classification Rate) multiplied by (1 minus the Deviation Rate) multiplied by (1 minus the D-Ratio)] less premium discounts.

C. The Ex-Medical Plan applies only to operations and payroll in Arizona. The Self-Insurer shall combine all operations in Arizona to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065.

D. A Self-Insurer shall provide the following in support of using an Ex-Medical Plan:

1. The completed forms required in R20-5-1536(E); and

2. Completed Annual Hospital Report Form for the current tax year.

History

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

Ariz. Admin. Code § R20-5-1538 Guaranteed Cost Plan; Eligibility; Formula; Necessary Information

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 premium under a Guaranteed Cost Plan, using the most recent year's data, as follows: [(payroll multiplied by the Payroll Classification Rate) multiplied by (the Experience Modification Rate specific to Arizona) multiplied by (1 minus the Deviation Rate)] less premium discounts.

C. The Guaranteed Cost Plan applies only to operations and payroll in Arizona. The Self-Insurer shall combine all operations in Arizona to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065.

D. The Experience Modification Rate specific to Arizona for purposes of determining the net taxable premium under a Guaranteed Cost Plan shall be calculated in the manner described in R20-5-1534(C). If the Division cannot calculate an Experience Modification Rate in the second and all following tax years because the Self-Insurer does not have any injuries, the Experience Modification Rate shall be set at 1.00.

E. A Self-Insurer shall provide the completed forms required by R20-5-1536(E) in support of using a Guaranteed Cost Plan.

History

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

Ariz. Admin. Code § R20-5-1539 Retrospective Rating Plan; Eligibility; Formula; Necessary Information

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

2. The Self-Insurer demonstrates financial instability as evidenced by declining financial ratios, an increase in leveraged debt or a net loss.

B. The Division shall calculate the net taxable premium under a Retrospective Rating Plan, using the most recent year's data, as follows: {[(payroll multiplied by the Payroll Classification Rate) multiplied by (the Experience Modification Rate specific to Arizona) multiplied by (1 minus the Deviation Rate) multiplied by the (Basic Premium Factor)] plus [(losses for the current year plus adjusted losses from the previous year) multiplied by (the Loss Conversion Factor)]} multiplied by the tax multiplier.

C. The Retrospective Rating Plan applies only to operations and payroll in Arizona. The Self-Insurer shall combine all operations in Arizona to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065.

E. The Division shall use assigned risk rates to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065 for all SelfInsurers on the Retrospective Rating Plan. The assigned risk rates shall be established annually by an actuary retained by the Commission that is a member the American Academy of Actuaries (MAAA) or a fellow of the Casualty Actuarial Society (FCAS).

F. A Self-Insurer shall provide the information required by R20-5-1536(E) in support of using a Retrospective Rating Plan.

History

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

Ariz. Admin. Code § R20-5-1540 Hearing Procedure on Denied Initial Application, Denied Renewal Application, Denied New Member Application, Revocation of Authority, or Denied Application for Waiver of Security

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-Administer under R20-5-1510.

3. Revocation of self-insurance authorization under R20-5-1516.

4. Denial of a request for waiver of security or revocation of a waiver of security under R20-5-1525.

B. A request for hearing shall comply with A.R.S. § 23-945 and be signed by an authorized representative of the party. The party shall file the request for hearing with the Commission within 30 days from the date the Commission's written findings and order under R20-5-1509, R20-5-1510, R20-5-1516, or R20-5-1525 is served on the party. A written findings and order of the Commission under R20-5-1509, R20-5-1510, R20-5-1516, or R20-5-1525 is deemed final if a request for hearing is not received by the Chief Counsel of the Commission within the time specified in this subsection.

C. The party filing a request for hearing under subsection (A)(1), (A)(2), or (A)(4) has the burden of proof to establish that it has met the applicable requirements of the Act and this Article. If a party files a request for hearing under subsection (A)(3), the Commission has the burden of proof to establish that good cause existed for revocation of self-insurance authorization.

D. The Chair of the Commission or designee shall preside over hearings held under this section. Except as otherwise provided in this section, the Chair or designee shall apply the provisions of A.R.S. § 41-1062 to hearings held under this section and shall have the authority and power of a presiding officer as described in A.R.S § 41-1062.

E. The Chief Counsel of the Commission shall represent the Commission in hearings held under this section and, upon direction of the Chair of the Commission, shall issue on behalf of the Commission all notices and subpoenas required under this section.

F. Except as otherwise provided by law, a party to a hearing may appear on its own behalf or through an authorized legal representative. When an authorized legal representative appears or intends to appear before the Commission, the representative shall file a notice of appearance with the Commission.

G. For purposes of this section, a document is considered filed when the Commission receives the document. All documents required to be filed with the Commission under R20-5-1541 and this section shall be served upon the Chief Counsel of the Commission and, if applicable, upon all parties to the proceeding.

H. The Commission shall serve written notice of hearing upon all parties at least 20 days before a scheduled hearing. The notice of hearing shall comply with the requirements in A.R.S. § 41-1061.

I. In addition to the provisions contained in A.R.S. §§ 41-1061 and 41-1062, the following provisions apply to all hearings conducted under this section:

1. A party may make an opening and closing statement with the permission of the Chair of the Commission or designee if the Chair or designee determines that the statement will be helpful to a determination of the issues.

2. All witnesses at a hearing shall testify under oath or affirmation.

3. The Chair or designee may admit documents into evidence if filed no later than 15 days before the date of the hearing. Upon request or upon direction from the Chair or designee, the Commission may issue a subpoena to the author of any document submitted into evidence to appear and testify at the hearing.

4. Upon written request by a party or upon direction from the Chair or designee, the Commission may issue a subpoena requiring the attendance and testimony of a witness. A party shall submit its subpoena request no later than 10 days before the date of the hearing.

5. Upon written request by a party or upon direction from the Chair or designee, the Commission may issue a subpoena duces tecum requiring the production of documents or other tangible evidence. The written request by a party shall contain a statement explaining the general relevance, materiality, and reasonable particularity of the documentary or other tangible evidence and the facts to be proved by them.

J. The Commission shall make a record of all hearings under this section. Any party desiring a copy of record may request a copy from the Commission.

K. Upon the completion of a hearing, the Commission shall issue a decision upon hearing either affirming, modifying, or reversing the original decision. The decision of the Commission shall be made by a majority vote of the quorum of Commission members present at a public meeting. The decision upon hearing shall comply with the provisions of A.R.S. § 41-1063.

History

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

Ariz. Admin. Code § R20-5-1541 Request for Review of Decision Upon Hearing

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 deemed final if a request for hearing is not received by the Commission within the time specified in this subsection.

B. A request for review of a Commission decision upon hearing must be based upon one or more of the following grounds materially affecting the rights of the requesting party:

1. Irregularities in the hearing proceedings or any order or abuse of discretion that deprives a party seeking review of a fair hearing;

2. Misconduct of the prevailing party;

3. Accident or surprise, which could not have been prevented;

4. Newly discovered material evidence that could not have been discovered with reasonable diligence and produced at the hearing;

5. Error in the admission or rejection of evidence, or errors of law occurring at, or during the hearing;

6. Bias or prejudice of the Division or Commission; or

The decision upon hearing is not justified by the evidence or is contrary to law.

C. The request for review shall state the specific facts and law in support of the request and shall specify the relief sought.

D. Upon the completion of a review, the Commission shall issue a decision upon review either affirming, modifying, or reversing the decision upon hearing no later than 30 days after receiving a request for review. The decision of the Commission shall be made by a majority vote of the quorum of Commission members present at a public meeting. The decision upon hearing shall comply with the provisions of A.R.S. § 41-1063.

E. The Commission's decision upon review is final unless a party seeks judicial review as provided in A.R.S. § 23-946.

History

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

Chapter 06 DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION

Article 1 RULES OF PRACTICE AND PROCEDURE BEFORE THE DIRECTOR

Ariz. Admin. Code § R20-6-101 Scope of Article; Definitions

A. Scope.

1. Administrative Hearings. This Article and Title 20 of the Arizona Revised Statutes govern administrative hearings before the Department. The Department shall use the authority of A.R.S. Title 41, Chapter 6, Article 10, the Office of Administrative Hearings' procedural rules, and this Article to govern the initiation and conduct of administrative hearings. In an administrative hearing, special procedural requirements in state statute or another Section in this Article shall also govern the proceedings unless the requirements are inconsistent with either A.R.S. Title 41, Chapter 6, Article 10, the Office of Administrative Hearings' rules or this Article.

2. Director's Hearings. Director's Hearings are governed by this Article and Title 20 of the Arizona Revised Statutes.

3. Rulemaking and Investigative Proceedings. Except as otherwise provided in Section R20-6-160 for rulemaking petitions, this Article does not apply to rulemaking or investigative proceedings before the Director.

4. Arizona Rules of Civil Procedure. Unless expressly applicable by rule or statute, the Arizona Rules of Civil Procedure do not apply to administrative or Director's hearings.

B. Definitions. In addition to the definitions provided in A.R.S. §§ 41-1001 and 41-1092, the following terms apply to this Article:

"Administrative Hearing" means an appealable agency action as defined by A.R.S. § 41-1092(3) or a contested case as defined by A.R.S. § 41-1001(5) subject to A.R.S. § 20-161 and A.R.S. Title 41, Chapter 6, Article 10.

2. "Attorney General" means the Attorney General of Arizona, and the Attorney General's assistants or special agents.

3. "Department" means the Arizona Department of Insurance and Financial Institutions, Division of Insurance.

4. "Director" has the meaning stated at A.R.S. § 20-102 or a Hearing Officer or any deputy, assistant, or examiner of the Director acting in the Director's name in accordance with A.R.S. § 20-150.

5. "Director's Hearing" means a hearing required by Title 20 to be conducted by the Director that is not an administrative hearing. A Director's hearing is not subject to the Arizona Open Meeting law. Director's hearings are required for, but not limited to, the following:

a. Taking comments to determine whether the cooperation among rating organizations and insurers is unfair or unreasonable or otherwise inconsistent with the provisions of Title 20 under A.R.S. § 20-365.

b. Taking comments to determine whether a reasonable degree of price competition exists at the consumer level with respect to a particular class of business or to determine an allowable percentage of increase in a proposed rate level for a particular line, subline, or class of business under A.R.S. § 20-383(B);

c. Taking comments to exempt rate filings or to find that a particular market is noncompetitive for purposes of rate filing under A.R.S. §§ 20-385(F) and (G);

d. Taking comments to determine recognized surplus lines under A.R.S. § 20-409;

e. Taking comments regarding acquisitions within a holding company system if the acquisition would require the approval of other states under A.R.S. § 20-481.07(G);

f. Taking comments to establish criteria for third parties who are eligible to provide credit enhancement for separate accounts and to accept assets that are pledged under A.R.S. § 20-536.01(C);

g. Taking comments to prescribe standards to allow investments in separate accounts to exceed established limits under A.R.S. § 20-536.01(D);

h. Taking comments in order to prescribe an investment grade rating, to recognize rating agencies for purposes of investment, or to prescribe standards by which obligations of insurers who have not received an investment grade rating may be eligible for investment under A.R.S. §§ 20-544 and 20-545;

i. Taking comments from parties affected by a proposed corporate acquisition, merger or consolidation of title insurers under A.R.S. §§ 20-1576(A)(1) and 20-1577(A);

j. Taking comments to establish a loss ratio standard for credit property and credit unemployment insurance under A.R.S. § 10-1621.05(B);

k. Taking comments for the purpose of exempting certain forms from the application of Title 20, Chapter 6, Article 14: Cancellation or Non-Renewal of Commercial Insurance under A.R.S. § 20-1671(12); and

l. Taking comments to establish prima facie rates for credit life and credit disability insurance under Section R20-6-604.03(A).

"Hearing Officer" means a person appointed by the Director to conduct a Director's hearing.

7. "Party" has the meaning prescribed at A.R.S. § 41-1001(16) and includes any person or entity subject to the jurisdiction of the Department under A.R.S. Title 20.

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-101 recodified from R4-14-101 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 618, effective February 4, 1999 (Supp. 99-1). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Ariz. Admin. Code § R20-6-102 Appearance and Practice before the Director for Administrative and Director's Hearings

A. A party may appear in their own behalf or through counsel. An insurer may appear through legal counsel or through a duly authorized officer of the corporation.

C. Conduct at any Director's hearing which, in the discretion of the Director or Hearing Officer is deemed contemptuous shall be grounds for exclusion from the hearing. Contemptuous conduct shall include willful disruption or obstruction of any Director's hearing, or any other willful conduct during any Director's hearing which lessens the dignity or authority of the Director or Hearing Officer.

D. Notice of a Director's Hearing is subject to Title 20 and shall contain at a minimum:

1. The subject matter on which the Director intends to take comments including the specific statutory sections authorizing the Director to conduct the hearing;

2. The date, time and place of the Director's hearing;

3. The guidelines for interested parties to submit comments to the Director and to participate in the hearing; and

4. Any other information the Director deems appropriate.

E. Notice of a Director's Hearing shall be posted on the Department's website and in compliance with A.R.S. § 38-431.02. The Director may additionally notify interested persons as the Director deems appropriate.

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-102 recodified from R4-14-102 (Supp. 95-1). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Ariz. Admin. Code § R20-6-103 Filing; Service

D. Service upon the attorney, or upon a party, shall be made personally in accordance with Rule 5(c) of the Arizona Rules of Civil Procedure, or by mail by enclosing a copy thereof in a sealed envelope and depositing same, postage prepaid, in the United States mail, addressed to the party to be served or his attorney at the address as shown by the records of the Director. Service by mail is complete upon deposit in the United States Mail.

E. ~~All notices of hearing and final decisions issued by the Director shall be served by mail.~~

F. ~~Proof of service shall be made by filing with the Director a written statement that service was made.~~

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-103 recodified from R4-14-103 (Supp. 95-1). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Ariz. Admin. Code § R20-6-104 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-104 recodified from R4-14-104 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-105 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-105 recodified from R4-14-105 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-106 Answer to Notice of an Administrative Hearing

C. An answer filed under this Section shall briefly state the party's position or defense to the proceeding and shall specifically admit or deny each of the allegations in the notice of hearing. An answering party who does not have, or cannot easily obtain, knowledge or information sufficient to admit or deny an allegation shall state that inability which shall have the effect of a denial. Any allegation not denied is admitted. A party who intends to deny only a part of an allegation shall expressly admit as much of that allegation as is true and shall deny the remainder.

D. A party who fails to file an answer required by this Section within the time allowed is in default. The Director may resolve the proceeding against the defaulting party. In doing so, the Director may regard any allegations in the notice of hearing as admitted by the defaulting party.

E. Defenses not raised in the answer are waived.

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-106 recodified from R4-14-106 (Supp. 95-1). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Ariz. Admin. Code § R20-6-107 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-107 recodified from R4-14-107 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-108 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-108 recodified from R4-14-108 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-109 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-109 recodified from R4-14-109 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-110 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-110 recodified from R4-14-110 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-111 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-111 recodified from R4-14-111 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3374, effective May 31, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-6-112 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-112 recodified from R4-14-112 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3374, effective May 31, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-6-113 Expired

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-113 recodified from R4-14-113 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 1421, effective May 31, 2011 (Supp. 11-3).

Ariz. Admin. Code § R20-6-114 Request for Rehearing or Review

A. Any party aggrieved by an administrative decision may file with the Director, within time limits and other procedural guidelines contained in A.R.S. § 41-1092.09, a written motion for a rehearing or review of the decision specifying the particular reason for the request.

~~1. Irregularity in the hearing proceedings, or any order or abuse of discretion whereby the party seeking rehearing or review was deprived of a fair hearing;~~

~~2. Misconduct by the Director, the hearing officer or any party to the hearing;~~

~~3. Accident or surprise which could not have been prevented by ordinary prudence;~~

~~4. Newly discovered material evidence which could not have been discovered with reasonable diligence and produced at the hearing;~~

~~5. Excessive or insufficient sanctions or penalties imposed;~~

~~6. Error in the admission or rejection of evidence, or errors of law occurring at the hearing or during the course of the hearing;~~

~~7. Bias or prejudice of the Director or hearing officer;~~

~~8. That the order, decision, or findings of fact are not justified by the evidence or are contrary to law.~~

C. A request for rehearing or review which is not timely filed is deemed waived for the purpose of judicial review.

D. A motion for rehearing shall specify which of the grounds listed in subsection (G) it is based upon and shall set forth the specific facts and laws in support of the motion. A motion may cite relevant portions of testimony from the hearing if a transcript is provided with the motion and may cite hearing exhibits by reference to the exhibit number. The motion shall specify the relief sought by the request, such as a different finding of fact, conclusion of law or order and may seek multiple forms of relief in the alternative. When a motion for rehearing or review is based on an affidavit, the moving party shall attach the affidavit to the motion.

E. A party may file a separate request for a stay of the Director's decision pursuant to A.R.S. § 20-162(B). Filing a stay request or a motion for rehearing does not stay an order filed by the Director. The Director may stay an order pending the resolution of a motion for rehearing or review.

G. The Director may grant a motion for rehearing or review for any of the following causes:

1. Irregularity in the proceedings before the Department, in any order, or any abuse of discretion that deprives the moving party of a fair hearing;

Misconduct by the Department, the administrative law judge, or the prevailing party;

3. Accident or surprise that could not have been prevented by ordinary care;

4. Newly discovered material evidence that could not reasonably have been discovered and produced at the original hearing;

5. Excessive or insufficient penalties;

6. Error in admitting or rejecting evidence or other legal errors occurring at the hearing; and

7. The decision is not justified by the evidence or is contrary to law.

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-114 recodified from R4-14-114 (Supp. 95-1). Amended effective June 15, 1998 (Supp. 98-2). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Ariz. Admin. Code § R20-6-115 [Repealed]

History

Adopted effective January 23, 1992 (Supp. 92-1). R20-6-115 recodified from R4-14-115 (Supp. 95-1). Amended effective June 15, 1998 (Supp. 98-2). Repealed by final rulemaking at 28 A.A.R. 3617, effective 1/1/2023.

Ariz. Admin. Code §§ R20-6-116 through R20-6-158 Reserved

Ariz. Admin. Code § R20-6-159 [Repealed]

History

Adopted effective February 17, 1977 (Supp. 77-1). R20-6-159 recodified from R4-14-159 (Supp. 95-1). Repealed effective June 15, 1998 (Supp. 98-2).

Ariz. Admin. Code § R20-6-160 Petition for Rulemaking Action

A. The following definitions apply in this Section.

"Petitioner" means a person who petitions the Department for Rulemaking action as authorized under A.R.S. § 41-1033(A).

2. "Rule" has the meaning stated at A.R.S. § 41-1001 and is enforceable by the Department.

3. "Rulemaking action" means the process for formulation and finalization of a new rule, or amendment or repeal of an existing rule.

4. "Substantive Policy Statement" has the meaning stated at A.R.S. § 41-1001, is advisory only, and is not enforceable by the Department.

B. Any person may petition the Department under A.R.S. § 41-1033(A) to either:

1. Make, amend, or repeal a final Rule;

2. Review an existing agency practice or Substantive Policy Statement that the Petitioner alleges to constitute a Rule.

C. A person who files a petition pursuant to A.R.S. § 41-1033(A), shall include the following information in the petition:

1. The Petitioner's name and contact information;

2. The name and address of any organization the Petitioner represents;

3. Whether the Petitioner is petitioning the Department to:

a. Make, amend, or repeal a final Rule; or

b. Review an existing agency practice or Substantive Policy Statement that the Petitioner alleges to constitute a Rule;

4. A detailed explanation of Petitioner's basis for submitting the petition;

5. If the Petitioner is petitioning the Department to make a Rule, the language of the proposed new Section and the specific authority for the requested Rulemaking action;

10. The Petitioner's dated signature.

D. The petitioner may submit additional supporting information, including:

1. Statistical data; and

2. A list of other persons and entities likely to be affected by the proposed Rulemaking action, with an explanation of the likely effects.

E. Within 60 days of the date the Department receives the petition, the Department shall send the Petitioner a written decision indicating whether the Department is denying the petition or will initiate the requested Rulemaking action, with the reasons for the decision.

History

New Section adopted by final rulemaking at 5 A.A.R. 618, effective February 4, 1999 (Supp. 99-1). Section heading corrected at Department Request, Office File No. M11-401, filed October 27, 2011 (Supp. 11-3). Amended by final rulemaking at 28 A.A.R. 3626, effective 1/1/2023.

Article 2 TRANSACTION OF INSURANCE

Ariz. Admin. Code § R20-6-201 Advertisements of Health

A. Definitions. The following definitions apply to this Section and to R20-6-201.01, R20-6-201.02, and R20-6-203 :

1. "Advertisement" means materials and information used by an insurer to generate insurance business.

a. Advertisement includes the following information:

i. Printed and published material, audio visual material, or other forms of electronic communication that an insurer uses or displays in direct mail, newspapers, magazines, radio, television, billboards, Internet web sites, and similar media to inform the public about the insurer or its products;

ii. Descriptive literature and sales aids an insurer issues or releases for presentation to members of the public, including circulars, leaflets, booklets, depictions, illustrations, and form letters;

iii. Prepared sales talks and presentations and material for use by an insurer or prepared by an insurer for use by authorized producers; and

iv. Material included with a policy when the policy is delivered and material used in the solicitation of renewals and reinstatements;

b. "Advertisement" does not include the following:

i. Material used solely for training and educating an insurer's employees or producers;

ii. Material used in-house by insurers;

iii. Communications within an insurer's own organization not intended for dissemination to the public;

iv. Individual communications with current policy holders regarding a member's personal information other than material urging the policyholders to increase or expand coverages;

v. Correspondence between a prospective group or blanket policyholder and an insurer in the course of negotiating a group or blanket contract;

vi. Court-approved material ordered by a court to be disseminated to policyholders;

vii. Material in connection with promotion or sponsorship of a charitable event in which only the name of the insurer is displayed;

viii. A general announcement from a group or blanket policyholder to eligible individuals on an employment or membership list that a contract or program has been written or arranged. The announcement shall clearly indicate that it is preliminary to the issuance of a booklet and that does not describe the specific benefits under the contract or program nor the advantages as to the purchase of the contract or program;

ix. A general announcement by the sponsor that endorses the program;

x. Health and wellness material with general health and wellness information; or

xi. Press releases and news releases not intended to generate business.

2. "Disability insurance" has the same meaning prescribed in A.R.S. § 20-253.

3. "Elimination period" means the time between the date a loss occurs and the date that benefits begin to accrue for that loss.

4. "Exclusion" means a policy term stating a risk that an insurer has not assumed.

5. "Health insurance" means:

a. Disability insurance;

b. Insurance provided by a service corporation regulated under A.R.S. § 20-821 et seq.;

c. Insurance provided by a prepaid dental plan organization regulated under A.R.S. § 20-1001 et seq.; and

d. Insurance provided by a health care services organization regulated under A.R.S. § 20-1051 et seq.

6. "Insurance administrator" or "administrator" has the meaning prescribed in A.R.S. § 20-485(A)(1).

7. "Insurer" has the same meaning prescribed in A.R.S. § 20-104.

8. "Limitation" means a policy term, other than an exclusion or reduction, that decreases the risk assumed by the insurer or the insurer's obligation to provide benefits.

9. "Person" has the meaning in A.R.S. § 20-105.

10. "Policy" means any plan, certificate, contract, agreement, statement of coverage, evidence of coverage, subscription contract, membership coverage, rider, or endorsement that provides disability benefits, health insurance, medical, surgical or hospital expense benefits, long-term care benefits, or Medicare supplement benefits in the form of a cash indemnity, reimbursement, or service.

11. "Reduction" means a policy term that reduces the amount of an insured's benefits. A reduction means that the insurer has assumed the risk of a particular loss, but the amount or period of the insurer's coverage is less than what the insurer would have paid for the loss without the reduction.

"Spokesperson" means a person making a testimonial about or an endorsement of an insurer's product who:

a. Has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee, or independent contractor;

b. Has been formed by the insurer, is owned or controlled by the insurer or its employees, or is a person who owns or controls an insurer;

c. Is in a policy-making position and affiliated with the insurer in any capacity described in subsections (a) or (b); or

d. Is directly or indirectly compensated for making the testimonial or endorsement.

B. Scope.

1. This Section applies to all advertisements for health insurance.

2. This Section applies to the conduct of insurers, producers, and third-party administrators.

C. General requirements. Insurers, producers, and third-party administrators shall ensure that health insurance advertisements meet the requirements of this Section.

1. Advertisements shall be truthful and not misleading. The insurer shall not use words or phrases, the meaning of which is clear only by implication or by familiarity with insurance terminology.

2. An advertisement shall not omit information or use words, phrases, statements, references, or illustrations if the omission of information or use of words, phrases, statements, references, or illustrations may mislead or deceive purchasers or prospective purchasers.

3. The words and phrases used to describe a policy shall accurately describe the benefits of the policy and not exaggerate any benefit through the use of phrases such as "all," "full," "complete," "comprehensive," "unlimited," "up to," "as high as," "this policy will pay your hospital and surgical bills" or "this policy will replace your income," or similar words and phrases.

4. If a policy covers only one disease or a list of specified diseases, any advertisement for the policy shall not imply coverage beyond the specified diseases.

5. If a policy pays varying amounts for the same loss occurring under different conditions or pays benefits only when a loss occurs under certain conditions, any advertisement for the policy shall disclose the limited conditions.

If an advertisement specifies payment of a particular dollar amount for hospital room and board expenses, the advertisement shall also include the maximum daily benefit and the maximum time limit for which those expenses are covered.

7. An advertisement that refers to any dollar amount, period of time for which a benefit is payable, cost of policy, or specific policy benefit or the loss for which a benefit is payable shall also disclose any related exclusions, reductions, and limitations without which the advertisement would have the capacity and tendency to mislead or deceive.

8. An advertisement covered by subsection (C)(7) shall disclose the existence of a waiting period if a policy contains a period between the effective date of the policy and the effective date of coverage under the policy. The advertisement shall disclose the existence of an elimination period.

9. An advertisement shall disclose any exclusion, reduction, or limitation applicable to a pre-existing condition; however, an insurer is not required to make disclosure in an advertisement that does not reference specific product information, benefit level, or dollar amounts.

10. If a policy has an exclusion, reduction, or limitation applicable to a preexisting condition, an advertisement shall not state or imply that the applicant's physical condition or medical history will not affect the issuance of the policy or payment of a claim and shall not use the phrase "no medical examination required" or other similar phrase.

11. If an advertisement refers to renewability, cancellation, or termination of a policy, or states or illustrates time or age in connection with eligibility of applicants or continuation of the policy, the advertisement shall disclose the provisions relating to renewability, cancellation, and termination and any modification of benefits, losses covered, or premiums because of age or for other reasons, in a manner that does not minimize or obscure the qualifying conditions.

12. An advertisement shall not make any offer prohibited under A.R.S. § 20-452(4).

13. An advertisement shall not advertise any health insurance policy or form that has not been approved by the Department, unless the policy or form being advertised is exempt from approval or not subject to approval by order or statute.

14. An advertisement shall not state or imply that a product being offered is an introductory, special, or initial offer that will entitle the applicant to receive advantages not described in the policy by accepting the offer.

15. An advertisement designed to produce leads either by use of a coupon, a request to write or call the company, or subsequent advertisement before contact, shall disclose that a producer may contact the potential applicant.

D. Method of disclosure of required information. If an insurer is required by law to disclose particular information, the information shall be conspicuous and in close proximity to the statements to which the information relates, or under a prominent caption so that the required disclosure is not minimized, obscured, presented in an ambiguous fashion, or intermingled with the content of the advertisement.

E. Testimonials.

1. Testimonials used in advertisements shall be genuine, represent the current opinion of the author, be applicable to the policy advertised, and be accurately reproduced. The insurer shall provide the Department with the full name of the author and a copy of the full testimonial if the advertisement is filed with the Department or requested by the Department. If an insurer uses a testimonial, the insurer adopts the statements in the testimonial as the insurer's own statements. If a testimonial or endorsement is used more than one year after it is given, the insurer shall obtain a written confirmation from the author that the testimonial represents the current opinion of the author.

2. The insurer shall disclose that a spokesperson has a financial interest or the proprietary or representative capacity of a spokesperson in an advertisement in the introductory portion of a testimonial or endorsement in the same form and with equal prominence as the endorsement. If a spokesperson is directly or indirectly compensated for making a testimonial or endorsement, the insurer shall disclose that fact in the advertisement by language that states, "Paid Endorsement," or words of similar import in type, style, and size at least equal to that used for the spokesperson's name or the body of the testimonial or endorsement, whichever is larger. For television or radio advertising, the insurer shall place the required disclosure prominently in the introductory portion of the advertisement.

F. Statistics. An advertisement with information on the dollar amounts of claims paid, the number of persons insured, or similar statistical information relating to any insurer or policy shall not use facts that are irrelevant to the sale of insurance and shall accurately reflect all of the relevant facts specific to the advertised policy or insurer. An advertisement shall not state or imply that statistics are derived from the policy being advertised unless that is true. The insurer shall identify in the advertisement the source of any statistics used.

G. Inspection of policy. An offer in an advertisement of free inspection of a policy or offer of a premium refund does not cure misleading or deceptive statements in the advertisement.

H. Identification of plan or number of policies.

1. If an advertisement offers a choice in the amount of benefits the advertisement shall disclose that the amount of benefits depends on the policy selected and that the premium will vary with the amount of the benefits.

2. If an advertisement refers to benefits contained in more than one policy, other than a group master policy, the advertisement shall disclose that the benefits are provided only if multiple policies are purchased.

I. Disparaging comparisons and statements. An advertisement shall not make unfair, incomplete, or unsubstantiated comparisons of other insurers' policies or benefits or falsely disparage other insurers' policies, services, or business methods. A comparison is unsubstantiated if the insurer has no empirical study, analysis, or documentation supporting the comparative statement or comparison of policies or benefits.

J. Jurisdictional limits. If an insurer has an advertisement that is meant to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed, the advertisement shall indicate that the insurer is licensed in a specified state or states only, or is not licensed in a specified state or states, by use of language such as "This Company is licensed only in State A" or "This Company is not licensed in State B."

K. Identity of insurer. The insurer shall state the name of the actual insurer in all of its advertisements. An advertisement shall clearly identify the insurer and shall not use a trade name, an insurance group designation, name of the parent company of the insurer, name of a particular division of the insurer, service mark, slogan, symbol, or other device that may mislead or deceive the public as to the insurer's identity.

L. Group insurance. An advertisement shall not state or imply that prospective policyholders become group or quasi-group members and enjoy special rates or underwriting privileges, unless it is true. An advertisement to join an association, trust, or group that is also an invitation to contract for insurance coverage shall disclose that the applicant will be purchasing both membership in the association, trust, or group and insurance coverage.

M. Government approval. An advertisement shall not state or imply any of the following:

1. That a governmental agency or regulator is connected with or has provided or endorsed a policy or endorsed an insurer;

2. That a governmental agency or regulator has examined an insurer's financial condition and found it satisfactory. This subsection does not apply if an insurer is responding to a specific documented, public, false allegation about its financial condition.

N. Endorsements. An advertisement may state that an individual, group, society, association, or other organization has approved or endorsed the insurer or its policy if the organization or group has done so in writing and if any proprietary relationship between the organization and the insurer is disclosed.

O. Claims handling. An advertisement shall not contain false statements about the time within which claims are paid or statements that imply that claim settlements will be liberal or generous beyond the terms of the policy.

P. Statements about the insurer. An advertisement shall not contain false or misleading statements about an insurer's assets, corporate structure, financial standing, length of time in business, or relative position in the insurance business.

History

Former General Rule Number 2. R20-6-201 recodified from R4-14-201 (Supp. 95-1). Amended by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-201.01 Insurer Advertising Responsibility and Records

A. An insurer shall establish, and at all times maintain, a system of control over the content, form, and method of dissemination of all advertisements. The insurer whose policies are advertised is responsible for the advertisements, regardless of who writes, creates, designs, or presents the advertisement, except the insurer is not responsible for any advertisement placed by a person to whom the insurer gave no actual or apparent authority. Before using an advertisement about an insurer or its products, a producer shall get written approval from the insurer for use of advertisements that were not supplied by the insurer.

B. An insurer shall maintain, at its home or principal office, the following:

Advertisements disseminated by the insurer in Arizona or any other state, including:

a. Each printed, published, recorded, or prepared advertisement of individual policies; and

b. Typical printed, published, recorded, or prepared advertisements of blanket, franchise, and group policies.

2. A notation attached to each advertisement specifying the manner and extent of distribution and the form number of any policy advertised; and

3. Documentation supporting any testimonials, statistical claims, or comparisons shown in the advertising.

C. An insurer shall maintain the advertisements, notations, and supporting documentation for at least three years from the date of first dissemination.

History

New Section made by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-201.02 Procedures for Filing Advertising Materials; Transmittal Form

A. An insurer that is required to file a health insurance advertisement with the Department as specified in A.R.S. §§ 20-826(T), 20-1018, 20-1057(X), 20-1110(E), or 20-1662 shall file the advertisement with a transmittal form prescribed by the Department.

B. The transmittal form shall include the following information:

Identifying information of the insurer, including name, address, National Association of Insurance Commissioners' identification number, and type of insurer;

2. A contact person at the insurer with whom the Department can communicate about the advertisement;

3. Description of the type of advertisement being filed;

4. Planned use and dissemination of the advertisement, including date of first use, or a statement that the advertisement will not be used any earlier than a specified date;

5. Description of product being advertised;

6. Form number and name for the advertised product;

7. A certification from an officer of the insurer that the advertisement complies with applicable laws; and

8. The dated signature of the insurer's officer.

History

New Section made by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-202 Advertising, Solicitation, and Transaction of Life Insurance

A. The definitions in R20-6-201(A) and the following definition apply in this Section:

"Life insurance" means a life insurance contract, including all benefits payable under the policy.

B. Applicability

1. This Section applies to:

a. All persons subject to regulation under A.R.S. Title 20; and

b. Advertising, promotion, solicitation, negotiation, and sale of life insurance policies, regardless of the form of dissemination.

2. This Section does not apply to group insurance, franchise insurance, or to annuities without life contingencies.

C. General provisions. A life insurance advertisement shall not mislead the public by:

1. Omitting information that fairly describes the subject matter as a life insurance policy and the benefits available under the policy;

Placing undue emphasis on facts that, even if true, are not relevant to the sale of life insurance; or

Placing undue emphasis on features of incidental or secondary importance to the life insurance aspects of the policy.

D. The Department deems the following acts misleading and deceptive:

1. Using any statement, including phrases such as "investment," "investment plan," "founders plan," "charter plan," "expansion plan," "profit," "profits," or "profit sharing," in a context or under circumstances or conditions that may mislead a purchaser or prospective purchaser to believe that the insurer is selling something other than a life insurance policy or will provide some benefit not included in the policy, or not available to other persons of the same class and equal expectation of life;

2. Using any phrase as the name or title of a life insurance policy if the phrase does not include the words "life insurance," unless other language in the same document expressly provides that the contract is a life insurance policy;

3. Making any statement relating to the growth or earnings of the life insurance industry or to the tax status of life insurance companies in a context that would reasonably be understood as attempting to interest a prospective applicant in the purchase of shares of stock in the insurance company rather than in the purchase of a life insurance policy;

4. Making any statement that reasonably tends to imply that the insured will enjoy a status common to a stockholder or will acquire a stock ownership interest in the insurance company by purchasing the policy, unless the statement is made with reference to policies of domestic life insurers engaged in a program allowed under A.R.S. § 20-453;

5. Providing a policyholder with a premium receipt book, policy jacket, return envelope, or other printed or electronic material referring to the insurer's "investment department," "insured investment department," or similar terminology in a manner implying that the policy is sold, issued, or serviced by the insurer's investment department;

6. Making any statement that reasonably tends to imply that, by purchasing a policy, the purchaser or prospective purchaser will become a member of a limited group of persons who may receive the payment of dividends, special advantages, benefits, or favored treatment unless the insurance contract specifically provides for the described payment of dividend, special advantages, benefits, or favored treatment;

7. Stating or implying that only a limited number of persons or limited class of persons may buy a particular kind of policy, unless the limitation is related to recognized underwriting practices or specifically stated in the policy or rider;

8. Describing premium payments in language that states the payment is a "deposit," unless:

a. The payment establishes a debtor-creditor relationship between the insurance company and the policyholder; or

b. The term is used with the word "premium" in a manner as to clearly indicate the true character of the payment;

9. Providing any illustration or projection of future dividends that:

a. Is not based on the company's actual scale for payment of current dividends, and

b. Does not clearly indicate that the dividends are not guarantees;

10. Using the words "dividends," "cash dividends," "surplus," or similar phrases in a manner that states or implies that the payment of dividends is guaranteed or certain to occur;

11. Stating, without qualification, that a purchaser of a policy will share in a stated percentage or portion of the insurer's earnings;

12. Making any statement that projected dividends under a participating policy will be or can be sufficient at any future time to assure the receipt of benefits such as a paid-up policy without further payment of premiums unless the statement also explains:

a. The benefits or coverage that would be provided at the future time, and

b. The conditions under which the receipt of benefits without further payment of premiums would occur;

13. Describing a life insurance policy or premium payments in terms of "units of participation," unless accompanied by other language clearly indicating that the references are to a life insurance policy or to premium payments, as applicable.

14. Advising producers to avoid disclosing that life insurance is the subject of the solicitation or sale;

15. Stating that an insured is guaranteed certain benefits if the policy is allowed to lapse, without explaining the non-forfeiture benefits;

16. Using a dollar amount in printed material to be shown to a prospective policyholder, unless the amount is accompanied by language that:

a. States the nature of the dollar amount,

b. Prohibits including the use of dollar amounts not related to guaranteed values and properly projected dividend figures, and

c. Prohibits the use of figures showing growth of stock values, or other values not a part of the life insurance contract.

17. Stating that a policy provides features not found in any other insurance policy, unless the insurer can demonstrate that other policies do not have the same feature;

18. Making any statement or implication about an insurance policy that cannot be verified by reference to the policy contract, a sample of the policy being described, or the company's officially published rate book and dividend illustrations;

19. Stating that life insurance is "loss proof" or "depression proof," except that an insurer may make statements that life insurance benefits, other than dividends, are guaranteed by the company regardless of economic conditions;

20. Making any statement that a company makes a profit as a result of policy lapses or surrenders;

21. Making comparisons to the past experience of other life insurance companies as a means of projecting possible experience for the company issuing the advertising; and

22. Conduct or statements designed to mislead a prospective applicant or purchaser.

History

Former General Rule Number 68-14. R20-6-202 recodified from R4-14-202 (Supp. 95-1). Amended by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-203 Form Filings; Translations

A. An insurer, rate service organization, or rating organization shall provide to the Department, at the time of filing, an English language translation of each form, advertisement, or other document or material that the insurer is required by statute or rule to file with the Department, if the filed document or material contains communication in a language other than English.

B. The translation filed under subsection (A) shall compare the foreign language version in a side-by-side format with the English language translation. An insurer, rate service organization, or rating organization shall ensure that the translation is performed by a person with formal college-level or specialized training in the foreign language, including training in grammar and sentence syntax.

C. With each translation, an insurer, rate service organization, or rating organization shall also provide to the Department a sworn statement signed by the translator who translated the document that includes the qualifications of the translator under subsection (B) and attests that the translation is identical in substance to the English document or material.

D. If an insurer, rate service organization, or rating organization files a foreign language version of a document or material that the insurer has previously filed in English, the insurer is not required to refile the English version, but shall identify the English version, provide the side-by-side comparison under subsection (B), and file the sworn statement required under subsection (C).

History

Former General Rule Number 71-23; Repealed effective January 1, 1981 (Supp. 80-6). R20-6-203 recodified from R4-14-203 (Supp. 95-1). New Section made by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-204 Expired

History

Former General Rule Number 71-24; Former Section R4-14-204 repealed, new Section R4-14-204 adopted effective January 1, 1981 (Supp. 80-6). R20-6-204 recodified from R4-14-204 (Supp. 95-1). Amended effective July 14, 1998 (Supp. 98-3). Amended by final rulemaking at 6 A.A.R. 475, effective January 5, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R 2061, effective August 4, 2007 (Supp. 07-2). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 136, effective December 15, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-6-205 Local or Regional Retaliatory Tax Information

A. Definitions.

1. "Addition to the rate of tax" means the tax rate determined under subsection (D) to be applied under A.R.S. 20-230(A) and this Section to foreign or alien insurers domiciled in a foreign country or other state that impose local or regional taxes.

2. "Alien insurer" has the meaning prescribed in A.R.S. § 20-201.

3. "Arizona life insurer" means a domestic insurer authorized to issue life insurance policies in this state within the meaning of A.R.S. § 20-254 or annuities within the meaning of A.R.S. § 20-254.01, regardless of whether the insurer is authorized to transact disability insurance in this state.

4. "Department" means the Arizona Department of Insurance and Financial Institutions.

5. "Director" has the meaning prescribed in A.R.S. § 20-102.

6. "Domestic insurer" has the meaning prescribed in A.R.S. § 20-203.

7. "Foreign insurer" has the meaning prescribed in A.R.S. § 20-204.

8. "Foreign or alien life insurer" means a foreign or alien insurer authorized to issue life insurance policies in this state within the meaning of A.R.S. § 20-254 or annuities within the meaning of A.R.S. § 20-254.01, regardless of whether the insurer is authorized to transact disability insurance in this state.

9. "Local or regional taxes" means any tax, license, or other obligation imposed upon domestic insurers or their producers by any:

a. City, county, or other political subdivision of a foreign country or other state; or

b. Combination of cities, counties, or other political subdivisions of a foreign country or other state.

10. "Other Arizona insurer" means a domestic insurer authorized to transact one or more lines of insurance in this state but not authorized to transact life insurance or annuities in this state.

11. "Other foreign or alien insurer" means a foreign or alien insurer authorized to transact one or more lines of insurance in this state but not authorized to transact life insurance or annuities in this state.

"Other state" means any state in the United States, the District of Columbia, and territories or possessions of the United States, excluding Arizona.

13. "Premium Tax and Fees Report," includes the "Survey of Arizona Domestic Insurers" and the "Retaliatory Taxes and Fees Worksheet," and means the form prescribed by the Director and filed annually by insurers under A.R.S. § 20-224.

B. Scope. This Section applies to all foreign, alien, and domestic insurers and to Premium Tax and Fees Reports filed by all insurers.

C. Data to be reported by domestic insurers. As a part of its Premium Tax and Fees Report, each domestic insurer shall file a Survey of Arizona Domestic Insurers that reports the following data for the calendar year covered by the insurer's Premium Tax and Fees Report with respect to each foreign country or other state in which the insurer was required to pay any local or regional taxes:

1. Total local or regional taxes paid; and

2. Total premiums taxed under the premium taxing statute of the foreign country or other state, as reported by the insurer in any premium tax report filed under the laws of the foreign country or other state.

D. Computation of statewide and foreign countrywide additions to the rate of tax. For each foreign country or other state having one or more local or regional taxes on domestic insurers, the Department shall compute on a statewide or foreign countrywide basis an addition to the rate of tax. The Department shall compute the addition to the rate of tax payable by Arizona life insurers separately from the addition to the rate of tax payable by other Arizona insurers. The addition to the rate of tax payable by each category of Arizona domestic insurers shall be the quotient of:

1. The aggregate local or regional taxes reported as paid to the foreign country or other state by domestic insurers in each category for the calendar year covered by the Premium Tax and Fees Report divided by,

2. The aggregate statewide or foreign countrywide premiums taxed under the premium taxing statute of the other state or foreign country reported by domestic insurers in each category for the calendar year covered by the Premium Tax and Fees Report.

E. Publication of additions to the rate of tax. The Department shall publish additions to the rate of tax determined under A.R.S. § 20-230(A) and this Section, based upon the survey information gathered from domestic insurers for the preceding calendar year under subsection (C). The Department shall publish the information annually on the Department web site, on or before November 1, and in the Retaliatory Taxes and Fees Worksheet for the next year's Premium Tax and Fees Report.

F. Foreign and Alien Insurers' Report of the Effect of Local or Regional Taxes. Each foreign or alien insurer domiciled in a foreign country or other state for which the Department publishes an addition to the rate of tax shall include in the "State or Country of Incorporation" column of its Retaliatory Taxes and Fees Worksheet for the calendar year covered by its Premium Tax and Fees Report an amount equal to:

1. The total premiums received in Arizona that would be taxed under the laws of the domiciliary jurisdiction, as reported in the "State or Country of Incorporation" column of its premium tax and fees report multiplied by,

2. The applicable addition to the rate of tax published by the Department for the calendar year covered by the insurer's Premium Tax and Fees Report.

G. Contesting computation. A foreign or alien insurer subject to this Section may preserve the right to contest the computation of the addition to the rate of tax by submitting a notice of appeal under A.R.S. Title 41, Chapter 6, Article 10 before or at the time the retaliatory tax is paid. Subject to A.R.S. § 20-162, the filing of a notice of appeal to contest the computation of the applicable addition to the rate of tax does not relieve a foreign or alien insurer of the obligation to timely pay the retaliatory tax, and does not stay accrual of any applicable interest and penalties.

History

Former General Rule Number 71-25; Repealed effective March 19, 1976 (Supp. 76-2). R20-6-205 recodified from R4-14-205 (Supp. 95-1). Section R20-6-205 renumbered from R20-6-206 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2). Amended by final rulemaking at 29 A.A.R. 3621, effective 1/7/2024.

Ariz. Admin. Code § R20-6-206 Expired

History

Former General Rule Number 72-30. Repealed effective February 22, 1993 (Supp. 93-1). R20-6-206 recodified from R4-14-206 (Supp. 95-1). New Section adopted effective December 29, 1995 (Supp. 95-4). Amended effective November 5, 1998 (Supp. 98-4). Former R20-6-206 renumbered to R20-6-205; new R20-6-206 renumbered from R20-6-207 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3374, effective May 31, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-6-207 Gender Discrimination

A. The following definitions apply to this Section:

1. "Applicant" means a person who is applying for a policy.

2. "Policy" means an insurance policy, plan, contract, certificate, evidence of coverage, subscription contract, or binder, including a rider or endorsement offered by an insurer.

3. "Insurer" means any company that issues a policy.

B. Applicability and scope. This Section applies to any policy or certificate delivered or issued for delivery in this state.

C. Availability requirements.

1. An insurer shall not deny availability of any insurance policy on the basis of the gender or marital status of the insured or prospective insured.

2. An insurer shall not restrict, modify, exclude, reduce, or limit the amount of benefits payable, or any term, conditions or type of coverage on the basis of an applicant's or insured's gender or marital status, except to the extent the amount of benefits, term, conditions, or type of coverage vary as a result of the application of rate differentials permitted under A.R.S. Title 20.

3. An insurer may consider marital status to determine whether a person is eligible for dependent coverage or benefits.

D. Prohibited practices. The following practices and any other practice that treats similarly situated persons differently based on gender unless the different treatment is specifically allowed by law, is prohibited.

1. Denying coverage to a person of one gender who is self-employed, employed part-time, or employed by relatives, if coverage is offered to a person of the opposite gender who is similarly employed;

2. Denying a policy rider to a person of one gender if the rider is available to a person of the opposite gender;

3. Denying maternity benefits to an applicant or insured who buys a policy for individual coverage if the insurer offers comparable family coverage policies with maternity benefits;

4. Denying, under group policies, dependent coverage to an employee of one gender if dependent coverage is available to an employee of the opposite gender;

5. Denying a disability income policy to an employed person of one gender if a policy is offered to a person of the opposite gender who is similarly employed;

6. Treating complications of pregnancy differently from any other illness or sickness covered under a policy;

7. Restricting, reducing, modifying, or excluding benefits relating to coverage involving the genital organs of only one gender;

Offering lower maximum monthly benefits to a person of one gender than to a person of the opposite gender who is in the same classification under a disability income policy;

Offering more restrictive benefit periods or more restrictive definitions of disability to a person of one gender than to a person of the opposite gender who is in the same classification under a disability income policy;

10. Establishing different conditions for a policyholder of one gender to exercise benefit options contained in the policy than for a person of the opposite gender;

11. Limiting the amount of coverage an insured or prospective insured may purchase based upon the insured's or prospective insured's marital status unless the limitation is for the purpose of defining persons eligible for dependent's benefits; and

12. Otherwise restricting, modifying, excluding or reducing the availability of any insurance contract, the amount of benefits payable, or any term, condition or type of coverage on account of gender or marital status in all lines of insurance.

History

Former General Rule Number 73-32. R20-6-207 recodified from R4-14-207 (Supp. 95-1). Former R20-6-207 renumbered to R20-6-206; new R20-6-207 renumbered from R20-6-209 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-208 Group Coverage Discontinuance and Replacement

A. Definitions. The following definitions apply in this Section:

1. "Group insurance" means an insurance benefit that meets all the following conditions:

a. Coverage is provided through insurance policies or subscriber contracts to classes of employees or members defined in terms of conditions pertaining to employment or membership;

b. The coverage is not available to the general public and can be obtained and maintained only because of the covered person's membership in or connection with the particular organization or group;

c. Coverage is paid for by bulk payment of premiums to the insurer; and

d. An employer, union, or association sponsors the plan.

"Health insurance coverage" means a hospital and medical expense incurred policy, a nonprofit health care service plan contract, a health maintenance organization subscriber contract, or any other health care plan or arrangement that pays for or furnishes medical or health care services whether by insurance or otherwise, but does not include the following:

a. Coverage only for accident, or disability income insurance, or any combination of accident and disability income insurance;

b. Coverage issued as a supplement to liability insurance;

c. Liability insurance, including general liability insurance and automobile liability insurance;

d. Workers' compensation or similar insurance;

e. Automobile medical payment insurance;

f. Credit-only insurance;

g. Coverage for onsite medical clinics; and

h. Other insurance coverage similar to the coverage specified in subsections (2)(a) through (g), of the Health Insurance Portability and Accountability Act of 1996 (Pub.L.No. 104-191) (HIPAA), under which benefits for medical care are secondary or incidental to other insurance benefits.

i. The following benefits, if the benefits are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the coverage:

i. Limited-scope dental or vision benefits;

ii. Benefits for long-term care, nursing home care, home health care, community-based care, or any combination of those benefits;

iii. Other similar, limited benefits specified in federal regulations issued under HIPAA.

j. The following benefits if provided under a separate policy, certificate, or contract of insurance with no coordination between provision of benefits and any exclusion of benefits under a group health plan maintained by the same plan sponsor and if the benefits are paid for an event regardless of whether the benefits are provided under a group health plan maintained by the same plan sponsor:

i. Coverage only for a specified disease or illness, or

ii. Hospital indemnity or other fixed indemnity insurance.

k. The following benefits if the benefits are offered as a separate policy, certificate, or contract of insurance:

i. Medicare supplemental policy as defined under § 1882(g)(1) of the Social Security Act, 42 U.S.C. 1395 ss;

ii. Coverage supplemental to the coverage provided under, 10 U.S.C. Title 10, Chapter 55; or

iii. Similar supplemental coverage provided to coverage under a group health plan.

3. "Health status-related factor" means any of the following:

a. Health status;

b. Medical condition, including a physical or mental illness;

c. Claims experience;

d. Receipt of health care;

e. Medical history;

f. Genetic information;

g. Evidence of insurability, including conditions arising out of acts of domestic violence; or

h. Disability.

4. "Insurer" means an insurer that offers or provides group health insurance coverage, and includes an insurer that issues disability insurance as defined in A.R.S. § 20-253, a medical, dental, or optometric service corporation as defined in A.R.S. § 20-822, and a health care services organization as defined in A.R.S. § 20-1051.

B. This Section applies to all group insurance issued by an insurer.

C. Effective date of discontinuance for non-payment of premium.

1. If a group insurance policy provides for automatic discontinuance of the policy after a premium remains unpaid through the grace period allowed for payment, the insurer is liable for valid claims for covered losses incurred before the end of the grace period.

2. If the insurer's actions after the end of the grace period indicate that the insurer considers the group insurance policy as continuing in force beyond the end of the grace period the insurer is liable for valid claims for losses beginning before the effective date of written notice of discontinuance to the policyholder or other entity responsible for paying premiums.

a. The following actions indicate that the insurer considers the policy in force:

i. Continued recognition, acknowledgement, or payment of subsequently incurred claims, or

ii. Continued enrollment of employees or dependents.

b. The following actions shall not indicate that the insurer considers that policy in force:

i. Recognition, payment, or acknowledgement of a claim by an insurer or processing a denial based on eligibility or other denial reasons set forth in the group benefit plan booklet; or

ii. Recognition, payment, or acknowledgement of claims due to the group's failure to notify the insurer that the employee or member is no longer eligible for coverage or the group policy is terminated.

3. The effective date of discontinuance shall not be before midnight at the end of the third scheduled work day after the date on which the notice of discontinuance is delivered.

D. Requirements for notice of discontinuance.

1. An insurer's notice of discontinuance shall include a request to the group policyholder to notify covered employees of the date when the group policy or contract will discontinue and to advise that, unless otherwise provided in the policy or contract, the insurer is not liable for claims for losses incurred after the date of discontinuance. If the plan involves employee contributions, the notice of discontinuance shall also advise that if the policyholder continues to collect employee contributions beyond the date of discontinuance, the policyholder is solely liable for benefits for the period which contributions were collected.

2. The insurer shall also provide the policyholder with a supply of notice forms that the policyholder can distribute to the covered employees. The notice forms shall explain the discontinuance and the effective date, and advise employees to refer to their certificates or contracts to determine their rights on discontinuance.

E. Extension of benefits.

1. A group policy shall provide a reasonable provision for extension of benefits for an employee or dependent who is totally disabled on the date of discontinuance as follows:

a. For a group life plan with a disability benefit extension of any type such as a premium waiver extension, extended death benefit in the event of total disability, or payment of income for a specified period during total disability, the discontinuance of the group policy shall not terminate the benefit extension.

b. For a group plan providing benefits for loss of time from work or specific indemnity during hospital confinement, discontinuance of the policy during a disability or hospital confinement shall not effect benefits payable for that disability or hospital confinement.

c. A hospital or medical expense coverage, other than dental and maternity expense, shall include a reasonable extension of benefits or accrued liability provision. A provision is reasonable if:

i. It provides an extension of at least 12 months under "major medical" and "comprehensive medical" type coverage; or

ii. Under other types of hospital or medical expense coverage, it provides either an extension of at least 90 days or an accrued liability for expenses incurred during a period of disability or during a period of at least 90 days starting with a specific event that occurred while coverage was in force, such as an accident.

An insurer shall ensure that the policy and group insurance certificates includes a description of the extension of benefits or accrued liability provision.

3. An insurer shall ensure that benefits payable during a period of extension or accrued liability are subject to the policy's regular benefit limits, such as benefits ceasing at exhaustion of a benefit period or of maximum benefits.

4. For hospital or medical expense coverage, an insurer may limit benefit payments to payments applicable to the disabling condition only.

F. Continuance of coverage in situations involving replacement of one plan by another.

1. When a group policyholder secures replacement coverage with a new insurer, self-insures, or foregoes provision of coverage, the replaced insurer is liable only to the extent of its accrued liabilities and extensions of benefits after the date of discontinuance.

2. The succeeding insurer shall cover each individual who:

a. Was eligible for coverage under the prior plan on the date of discontinuance, and

b. Is eligible for coverage according to the succeeding insurer's plan of benefits with respect to a class of individuals eligible for coverage.

3. For the purpose of successive health insurance coverage under subsection (F)(2), a succeeding insurer's plan of benefits shall:

a. Not have any non-confinement rules; and

b. Provide, as to any actively-at-work rules, that absence from work due to a health status-related factor is treated as being actively-at-work.

4. Nothing in subsection (F)(2) prohibits an insurer from performing coordination of benefits.

5. A succeeding insurer shall cover each individual not covered under the succeeding insurer's plan of benefits under subsection (F)(2) according to subsections (a) and (b) if the individual was validly covered, including benefit extension, under the prior plan on the date of discontinuance and is a member of a class of individuals eligible for coverage under the succeeding insurer's plan. Any reference in subsection (a) or (b) to an individual who was or was not totally disabled is a reference to the individual's status immediately before the effective date of coverage for the succeeding insurer.

a. The minimum level of benefits to be provided by the succeeding insurer shall be the level of benefits of the prior insurer's plan reduced by any benefits payable by the prior plan.

b. The succeeding insurer shall provide coverage until at least the earliest of the following dates:

i. The date the individual becomes eligible under the succeeding insurer's plan as described in subsection (F)(2);

ii. The date the individual's coverage would terminate according to the succeeding insurer's plan provisions applicable to individual termination of coverage such as at termination of employment or ceasing to be eligible dependent; or

iii. For an individual who was totally disabled, and covered by a type of coverage for which subsection (E) requires an extension of accrued liability, the end of any period of extension of benefits or accrued liability that is required of the prior insurer under subsection (E), or if the prior insurer's policy is not subject to subsection (E), would have been required of the insurer had its policy been subject to subsection (E) at the time the prior plan was discontinued and replaced by the succeeding insurer's plan;

c. For health insurance coverage, if an individual who was totally disabled at the time the prior insurer's plan was discontinued and replaced by the succeeding insurer's plan, and if subsection (E) requires an extension of benefits or accrued liability, the minimum level of benefits to be provided by the succeeding insurer shall be the level of benefits of the prior insurer's plan, reduced by any benefits paid by the prior plan.

d. If the succeeding insurer's plan has a preexisting conditions limitation, the level of benefits applicable to preexisting conditions of persons becoming covered by the succeeding insurer's plan according to subsection (F) during the period the limitation applies under the new plan shall be the lesser of:

i. The benefits of the new plan determined without application of the preexisting conditions limitation, or

ii. The benefits of the prior plan.

e. The succeeding insurer, in applying any deductibles, coinsurance amounts applicable to out-of-pocket maximums, or waiting periods, shall give credit for the satisfaction or partial satisfaction of the same or similar provisions under a prior plan providing similar benefits. For deductibles or coinsurance amounts applicable to out-of-pocket maximums, the credit shall apply for the same or overlapping benefit periods and shall be given for expenses actually incurred and applied against the deductible or coinsurance provisions of the prior plan during the 90 days before the effective date of the succeeding insurer's plan but only to the extent these expenses are recognized under the terms of the succeeding insurer's plan and are subject to similar deductible or coinsurance provisions.

f. If the succeeding insurer is required under this Section to make a determination about the benefits in the prior plan, the succeeding insurer may ask the prior plan to provide a statement of the benefits available or other pertinent information sufficient to permit the succeeding insurer to verify the benefit determination. For the purposes of this Section, all definitions, conditions, and covered-expense provisions of the prior plan shall govern the benefit determination. The benefit determination is made as if the succeeding insurer had not replaced coverage.

History

Former General Rule Number 73-34. R20-6-208 recodified from R4-14-208 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1). Section R20-6-208 renumbered from R20-6-210 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-209 Life Insurance Solicitation

A. Scope.

1. This Section applies to any solicitation, negotiation, or procurement of life insurance occurring in Arizona. This Section applies to any issuer of life insurance contracts, including fraternal benefit societies.

2. Unless otherwise specifically included, the Section does not apply to:

a. Annuities,

b. Credit life insurance,

c. Group life insurance,

d. Life insurance policies issued in connection with a pension and welfare plan as defined by and subject to the federal Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1001 et seq.; or

e. Variable life insurance under which the death benefits and cash values vary according to unit values of investments held in a separate account.

B. In this Section, the following apply:

1. "Buyer's Guide" means a document that contains the language in the Appendix to this Section or language approved by the Director.

2. "Cash dividend" means the current illustrated dividend that can be applied toward payment of the gross premium.

3. "Equivalent Level Annual Dividend" is calculated as follows:

a. Accumulate the annual cash dividends at 5% interest compounded annually to the end of the 10th and 20th policy years;

b. Divide each accumulation in subsection (a) by an interest factor that converts the accumulation into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the values in subsection (a) over the periods stipulated in subsection (a). If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719.

c. Divide the results in subsection (b) by the number of thousands of the Equivalent Level Death Benefit to arrive at the "Equivalent Level Annual Dividend."

4. "Equivalent Level Death Benefit" means the amount of benefit of a policy or term life insurance rider calculated as follows:

a. Accumulate the guaranteed amount payable upon death, regardless of the cause of death, at the beginning of each policy year for 10 and 20 years at 5% interest compounded annually to the end of the 10th and 20th policy years, respectively.

b. Divide each accumulation in subsection (a) by an interest factor that converts the accumulation into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the value in subsection (a) over the periods stipulated in subsection (a). If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719.

"Generic name" means a short title that is descriptive of the premium and benefit patterns of a policy or a rider.

6. "Life Insurance Surrender Cost Index" means the cost index that is calculated as follows:

a. Determine the guaranteed cash surrender value, if any, available at the end of the 10th and 20th policy years.

b. For policies participating in dividends, add the terminal dividend payable upon surrender, if any, to the accumulation of the annual Cash Dividends at 5% interest compounded annually to the end of the period selected and add this sum to the amount determined in subsection (a).

c. Divide the result in subsection (b) (subsection (a) for guaranteed-cost policies) by an interest factor that converts into an equivalent level annual amount that, if paid at the beginning of each year, would accrue to the value in subsection (b) or subsection (a) for guaranteed cost policies, over the periods stipulated in subsection (a)). If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719.

d. Determine the equivalent level premium by accumulating each annual premium payable for the basic policy or rider at 5% interest compounded annually to the end of the period stipulated in subsection (a) and dividing the result by the respective factors stated in subsection (c). This amount is the annual premium payable for a level premium plan.

e. Subtract the result of subsection (c) from subsection (d).

f. Divide the result of subsection (e) by the number of thousands of the Equivalent Level Death Benefit to arrive at the Live Insurance Surrender Cost Index.

7. The Life Insurance Net Payment Cost Index is calculated in the same manner as the comparable Life Insurance Cost Index except that the cash surrender value and any terminal dividend are set at zero.

8. "Policy Summary" means a written statement describing elements of the policy, including:

a. The following prominently placed title: Statement of Policy Cost and Benefit Information.

b. The name and address of the insurance producer, or, if no producer is involved, a statement of the procedure to be followed to receive responses to inquiries regarding the Policy Summary.

c. The full name and home office or administrative office address of the company by which the life insurance policy is to be or has been written.

d. The generic name of the basic policy and each rider.

e. For the first five policy years and representative policy years thereafter sufficient to clearly illustrate the premium and benefit patterns, including the years for which Life Insurance Cost Indexes are displayed and at least one age from 60 through 65 or maturity, whichever is earlier, the following amounts, where applicable:

i. The annual premium for the basic policy;

ii. The annual premium for each optional rider;

iii. Guaranteed amount payable upon death at the beginning of the policy year regardless of the cause of death except for suicide, or other specifically enumerated exclusions provided by the basic policy and each optional rider, with benefits provided under the basic policy and each rider shown separately;

iv. Total guaranteed cash surrender values at the end of the year with values shown separately for the basic policy and each rider;

v. Cash dividends payable at the end of the year with values shown separately for the basic policy and each rider. Dividends need not be displayed beyond the twentieth policy year; and

vi. Guaranteed endowment amounts payable under the policy that are not included under guaranteed cash surrender values in subsection (iv).

f. The effective policy loan annual percentage interest rate, if the policy contains this provision, specifying whether the rate is applied in advance or in arrears. If the policy loan interest rate is variable, the Policy Summary shall include the maximum annual percentage rate.

g. Life Insurance Cost Indexes for 10 and 20 years but not beyond the premium-paying period. Separate indexes shall be displayed for the basic policy and for each optional term life insurance rider. The indexes need not be included for optional riders that are limited to benefits such as accidental death benefits, disability waiver of premium, preliminary term life insurance coverage of less than 12 months, and guaranteed insurability benefits, nor for basic policies or optional riders covering more than one life.

h. The Equivalent Level Annual Dividend in the case of participating policies and participating optional term life insurance riders, under the same circumstances and for the same durations at which Life Insurance Cost Indexes are displayed.

i. If the Policy Summary includes dividends, a statement that dividends are based on the insurer's current dividend scale and are not guaranteed and a statement in close proximity to the Equivalent Level Annual Dividend as follows: "An explanation of the intended use of the Equivalent Level Annual Dividend is included in the Life Insurance Buyer's Guide."

j. A statement in close proximity to the Life Insurance Cost Indexes as follows: "An explanation of the intended use of these indexes is provided in the Life Insurance Buyer's Guide."

k. The date on which the Policy Summary is prepared. The Policy Summary shall consist of a separate document. All information required to be disclosed shall not be minimized or obscure. Any amounts that remain level for two or more years of the policy may be represented by a single number that clearly indicates the amounts that are applicable for each policy year. Amounts in subsection (8)(e) shall be listed in total, not on a per thousand nor per unit basis. If more than one insured is covered under one policy or rider, guaranteed death benefits shall be displayed separately for each insured or for each class of insured if death benefits do not differ within the class. Zero amounts shall be displayed as zero and shall not be displayed as a blank space.

C. Disclosure requirements.

1. The insurer shall provide to all prospective purchasers, a Buyer's Guide and a Policy Summary before accepting the applicant's initial premium or premium deposit, unless the policy for which application is made contains an unconditional refund provision of at least 10 days or unless the Policy Summary contains an unconditional refund offer, in which case the Buyer's Guide and Policy Summary shall be delivered with the policy or before delivery of the policy.

2. The insurer shall provide a Buyer's Guide and a Policy Summary to any prospective purchaser upon request.

3. If the Equivalent Level Death Benefit of a policy does not exceed $5,000, the requirement for providing a Policy Summary is satisfied by delivery of a written statement containing the information described in subsections (D)(8)(b), (c), (d), (e)(i) through (e)(iii), (f), (g), (j), and (k).

D. General rules.

1. Each insurer shall maintain at its home office or principal office for at least three years after its last authorized use a copy of each form the insurer authorized for use.

2. A producer shall inform a prospective purchaser, before commencing a life insurance sales presentation, that the producer is acting as a life insurance producer and inform the prospective purchaser of the full name of the insurance company that the producer is representing. If an insurance producer is not involved in the sale, the insurer shall inform the prospective purchaser of the insurance company's full name.

3. An insurer or producer shall not use terms such as financial planner, investment advisor, financial consultant, or financial counseling to imply that the insurance producer is generally engaged in an advisory business in which compensation is unrelated to sales unless that is true.

4. If an insurer or producer refers to policy dividends, the reference shall include a statement that dividends are not guaranteed.

5. An insurer shall not use a system or presentation that does not recognize the time value of money through the use of appropriate interest adjustments for comparing the cost of two or more life insurance policies unless the system or presentation is used to demonstrate the cash flow pattern of a policy and the presentation is accompanied by a statement disclosing that the presentation does not recognize that, because of interest, a dollar in the future has less value than a dollar today.

6. In a presentation of benefits, an insurer shall not display guaranteed and non-guaranteed benefits as a single sum unless they are shown separately and in close proximity.

7. An insurer shall include with a statement regarding the use of the Life Insurance Cost Indexes an explanation that the indexes are useful only for the comparison of the relative costs of two or more similar policies.

8. An insurer shall include with a Life Insurance Cost Index that reflects dividends or an Equivalent Level Annual Dividend a statement that it is based on the company's current dividend scale and is not guaranteed.

9. If an insurer reserves the right to change the premium for a basic policy or rider, the annual premium shall be the maximum annual premium.

E. An insurer's failure to provide or deliver a Buyer's Guide or a Policy Summary as provided in subsection (C) constitutes an omission that misrepresents the benefits, advantages, conditions, or terms of an insurance policy.

APPENDIX. Life Insurance Buyer's Guide

The face page of the Buyer's Guide shall read as follows:

Life Insurance Buyer's Guide

This guide can show you how to save money when you shop for life insurance. It helps you to:

Decide how much life insurance you should buy,
Decide what kind of life insurance policy you need, and
Compare the cost of similar life insurance policies.

Prepared by the National Association of Insurance Commissioners

Reprinted by (Company Name)

(Month and year of printing)

The Buyer's Guide shall contain the following language at the bottom of page 2:

The National Association of Insurance Commissioners is an association of state insurance regulatory officials. This association helps the various Insurance Departments to coordinate insurance laws for the benefit of all consumers. You are urged to use this Guide in making a life insurance purchase.

Buying Life Insurance

When you buy life insurance, you want a policy that fits your needs without costing too much. Your first step is to decide how much you need, how much you can afford to pay and the kind of policy you want. Then, find out what various companies charge for that kind of policy. You can find important differences in the cost of life insurance by using the life insurance cost indexes that are described in this guide. A good life insurance producer or company will be able and willing to help you with each of these shopping steps.

If you are going to make a good choice when you buy life insurance, you need to understand what kinds are available. If one kind does not seem to fit your needs, ask about the other kinds that are described in this guide. If you feel that you need more information than is given here, you may want to check with a life insurance producer or company or books on life insurance in your public library.

This guide does not endorse any company or policy.

The remaining text of the buyer's guide shall begin on page 3 as follows:

Choosing the Amount

One way to decide how much life insurance you need is to figure how much cash and income your dependents would need if you were to die. You should think of life insurance as a source of cash needed for expenses of final illnesses, paying taxes, mortgages or other debts. It can also provide income for your family's living expenses, educational costs and other future expenses. Your new policy should come as close as you can afford to making up the difference between (1) what your dependents would have if you were to die now, and (2) what they would actually need.

Choosing the Right Kind

All life insurance policies agree to pay an amount of money if you die. But all policies are not the same. There are three basic kinds of life insurance.

1. Term insurance

2. Whole life insurance

3. Endowment insurance

Remember, no matter how fancy the policy title or sales presentation might appear, all life insurance policies contain one or more of the three basic kinds. If you are confused about a policy that sounds complicated, ask the producer or company if it combines more than one kind of life insurance. The following is a brief description of the three basic kinds:

Term Insurance

Term insurance is death protection of a "term" of one or more years. Death benefits will be paid only if you die within that term of years. Term insurance generally provides the largest immediate death protection for your premium dollar.

Some term insurance policies are "renewable" for one or more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. You should check the premiums at older ages and the length of time the policy can be continued.

Some term insurance policies are also "convertible." This means that before the end of the conversion period, you may trade the term policy for a whole life or endowment insurance policy even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.

Whole Life Insurance

Whole life insurance gives death protection for as long as you live. The most common type is called "straight life" or "ordinary life" insurance, for which you pay the same premiums for as long as you live. These premiums can be several times higher than you would pay initially for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term insurance policy until your later years.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher than for ordinary life insurance since the premium payments are squeezed into a shorter period.

Although you pay higher premiums, to begin with, for whole life insurance than for term insurance, whole life insurance policies develop "cash values" which you may have if you stop paying premiums. You can generally either take the cash, or use it to buy some continuing insurance protection. Technically speaking, these values are called "nonforfeiture benefits." This refers to benefits you do not lose (or "forfeit") when you stop paying premiums. The amount of these benefits depends on the kind of policy you have, its size, and how long you have owned it.

A policy with cash values may also be used as collateral for a loan. If you borrow from the life insurance company, the rate of interest is shown in your policy. Any money that you owe on a policy loan would be deducted from the benefits if you were to die, or from the cash value if you were to stop paying premiums.

Endowment Insurance

An endowment insurance policy pays a sum or income to you - the policyholder - if you live to a certain age. If you were to die before then, the death benefit would be paid to your beneficiary. Premiums and cash values for endowment insurance are higher than the same amount of whole life insurance. Thus endowment insurance gives you the least amount of death protection for your premium dollar.

Finding a Low Cost Policy

After you have decided which kind of life insurance fits your needs, look for a good buy. Your chances of finding a good buy are better if you use two types of index numbers that have been developed to aid in shopping for life insurance. One is called the "Surrender Cost Index" and the other is the "Net Payment Cost Index." It will be worth your time to try to understand how these indexes are used, but in any event, use them only for comparing the relative costs of similar policies. LOOK FOR POLICIES WITH LOW COST INDEX NUMBERS.

What is Cost?

"Cost" is the difference between what you pay and what you get back. If you pay a premium for life insurance and get nothing back, your cost for the death protection is the premium. If you pay a premium and get something back later on, such as a cash value, your cost is smaller than the premium.

The cost of some policies can also be reduced by dividends; these are called "participating" policies. Companies may tell you what their current dividends are, but the size of future dividends is unknown today and cannot be guaranteed. Dividends actually paid are set each year by the company.

Some policies do not pay dividends. These are called "guaranteed cost" or "non participating" policies. Every feature of a guaranteed cost policy is fixed so that you know in advance what your future cost will be.

The premiums and cash values of a participating policy are guaranteed, but the dividends are not. Premiums for participating policies are typically higher than for guaranteed cost policies, but the cost to you may be higher or lower, depending on the dividends actually paid.

What Are Cost Indexes?

In order to compare the cost of policies, you need to look at:

1. Premiums

2. Cash values

3. Dividends

Cost indexes use one or more of these factors to give you a convenient way to compare relative costs of similar policies. When you compare costs, an adjustment must be made to take into account that money is paid and received at different times. It is not enough to just add up the premiums you will pay and subtract the cash values and dividends you expect to get back. These indexes take care of the arithmetic for you. Instead of having to add, subtract, multiply and divide many numbers yourself, you just compare the index numbers which you can get from life insurance producers and companies:

1. Life Insurance Surrender Cost Index. This index is useful if you consider the level of the cash values to be of primary importance to you. It helps you compare costs if at some future point in time, such as 10 or 20 years, you were to surrender the policy and take its cash value.

Life Insurance Net Payment Cost Index. This Index is useful if your main concern is the benefits that are to be paid at your death and if the level of cash values is of secondary importance to you. It helps you compare costs at some future point in time, such as 10 or 20 years, if you continue paying premiums on your policy and do not take its cash value.

There is another number called the Equivalent Level Annual Dividend. It shows the part dividends play in determining the cost index of a participating policy. Adding a policy's Equivalent Level Annual Dividend to its cost index allows you to compare total costs of similar policies before deducting dividends. However, if you make any cost comparisons of a participating policy with a non participating policy, remember that the total cost of the participating policy will be reduced by dividends, but the cost of the non participating policy will not change.

How Do I Use Cost Indexes?

The most important thing to remember when using cost indexes is that a policy with a small index number is generally a better buy than a comparable policy with a larger index number. The following rules are also important:

(1) Cost comparisons should only be made between similar plans of life insurance. Similar plans are those which provide essentially the same basic benefits and require premium payments for approximately the same period of time. The closer policies are to being identical, the more reliable the cost comparison will be.

(2) Compare index numbers only for the kind of policy, for your age and for the amount you intend to buy. Since no one company offers the lowest cost for all types of insurance at all ages and for all amounts of insurance, it is important that you get the indexes for the actual policy, age and amount which you intend to buy. Just because a "Shopper's Guide" tells you that one company's policy is a good buy for a particular age and amount, you should not assume that all of that company's policies are equally good buys.

(3) Small differences in index numbers could be offset by other policy features, or differences in the quality of service you may expect from the company or its producer. Therefore, when you find small differences in cost indexes, your choice should be based on something other than cost.

(4) In any event, you will need other information on which to base your purchase decision. Be sure you can afford the premiums, and that you understand its cash values, dividends and death benefits. You should also make a judgment on how well the life insurance company or producer will provide service in the future, to you as a policyholder.

(5) These life insurance cost indexes apply to new policies and should not be used to determine whether you should drop a policy you have already owned for awhile, in favor of a new one. If such a replacement is suggested, you should ask for information from the company that issued the old policy before you take action.

Important Things To Remember - A Summary

The first decision you must make when buying a life insurance policy is choosing a policy whose benefits and premiums must closely meet your needs and ability to pay. Next, find a policy which is also a relatively good buy. If you compare Surrender Cost Indexes and Net Payment Cost Indexes of similar competing policies, your chances of finding a relatively good buy will be better than if you do not shop. REMEMBER, LOOK FOR POLICIES WITH LOWER COST INDEX NUMBERS. A good life insurance producer can help you to choose the amount of life insurance and kind of policy you want and will give you cost indexes so that you make cost comparisons of similar policies.

Don't buy life insurance unless you intend to stick with it. A policy which is a good buy when held for 20 years can be very costly if you quit during the early years of the policy. If you surrender such a policy during the first few years, you may get little or nothing back and much of your premium may have been used for company expenses.

Read your new policy carefully, and ask the producer or company for an explanation of anything you do not understand. Whatever you decide now, it is important to review your life insurance program every few years to keep up with changes in your income and responsibilities.

History

Adopted effective June 13, 1977 (Supp. 77-3). R20-6-209 recodified from R4-14-209 (Supp. 95-1). Former R20-6-209 renumbered to R20-6-207; new R20-6-209 renumbered from R20-6-211 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-210 Readable and Understandable Policy: Private Passenger Automobile, Homeowner, Personal Line Dwelling, and Mobile Homeowner

A. Definitions. The following definitions apply in this Section:

1. "Readable insurance policy" means a policy that can be read and reasonably understood by a person without special knowledge or training.

2. "Policy" means a contract or agreement for insurance, or an insurance certificate regardless of the name used, and includes all clauses, endorsements, and papers attached or incorporated.

B. Scope. This Section applies to private passenger motor vehicle policies, homeowner policies, personal line dwelling policies, for four family units or less, and mobile homeowner policies delivered or issued for delivery in Arizona.

C. Compliance.

1. An insurer shall test the readability of its policy by use of the Flesch Readability Formula as set forth in Rudolf Flesch, The Art of Readable Writing (1949, as revised 1974).

2. An insurer shall not use a policy unless the policy has a total readability score of 40 or more on the Flesch scale.

3. An insurer shall include with each policy form filing required to be filed with the Director a checklist for the line of insurance setting forth the Flesch score.

D. Readability guidelines.

1. General organization of text.

a. A policy shall be divided into logically arranged sections for ease of locating content.

b. Each section shall be self-contained as to provisions relating solely to that section (for example, an exclusion section shall not be mixed with other parts of a policy).

c. General policy provisions applying to all or several like coverages shall be located in a common area.

d. The policy shall not contain non-essential provisions.

e. Defined words and terms shall be placed in a separate section at the beginning of the policy.

2. Visual aids to readability. The insurer shall ensure that each policy meets the following format requirements:

a. Type size shall be at least eight point.

b. The font shall be block print rather than script, and legible.

c. Captions and headings shall be distinguishable from the general text.

d. White space separating coverages, policy sections, and columns shall be sufficient to make a distinct separation.

e. Defined words and terms shall be distinguishable from the general text.

3. Language usage. The insurer shall ensure that each policy:

a. Is written in everyday, conversational language;

b. Uses short, simple sentences and words in common usage;

c. Uses an easy-to-read style, personal pronouns, and present tense active verbs.

History

Adopted effective May 28, 1979 (Supp. 79-1). R20-6-210 recodified from R4-14-210 (Supp. 95-1). Former R20-6-210 renumbered to R20-6-208; new R20-6-210 renumbered from R20-6-212 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-211 Discrimination on the Basis of Blindness or Partial Blindness

A. Definitions. The following definitions apply in this Section:

1. "Policy" means a contract or agreement for or effecting insurance, or a certificate of insurance, regardless of the name used, and includes all clauses, riders, endorsements, and attached papers.

2. "Person" has the same meaning prescribed in A.R.S. § 20-105.

B. Scope. This Section applies to all policies delivered or issued for delivery in this state.

C. Prohibition. An insurer shall not engage in the following prohibited acts or practices that constitute unfair discrimination between individuals of the same class:

1. Refusal to insure or refusal to continue to insure, or limiting the amount, extent, or kind of coverage available to an individual solely because of blindness or partial blindness; or

2. Charging an individual a different rate for the same coverage solely because of blindness or partial blindness.

D. In this subsection, "refusal to insure" includes denial by an insurer of disability insurance coverage on the grounds that the policy defines "disability" as being presumed if the insured loses eyesight. An insurer may exclude from coverage disabilities consisting solely of blindness or partial blindness if the insured was blind or partially blind when the policy was issued.

E. For all other conditions, including the underlying cause of the blindness or partial blindness, a person who is blind or partially blind is subject to the same standards of sound actuarial principles or actual or reasonably anticipated experience as a sighted person.

History

Adopted effective August 1, 1977 (Supp. 77-4). Amended effective March 27, 1976 (Supp. 78-2). Correction, Historical Note for Supp. 77-4 should read adopted effective January 1, 1979 filed August 1, 1977. Historical Note for Supp. 78-2 should read Appendix amended effective January 1, 1979 filed March 27, 1978 (Supp. 79-5). Editorial correction, (D)(7)(a), title now shown in italics (Supp. 81-1). R20-6-211 recodified from R4-14-211 (Supp. 95-1). Former R20-6-211 renumbered to R20-6-209; new R20-6-211 renumbered from R20-6-213 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-212 Forms for Replacement of Life Insurance Policies and Annuities

An insurer shall use the following forms of the National Association of Insurance Commissioners Model Regulations (and no future editions or amendments), which are incorporated by reference and available at the Department of Insurance and Financial Institutions, Division of Insurance, 100 N. 15th Ave., Suite 261, Phoenix, AZ 85007-2630 and the National Association of Insurance Commissioners, Publications Department, 1100 Walnut Street, Suite 1500, Kansas City, MO 64106-2197:

1. For the purposes of meeting the requirements of A.R.S. § 20-1241.03(C): Life Insurance and Annuities Replacement Model Regulation (MDL 613), Appendix A

Important Notice: Replacement of Life Insurance or Annuities, 2015, and no future editions.

2. For the purposes of meeting the requirements of A.R.S. § 20-1241.07(A): Life Insurance and Annuities Replacement Model Regulation (MDL 613), Appendix B

Notice Regarding Replacing Your Life Insurance Policy or Annuity?, 2015, and no future editions.

3. For the purpose of meeting the requirements of A.R.S. § 20-1241.07(B)(2): Life Insurance and Annuities Replacement Model Regulation (MDL 613), Appendix C

Important Notice: Replacement of Life Insurance or Annuities, 2015, and no future editions.

History

Adopted effective March 27, 1978 (Supp. 78-2). Editorial correction see subsection (A) citation to A.R.S. (Supp. 78-4). Editorial correction see subsections (B) and (F) citation to A.R.S. (Supp. 78-6). R20-6-212 recodified from R4-14-212 (Supp. 95-1). Former R20-6-212 renumbered to R20-6-210; new R20-6-212 renumbered from R20-6-215 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2). Amended by final rulemaking at 28 A.A.R. 454, effective 4/5/2022.

Ariz. Admin. Code § R20-6-212.01 Buyer's Guide for Annuities

An insurer shall use the following publication of the National Association of Insurance Commissioners (and no future editions), which are incorporated by reference and available at the Department of Insurance and Financial Institutions, Division of Insurance, 100 N. 15th Ave., Suite 261, Phoenix, AZ 85007-2630 and the National Association of Insurance Commissioners, Publications Department, 1100 Walnut Street, Suite 1500, Kansas City, MO 64106-2197:

For the purpose of meeting the requirements of A.R.S. § 20-1242.02 regarding a Buyer's Guide: Buyer's Guide for Deferred Annuities, - Fixed ,. 2013, and no future editions.

History

Section R20-6-212.01 renumbered from R20-6-215.01 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2). Amended by final rulemaking at 28 A.A.R. 454, effective 4/5/2022.

Ariz. Admin. Code § R20-6-212.02 Standards for Annuity Illustrations

A. Definitions. The definitions in A.R.S. § 20-1242 and this Section apply to this Section.

"Illustration" means a personalized presentation or depiction prepared for and provided to an individual consumer that includes non-guaranteed elements of an annuity contract over a period of years.

"Indexing Method" means point-to-point, dialing averaging or monthly averaging.

"Index Term" means the period over which indexed-based interest is calculated.

"Market Value Adjustment" or "MVA" means a feature that is a positive or negative adjustment that may be applied to the account value and/or cash value of the annuity upon withdrawal, surrender, contract annuitization or death benefit payment based on either the movement of an external index or on the company's current guaranteed interest rate being offered on new premiums or new rates for renewal periods, if that withdrawal, surrender, contract annuitization or death benefit payment occurs at a time other than on a specified guaranteed benefit date.

"Registered product" means an annuity contract or life insurance policy subject to the prospectus delivery requirements of the Securities Act of 1933.

B. An insurer or producer may elect to provide a consumer an illustration at any time, provided that the illustration is in compliance with this Section and:

1. Is clearly labeled as an illustration;

2. Includes a statement referring customers to the disclosure document and buyer's guide provided to them at time of purchase for additional information about their annuity; and

3. Is prepared by the insurer or third party using software that is authorized by the insurer prior to its use, provided that the insurer maintains a system of control over the use of the illustration.

C. An illustration furnished to an applicant for a group annuity contract or contracts issued to a single applicant on multiple lives may be either an individual or composite illustration representative of the coverage on the lives of members of the group or the multiple lives covered.

D. The illustration shall not be provided unless accompanied by the disclosure document referenced in A.R.S. § 20-1242.02.

E. When using an illustration, the illustration shall not:

1. Describe non-guaranteed elements in a manner that is misleading or has the capacity or tendency to mislead;

2. State or imply that the payment or amount of non-guaranteed elements is guaranteed; or

3. Be incomplete.

F. Costs and fees of any type shall be individually noted and explained.

G. An illustration shall conform to the following requirements:

1. The illustration shall be labeled with the date on which it was prepared;

2. Each page, including any explanatory notes or pages, shall be numbered and show its relationship to the total number of pages in the disclosure document (e.g., the fourth page of a seven-page disclosure document shall be labeled "page 4 of 7 pages");

3. The assumed dates of premium receipt and benefit payout within a contract year shall be clearly identified;

4. If the age of the proposed insured is shown as a component of the tabular detail, it shall be issue-age plus the number of years the contract is assumed to have been in force;

5. The assumed premium on which the illustrated benefits and values are based shall be clearly identified, including rider premium for any benefits being illustrated;

6. Any charges for riders or other contract features assessed against the account value or the crediting rate shall be recognized in the illustrated values and shall be accompanied by a statement indicating the nature of the rider benefits or the contract features, and whether or not they are included in the illustration;

7. Guaranteed death benefits and values available upon surrender, if any, for the illustrated contract premium shall be shown and clearly labeled guaranteed;

8. Except as provided in subsection (G)(22) of this Section, the non-guaranteed elements underlying the non-guaranteed illustrated values shall be no more favorable than current non-guaranteed elements and shall not include any assumed future improvement of such elements. Additionally, non-guaranteed elements used in calculating non-guaranteed illustrated values at any future duration shall reflect any planned changes, including any planned changes that may occur after expiration of an initial guaranteed or bonus period;

9. In determining the non-guaranteed illustrated values for a fixed indexed annuity, the index-based interest rate and account value shall be calculated for three different scenarios: one to reflect historical performance of the index for the most recent 10 calendar years; one to reflect the historical performance of the index for the continuous period of 10 calendar years out of the last 20 calendar years that would result in the least index value growth (the "low scenario"); one to reflect the historical performance of the index for the continuous period of 10 calendar years out of the last 20 calendar years that would result in the most index value growth (the "high scenario"). The following requirements apply:

a. The most recent 10 calendar years and the last 20 calendar years are defined to end on the prior December 31, except for illustrations prepared during the first three months of the year, for which the end date of the calendar year period may be the December 31 prior to the last full calendar year;

b. If any index utilized in determination of an account value has not been in existence for at least 10 calendar years, indexed returns for that index shall not be illustrated. If the fixed indexed annuity provides an option to allocate account value to more than one indexed or fixed declared rate account, and one or more of these indexes has not been in existence for at least 10 calendar years, the allocation to such indexed account or accounts shall be assumed to be zero;

c. If any index utilized in determination of an account value has been in existence for at least 10 calendar years but less than 20 calendar years, the 10 calendar year periods that define the low and high scenarios shall be chosen from the exact number of years the index has been in existence;

d. The non-guaranteed element or elements, such as caps, spreads, participation rates, or other interest crediting adjustments, used in calculating the non-guaranteed index-based interest rate shall be no more favorable than the corresponding current element or elements;

e. If a fixed indexed annuity provides an option to allocate the account value to more than one indexed or fixed declared rate account:

i. The allocation used in the illustration shall be the same for all three scenarios; and

ii. The 10 calendar year periods resulting in the least and greatest index growth periods shall be determined independently for each indexed account option.

f. The geometric mean annual effective rate of the account value growth over the 10 calendar year period shall be shown for each scenario;

g. If the most recent 10 calendar year historical period experience of the index is shorter than the number of years needed to fulfill the requirement of subsection (I) of this Section, the most recent 10 calendar year historical experience of the index shall be used for each subsequent 10 calendar year period beyond the initial period for the purpose of calculating the account value for the remaining years of the illustration;

h. The low and high scenarios:

i. Need not show surrender values (if different than account values);

ii. Shall not extend beyond 10 calendar years (and therefore are not subject to the requirements of subsection (I) of this Section beyond subsection (I)(1)(a) of this Section); and

iii. May be shown on a separate page;

i. For the low and high scenarios, a graphical presentation shall also be included comparing the movement of the account value over the 10 calendar year period for the low scenario, the high scenario and the most recent 10 calendar year scenario; and

j. The low and high scenarios should reflect the irregular nature of the index performance and should trigger every type of adjustment to the index-based interest rate under the contract. The effect of the adjustments should be clear; for example, additional columns showing how the adjustment applied may be included. If an adjustment to the index-based interest rate is not triggered in the illustration (because no historical values of the index in the required illustration range would have triggered it), the illustration shall so state;

10. The guaranteed elements, if any, shall be shown before corresponding non-guaranteed elements and shall be specifically referred to on any page of an illustration that shows or describes only the non-guaranteed elements (e.g., "see page 1 for guaranteed elements");

11. The account or accumulation value of a contract, if shown, shall be identified by the name this value is given in the contract being illustrated and shown in close proximity to the corresponding value available upon surrender;

12. The value available upon surrender shall be identified by the name this value is given in the contract being illustrated and shall be the amount available to the contract owner in a lump sum after deduction of surrender charges, bonus forfeitures, contract loans, contract loan interest, and application of any market value adjustment, as applicable;

13. Illustrations may show contract benefits and values in graphic or chart form in addition to the tabular form;

14. Any illustration of non-guaranteed elements shall be accompanied by a statement indicating that:

a. The benefits and values are not guaranteed;

b. The assumptions on which they are based are subject to change by the insurer; and

c. Actual results may be higher or lower;

15. Illustrations based on non-guaranteed credited interest and non-guaranteed annuity income rates shall contain equally prominent comparisons to guaranteed credited interest and guaranteed annuity income rates, including any guaranteed and non-guaranteed participation rates, caps, or spreads for fixed indexed annuities;

16. The annuity income rate illustrated shall not be greater than the current annuity income rate unless the contract guarantees are in fact more favorable;

17. Illustrations shall be concise and easy to read;

18. Key terms shall be defined and then used consistently throughout the illustration;

19. Illustrations shall not depict values beyond the maximum annuitization age or date;

20. Annuitization benefits shall be based on contract values that reflect surrender charges or any other adjustments, if applicable; and

21. Illustrations shall show both annuity income rates per $1,000.00 and the dollar amounts of the periodic income payable.

22. For participating immediate and deferred income annuities:

a. Illustrations may not assume any future improvement in the applicable dividend scale (or scales, if more than one dividend scale applies, such as for a flexible premium annuity);

b. Illustrations must reflect the equitable apportionment of dividends, whether performance meets, exceeds, or falls short of expectations;

c. If the dividend scale is based on a portfolio rate method, the portfolio rate underlying the illustrated dividend scale shall not be assumed to increase;

d. If the dividend scale is based on an investment cohort method, the illustrated dividend scale should assume that reinvestment rates grade to long-term interest rates, subject to the following conditions:

i. Any assumptions as to future investment performance in the dividend formula must be consistent with assumptions that are reflected in the marketplace within the normal range of analyst forecasts and investor behavior; these assumptions may not be changed arbitrarily, notwithstanding changes in markets or economic conditions, and must be consistent with assumptions that the issuer uses with respect to other lines of business; and

ii. The illustrated dividend scale should assume that reinvestment rates grade to long-term interest rates, based on U.S. Treasury bonds. For the purposes of this grading, the assumed long-term rates should not exceed the rates calculated using the formula in subsection (G)(22)(d)(iii) below, based on the time to maturity or reinvestment (the "Tenor") of the investments supporting the cohort of polices.

iii. Maximum long-term interest rates should be calculated for tenors of three months (or less), five years, 10 years, and 20 years (or more), using U.S. Treasury rates. For each tenor, the maximum long-term interest rate will vary over time, based on historical interest rates as they emerge. The formula for the maximum long-term interest rate is the average of the median bond rate over the last 600 months and the average bond rate over the last 120 months, rounded to the nearest quarter of one percent (0.25%).

iv. The maximum long-term interest rate for a tenor should be recalculated once per year, in January, using historical rates as of December 31 of the calendar year two years prior to the calendar year of the calculation date. The historical rate for each month is the rate reported for the last business day of the month.

v. Grading to the maximum long-term interest rates should take place over no less than 20 years from issue if U.S. Treasury rates as of the illustration date are below the long-term rates, or, no more than 20 years from issue if U.S. Treasury rates as of the illustration date are above the long-term rates.

vi. When the 10-year U.S. Treasury rate is less than the 10-year maximum long-term interest rate, an additional illustrated dividend scale should be presented. This additional illustrated dividend scale shall assume that reinvestment U.S. Treasury rates do not exceed the initial investment U.S. Treasury rates and illustrate dividends no less than half of the dividends illustrated under the current dividend scales. If the assumption that reinvestment U.S. Treasury rates do not exceed the initial investment U.S. Treasury rates conflicts with the illustration, i.e. half of the current dividends are greater than would be permitted by the assumption, then the reinvestment U.S. Treasury rates should equal the initial investment U.S. Treasury rates.

vii. The illustration should include a disclosure that is substantially similar to the following:

The illustrated current dividend scale is based on interest rates that are assumed to gradually [increase/decrease] from current rates to long-term interest rates, over a period of [20] years. By regulation, the long-term assumed interest rates cannot not and do not exceed the rates listed in column (c) of the table below.

viii. If the illustration contains an additional dividend scale pursuant to subsection (G)(22)(d)(vi) above, then the illustration should also include a disclosure that is substantially similar to the following:

The additional illustrated dividend scale is based on interest rates that are assumed not to increase and do not exceed the interest rates in column (b) of the table below.

| Tenor | Current Interest Rate | Long Term | | --- | --- | --- | | Treasury Rate as of 12/31/2016 | Mean Reversed Treasury Rate | | | 3 Month (or less) | 0.51% | 3.00% | | 5 Year | 1.93% | 4.50% | | 10 Year | 2.45% | 5.00% | | 20 Years (or more) | 3.06% | 5.50% |

H. An annuity illustration shall include a narrative summary that includes all the following unless provided at the same time in a disclosure statement:

1. A brief description of any contract features, riders or options, guaranteed and/or non-guaranteed, shown in the basic illustration and the impact they may have on the benefits and values of the contract;

2. A brief description of any other optional benefits or features that are selected, but not shown in the illustration and the impact they have on the benefits and values of the contract;

3. Identification and a brief definition of column headings and key terms used in the illustration;

4. A statement containing in substance the following:

a. For other than fixed indexed annuities:

This illustration assumes the annuity's current non-guaranteed elements will not change. It is likely that they will change and actual values will be higher or lower than those in this illustration but will not be less than the minimum guarantees.

The values in this illustration are not guarantees or even estimates of the amounts you can expect from your annuity. Please review the entire Disclosure Document and Buyer's Guide provided with your Annuity Contract for more detailed information;

b. For fixed indexed annuities:

This illustration assumes the index will repeat historical performance and that the annuity's current non-guaranteed elements, such as caps, spreads, participation rates or other interest crediting adjustments, will not change. It is likely that the index will not repeat historical performance, the non-guaranteed elements will change, and actual values will be higher or lower than those in this illustration but will not be less than the minimum guarantees.

5. Additional explanations as follows:

a. Minimum guarantees shall be clearly explained;

b. The effect on contract values of contract surrender prior to maturity shall be explained;

c. Any conditions on the payment of bonuses shall be explained;

d. For annuities sold as an IRA, qualified plan or in another arrangement subject to the required minimum distribution (RMD) requirements of the Internal Revenue Code, the effect of RMDs on the contract values shall be explained;

e. For annuities with recurring surrender charge schedules, a clear and concise explanation of what circumstances will cause the surrender charge to recur; and

f. A brief description of the types of annuity income options available shall be explained, including:

i. The earliest or only maturity date for annuitization (as the term is defined in the contract);

ii. For contracts with an optional maturity date, the periodic income amount for at least one of the annuity income options available based on the guaranteed rates in the contract, at the later of age 70 or 10 years after issue, but in no case later than the maximum annuitization age or date in the contract;

iii. For contracts with a fixed maturity date, the periodic income amount for at least one of the annuity income options available, based on the guaranteed rates in the contract at the fixed maturity date; and

iv. The periodic income amount based on the currently available periodic income rates for the annuity income option in subsection (H)(5)(f)(ii) or in subsection (H)(5)(f)(iii), if desired.

I. Following the narrative summary, an illustration shall include a numeric summary which shall include at minimum, numeric values at the following durations:

1. The first 10 contract years or the surrender charge period if longer than 10 years, including any renewal surrender charge period or periods;

2. Every tenth contact year up to the later of 30 years or age 70; and

3. Required annuitization age or required annuitization date.

J. If the annuity contains a market value adjustment ("MVA"), the following provisions apply to the illustration:

1. The MVA shall be referred to as such throughout the illustration;

2. The narrative shall include an explanation, in simple terms, of the potential effect of the MVA on the value available upon surrender;

3. The narrative shall include an explanation, in simple terms, of the potential effect of the MVA on the death benefit;

4. A statement, containing in substance the following, shall be included:

When you make a withdrawal, the amount you receive may be increased or decreased by a Market Value Adjustment (MVA). If the interest rates on which the MVA is based go up after you buy your annuity, the MVA likely will decrease the amount you receive. If interest rates go down, the MVA will likely increase the amount you receive.

5. Illustrations shall describe both the upside and the downside aspects of the contract features relating to the MVA;

6. The illustrative effect of the MVA shall be shown under at least one positive and one negative scenario. This demonstration shall appear on a separate page and be clearly labeled that it is information demonstrating the potential impact of a MVA;

7. Actual MVA floors and ceilings as listed in the contract shall be illustrated; and

8. If the MVA has significant characteristics not addressed by subsections (J)(1) through (J)(6), the effect of such characteristics shall be shown in the illustration.

K. A narrative summary for a fixed indexed annuity illustration also shall include the following unless provided at the same time as the disclosure statement:

1. An explanation, in simple terms, of the elements used to determine the index-based interest, including but not limited to, the following elements:

a. The index(es) which will be used to determine the index-based interest;

b. The Indexing Method;

c. The Index Term;

d. The participation rate, if applicable;

e. The cap, if applicable; and

f. The spread, if applicable;

2. The narrative shall include an explanation, in simple terms, of how index-based interest is credited in the indexed annuity:

3. The narrative shall include a brief description of the frequency with which the company can re-set the elements used to determine the index-based credits, including the participation rate, the cap, and the spread, if applicable; and

4. If the product allows the contract holder to make allocations to a declared-rate segment, then the narrative shall include a brief description of:

a. Any options to make allocations to a declared-rate segment, both for new premiums and for transfers from the index-based segments; and

b. Differences in guarantees applicable to the declared-rate segment and the index-based segments.

L. A numeric summary for a fixed indexed annuity illustration shall include, at a minimum, the following elements:

1. The assumed growth rate of the index in accordance with subsection (G)(9);

2. The assumed values for the participation rate, cap and spread, if applicable; and

3. The assumed allocation between index-based segments and the declared-rate segment, if applicable, in accordance with subsection (G)(9).

M. If the contract is issued other than as applied for, a revised illustration conforming to the contract as issued shall be sent with the contract, except that non-substantive changes, including but not limited to, changes in the amount of expected initial or additional premiums and any changes in amounts of exchanges pursuant to Section 1053 of the Internal Revenue Code, rollovers and transfers, which do not alter the key benefits and features of the annuity as applied for will not require a revised illustration unless requested by the applicant.

N. Annuity Illustration Examples.

The following illustrations are examples only and do not reflect specific characteristics of any actual product for sale by any company.

ABC Life Insurance Company

Company Product Name

Flexible Premium Fixed Deferred Annuity with a Market Value Adjustment (MVA)

An Illustration Prepared for John Doe by John Agent on mm/dd/yyyy

(Contact us at Policyownerservice@ABCLife.com or 555-555-5555)

| Sex: Male | Initial Premium Payment: $100,000.00 | | --- | --- | | Age at Issue: 54 | Planned Annual Premium Payments: None | | Annuitant: John Doe | Tax Status: Nonqualified | | Oldest Age at Which Annuity Payments Can Begin: 95 | Withdrawals: None Illustrated |

| Initial Interest Guarantee Period | 5 Years | | --- | --- | | Initial Guaranteed Interest Crediting Rates | | | First Year (reflects first year only interest bonus credit of 0.75 % ): | 4.15% | | Remainder of Initial Interest Guarantee Period: | 3.40% | | Market Value Adjustment Period: | 5 Years | | Minimum Guaranteed Interest Rate after Initial Interest Guarantee Period*: | 3% |

* After the Initial Interest Guarantee Period, a new interest rate will be declared annually. This rate cannot be lower than the Minimum Guaranteed Interest Rate.

Annuity Income Options and Illustrated Monthly Income Values

This annuity is designed to pay an income that is guaranteed to last as long as the Annuitant lives. When annuity income payments are to begin, the income payment amounts will be determined by applying an annuity income rate to the annuity Account Value.

Annuity income options include the following:

* Periodic payments for Annuitant's life

* Periodic payments for Annuitant's life with payments guaranteed for a certain number of years

* Periodic payments for Annuitant's life with payments continuing for the life of a survivor annuitant

Illustrated Annuity Income Option: Monthly payments for annuitant's life with payments guaranteed for 10-year period.

Assumed Age When Payments Start: 70

| | Account Value | Monthly Annuity Income Rate/$1,000 of Account Value* | Monthly Annuity Income | | --- | --- | --- | --- | | Based on Rates Guaranteed in the Contract | $164,798 | $5.00 | $823.99 | | Based on Rates Currently Offered by the Company | $171,976 | $6.50 | $1,117.84 |

*If, at the time of annuitization, the annuity income rates currently offered by the company are higher than the annuity income rates guaranteed in the contract, the current rates will apply.

ABC Life Insurance Company

Company Product Name

Flexible Premium Fixed Deferred Annuity with a Market Value Adjustment (MVA)

An Illustration Prepared for John Doe by John Agent on mm/dd/yyyy

| Contract Year/Age | Premium Payment | Values Based on Guaranteed Rates | Value Based on Assumption that Initial Guaranteed Rates Continue | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest Crediting Rate | Account Value | Cash Surrender Value Before MVA | Minimum Cash Surrender Value After MVA | Interest Crediting Rate | Account Value | Cash Surrender Value Before and After MVA | | | | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | | 1 / 55 | $100,000 | 4.15% | $104,150 | $95,818 | $92,000 | 4.15% | $104,150 | $95,818 | | 2 / 56 | 0 | 3.40% | 107,691 | 100,153 | 93,000 | 3.40% | 107,691 | 100,153 | | 3 / 57 | 0 | 3.40% | 111,353 | 104,671 | 95,614 | 3.40% | 111,353 | 104,671 | | 4 / 58 | 0 | 3.40% | 115,139 | 109,382 | 98,482 | 3.40% | 115,139 | 109,382 | | 5 / 59 | 0 | 3.40% | 119,053 | 114,291 | 114,291 | 3.40% | 119,053 | 114,291 | | 6 / 60 | 0 | 3.00% | 122,625 | 118,946 | 118,946 | 3.40% | 123,101 | 119,408 | | 7 / 61 | 0 | 3.00% | 126,304 | 123,778 | 123,778 | 3.40% | 127,287 | 124,741 | | 8 / 62 | 0 | 3.00% | 130,093 | 130,093 | 130,093 | 3.40% | 131,614 | 131,614 | | 9 / 63 | 0 | 3.00% | 133,996 | 133,996 | 133,996 | 3.40% | 136,089 | 136,089 | | 10 / 64 | 0 | 3.00% | 138,015 | 138,015 | 138,015 | 3.40% | 140,716 | 140,716 | | 11 / 65 | 0 | 3.00% | 142,156 | 142,156 | 142,156 | 3.40% | 145,501 | 145,501 | | 16 / 70 | 0 | 3.00% | 164,798 | 164,798 | 164,798 | 3.40% | 171,976 | 171,976 | | 21 / 75 | 0 | 3.00% | 191,046 | 191,046 | 191,046 | 3.40% | 203,268 | 203,268 | | 26 / 80 | 0 | 3.00% | 221,474 | 221,474 | 221,474 | 3.40% | 240,255 | 240,255 | | 31 / 85 | 0 | 3.00% | 256,749 | 256,749 | 256,749 | 3.40% | 283,972 | 283,972 | | 36 / 90 | 0 | 3.00% | 297,643 | 297,643 | 297,643 | 3.40% | 335,643 | 335,643 | | 41 / 95 | 0 | 3.00% | 345,050 | 345,050 | 345,050 | 3.40% | 396,717 | 396,717 |

Column Descriptions

(1) Ages shown are measured from the Annuitant's age at issue.

(2) P remium Payments are assumed to be made at the beginning of the Contract Year shown.

Values Based on Guaranteed Rates

(3) Interest Crediting Rate shown are annual rates; however, interest is credited daily. During the Initial Interest Guarantee Period, values developed from the Initial Premium Payment are illustrated using the Initial Guaranteed Interest Rate(s) declared by the insurance company, which include an additional first year only interest bonus credit of 0.75%. The interest rates will be guaranteed for the Initial Interest Guarantee Period, subject to an MVA. After the Initial Interest Guarantee Period, a new renewal interest rate will be declared annually, but can never be less than the Minimum Guaranteed Interest Rate shown.

(4) Account Value is the amount you have at the end of each year if you leave your money in the contract until you start receiving annuity payments. It is also the amount available upon the Annuitant's death if it occurs before annuity payments begin. The death benefit is not affected by surrender charges or the MVA.

(5) Cash Surrender Value Before MVA is the amount available at the end of each year if you surrender the contract (after deduction of any Surrender Charge) but before the application of any MVA. Surrender charges are applied to the Account Value according to the schedule below until the surrender charge period ends, which may be after the Initial Interest Guarantee Period has ended.

| Years Measured from Premium Payment: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Surrender Charges: | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% |

(6) Minimum Cash Surrender Value After MVA is the minimum amount available at the end of each year if you surrender your contract before the end of five years, no matter what the MVA is. The minimum is set by law. The amount you receive may be higher or lower than the cash surrender value due to the application of the MVA, but never lower than this minimum. Otherwise the MVA works as follows: If the interest rate available on new contracts offered by the company is LOWER than your Initial Guaranteed Interest Rate, the MVA will INCREASE the amount you receive. If the interest rate available on new contracts offered by the company is HIGHER than your initial guaranteed interest rate, the MVA will DECREASE the amount you receive. The charts below provide additional information concerning the MVA.

Values Based on Assumption that Initial Guaranteed Rates Continue

(7) Interest Crediting Rates are the same as in Column (3) for the Initial Interest Guarantee Period. After the Initial Interest Guarantee Period, a new renewal interest rate will be declared annually. For the purposes of calculating the values in this column, it is assumed that the Initial Guaranteed Interest Rate (without the bonus) will continue as the new renewal interest rate in all years. The actual renewal interest rates are not subject to an MVA and will very likely NOT be the same as the illustrated renewal interest rates.

(8) Account Value is calculated the same way as column (4).

(9) Cash Surrender Value Before and after MVA is the Cash Surrender Value at the end of each year assuming that Initial Guaranteed Interest Rates continue, and that the continuing rates are the rates offered by the company on new contracts. In this case the MVA would be zero, and Cash Surrender Values before and after the MVA would be the same.

Important Note: This illustration assumes you will take no withdrawals from your annuity before you begin to receive periodic income payments. Withdrawals will reduce both the annuity Account Value and the Cash Surrender Value. You may make partial withdrawals of up to 10% of your account value each contract year without paying surrender charges. Excess withdrawals (above 10%) and full withdrawals will be subject to surrender charges.

This illustration assumes the annuity's current interest crediting rates will not change. It is likely that they will change and actual values may be higher or lower than those in the illustrations.

The values in this illustration are not guaranteed or even estimates of the amounts you can expect from your annuity. For more information, read the annuity disclosure and annuity buyer's guide.

MVA-adjusted Cash Surrender Values (CSVs) Under Sample Scenarios

The graphs below show MVA-adjusted Cash Surrender Values (CSVs) during the first five years of the contract, as illustrated on the illustration spreadsheet above ($100,000 single premium, a 5-year MVA Period) under two sample scenarios, as described below.

Graph #1 shows if the interest rate on new contracts is 3% LOWER than your Initial Guaranteed Interest Rate, the MVA will increase the amount you receive (upper line). The lower line shows the Cash Surrender Values if the Initial Guaranteed Interest Rates continue (from Column (9) on the illustration spreadsheet above (referenced as Page 2 in the graph)).

Click here to view

Graph #2 shows if the interest rate on new contracts is 3% HIGHER than your Initial Guaranteed Interest Rate, the MVA will decrease the amount you receive, but not below the minimum set by law (Column (6) on the illustration spreadsheet above (referenced as Page 2 in the graph)), which in this scenario's limits the decrease for the first 2 years (lower line). The upper line shows the Cash Surrender Values if the Initial Guaranteed Interest Rates continue (from Column (9) on the illustration spreadsheet above).

Click here to view

These graphs and the sample guaranteed interest rates on new contracts used are for demonstration purposes only and are not intended to be a projection of how guaranteed interest rates on new contracts are likely to behave.

History

Adopted by final rulemaking at 28 A.A.R. 454, effective 4/5/2022.

Ariz. Admin. Code § R20-6-213 Life and Disability Insurance Policy Language Simplification

A. Definitions. The following definitions apply in this Section:

1. "Company" or "insurer" means any life or disability insurance company, benefit insurer, benefit stock insurer, prepaid dental plan organizations, health care service organizations, and all similar type organizations.

2. "Director" means the Director of Insurance of Arizona.

3. "Policy" or "policy form" means any policy, contract, plan or agreement of life or disability insurance, including credit life insurance and credit disability insurance, delivered or issued for delivery in the state by any company subject to this rule; and any certificate issued under a group insurance policy delivered or issued for delivery in this state.

B. Applicability.

1. This Section and R20-6-212 apply to all life and disability insurance policies delivered or issued for delivery in this state by any company but do not apply to:

a. Any policy that is a security subject to federal jurisdiction;

b. Any group policy covering a group of 1,000 or more lives at date of issue, other than a group credit life insurance policy or a group credit disability insurance policy however, this shall not exempt any certificate issued under a group policy delivered or issued for delivery in this state; or

c. Any group annuity contract that serves as a funding vehicle for pension, profit-sharing, or deferred compensation plans;

2. Except as provided in R20-6-210, no other rule of this state setting language simplification standards shall apply to any policy forms.

C. Minimum policy language simplification standards.

1. Except as stated in subsection (B), an insurer shall not deliver or issue for delivery a policy form that has not been approved by the Director unless:

a. The text achieves a minimum score of 40 on the Flesch reading ease test or an equivalent score on any other comparable test as provided in subsection (3);

b. It is printed, except for specification pages, schedules, and tables, in no less than 10 point type, one point leaded;

c. The style, arrangement and overall appearance of the policy do not give undue prominence to any portion of the text of the policy or to any endorsements or riders; and

d. The policy, if the policy has more than 3,000 words printed on three or fewer pages of text or if the policy has more than three pages regardless of the number of words, contains a table of contents or an index of the principal sections of the policy.

2. An insurer shall measure a Flesch reading ease test score as follows:

a. For policy forms containing 10,000 words or less of text, an insurer shall analyze the entire form. For policy forms containing more than 10,000 words, an insurer may analyze the readability of two, 200-word samples per page instead of the entire form. The insurer shall separate the samples by at least 20 printed lines.

b. The insurer shall count the number of words and sentences in the text, then divide the total number of words by the total number of sentences, then multiply that figure by a factor of 1.015.

c. The insurer shall count and divide the total number of syllables by the total number of words, then multiply that figure by a factor of 84.6.

d. The sum of the figures computed under subsections (b) and (c) subtracted from 206.835 equals the Flesch reading ease score for the policy form.

e. For subsections (b), (c), and (d), the insurer shall use the following procedures:

i. A contraction, hyphenated word, or numbers and letters, when separated by spaces, shall be counted as one word;

ii. A unit of words ending with a period, semicolon, or colon, but excluding headings and captions, shall be counted as a sentence; and

iii. A syllable means a unit of spoken language consisting of one or more letters of a word as divided by an accepted dictionary. If the dictionary shows two or more equally acceptable pronunciations of a word, the pronunciation containing fewer syllables may be used.

f. The term "text" as used in this subsection shall include all printed matter except the following:

i. The name and address of the insurer, the name, number or title of the policy, the table of contents or index, captions and subcaptions, specification pages, schedules or tables; and

ii. Policy language that is drafted to conform to the requirements of a federal law, regulation, or agency interpretation, policy language required by a collectively bargained agreement, medical terminology, words defined in the policy, and policy language required by law or regulation, if the insurer identifies the language or terminology excepted by this subsection and certifies, in writing, that the language or terminology is entitled to be excepted by this subsection.

3. Any other reading test may be approved by the Director for use as an alternative to the Flesch reading test if it is comparable in result to the Flesch reading ease test.

4. Filings subject to this subsection shall be accompanied by a certificate signed by an officer of the insurer stating that the filing meets the minimum reading ease score on the test used or stating that the score is lower than the minimum required but should be approved under subsection (G) of this Section. To confirm the accuracy of any certification, the Director may require the submission of further information to verify the certification in question.

5. At the option of the insurer, riders, endorsements, applications and other forms made a part of the policy may be scored as separate forms or as part of the policy with which they may be used.

D. The Director may authorize a lower score than the Flesch reading ease score required in subsection (C)(1)(a) if a lower score:

Provides a more accurate reflection of readability of a policy form;

2. Is warranted by the nature of a particular policy form or type or class of policy forms; or

3. Is caused by certain policy language drafted to conform to the requirements of any state statute, rule, or agency interpretation of law.

History

Adopted effective November 21, 1977 (Supp. 77-6). Amended effective March 27, 1978 (Supp. 78-2). Amended subsection (E), deleted subsection (F) and added new subsections (F) and (G) effective December 3, 1986 (Supp. 86-6). R20-6-213 recodified from R4-14-213 (Supp. 95-1). Former R20-6-213 renumbered to R20-6-211; new R20-6-213 renumbered from R20-6-216 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2). Corrected error in R20-6-213(D) that referenced subsection (E)(1)(a), which was relabeled as (C)(1)(a) in Supp. 07-2 (Supp. 08-1).

Ariz. Admin. Code § R20-6-214 Coordination of Benefits

A. Applicability.

1. This Section applies to all:

a. Group disability insurance policies;

b. Group subscriber contracts of hospital and medical service corporations and health care services organizations;

c. Group disability policies of benefit insurers; and

d. Group-type contracts that contain a coordination of benefits provision, are not available to the general public, and can be obtained and maintained only because of the covered person's membership in or connection with a particular organization. Group-type contracts that meet this description are included regardless of whether denominated as "franchise," "blanket," or some other designation.

2. This Section does not apply to:

a. Individual or family policies or individual or family subscriber contracts except as provided for in subsection (A)(1);

b. Group or group-type hospital indemnity benefits, written on a non-expense incurred basis, of $30 per day or less unless characterized as reimbursement-type benefits and designed or administered to give the insured the right to elect indemnity-type benefits, instead of the reimbursement type benefits at the time of claim; or

c. School accident type coverages, written on a blanket, group, or franchise basis.

B. Definitions. In this Section, the following definitions apply:

"Allowable expense" means any necessary, reasonable, and customary item of expense, at least a portion of which is covered under one or more of the plans covering the person for whom claim is made or service provided.

a. When a plan provides benefits in the form of services rather than cash payments, the reasonable cash value of each service rendered is deemed to be both an allowable expense and a benefit paid.

b. A plan that takes Medicare or similar government benefits into consideration when determining the application of its coordination of benefits provision does not expand the definition of an allowable expense.

2. "Claim determination period" means an appropriate period of time such as "calendar year" or "benefit period" as defined in the policy.

3. "Plan," within the coordination of benefits provisions of a group policy or subscriber contract, means the types of coverage that the insurer may consider in determining whether overinsurance exists with respect to a specific claim.

4. "School accident-type coverage" means coverage of grammar school and high school students for accidents only, including athletic injuries, either on a 24-hour basis or "to-and-from school," for which the parent pays the entire premium.

C. Order-of-benefit determination.

1. When a claim under a plan with a coordination of benefit provision involves another plan that also has a coordination of benefit provision, the insurer shall make the order-of-benefit determination as follows:

a. The plan that covers the person claiming benefits other than as a dependent shall determine benefits before those of the plan that covers the person as a dependent.

b. The plan of a parent whose birthday occurs earlier in a calendar year shall cover a dependent child before the benefits of a plan of a parent whose birthday occurs later in a calendar year. The word "birthday" as used in this subsection refers only to month and day in a calendar year, not the year in which the person was born.

c. If two or more plans cover a person as a dependent child of divorced or separated parents, benefits for the child are determined in the following order:

i. First, the plan of the parent with custody of the child;

ii. Then, the plan of the spouse of the parent with custody of the child; and

iii. Finally, the plan of the parent not having custody of the child.

d. Notwithstanding subsection (c), if the specific terms of a court decree state that one of the parents is responsible for the health care expenses of the child, and the entity obligated to pay or provide the benefits of the plan of that parent has actual knowledge of those terms, the benefits of that plan are determined first.

2. The benefits of a plan that covers a person as an employee (or as that employee's dependent) are determined before those of a plan that covers that person as a laid off or retired employee (or as that employee's dependent). If the other plan does not have this provision and if, as a result, the plans do not agree on the order of benefits, this subsection does apply.

3. If none of the provisions of subsection (C) determines the order of benefits, the benefits of the plan that covered a claimant longer are determined before those of the plan that covered that person for the shorter time.

4. If one of the plans is issued out of this state and determines the order of benefits based upon the gender of a parent and, as a result, the plans do not agree on the order of benefits, the plan with the gender rule shall determine the order of benefits.

D. Excess and other nonconforming provisions. A plan with an order of benefit determination provision that complies with this Section, a complying plan, may coordinate its benefits with a plan that is "excess" or "always secondary" or that uses an order-of-benefit determination provision that is inconsistent with this Section, a noncomplying plan, on the following basis:

1. If the complying plan is the primary plan, it shall pay or provide its benefits on a primary basis.

2. If the complying plan is the secondary plan, it shall pay or provide its benefits first, as the secondary plan. The payment shall be the limit of the complying plan's liability, except as provided in subsection (4).

3. If the noncomplying plan does not provide the information needed by the complying plan to determine its benefits within a reasonable time after it is requested to do so, the complying plan shall assume that the benefits of the noncomplying plan are identical to its own, and shall pay benefits accordingly. The complying plan shall adjust any payments it makes based on the assumption whether information becomes available as the actual benefits of the noncomplying plan.

4. If the noncomplying plan pays benefits so that the claimant receives less in benefits than the claimant would have received had the noncomplying plan paid or provided its benefits as the primary plan, the complying plan shall advance to or on behalf of the claimant an amount equal to the difference. The complying plan shall not have a right to reimbursement from the claimant.

History

Adopted effective October 26, 1979 (Supp. 79-5). R20-6-214 recodified from R4-14-214 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1). Section R20-6-214 renumbered from R20-6-217 and amended by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-215 Renumbered

History

Adopted effective September 7, 1981 (Supp. 81-3). Amended subsections (D) thru (H), deleted Agent's Statement and Exhibit D effective March 30, 1983 (Supp. 83-2). R20-6-215 recodified from R4-14-215 (Supp. 95-1). Amended by exempt rulemaking at 9 A.A.R. 5595, effective January 1, 2004 (Supp. 03-4). Former R20-6-215 renumbered to R20-6-212 by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-215.01 Renumbered

History

New Section made by exempt rulemaking at 9 A.A.R. 5595, effective January 1, 2004 (Supp. 03-4). Former R20-6-215.01 renumbered to R20-6-212.01 by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-216 Renumbered

History

Adopted effective as set forth in subsection (H) (Supp. 80-6). R20-6-216 recodified from R4-14-216 (Supp. 95-1). Former R20-6-216 renumbered to R20-6-213 by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).

Ariz. Admin. Code § R20-6-217 Renumbered

History

Adopted effective September 14, 1982 (Supp. 82-3). Amended subsections (C) and (D), deleted (F) effective January 1, 1987, filed December 16, 1986 (Supp. 86-6). R20-6-217 recodified from R4-14-217 (Supp. 95-1). Former R20-6-217 renumbered to R20-6-214 by final rulemaking at 13 A.A.R. 2061, effective August 4, 2007 (Supp. 07-2).
Editor's Note: The following Section expired under A.R.S. § 41-1056(E) on September 30, 2001 at 8 A.A.R. 491. The Notice of Rule Expiration was not received until January 9, 2002. Therefore, the repeal of the rule noted in the Historical Note is moot (Supp. 02-1).

Ariz. Admin. Code § R20-6-218 [Repealed]

History

Adopted effective November 9, 1984 (Supp. 84-6). R20-6-218 recodified from R4-14-218 (Supp. 95-1). Section repealed by final rulemaking at 7 A.A.R. 5443, effective November 16, 2001 (Supp. 01-4). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1) (see Editor's Note above).

Article 3 FINANCIAL PROVISIONS AND PROCEDURES

Ariz. Admin. Code § R20-6-301 Expired

History

Former General Rule Number 3. R20-6-301 recodified from R4-14-301 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1).

Ariz. Admin. Code § R20-6-302 Expired

History

Former General Rule 62-11. R20-6-302 recodified from R4-14-302 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1).

Ariz. Admin. Code § R20-6-303 Termination of Certificate of Authority and Release of Deposit

A. Domestic Insurers. To request termination of a certificate of authority and, if applicable, release of statutory deposit, a domestic insurer shall file all of the following with the director:

1. A written request for termination of certificate of authority and release of deposit;

2. The insurer's original certificate of authority or an affidavit of lost certificate of authority;

3. A statement of the insurer's financial condition as of a date within 60 days of the filing date of the request for termination that includes a written statement, signed by two officers of the insurer as authorized on the jurat page of the insurer's most recent annual statement, verifying that the statement of financial condition reflects the insurer's financial position as of the date signed.

4. A plan of extinguishment for its outstanding liabilities that satisfies the requirements of subsection (C) or a sworn affidavit stating that the insurer has no outstanding liabilities to policyholders or claimants under subsection (C);

5. A certified copy of the insurer's Board of Directors resolution or other documentation of the insurer's official action taken according to the insurer's statutorily required organizational documents approving the insurer's:

a. Withdrawal from the insurance business,

b. Dissolution of the insurer,

c. Merger with an insurer authorized in Arizona to transact the insurer's previously written and active lines of business of the insurer requesting termination, or

d. Transfer of domicile to another state or country.

6. A copy of the insurer's Articles of Dissolution, Articles of Merger, Articles of Amendment, Articles of Redomestication, or other documentation that the insurer intends to file with the Arizona Corporation Commission after issuance of the Director's order as provided in subsection (D)(2);

If requested by the director, a written agreement that guarantees payment of substantially all liabilities of the domestic insurer, other than obligations extinguished under subsection (C).

B. Foreign and Alien Insurers. To request termination of its certificate of authority and, if applicable, release of its deposit, a foreign or alien insurer shall file all of the following with the director:

1. A written request for termination of certificate of authority and release of deposit;

2. The insurer's original certificate of authority or an affidavit of lost certificate of authority;

4. A plan of extinguishment for its Arizona liabilities that satisfies the requirements of subsection (C) or a sworn affidavit stating that the insurer has no Arizona liabilities under subsection (C);

5. A copy of an order issued by the insurance director or other appropriate regulatory authority in the insurer's state or country of domicile that approves or authorizes either the insurer's:

a. Withdrawal from the insurance business,

b. Dissolution of the insurer,

c. Merger (approval of the merger from the states of domicile of the insurers), or

d. Transfer of domicile, if applicable.

6. A copy of the insurer's Articles of Dissolution, Articles of Merger, Articles of Amendment, Articles of Redomestication or other required documentation that the insurer filed in its state of domicile; and

7. If requested by the director, a written agreement that guarantees payment of substantially all Arizona liabilities of the insurer, other than obligations extinguished under subsection (C).

C. Insurer's Plan for Extinguishment of Liabilities.

1. To extinguish substantially all liabilities under subsection (A)(4) or subsection (B)(4) as applicable, an insurer may:

a. Reinsure the insurer's business in force with another insurer by entering into an agreement of bulk reinsurance that shall be effective when filed with and approved in writing by the director.

i. The agreement shall provide for assumption of all policyholder claims by the reinsurer including claims incurred but unreported as of the effective date of the agreement.

ii. The agreement may include recapture provisions exercisable by the insurer in the event the termination of its certificate of authority is not completed.

iii. Unless the director otherwise approves, the agreement shall provide that the reinsurer be licensed in Arizona for the particular lines of business reinsured.

b. Merge with another insurer that:

i. Assumes the liabilities of the non-surviving insurer; and

ii. Is authorized in Arizona for the previously written and active lines of business assumed, unless otherwise approved by the director.

c. Use its deposit, any additional security deposit or both to secure payment of former policyholder, policyholder, or claimant liabilities that are not reinsured or otherwise secured.

2. For purposes of this Section, "substantially all liabilities" under Title 20 means all policyholder and claimant obligations reported by the insurer in the statement of financial condition, whether or not liquidated in amount, and shall include former policyholder claims and rights to refunds.

D. Consideration of the Request for Termination of Certificate of Authority and Release of Deposit under subsections (A) and (B).

1. If the director determines that the insurer has extinguished substantially all liabilities as required under this Section and has otherwise demonstrated compliance with this Section and A.R.S. Title 20, the director shall grant the request to terminate the certificate of authority and, if appropriate, release the insurer's deposit, provided:

a. The insurer has no fees, taxes, assessments or filings outstanding to the Department; and

b. The insurer is not subject of any pending investigation or examination under Title 20 by the Department.

2. The director's order shall condition the release of a domestic insurer's deposit upon receipt by the director of evidence of the official filing with the Arizona Corporation Commission of the documentation described in subsection (A)(6).

3. If the director determines that the insurer is unable to extinguish substantially all liabilities as required under this Section, or otherwise has not complied with this Section or with A.R.S. Title 20, the director shall notify the insured in writing that the request has been denied and the reasons for the denial.

E. Exclusions. This Section does not apply to:

1. An insurer's exchange and substitution of cash or eligible securities under A.R.S. § 20-586;

2. An insurer's withdrawal of excess deposits, either cash or eligible securities, under A.R.S. §§ 20-587 and 20-588(A)(2); or

3. Releases of deposits made under A.R.S. § 20-588(A)(3).

History

Former General Rule 72-29. R20-6-303 recodified from R4-14-303 (Supp. 95-1). Section R20-6-303 repealed; new Section R20-6-303 made by final rulemaking at 14 A.A.R. 3432, effective October 4, 2008 (Supp 08-3).

Ariz. Admin. Code § R20-6-304 Reserved

Ariz. Admin. Code § R20-6-305 Expired

History

Adopted effective September 13, 1978, except that it shall apply to the accounting treatment for unearned premium reserves and reinsurance premium receivables for credit life disability insurance on January 1, 1979, and all annual statements filed for periods on or after that date (Supp. 78-5). R20-6-305 recodified from R4-14-305 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 491, effective September 30, 2001 (Supp. 02-1).

Ariz. Admin. Code § R20-6-306 Reserved

Ariz. Admin. Code § R20-6-307 Life and Disability Reinsurance Agreements

A. Scope. This rule applies to all domestic life and disability insurers and reinsurers, and to all other licensed life and disability insurers and accredited resinsurers that are not subject to a substantially similar rule in their jurisdictions of domicile. This rule applies to the disability business of licensed property and casualty insurers. This rule does not apply to assumption reinsurance, yearly renewable term reinsurance, or nonproportional stop loss or catastrophe reinsurance, or similar forms of nonproportional reinsurance.

B. Definitions

1. "Agreement" means a reinsurance agreement and any amendment to a reinsurance agreement.

2. "Credit Quality" means the risk that invested assets supporting the reinsured business will decrease in value but excludes decreases to changes in interest rate.

3. "Department" means the Arizona Department of Insurance and Financial Institutions - Insurance Division.

4. "Director" has the same meaning as A.R.S. § 20-102.

"Disintermediation" means the risk that interest rates will rise and policy loans and surrenders will increase or maturing contracts will not renew at anticipated rates of renewal.

"Lapse" means the risk that a policy will voluntarily terminate before the recoupment of a statutory surplus strain experienced at issuance of the policy.

7. "Reinvestment" means the risk that interest rates will fall and funds reinvested will therefore earn less than expected.

C. Accounting Requirements

1. Unless authorized by the Director, an insurer shall not, for reinsurance ceded, reduce any liability, or establish any asset in any statutory financial statement filed with the Department if, by the terms of the agreement, or in effect, any of the following conditions exist:

a. Renewal expense allowances provided or to be provided to the ceding insurer by the reinsurer in any accounting period are not sufficient to cover the ceding insurer's allocable renewal expenses anticipated at the time the business is reinsured on the portion of the business reinsured, unless a liability is established for the present value of the shortfall using assumptions equal to the applicable statutory reserve basis on the business reinsured.

b. The ceding insurer is required to reimburse the reinsurer for negative experience under the agreement. Neither the offset of the ceding insurer's experience refunds against current and prior years' losses, nor payment by the ceding insurer of an amount equal to the reinsurer's current and prior years' losses upon voluntary termination of in-force reinsurance by the ceding insurer, shall be considered a reimbursement to the reinsurer for negative experience.

c. The ceding insurer may be deprived of surplus or assets at the reinsurer's option or automatically upon the occurrence of a specified event, including the insolvency of the ceding insurer. Termination of the agreement by the reinsurer for nonpayment of reinsurance premiums or other amounts due shall not be considered a deprivation of surplus or assets within the meaning of this subsection.

d. The ceding insurer is required, at scheduled times, to terminate the agreement or recapture automatically all or part of the reinsurance ceded.

e. The ceding insurer may be required to pay the reinsurer amounts other than from income reasonably expected from the reinsured policies.

f. Significant risks inherent in the business reinsured are not transferred to the reinsurer. Table A identifies the risks deemed significant for representative types of business.

g. The credit quality, reinvestment, or disintermediation risk is significant for the business reinsured and the ceding company does not transfer the underlying assets to the reinsurer, segregate the underlying assets in a trust or escrow account, or otherwise segregate the underlying assets. The assets that support the reserves for classes of business that do not have a significant credit quality, reinvestment, or disintermediation risk, or for long-term care or long-term disability insurance, traditional non-par permanent, traditional par permanent, adjustable premium permanent, indeterminate premium permanent, or universal life fixed premium with no dump-in premiums allowed, may be held by the ceding company without segregation. To determine the reserves for classes of business, the supporting assets of which may be held without being segregated, the reserve interest rate adjustment formula shall reflect the ceding company's investment earnings and incorporate all realized and unrealized gains and losses reported in the ceding insurer's statutory financial statement.

h. Settlements are made less frequently than quarterly or payments due from the reinsurer are not made in cash within 90 days of the settlement date.

i. The ceding insurer is required to make representations or warranties unrelated to the business reinsured.

j. The ceding insurer is required to make representations or warranties related to future performance of the business reinsured.

2. An agreement entered into after the effective date of this rule to reinsure business issued before the effective date of the agreement shall be filed by the ceding insurer with the Director within 30 days after execution of the agreement. Each filing shall be accompanied by a description of the corresponding reduction in liabilities or other credit for reinsurance, and any other financial impact of the agreement, reported in the ceding insurer's statutory financial statements. When an increase in surplus net of federal income tax results from an agreement falling under this subsection, the ceding insurer shall separately identify the increase as a surplus item in the aggregate write-ins for gains and losses in surplus in the Capital and Surplus account of the ceding insurer's statutory financial statement. As earnings emerge from the business reinsured, the ceding insurer shall report in its statutory financial statement recognition of surplus increase as income on a net of tax basis as reinsurance ceded.

D. Written Agreements

1. A ceding insurer shall not reduce any liability or establish any asset in any statutory financial statement filed with the Department, unless the ceding insurer and the reinsurer have executed an agreement or a binding letter of intent by the "as of" date of the statutory financial statement.

2. A ceding insurer shall not be allowed a credit for the reinsurance ceded based on a letter of intent unless the ceding insurer and the reinsurer execute an agreement within 90 days from the execution date of the letter of intent.

3. The agreement shall provide that:

a. The agreement constitutes the entire contract between the parties with respect to the business reinsured, and there are no understandings between the parties other than as expressed in the agreement; and

b. Any change or modification to the agreement shall be void unless made by written amendment signed by all parties.

History

Adopted effective February 3, 1993 (Supp. 93-1). R20-6-307 recodified from R4-14-307 (Supp. 95-1). Amended effective December 7, 1995 (Supp. 95-4). Amended by final rulemaking at 29 A.A.R. 739, effective 5/8/2023.

Ariz. Admin. Code § R20-6-308 Expired

History

Adopted effective March 22, 1993 (Supp. 93-1). R20-6-308 recodified from R4-14-308 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 3374, effective May 31, 2016 (Supp. 16-4).

Ariz. Admin. Code § R20-6-309 Expired

History

New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1).

Ariz. Admin. Code § R20-6-309.01 Expired

History

New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1).

Ariz. Admin. Code § R20-6-309.02 Expired

History

New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1).

Ariz. Admin. Code § R20-6-309.03 Expired

History

New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1).

Ariz. Admin. Code § R20-6-309.04 Expired

History

New Section adopted by final rulemaking at 6 A.A.R. 255, effective January 1, 2000 (Supp. 99-4). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1278, effective September 30, 2006 (Supp. 07-1).

Ariz. Admin. Code § R20-6-310 Corporate Governance

The purpose of Sections R20-6-310.01 through R20-6-310.03 is to set forth procedures for filing and the required contents of the Corporate Governance Annual Disclosure (CGAD) deemed necessary by the Director to carry out the provisions of Title 20, Chapter 2, Article 16 on Corporate Governance.

History

New Section made by final exempt rulemaking at 25 A.A.R. 3715, with an immediate effective date of December 4, 2019 (Supp. 19-4).

Ariz. Admin. Code § R20-6-310.01 Definitions

The definitions in A.R.S. § 20-492 and this Section apply to Sections R20-6-310.02 through R20-6-310.04.

"CGAD" means Corporate Governance Annual Disclosure.

"NAIC" means National Association of Insurance Commissioners.

"Senior Management" means any corporate officer responsible for reporting information to the board of directors at regular intervals or providing this information to shareholders or regulators and shall include, for example and without limitation, the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Chief Operations Officer ("COO"), Chief Procurement Officer ("CPO"), Chief Legal Officer ("CLO"), Chief Information Officer ("CIO"), Chief Technology Officer ("CTO"), Chief Revenue Officer ("CRO"), Chief Visionary Officer ("CVO"), or any other "C" level executive.

History

New Section made by final exempt rulemaking at 25 A.A.R. 3715, with an immediate effective date of December 4, 2019 (Supp. 19-4).

Ariz. Admin. Code § R20-6-310.02 Filing Procedures

A. Deadline to file. An insurer, or the insurance group of which the insurer is a member, required to file a CGAD by A.A.C. Title 20, Chapter 2, Article 16 shall, no later than June 1 of each calendar year, submit to the Director a CGAD that contains the information described in Section R20-6-310.03.

B. Attestation. The CGAD must include a signature of the insurer's or insurance group's CEO or corporate secretary attesting to the best of that person's belief and knowledge that the insurer or insurance group has implemented the corporate governance practices and that the copy of the CGAD has been provided to the insurer's or insurance group's Board of Directors or appropriate committee of the Board of Directors.

C. Format of the CGAD. The insurer or insurance group shall have discretion regarding the appropriate format for providing the information required and is permitted to customize the CGAD to provide the most relevant information necessary to permit the Director to gain an understanding of the corporate governance structure, policies and practices utilized by the insurer or insurance group.

D. Insurer or insurance group to determine level of reporting.

1. For purposes of completing the CGAD, the insurer or insurance group may choose to provide information on governance activities that occur at the ultimate controlling parent level, an intermediate holding company level and/or the individual legal entity level, depending on how the insurer or insurance group has structured its system of corporate governance.

2. The insurer or insurance group is encouraged to make the CGAD disclosures at:

a. The level at which the insurer's or insurance group's risk appetite is determined,

b. The level at which the earnings, capital, liquidity, operations, and reputation of the insurer are overseen collectively and at which the supervision of those factors are coordinated and exercised, or

c. The level at which legal liability for failure of general corporate governance duties would be placed.

3. If the insurer or insurance group determines the level of reporting based on the criteria in subsection (D)(2), it shall indicate which of the three criteria was used to determine the level of reporting and explain any subsequent changes in the level of reporting.

E. CGAD completed at the insurance group level. Notwithstanding subsection (A) and as outlined in A.R.S. § 20-492.01, if the CGAD is completed at the insurance group level, then it must be filed with the lead state of the group as determined by the procedures outlined in the NAIC's Financial Analysis Handbook 2018 Annual/2019 Quarterly, pp. 771 through 774, and no future editions. In these instances, a copy of the CGAD must also be provided, upon request, to the chief regulatory official of any state in which the insurance group has a domestic insurer.

F. Reference to other existing documents. An insurer or insurance group may comply with this Section by referencing other existing documents (e.g., ORSA Summary Report, Holding Company Form B or F Filings, Securities and Exchange Commission (SEC) Proxy Statements, foreign regulatory reporting requirements, etc.) if the documents provide information that is comparable to the information described in R20-6-310.03. The insurer or insurance group shall clearly reference the location of the relevant information within the CGAD and attach the referenced document if it is not already filed or available to the Director.

G. Subsequent filings of the CGAD. Each year following the initial filing of the CGAD, the insurer or insurance group shall file an amended version of the previously filed CGAD indicating where changes have been made to the previously filed CGAD. The filing shall also state if no changes are made to the information or activities previously reported by the insurer or insurance group.

History

New Section made by final exempt rulemaking at 25 A.A.R. 3715, with an immediate effective date of December 4, 2019 (Supp. 19-4).

Ariz. Admin. Code § R20-6-310.03 Contents of CGAD

A. Inclusion of attachments. The insurer or insurance group shall be as descriptive as possible in completing the CGAD, with inclusion of attachments or example documents that are used in the governance process, since these may provide a means to demonstrate the strengths of their governance framework and practices.

B. Board. The CGAD shall describe the insurer's or insurance group's corporate governance framework and structure including consideration of the following:

1. The Board and its various committees ultimately responsible for overseeing the insurer or insurance group and the level or levels at which that oversight occurs (e.g., ultimate control level, intermediate holding company, legal entity, etc.). The insurer or insurance group shall describe and discuss the rationale for the current Board size and structure; and

2. The duties of the Board and each of its significant committees and how they are governed (e.g., bylaws, charters, informal mandates, etc.), as well as how the Board's leadership is structured, including a discussion of the roles of the Chief Executive Officer (CEO) and Chairman of the Board within the organization.

C. Senior Governing Entity. The insurer or insurance group shall describe the policies and practices of the most senior governing entity and its significant committees, including a discussion of the following factors:

1. How the qualifications, expertise and experience of each Board member meet the needs of the insurer or insurance group.

2. How an appropriate amount of independence is maintained on the Board and its significant committees.

3. The number of meetings held by the Board and its significant committees over the past year as well as information on director attendance.

4. How the insurer or insurance group identifies, nominates and elects members of the Board and its committees. The discussion should include, for example:

a. Whether a nomination committee is in place to identify and select individuals for consideration.

b. Whether term limits are placed on directors.

c. How the election and re-election processes function.

d. Whether a Board diversity policy is in place and if so, how it functions.

5. The processes in place for the Board to evaluate its performance and the performance of its committees, as well as any recent measures taken to improve performance (including any Board or committee training programs that have been put in place).

D. Senior Management. The insurer or insurance group shall describe the policies and practices for directing Senior Management, including a description of the following factors:

1. Any processes or practices (i.e., suitability standards) to determine whether officers and key persons in control functions have the appropriate background, experience and integrity to fulfill their prospective roles, including:

a. Identification of the specific positions for which suitability standards have been developed and a description of the standards employed.

b. Any changes in an officer's or key person's suitability as outlined by the insurer's or insurance group's standards and procedures to monitor and evaluate such changes.

2. The insurer's or insurance group's code of business conduct and ethics, the discussion of which considers, for example:

a. Compliance with laws, rules, and regulations; and

b. Proactive reporting of any illegal or unethical behavior.

3. The insurer's or insurance group's processes for performance evaluation, compensation and corrective action to ensure effective senior management throughout the organization, including a description of the general objectives of significant compensation programs and what the programs are designed to reward. The description shall include sufficient detail to allow the Director to understand how the organization ensures that compensation programs do not encourage and/or reward excessive risktaking. Elements to be discussed may include, for example:

a. The Board's role in overseeing management compensation programs and practices.

b. The various elements of compensation awarded in the insurer's or insurance group's compensation programs and how the insurer or insurance group determines and calculates the amount of each element of compensation paid;

c. How compensation programs are related to both company and individual performance over time;

d. Whether compensation programs include risk adjustments and how those adjustments are incorporated into the programs for employees at different levels;

e. Any clawback provisions built into the programs to recover awards or payments if the performance measures upon which they are based are restated or otherwise adjusted;

f. Any other factors relevant to understanding how the insurer or insurance group monitors its compensation policies to determine whether its risk management objectives are met by incentivizing its employees.

4. The insurer's or insurance group's plans for CEO and Senior Management succession.

E. Oversight. The insurer or insurance group shall describe the processes by which the Board, its committees and Senior Management ensure an appropriate amount of oversight to the critical risk areas impacting the insurer's business activities, including a discussion of:

1. How oversight and management responsibilities are delegated between the Board, its committees and Senior Management;

2. How the Board is kept informed of the insurer's strategic plans, the associated risks, and steps the Senior Management is taking to monitor and manage those risks;

3. How reporting responsibilities are organized for each critical risk area. The description should allow the Director to understand the frequency at which information on each critical risk area is reported to and reviewed by Senior Management and the Board. This description may include, for example, the following critical risk areas of the insurer:

a. Risk management processes (an ORSA Summary Report filer may refer to its ORSA Summary Report submitted pursuant to A.R.S. § 20-491.03);

b. Actuarial function;

c. Investment decision-making processes;

d. Reinsurance decision-making processes;

e. Business strategy/finance decision-making processes;

f. Compliance function;

g. Financial reporting/internal auditing; and

h. Market conduct decision-making processes.

History

New Section made by final exempt rulemaking at 25 A.A.R. 3715, with an immediate effective date of December 4, 2019 (Supp. 19-4).

Ariz. Admin. Code § R20-6-310.04 Severability Clause

If any provision of this Section, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this Section which can be given effect without the invalid provision or application, and to that end the provisions of this Section are severable.

History

New Section made by final exempt rulemaking at 25 A.A.R. 3715, with an immediate effective date of December 4, 2019 (Supp. 19-4).

Article 4 TYPES OF INSURANCE COMPANIES

Ariz. Admin. Code § R20-6-401 Proxies, Consents, and Authorizations of Domestic Stock Insurers

A. The Department incorporates by reference National Association of Insurance Commissioners Model Laws, Regulations and Guidelines, Volume III, pp. 490-1 through 490-33, Regulation Regarding Proxies, Consents, and Authorization of Domestic Stock Insurers, April 1995 (and no future editions or amendments), which is on file with and available from the Department of Insurance, 100 N. 15th Ave., Suite 261, Phoenix, AZ 85007-2630, the Department's website: https://difi.az.gov/insurance-division-rulemaking, and the National Association of Insurance Commissioners, Publications Department, 1100 Walnut Street, Suite 1500, Kansas City, MO 64106-2197, modified as follows:

Section 1 A is modified to read: "No domestic stock insurer that has any class of equity securities held of record by 100 or more persons, or any director, officer or employee of that insurer, or any other person, shall solicit, or permit the use of the person's name to solicit, by mail or otherwise, any proxy, consent, or authorization in respect to any class of equity securities in contravention of this regulation and Schedules A and B, hereby made a part of this regulation.

B. Domestic stock insurance companies shall comply with this Section as required under A.R.S. § 20-143(B).

History

Former General Rule 57-3. R20-6-401 recodified from R4-14-401 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3). New Section made by final rulemaking at 9 A.A.R. 1086, effective March 6, 2003 (Supp. 03-1). Amended by final expedited rulemaking at 25 A.A.R. 3008, effective 9/16/2019. Amended by final rulemaking at 29 A.A.R. 3615, effective 1/7/2024.

Ariz. Admin. Code § R20-6-402 Expired

History

Former General Rule 69-19. R20-6-402 recodified from R4-14-402 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-6-403 Expired

History

Former General Rule 69-21. R20-6-403 recodified from R4-14-403 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-6-404 [Repealed]

History

Former General Rule 73-31; Repealed effective January 1, 1981 (Supp. 80-6). R20-6-404 recodified from R4-14-404 (Supp. 95-1).

Ariz. Admin. Code § R20-6-405 Health Care Services Organization

A. ~~Authority. This rule is adopted pursuant to A.R.S. §§ 20-142, 20-143, 20-106 and 20-1051 through 20-1068 .~~

B. Purpose. The purpose of this rule is to implement the legislative intent, as expressed in Chapter 128, Laws of 1973, to regulate and control Health Care Services Organizations in the State of Arizona, (including, but not limited to Certificate of Authority, licensing, fees for licensing, disciplinary procedures for agents and control of solicitation of members and evidences of coverage).

C. Scope

1. The scope of this Section is the scope of A.R.S. Title 20 as it relates to Insurers or Hospital or Medical Service Corporations. As it relates to Health Care Services Organizations, the scope of this Section is the scope of Title 20, Chapter 1 and Title 20, Chapter 4, Article 9, as provided in A.R.S. § 20-1068. This Section is applicable to agents of persons, and persons operating or proposing to operate Health Care Services Organizations in the State of Arizona.

2. The statutory authority for this Section, A.R.S. Title 20, Chapter 4, Article 9, does not provide for exemptions for persons or agents of persons subject to A.R.S. Title 20, Chapter 4, Article 9, and no such exemption is intended or should be presumed by this Section or any provision of this Section.

D. B. Repeal. This Section does not repeal any known prior Section, memorandum, bulletin, directive or opinion on this subject matter. If such prior Section or directive exists and is in conflict with this Section, it is repealed by this Section.

E. C. Definitions. In addition to the definitions provided in A.R.S. § 20-1051, the following definitions apply to this Section unless the context otherwise requires:

1. "Agent" has the same meaning as "insurance producer" found at A.R.S. § 20-281(5).

2. "Certificate of Authority" has the meaning found at A.R.S. § 20-217.

3. "Director" has the meaning found at A.R.S. § 20-102.

4. "Hospital Service Corporation" has the meaning found at A.R.S. § 20-822.

5. "Insurer' has the meaning found at A.R.S. § 20-104.

6. "License" means the authority to act as an agent of a Health Care Services Organization.

7. "Medical Service Corporation" has the meaning found at A.R.S. § 20822.

8. "Net charges" means the total of all sums prepaid by or for all enrollees, less approved refunds, adjustments and deductions, as consideration for Health Care Services of a Health Care Plan under an Evidence of Coverage.

"Physician and patient relationship" has the meaning found at A.R.S. § 20-833.

10. "Prepaid Group Practice Plan" means a person authorized and approved under A.R.S. Title 20.

11. "Prepaid Health Plan" means any Health Care Plan to pay or make reimbursement for Health Care Services on a prepaid basis other than insured plans otherwise authorized and approved under A.R.S. Title 20.

12. "Transact" has the meaning found at A.R.S. § 20-106(A) and (B).

13. "Unqualified agent" means a person directly or indirectly representing or acting for a Health Care Services Organization and not qualified as an agent thereof.

14. "Net charges" means the total of all sums prepaid by or for all enrollees, less approved refunds, adjustments and deductions, as consideration for Health Care Services of a Health Care Plan under an Evidence of Coverage.

~~15. "Person" has the meaning of A.R.S. § 20-1051~~.

~~16. "Physician and patient relationship" has the meaning of A.R.S. § 20-833 .~~

17. "Prepaid Health Plans" means any Health Care Plan to pay or make reimbursement for Health Care Services on a prepaid basis other than insured plans otherwise authorized and approved under A.R.S. Title 20.

~~18. "Prepaid Group Practice Plan" means a person authorized and approved under A.R.S. Title 20.~~

~~19. "Provider" has the meaning of A.R.S. § 20-1051 .~~

~~20. "Transact" has the meaning of A.R.S. § 20-106(A) and (B) .~~

~~21. "Unqualified agent" means a person directly or indirectly representing or acting for a Health Care Services Organization and not qualified as an agent thereof.~~

F. D. ~~Certificate of Authority~~

1. Policy. Persons and agents of persons operating Health Care Services Organizations as of May 7, 1973, shall comply with the application requirements of A.R.S. § 20-1052 on or before August 7, 1973.

~~2. A Certificate of Authority shall not be granted until the Director is satisfied that the requirements of A.R.S. §§ 20-1052, 20-1053 and 20-1054 are met and will continue to be met.~~

3. An examination of an applicant at the expense of the applicant for a Certificate of Authority may be ordered to be made if the applicant is not a resident, is controlled by a non-resident, or maintains a head or principal office out of its service area, and will be ordered to be made if the applicant contracts with providers, or for services outside a reasonable area, or has contract obligations under its evidence of coverage that are, or appear to be, inequitable or unreasonable as to the enrollees.

G. Certificate of Authority - Application

1. Pursuant to the authority of A.R.S. § 20-1053(A)(13), the Director finds that biographical information disclosing the past activities, employment and financial transactions of principals, principal officers, controlling persons, and agents of applicant Health Care Services Organizations is necessary for the protection of residents of this State.

2. Pursuant to the authority of A.R.S. § 20-1053(A)(13), the Director finds that records of fingerprints of principal officers and agents of applicant Health Care Services Organizations may be necessary for the protection of citizens of this state and may be required prior to licensing or approval of a Certificate of Authority.

3. Health Care Services Organizations operating in this State as of May 7, 1973, and having submitted a sufficient application for Certificate of Authority as required by this rule, including the disclosure filings of paragraph (7) of this subsection, may continue to operate as an organization until the Director acts upon the application.

~~4. The application for Certificate of Authority shall be verified by an authorized and qualified officer of the Health Care Services Organization.~~

5. The application for Certificate of Authority shall be accompanied by the fees required for a hospital or medical service corporation by A.R.S. § 20-167 and a tax return or returns on Department Form E-162, for the calendar year previous to the calendar year of application during which the applicant has done business in this State as a Health Care Services Organization, and the amount of tax due thereon after the effective date hereof, if any, as provided by A.R.S. § 20-1060 . The filing of such returns or payment of such tax may be adjusted or waived by the Director upon application and affirmative showing in writing therefor justifying the adjustment or waiver.

6. The Director may, upon written request accompanied by supporting documentation justifying the request, authorize the substitution of public information filed by an applicant under similar statutes or regulations in another state, or under federal requirements, or may waive such information or additional information.

7. Pursuant to the authority of A.R.S. § 20-1053(13), the Director finds that biographical information disclosing the past activities, employment and financial transactions or principals, principal officers, controlling persons, and agents of applicant Health Care Services Organizations is necessary for the protection of residents of this State.

8. Pursuant to the authority of A.R.S. § 20-1053(13), the Director finds that records of fingerprints of principal officers and agents of applicant Health Care Services Organizations may be necessary for the protection of citizens of this state and may be required prior to licensing or approval of a Certificate of Authority.

H. ~~Certificate of Authority - Application. The application for Certificate of Authority shall be accompanied by a power of attorney as required by A.R.S. § 20-1053(A)(10) . on Department Form E-128.~~

I. E. Certificate of Authority - Grounds for denial

1. Policy. A Certificate of Authority to operate a Health Care Services Organization shall not be granted until the Director is satisfied by the affirmative showing, verified by the applicant, that all of the requirements of A.R.S. §§ 20-1051, 20-1052, 201052.01, 20-1053 and 20-1054 are met and will continue to be met.

2. Guidelines. The guidelines and standards for determination of appropriate mechanisms to achieve an effective Health Care Plan include, but are not limited to the following:

a. Ability to provide basic Health Care Services without undue restrictions, limitations, discrimination, unreasonable fee schedules, or unreasonable administrative costs; an affirmative showing that the form of organization does not evidence any coercion, duress or other compulsion over members;

b. The form of organization does not lend itself to practices prohibited by A.R.S. §§ 20-441 through 20-459, and

c. The evidence of coverage does not contain provisions or statements which are unjust, inequitable, misleading, deceptive or untrue or encourage misrepresentation.

3. Failure to pay obligations. Applications for a Certificate of Authority to operate a Health Care Services Organization may be denied or rejected if the applicant has failed after 30 days from the entry of final judgment, to pay obligations within the provisions of an evidence of coverage issued by such applicant. The provisions of this Section may be waived by the Director upon a clear affirmative showing that the applicant is defending an action or appealing a judgment at law or equity in a court of this state, or is required to obtain a Certificate of Authority so as to maintain such action.

4. Unauthorized agents. Applications for a Certificate of Authority to operate a Health Care Services Organization may be denied or rejected, after stated cause and opportunity to answer, if the applicant has, 90 days after the effective date, permitted transactions by an unauthorized agent.

J. F. Solicitation requirements

1. Forms for evidences of coverage, advertising matter, sales material and amendments thereto will not be approved until the Director is satisfied all applicable statutory requirements have been met and will continue to be met, and the necessary fees have been paid.

2. Each Health Care Services Organization shall maintain at its home or principal office a complete file containing every printed, published or prepared advertisement brochure, form letter of solicitation, evidence of coverage, certificate, agreement or contract, and a copy of all radio and television forms of the above hereafter disseminated in this or any other state with a notation attached to each such solicitation or inducement to indicate the manner and extent of distribution and the date of approval by the Department of such solicitation. Such advertising file shall be maintained for a period of not less than three years.

K. Annual report. Each Health Care Services Organization required to file an annual statement, shall, on or before March 1 of each year, file with the Director, together with its annual statement on Department Form E-13, a certificate executed by an authorized officer of the Health Care Services Organization stating that to the best of his knowledge, information and belief, all written solicitations disseminated during the preceding statement year complied or were made to comply with the provisions of Title 20, Chapter 4, Article 9, and this rule, and that no forms of solicitation were disseminated without the prior approval of the Director.

L. G. Taxes

1. All Health Care Services Organizations operating and transacting business in the State of Arizona shall on or before March 1 and with the filing of the Annual Report, file a tax return and pay the tax due on the filed return pursuant to A.R.S. § 20-1060.

2. Annual tax returns required to be filed coincident with the annual report shall be for the full calendar year next preceding the date of filing the annual report.

3. Net charges, as in this Section defined, shall represent the net charges received during the calendar year next preceding the date of filing the annual report and tax return.

M. H. Deposit requirements

1. In the event a Health Care Services Organization determines to maintain statutory deposits by a surety bond, such surety bond shall be on a form as approved by the Director guaranteeing the payment of Health Care Services furnished to enrollees, and shall be deposited with the State Treasurer.

2. Provider sponsored Health Care Services Organizations claiming to be exempt from the deposit requirement, pursuant to A.R.S. § 20-1055(F), shall submit to the Director an affirmative showing or certification executed by an authorized federal, state or municipal government or political subdivision thereof, demonstrating operational commitments equivalent to the statutory deposit requirements.

3. Statutory deposits shall not be withdrawn or a surety bond cancelled until all contingent and perfected liens, including judgments, debts, and other liabilities for payment of Health Care Services to which the enrollee is entitled under the evidence of coverage, shall have been paid and the Director authorizes, in writing, to withdraw such deposits or cancel such bonds. Equal par value statutory deposit exchanges may be completed without the Director's prior approval.

4. Health Care Services Organizations claiming to be exempt from the deposit requirement, pursuant to A.R.S. § 20-1055(f) shall submit to the Director an affirmative showing or certification executed by an authorized federal, state or municipal government or political subdivision thereof, demonstrating operational commitments equivalent to the statutory deposit requirements.

5. Statutory deposits shall not be withdrawn or a surety bond cancelled until all contingent and perfected liens, including judgments, debts, and other liabilities for payment of Health Care Services to which the enrollee is entitled under the evidence of coverage shall have been paid and the Director has given his authority in writing to withdraw such deposits or cancel such bonds.

N. Reserve requirements. Reserves required by A.R.S. § 20-1056 shall be deposited or maintained as cash, as Certificates of Deposit, or as securities eligible for investment of the capital of domestic insurers, pursuant to A.R.S. §§ 20-537 and 20-538 .

O. I. Insurers and hospital and medical service corporations - Certificate of Authority

1. Insurers, Hospital Service Corporation, Medical Service Corporations, and Hospital and Medical Service Corporations, holding current Certificates of Authority to do business in this state may organize and operate Health Care Services Organizations jointly or severally without compliance with the deposit and reserve requirements of the statute if the application contains an affirmative showing that the applicant organization has complied with comparable provisions of Title 20, and is an appropriate mechanism to achieve an effective Health Care Plan.

2. The provisions of statute and this Section applying to Certificates of Authority and Application therefor, shall apply to all insurers, Hospital Service Corporations, Medical Service Corporations, and Hospital and Medical Service Corporations doing business in this state.

3. Organizations claiming exemption or partial exemption pursuant to A.R.S. § 20-1063(C) shall file with the Director simultaneously with the application for Certificate of Authority, a statement affirmatively showing that the applicant has complied with provisions of Title 20 A.R.S. comparable to or more restrictive than the provisions of Title 20, Chapter 4, Article 9, and shall have received the written approval of the Director for such exemption or partial exemption.

P. ~~Application, examination and licensing of agents~~

1. No agent of a Health Care Services Organization shall be eligible for transactions of a Health Care Services Organization, unless, prior to making any solicitation or transaction, he has been appointed agent by a Health Care Services Organization holding a current valid Certificate of Authority and has been licensed as herein provided. Persons directly or indirectly representing or acting for a Health Care Services Organization and not licensed as herein provided, or otherwise qualified under A.R.S. Title 20, shall be an unqualified agent.

~~2. Any person applying for a license as an agent of a Health Care Services Organization shall do so by filing with the Department of Insurance the following:~~

~~a. An application for such license on a form approved by the Director of the Department of Insurance;~~

~~b. The required fees for such license;~~

~~c. Such additional information as the Director may deem necessary.~~

3. The licensing of an agent of a Health Care Services Organization shall not become effective until such applicant shall have satisfactorily passed a written examination in accordance with A.R.S. § 20-292 as supplemented by A.R.S. § 20-167 .

~~4. The examination shall be given in such places and at such times as the Director shall from time to time designate.~~

~~5. The form of examination and the manual may be altered and amended from time to time, so as to represent a fair test of the~~

~~applicant's qualifications.~~

6. Every applicant for license shall satisfactorily complete the examination given with a grade of at least 70%, or such other percentage as may be fixed from time to time by the Director prior to the examination commensurate with the nature of the examination given.

~~7. License and examination fees shall be in accordance with A.R.S. § 20-167 .~~

8. Report of the results of any examination given pursuant to this rule shall be mailed to the applicant and to the applicant's Health Care Services Organization at the address shown on the application.

~~9. Except as modified by this rule, the provisions for examination, licensing, annual fees and disciplinary procedures of Chapter 2, Article 3 of Title 20, shall apply.~~

10. Any agent licensed in this state shall immediately report to the Director any judgment or injunction entered against him on the basis of conduct deemed to have involved fraud, deceit, misrepresentation, or other violation affecting his license and all complaints or charges of misconduct lodged with his employer, any public agency of the state, or another state.

11. The Director may reject any application or suspend or revoke, or refuse to renew any agent's license for inducements or statements which are unjust, unfair, inequitable, misleading or deceptive, or which encourage misrepresentation, or are untrue or misleading.

12. The rules, standards and guidelines governing any proceeding relating to the suspension or revocation of the license of a life insurance agent, where applicable, shall also govern any proceedings for suspension or revocation of the license of an agent of a Health Care Services Organization.

~~13. Renewal of a license of an agent shall follow the same procedure as heretofore established for renewal of insurance agents' licenses in this state.~~

~~14. Renewal of a license of an agent shall follow the same procedure as heretofore established for renewal of insurance agents' licenses in this state.~~

J. Application, examination and licensing of agents. No agent of a Health Care Services Organization shall be eligible for transactions of a Health Care Services Organization unless, prior to making any solicitation or transaction, the agent has been appointed by a Health Care Services Organization holding a current valid Certificate of Authority and is licensed as an insurance producer. The Health Care Services Organization is not required to report its appointments to the Department. An agent directly or indirectly representing or acting for a Health Care Services Organization and not licensed or otherwise qualified under A.R.S. Title 20, shall be an unqualified agent.

Q. K. Forms

1. The forms prescribed by this Section and their instructions are adopted as requirements of the Director and necessary for the protection of citizens of this state. Such forms, instructions, manuals or examinations are those currently in use, but the same may be amended and approved without reference to this Section. The form of manual or examination of agents, or any form adopted by the Director may be reproduced for the purpose of reporting or for other purposes.

2. For good cause shown, the Director may authorize the filing of forms and reports on dates other than required by this Section, if applied for in writing not less than 10 days prior to the due date of the report and statement, exhibit, return or accounting.

R. L. Severability. In any provision of this Section or the forms, statements, returns or reports made part of this Section, or the application to any person or circumstance is held invalid, such invalidity shall not affect the provisions of applications of this Section, which can be given effect without the invalid provision or application, and to this end the provisions of this Section are declared to be severable.

S. ~~Effective date. This rule became effective on the 7th day of May, 1973. Amendments to this rule shall become effective upon filing with the Secretary of State.~~

History

Former General Rule 73-33; Amended subsections (E), (P), (R), (S), and (T) effective August 12, 1981 (Supp. 81-4). R20-6-405 recodified from R4-14-405 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 3615, effective 1/7/2024.

Ariz. Admin. Code § R20-6-406 Expired

History

Adopted effective May 18, 1978 (Supp. 78-3). R20-6-406 recodified from R4-14-406 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E), filed in the Office of the Secretary of State August 24, 2000 (Supp. 00-3).

Ariz. Admin. Code § R20-6-407 Service Companies

A. Scope. This rule shall apply to all service companies except those that are exempt under A.R.S. "§ 20-1095.02.

B. Definitions. The definitions in A.R.S. "§ 20-1095 apply to this rule.

1. "Contract Holder" has the same meaning as "consumer" as defined in A.R.S. "§ 20-1095(1).

2. "Department" means the Arizona Department of Insurance and Financial Institutions, Insurance Division.

3. "Director" means the Director of the Department.

4. "Insolvent" as used in A.R.S. "§ 20-1095.08(3) means total liabilities are equal to or exceed total assets.

5. "Provider" means a person who is contractually obligated to the service contract holder under the terms of a service contract. "Provider" is synonymous with "service company" and "obligor" as defined in A.R.S. "§ 20-1095(6).

6. "Reasonable time" or "Reasonable period of time:"

a. As used in A.R.S. "§ 20-1095.06(C)(2), means at the time of purchase or mailed or electronically delivered but not more than 10 business days after the purchase date of the contract. The service company must be able to provide proof of delivery if requested by the Department.

b. As used in A.R.S. "§ 20-1095.09(A)(4), is what an ordinary person would consider "reasonable" under the totality of the circumstances.

"Solvent" as used in A.R.S. "§ 20-1095.03(A)(1) means total assets exceed total liabilities.

8. "Subcontractor" means a person or business having a contractual relationship with a service company to provide work or services which a service company has agreed to perform under a service contract. If required by the type of work being performed, all subcontractors must be licensed.

C. Application for a service company permit.

1. Application form. The application for a service company permit shall be on A form designated by the Department and shall be transmitted through an electronic online system if such a system is designated on the Department's web site. An application must be complete and have all attachments to be considered by the Department.

2. Application. The application shall contain the following information:

a. Applicant's full legal name ;

b. Applicant's federal employer identification number (EIN);

c. Applicant's trade name or names, if applicable;

d. Applicant's state of domicile;

e. Applicant's form of business entity (corporation, limited liability company, etc.);

f. Applicant's addresses, phone numbers, e-mail address or addresses and website or addresses;

g. Name, address, and phone number or e-mail address for each contact person of the applicant;

h. A list of the applicant's officers, directors, LLC managers, and persons owning 25% or more of the service company, and for each officer, director, manager, or person owning 25% or more of an entity that owns the service company;

i. If the applicant intends to use a service contract administrator, the name and contact information for the applicant's service contract administrator;

j. The applicant's fiscal year end date;

k. A summary of the applicant's financial position including current assets, current liabilities, equity and income;

l. The name and signature of an officer of the applicant; and

m. Any other information the Department deems necessary to aid in the approval of the application.

3. Application attachments. The applicant shall include the following as part of the application:

a. A copy of the service company's most recent financial statement sworn to and certified by the owner, duly elected officer or a certified public accountant.

b. Evidence of compliance with the financial security requirements of A.R.S. "§ 20-1095.03(A)(3).

c. A biographical affidavit, on a form approved by the Department, for each officer, director, LLC manager, or person owning 25% or more of the service company, and for each officer, director, manager, or person owning 25% or more of an entity that owns the service company.

d. A list of any actions taken against the applicant in any jurisdiction by a regulatory agency or state attorney general.

Application fee. At the time of filing the application, the applicant shall pay the nonrefundable application fee prescribed by A.R.S. "§ 20-167 and fixed by the Department.

D. Term of the service company permit.

1. Term of permit. A service company permit shall have a term that begins on the date that the Department either grants or renews a service company permit and expires at midnight on the last day of the month, three months after the service company's fiscal year-end date.

2. The Department is not required to issue a paper copy of the service company permit. However, the Department will make a copy of the service company permit available by electronic or other means.

3. Expiration of a service company permit.

a. Unless the Department receives an application and full payment of fees for renewal prior to the end of the service company permit term, the service company permit expires.

b. A service company whose permit term has expired shall not offer, extend, or renew a service contract.

c. A service company whose permit has expired shall continue to fulfill the obligations of its in-force contracts and shall maintain the security required under A.R.S. "§ 20-1095.03(3) until such time that all of the service company's contractual obligations to contract holders are fulfilled.

E. Service company permit renewal and late-renewal.

1. Timely renewal. A service company seeking to renew its permit shall file with the Department a renewal application, consisting of the renewal application form, all required attachments and the renewal fee after the end of its fiscal year but before the expiration of its permit term. A service company shall transmit the renewal application through an electronic online system if such a system is designated on the Department's website. A renewal application must be complete, have all required attachments and the renewal fee to be considered as having been received by the Department.

Renewal form. A service company shall use the renewal form designated by the Department. The renewal shall contain the following information:

a. Service company name appearing on the permit, and the service company's Arizona license number and EIN;

b. Any additions or deletions to the service company's trade name(s), addresses, phone numbers and website addresses;

c. Any changes to the service company's contact person(s) or service contract administrator, or their contact information;

d. A summary of the applicant's financial position including current assets, current liabilities, equity and income; and

e. Any other information the Department deems necessary to aid in the renewal of the permit.

3. Renewal attachments. The service company shall attach the following to the renewal:

a. A copy of the service company's financial statement as of the end of the service company's most recently completed fiscal year, sworn to and certified by the owner, duly elected officer or a certified public accountant.

b. Evidence of continuing compliance with the financial security requirements of A.R.S. "§ 20-1095.03(A)(3).

c. Any additions or deletions to the officers, directors, LLC managers, or persons owning 25% or more of the service company, or to an entity that owns the service company since the last report to the Department.

d. A biographical affidavit, on a form approved by the Department, for each new person identified in subsection (3)(c).

e. Any actions taken against the service company in any jurisdiction by a regulatory agency or state attorney general not previously reported to the Department.

4. Renewal fee. At the time of filing the renewal, the service company shall pay a nonrefundable renewal fee as prescribed by A.R.S. "§ 20-167 and fixed by the Department.

5. Late-renewed application and fee.

a. Late-renewal period. A service company whose permit term has expired may file a renewal application up to ninety days after the expiration of the permit term. After the ninety-day period, a renewal application will not be accepted by the Department and the service company must file a service company permit application with the Department pursuant to subsection (C) of this Section.

b. A service company whose permit term has expired shall not offer, extend, or renew a service contract until the permit is renewed or a new permit is issued by the Department.

c. Fee. In addition to the nonrefundable renewal fee required under subsection (E)(4) of this Section, the service company shall pay a nonrefundable additional fee of $25 per day starting the calendar day after the permit term expiration and ending on the date the service company files a complete renewal application.

d. Term of a late-renewed permit. The term of a late-renewed permit shall begin on the date the Department renews the permit and shall end on the last day of the permit term.

F. Deposits of cash or alternatives to cash.

1. Contracts issued, renewed, or extended on or after August 3, 2018. For any contract that a service company issues, extends, or renews from and after August 3, 2018, a service company may not satisfy the financial responsibility requirements of A.R.S. "§ 20-1095.04 by means of providing a deposit of cash or alternatives to cash.

2. Contracts issued, renewed, or extended before August 3, 2018. If a service company provided a deposit of cash or alternatives to cash covering service contracts that were issued, last extended, or last renewed prior to August 3, 2018, the service company shall maintain the deposit in the amount required to cover those contracts and the deposit shall not be encumbered.

Release of deposits of cash or alternatives to cash. As it relates to financial responsibility requirements fulfilled by a deposit of cash or alternatives to cash, the Director shall only release the deposit upon one of the following:

a. The service company provides a surety bond or mechanical reimbursement policy that covers the outstanding service contract liabilities secured by the cash or alternatives to cash.

b. The Department has approved the assumption of outstanding service contracts and liabilities by another service company that has acknowledged the assumption of the outstanding contracts and that shall provide each affected contract holder an endorsement issued by the mechanical reimbursement insurer or surety.

c. The service company provides evidence satisfactory to the Department that:

i. The outstanding service contracts and liabilities have expired or have been cancelled in accordance with the service contract terms;

ii. All claims under the service contracts have been settled; and

iii. The service company is financially able and agrees to be financially responsible for any valid unreported claims.

G. Filing of forms.

1. Contracts to be submitted for approval. A service company shall submit contracts for the Department's approval pursuant to A.R.S. "§ 20-1095.06. A service company is not required to submit advertisements or marketing materials for approval by the Department but shall abide by the provisions of Title 20, Chapter 2 - Article 6, Chapter 4 - Article 11, and this Section regarding misrepresentations in the sales of service contracts.

2. Requirements for approval. No service contract form shall be approved unless it:

a. Complies with A.R.S. "§ 20-1095.06;

b. Identifies the covered products under the contract and, in bold-faced type, preferably in a larger font, the specific items or components of those products which are excluded;

c. States the service fee or deductible charge, if any, to be charged, or applied, for service calls and/or each covered repair;

d. Specifies in clear and easily understood language the specific circumstances under which a contract holder may engage a subcontractor who is not recommended by the service company without becoming financially responsible under the contract and whether pre-authorization is required prior to engaging a subcontractor who is not recommended by the service company;

e. Specifies in clear and easily understood language the service company's financial responsibilities to the contract holder when any of the systems, products or appliances covered by the contract cannot be replaced or repaired;

f. If applicable, states the conditions under which the service contract or coverage may be reinstated;

g. States the dates of coverage under the service contract including any delay in coverage that differs from the purchase date of the contract which would extend the coverage term of the contract and any terms that govern renewal of the service contract; and

h. If providing a pro rata refund upon cancellation of the service contract before the end of the coverage period of the service contract, the service contract shall contain language in conformance with A.R.S. § 20-1095.06(D)(9).

3. Disapproval of contracts. The Department may disapprove any service contract that is in violation of Title 20, Chapter 4

Article 11, or this subsection (G). The service company may request a hearing to appeal the disapproval pursuant to A.R.S. "§ 20-161.

History

Adopted effective April 30, 1981 (Supp. 81-2). Former Section R4-14-407 repealed and a new Section R4-14-407 adopted effective July 2, 1987 (Supp. 87-3). R20-6-407 recodified from R4-14-407 (Supp. 95-1). Amended by final rulemaking at 28 A.A.R. 3968, effective 2/6/2023.

Ariz. Admin. Code § R20-6-408 Expired

History

Former Section R4-14-408 renumbered as Section R4-14-409; a new Section R4-14-408 adopted effective July 15, 1987 (Supp. 87-3). R20-6-408 recodified from R4-14-408 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 24 A.A.R. 3106, effective October 9, 2018 (Supp. 18-4).

Ariz. Admin. Code § R20-6-409 Hospital, Medical, Dental, and Optometric Service Corporations

A. Applicability. This rule applies to all subscription contracts issued by hospital, medical, dental and optometric service corporations.

B. Subscription contract provision. Subscription contracts of hospital, medical, dental and optometric service corporations subject to the provisions of Article 3, Chapter 4 of Title 20, A.R.S., shall meet the requirements of the following Sections:

R20-6-201. Advertisements of Health,

R20-6-207. Gender Discrimination,

R20-6-208. Group Coverage Discontinuance and Replacement,

R20-6-211. Discrimination on the Basis of Blindness or Partial Blindness,

R20-6-213. Life and Disability Insurance Policy Language Simplification, and

R20-6-607. Reasonableness of Benefits in Relation to Premium Charged.

~~7. R20-6-606 . Medicare supplement insurance disclosure and minimum standards.~~

~~8. R20-6-607 . Reasonableness of benefits in relation to premium charged.~~

C. Severability. If any provision of this rule or the application thereof to any person or circumstance is for any reason held invalid, the remainder of the rule and the application of such provision to other persons or circumstances shall not be affected thereby.

History

Adopted effective July 9, 1982 (Supp. 82-4). Former Section R4-14-408 renumbered without change as Section R4-14-409 effective July 15, 1987 (Supp. 87-3). R20-6-409 recodified from R4-14-409 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 3615, effective 1/7/2024.

Article 5 THE INSURANCE CONTRACT

Ariz. Admin. Code § R20-6-501 Ten-day Period to Examine Disability Insurance Policy

For the purpose of implementing A.R.S. §§ 20-442, 20-443, 20-826, 20-1111 and 20-1113 and to make more specific the regulation therein provided relative to policies of individual disability insurance (accident and sickness, hospitalization, medical, surgical and loss of time) issued in the State of Arizona and further to provide satisfactory public remedy against the hazards of misunderstanding by an applicant, of deception and coercion by an agent and of certain policy exclusions and limitations that cheapen the value of coverage, the Insurance Department of Arizona adopts the following rule:

1. Each policy of individual disability insurance, except one for which no provision for renewal is made, issued for delivery in the State of Arizona on or after October 1, 1961, by an insurance company or by a hospital or medical service corporation shall have printed on the first page thereof or attached thereto or endorsed thereupon in prominent style a notice declaring that, during a period of 10 days (or, at the insurer's option, a longer period) from the date of delivery to the policyholder, such policy may be returned for cancellation to the insurer at its home office (or, at the insurer's option, to its branch office or to the agent through whom it was purchased) and declaring further that in the event of such return the insurer will refund the entirety of any premium paid therefor, including any policy fees or other charges, and that the policy shall be deemed void from the beginning and that the parties shall be returned to their original position as if no policy had been issued.

2. The Insurance Department does not specify the particular language the notice shall contain but prefers usage of a phraseology approximately along the lines of either the longer (Form A) or shorter (Form B) sample below:

Click here to view Image

History

Former General Rule 61-7. R20-6-501 recodified from R4-14-501 (Supp. 95-1).

Article 6 TYPES OF INSURANCE CONTRACTS

Ariz. Admin. Code § R20-6-601 Regulations Governing Bail Transactions

A. General provisions

1. Effective date

a. These regulations are effective November 1, 1960. On and after date, no bail transaction or severable portion thereof shall be conducted, directly or indirectly except in full conformity herewith.

b. No surety insurer shall furnish for use and no bail bond agent shall use any forms or documents which contain any provisions contrary to these regulations on or after the effective date hereof.

2. Authority. Authority for these regulations is A.R.S. §§ 20-142, 20-143 and 20-257 and A.R.S. Chapter 2, Article 3.

Public interest served. These regulations serve the public interest by prohibiting inequities in bail transactions and by establishing standards of licensing and conduct for bail bond agents.

4. Regulations as severable. These regulations shall be construed as severable, such that, where one or more Sections are held invalid, such remaining Sections will not be adversely affected.

5. Penalty. Violation of these regulations will subject the guilty party to the penalties of A.R.S. §§ 20-114, 20-220 and 20-316 and to the enforcement procedures of A.R.S. §§ 20-152 and 20-160 through 20-166.

B. Definitions

1. "Bail transaction" defined. As used in these regulations, the term "bail transaction" includes solicitation and inducement, preliminary negotiation and effectuation of a contract of surety insurance and the transaction of matters subsequent thereto and arising therefrom - all in connection with the release of persons arrested or confined.

2. "Bail bond agent" defined. As used in these regulations, the term "bail bond agent" means any person who engages in a bail transaction on behalf of a surety insurer or representative thereof.

"Arrestee" defined. As used in these regulations, the term "arrestee" means any person arrested or detained whose release on bail is solicited or procured or concerning whose release negotiations are commenced.

4. "Director" defined. As used in these regulations, the term "Director" means the Director of Insurance of the state.

C. Licensing

1. Application for license. Each application for original or renewal license as a bail bond agent shall be on a form furnished by the Director, and each applicant for such license shall furnish such supplementary information and supporting statements as the Director may require.

2. Prohibited associations. A bail bond license shall not be issued to, renewed for or maintained by any person who associates regularly with criminals, gamblers or persons of poor repute - except to the extent such association is required by business or professional duty and responsibility.

3. Transactions by unlicensed persons prohibited. No bail bond agent shall directly or indirectly permit any person on his behalf to solicit or negotiate bail transactions unless such person is duly licensed by the Director.

Employees. Employees of bail bond agents performing only clerical duties need not be licensed hereunder and shall be deemed not engaged in bail transactions.

D. Conduct of bail bond agents

1. Disclosure of business. Every bail bond agent shall conduct his business in such a manner that the public and those dealing with him shall be aware of the capacity in which he is acting.

2. Control of employees. A bail bond agent shall exercise direct supervision over his employees and keep informed of their actions as his employees.

3. Prohibited employees. No bail bond agent shall have in his employ at any time any criminal, gambler or person of poor repute.

4. Acting for attorney. No bail bond agent shall receive, or collect for an attorney any money or other item of value for attorney's fee, costs or any other purpose on behalf of an arrestee, unless a receipt is given therefor.

5. Informants prohibited. No bail bond agent shall for any purpose, directly or indirectly, enter into an arrangement of any kind or have an understanding with a law enforcement officer, with a newspaper employee, with a messenger service or employee thereof, with a trusty in a jail, with other person incarcerated in a jail, or with any person whatever, to inform or notify any bail bond agent directly or indirectly of:

a. The existence of a criminal complaint;

b. The fact of an arrest; or

c. The fact that an arrest of any person is pending or contemplated; or

d. Any information pertaining to matters set forth in (a), (b), and (c) hereof or to the persons involved therewith.

6. Compliance with rules of public authority. No bail bond agent shall solicit any person in a bail transaction in a prison or jail or other place of detention, court or public institution connected with the administration of justice unless said bail bond agent has fully complied with every rule, regulation and ordinance issued by each public authority governing the conduct of persons in or about said premises.

7. Representations to public authority

a. No bail bond agent shall make any misleading or untrue representation to a court or to a public official with respect to a bail transaction, nor for the purpose of avoiding or preventing a forfeiture of bail or of having set aside a forfeiture which has occurred.

b. Every bail bond agent shall truthfully and fully answer every question asked him by the Director or his representative respecting his bail transactions and matters relating to the conduct of his bail business. Any bail bond agent may have his attorney present when he answers any such question.

8. Maintenance of records. Every bail bond agent shall keep complete records of all business done under authority of his license. Such records shall be open to inspection or examination by the Director or his representatives at all reasonable times at the principal place of business of the bail bond agent as designated in his license.

E. Charges, collateral, refunds and rebates

1. Rates

a. No bail bond agent shall issue or deliver a bail bond except at the premium rates most recently filed and approved by the Director in accordance with A.R.S. § 20-357.

b. Every bail bond agent shall post the premium rates of the surety insurer he represents in a conspicuous manner at his place of business.

2. Charges permitted. No bail bond agent shall, in any bail transaction or in connection therewith, directly or indirectly, charge or collect money or other valuable consideration from any person except for the following purposes:

a. To pay the premium at the rates established by the surety insurer and approved by the Director.

b. To provide collateral.

c. To reimburse himself for actual and reasonable expenses incurred in connection with the individual bail transaction, including:

i. Guard fees after the first 12 hours following release of an arrestee on bail;

ii. Notary fees, recording fees, necessary long distance telephone expenses, telegram charges, and travel expenses for other than local community travel.

iii. Any other actual expenditure necessary to the bail transaction which is not usually and customarily incurred in connection with the ordinary operation and conduct of bail transactions.

3. Delivery of documents to arrestee

a. Every bail bond agent shall, at the time of obtaining the release of an arrestee on bail or immediately thereafter, deliver to such arrestee or to the principal person with whom negotiations were made, if other than the arrestee, a copy of the bail bond premium agreement, which shall include:

i. The name of the surety insurer and the name and business address of the bail bond agent.

ii. The amount of bail and the premium thereof.

b. The bail bond agent shall also deliver at such time a statement detailing all charges in addition to the premium, the amount received on account, the unpaid balance if any, and a description of and a receipt for any collateral received.

4. Collateral

a. Any bail bond agent who receives collateral in connection with a bail transaction shall do so in a fiduciary capacity and, prior to any forfeiture of bail, shall keep such collateral separate and apart from any other funds, assets or property of such bail bond agent.

b. Any collateral received shall be returned to the person who deposited it with the bail bond agent or any assignee as soon as the obligation, the satisfaction of which was secured by the collateral, is discharged. Where such collateral has been deposited to secure the obligation of a bond, it shall be returned immediately upon the entry of any order by an authorized official by virtue of which liability under the bond is terminated, or, if any bail bond agent fails to cooperate fully with any authorized official to secure the termination of such liability, immediately upon the accrual of any right to secure an order of termination of liability.

c. When such collateral has been deposited as security for unpaid premium or charges and, if such premium or charges remained unpaid at the time of exoneration and after demand therefor has thereafter been made by the bail bond agent, collateral other than cash may be levied upon in the manner provided by law and cash collateral up to the amount of such unpaid premium on charges may be applied in payment thereof.

d. If collateral received by a bail bond agent is in excess of the bail forfeited, such excess shall be returned to the depositor immediately upon application of the collateral to the forfeiture subject, however, to any claim of the bail bond agent for unpaid premium or charges as provided in subparagraph (c) of paragraph (4) of subsection (E), or as agreed to in writing by the bail bond agent and arrestee or his indemnitor.

Premium refund upon surrender of arrestee. No bail bond agent shall surrender an arrestee to custody prior to the time specified in the bail bond for the appearance of the arrestee, or prior to any other occasion when the presence of the arrestee in court is lawfully required, without returning all premium paid therefor, unless as a result of judicial action, or material misrepresentation by the arrestee or his indemnitor with respect to the execution of the bail bond agreement, or a material and substantial increase in the hazard assumed. Failure of the arrestee to pay the premium, or charges permitted under these regulations or any part thereof, and failure to furnish collateral required by the bail bond agent, shall not be considered a material and substantial increase in the hazard assumed.

Rebating prohibited. No bail bond agent shall pay or allow in any manner, directly or indirectly, to any person who is not also a bail bond agent any commission or valuable consideration on or in connection with a bail transaction. This Section shall not prohibit payments by a bail bond agent to an unlicensed person of charges by such persons for services of the kind specified in paragraph (2) subsection (E) of this Section.

History

Former General Rule 60-5. R20-6-601 recodified from R4-14-601 (Supp. 95-1).

Ariz. Admin. Code § R20-6-602 Nationwide Inland Marine Definition

A. Applicability. This rule applies to risks and coverages which may be classified or identified as Marine, Inland Marine or Transportation insurance but shall not be construed to mean that the kinds of risks and coverages are solely Marine, Inland Marine or Transportation insurance in all instances.

This rule shall not be construed to restrict or limit in any way the exercise of any insuring powers granted under charters and license whether used separately, in combination or otherwise.

B. Marine and/or transportation policies may cover under the following conditions:

Imports.

a. Imports may be covered wherever the property may be and without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation.

b. An import, as a proper subject of marine or transportation insurance, shall be deemed to maintain its character as such so long as the property remains segregated in such a way that it can be identified and has not become incorporated and mixed with the general mass of property in the United States, and shall be deemed to have been completed when such property has been:

i. Sold and delivered by the importer, factor or consignee; or

ii. Removed from place of storage and placed on sale as part of the importer's stock in trade at a point of sale or distribution; or

iii. Delivered for manufacture, processing or change in form to premises of the importer or of another for any such purposes.

2. Exports.

a. Exports may be covered wherever the property may be located without restriction as to time, provided the coverage of each issuing company includes hazards of transportation.

b. An export, as a proper subject of marine or transportation insurance, shall be deemed to acquire its character as such when designated or while being prepared for export and retain that character unless diverted for domestic trade, and when so diverted, the provisions of this rule respecting domestic shipments shall apply, provided, however, that this provision shall not apply to long established methods of insuring certain commodities, e.g., cotton.

3. Domestic shipments.

a. Domestic shipments on consignment, for sale or distribution, exhibit, or trial, or approval or auction, while in transit, while in the custody of others and while being returned, provided the coverage of each issuing company includes hazards of transportation, and further provided that in no event shall the policy cover domestic shipments on consignment on premises owned, leased or operated by the consignor.

b. Domestic shipments not on consignment, provided the coverage of the issuing companies includes hazards of transportation, beginning and ending within the United States, and further provided that such shipments shall not be covered at manufacturing premises nor after arrival at premises owned, leased or operated by assured or purchaser.

4. Bridges, tunnels and other instrumentalities of transportation and communication excluding buildings, their improvements and betterments, their furniture and furnishings, fixed contents and supplies held in storage. The foregoing includes:

a. Bridges, tunnels, other similar instrumentalities, including auxiliary facilities and equipment attendant thereto.

b. Piers, wharves, docks, slips, dry docks and marine railways.

c. Pipelines, including on-line propulsion, regulating and other equipment appurtenant to such pipelines, but excluding all property at manufacturing, producing, refining, converting, treating or conditioning plants.

d. Power transmission and telephone and telegraph lines, excluding all property at generating, converting or transforming stations, substations and exchanges.

e. Radio and television communication equipment in use as such including towers and antennae with auxiliary equipment, and appurtenant electrical operating and control apparatus.

f. Outdoor cranes, loading bridges and similar equipment used to load, unload and transport.

5. Personal Property Floater Risks covering individuals and/or generally

a. Personal Effects Floater Policies

b. The Personal Property Floater

c. Government Service Floater

d. Personal Fur Floaters

e. Personal Jewelry Floaters

f. Wedding Present Floaters for not exceeding 90 days after the date of the wedding.

g. Silverware Floaters.

h. Fine Arts Floaters, covering paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art of rarity, historical value or artistic merit.

i. Stamp and Coin Floaters.

j. Musical Instrument Floaters. Radios, televisions, record players and combinations thereof are not deemed musical instruments.

k. Mobile Articles, Machinery and Equipment Floaters, excluding vehicles designed for highway use and auto homes, trailers and semi-trailers except when hauled by tractors not designed for highway use, covering identified property of a mobile or floating nature pertaining to or usual to a household. Such policies shall not cover furniture and fixtures not customarily used away from premises where such property is usually kept.

l. Installment Sales and Leased Property Policies covering property pertaining to a household and sold under conditional contract of sale, partial payment contract or installment sales contract or leased, but excluding motor vehicles designed for highway use. Such policies must cover in transit but shall not extend beyond the termination of the seller's or lessor's interest.

m. Live Animal Floaters.

6. Commercial Property Floater Risks covering property pertaining to a business, profession or occupation.

a. Radium Floaters.

b. Physicians' and Surgeons Instrument Floaters. Such policies may include coverage of such furniture, fixtures and tenant assured's interest in such improvements and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his profession.

c. Pattern and Die Floaters.

d. Theatrical Floaters, excluding buildings and their improvements and betterments, and furniture and fixtures that do not travel about with theatrical troupes.

e. Film Floaters, including builders' risk during the production and coverage on completed negatives and positives and sound records.

f. Salesmen's Samples Floaters.

g. Exhibition Policies on property while on exhibition and in transit to or from such exhibitions.

h. Live Animal Floaters.

i. Builders Risks and/or Installation Risks covering interest of owner, seller or contractor, against loss or damage to machinery, equipment, building materials or supplies, being used with and during the course of installation, testing, building, renovating or repairing. Such policies may cover at points or places where work is being performed, while in transit and during temporary storage or deposit, of property designated for and awaiting specific installation, building, renovating or repairing.

i. Such coverage shall be limited to Builders Risks or Installation Risks where Perils in addition to Fire and Extended Coverage are to be insured.

ii. If written for account of owner, the coverage shall cease upon completion and acceptance thereof; or if written for account of a seller or contractor the coverage shall terminate when the interest of the seller or contractor ceases.

j. Mobile Articles, Machinery and Equipment Floaters, excluding motor vehicles designed for highway use and auto homes, trailers and semi-trailers except when hauled by tractors not designed for highway use and snow plows constructed exclusively for highway use covering identified property of a mobile or floating nature, not on sale or consignment, or in course of manufacture, which has come into the custody or control of parties who intend to use such property for the purpose for which it was manufactured or created. Such policies shall not cover furniture and fixtures not customarily used away from premises where such property is usually kept.

k. Property in transit to and from and in custody of bailees not owned, controlled or operated by the bailor. Such policies shall not cover bailee's property at his premises.

l. Installment sales and leased property. Policies covering property sold under conditional contract of sale, partial payment contract, installment sales contract, or leased but excluding motor vehicles designed for highway use. Such policies must cover in transit but shall not extend beyond the termination of the seller's or lessor's interest. This Section is not intended to include machinery and equipment under certain "lease-back" contracts.

m. Garment Contractors Floaters.

n. Furriers or Fur Storer's Customer's Policies, i.e., policies under which certificates or receipt are issued by furriers or fur storers covering specified articles the property of customers.

o. Accounts Receivable Policies, Valuable Papers and Records Policies.

p. Floor Plan Policies, covering property for sale while in possession of dealers under a Floor Plan or any similar plan under which the dealer borrows money from a bank or lending institution with which to pay the manufacturer, provided:

i. Such merchandise is specifically identifiable as encumbered to the bank or lending institution.

ii. The dealer's right to sell or otherwise dispose of such merchandise is conditioned upon its being released from encumbrance by the bank or lending institution.

iii. That such policies cover in transit and do not extend beyond the termination of the dealer's interest.

iv. That such policies shall not cover automobiles or motor vehicles; merchandise for which the dealer's collateral is the stock or inventory as distinguished from merchandise specifically identifiable as encumbered to the lending institution.

q. Sign and Street Clock Policies, including neon signs, automatic or mechanical signs, street clocks, while in use as such.

r. Fine Arts Policies covering paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art of rarity, historical value or artistic merit, for account of museums, galleries, universities, businesses, municipalities and other similar interests.

s. Policies covering personal property which, when sold to the ultimate purchaser, may be covered specifically, by the owner, under Inland Marine Policies including:

i. Musical Instrument Dealers Policies, covering property consisting principally of musical instruments and their accessories. Radios, televisions, record players and combinations thereof are not deemed musical instruments.

ii. Camera Dealers Policies, covering property consisting principally of cameras and their accessories.

iii. Furrier's Dealers Policies, covering property consisting principally of furs and fur garments.

iv. Equipment Dealers Policies, covering mobile equipment consisting of binders, reapers, tractors, harvesters, harrows, tedders and other similar agricultural equipment and accessories therefor; construction equipment consisting of bulldozers, road scrapers, tractors, compressors, pneumatic tools, and similar equipment and accessories therefor; but excluding motor vehicles designed for highway use.

v. Stamp and Coin Dealers covering property of philatelic and numismatic nature.

vi. Jewelers' Block Policies.

vii. Fine Arts Dealers.

Such policies may include coverage of money in locked safes or vaults on the Assured's premises. Such policies also may include coverage of furniture, fixtures, tools, machinery, patterns, molds, dies and tenant insureds interest in improvements of buildings.

t. Wool Growers Floaters.

u. Domestic Bulk Liquids Policies, covering tanks and domestic bulk liquids stored therein.

v. Difference in Conditions Coverage excluding fire and extended coverage perils.

w. Electronic Data Processing Policies.

C. Unless otherwise permitted, nothing in the foregoing shall be construed to permit MARINE OR TRANSPORTATION POLICIES TO COVER:

1. Storage of assured's merchandise, except as hereinbefore provided.

Merchandise in course of manufacture, the property of and on the premises of the manufacturer.

3. Furniture and fixtures and improvements and betterments to buildings.

4. Monies and/or securities in safes, vaults, safety deposit vaults, bank or assured's premises, except while in course of transportation.

History

Former General Rule 59-4; Amended effective August 30, 1985 (Supp. 85-4). R20-6-602 recodified from R4-14-602 (Supp. 95-1).

Ariz. Admin. Code § R20-6-603 [Repealed]

History

Former General Rule 69-18; Repealed effective July 27, 1981 (Supp. 81-4). R20-6-603 recodified from R4-14-603 (Supp. 95-1).

Ariz. Admin. Code § R20-6-604 Consumer Credit Insurance; Definitions

The definitions in A.R.S. § 20-1603 and this Section apply to R20-6-604 through R20-6-604.10.

1. "Actual loss ratio" means incurred claims divided by earned premiums at rates in use.

2. "Actuarially equivalent" means of equal actuarial present value determined as of a given date with each value based on the same set of actuarial assumptions. When used in this Article in reference to rates and coverage, "actuarially equivalent" means a rate or coverage that is actuarially determined to yield loss ratios of 50% for credit life insurance and 60% for credit disability insurance.

3. "Credit insurance" means credit life insurance, credit disability insurance, or both, but does not include any insurance for which there is no identifiable charge.

4. "Earned premiums" means earned premiums at prima facie rates and earned premiums at rates in use.

5. "Earned premiums at prima facie rates" means an insurer's actual earned premiums, adjusted to the amount that the insurer would have earned if the insurer's premium rates had equaled the prima facie rates in effect during the experience period.

6. "Earned premiums at rates in use" means the premiums that an insurer actually earns on the premium rates the insurer charges during an experience period.

7. "Evidence of individual insurability" means information about a debtor's health status or medical history that a debtor provides as a condition of credit insurance becoming effective.

8. "Experience" means an insurer's earned premiums and incurred claims during an experience period.

9. "Experience period" means a period of time for which an insurer reports income and expense information on the insurer's credit insurance business.

10. "Final adjusted rates" means the prima facie rates referred to in R20-6-604.04 and R20-6-604.05, subject to any deviations approved under R20-6-604.08.

11. "Incurred claims" means the total claims an insurer pays during an experience period, adjusted for the change in the claim reserves.

12. "Plan of credit insurance" means an insurance plan based on one of the following rate and coverage categories:

a. Credit life insurance, other than on revolving accounts, including joint and single life coverage, decreasing and level insurance, and outstanding balance and single premium;

b. Credit life insurance on revolving accounts;

c. Credit life insurance on an age-graded basis;

d. Credit disability insurance, other than on revolving accounts, including outstanding balance and single premium, and each combination of waiting period and retroactive or non-retroactive benefits;

e. Credit disability insurance on revolving accounts, including each combination of waiting period and retroactive or non-retroactive benefits.

13. "Preexisting condition" means a condition:

a. For which a debtor received medical advice, consultation, or treatment within six months before the effective date of credit insurance coverage; and

b. From which the debtor dies, in the case of life insurance, or becomes disabled, in the case of disability insurance, within six months after the effective date of coverage.

14. "Prima facie adjusted loss ratio" means incurred claims divided by earned premiums at prima facie rates.

15. "Prima facie rates" means the rates established by the Director as prescribed in R20-6-604.03.

16. "Reasonableness standard" means the requirement in A.R.S. § 20-1610(B) that an insurer's premiums for credit insurance shall not be excessive in relation to the benefits provided under the policy.

17. "Rule of Anticipation" means the product of the gross single premium per $100 of indebtedness for a debtor's remaining term of indebtedness, times the number of hundreds of dollars of remaining indebtedness.

History

Former General Rule 70-22; Correction, original publication did not include Exhibit C (Supp. 76-1). Amended effective January 8, 1980 (Supp. 80-1). Former Section R4-14-604 repealed, new Section R4-14-604 adopted effective April 1, 1982. See subsection (N) for further detail (Supp. 82-2). Amended subsection (N) and Exhibit A effective March 30, 1983 (Supp. 83-2). R20-6-604 recodified from R4-14-604 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 3621, effective 1/7/2024.

Ariz. Admin. Code § R20-6-604.01 Rights and Treatment of Debtors

A. Creditor Obligations.

1. Multiple plans of insurance. If a creditor makes more than one plan of credit insurance available to debtors, the creditor shall inform each debtor of each plan for which the debtor is eligible and of the premium and charges for each plan.

2. Substitution. If a creditor requires a debtor to have credit insurance as additional security for a debt, the creditor shall inform the debtor in writing of the debtor's right to obtain alternative coverage as prescribed in A.R.S. § 20-1614 before the loan transaction is completed.

3. Remittance of premiums. If a creditor adds an insurance charge or premium to a debt, the creditor shall remit the insurance charge or premium to the insurer within 60 days after it is added to the debt.

B. Creditor and insurer obligations regarding insurance on refinanced debt.

1. If a debt is discharged because the debtor refinances the debt before the scheduled maturity date, the creditor shall notify the insurer that issued the credit insurance on the discharged debt.

2. An insurer shall not issue any credit insurance that covers the refinanced debt with an effective date preceding the termination date of the insurance on the original debt.

3. The insurer issuing the coverage on the discharged debt shall refund to or credit the debtor with all unearned insurance charges or premium according to R20-6-604.06.

4. If a debt is refinanced, the effective date of the policy provisions in any new insurance covering the refinanced debt shall be the first date on which the debtor became insured under the previous policy. An insurer may apply any new exclusion period or preexisting condition limitation only to the portion of the new loan that exceeds the previous loan.

C. Required policy provisions.

1. Termination provisions for group policies. A group credit insurance policy shall provide for continued coverage of debtors covered under the policy if the policy terminates, as follows:

a. For a policy with a single premium payment, or any other payment method that prepays coverage for more than one month, a provision requiring continued insurance coverage for the entire period for which the premium has been paid; and

b. For a policy with a monthly premium payment, a provision requiring the insurer to send the debtor a termination notice at least 30 days before the effective date of termination, unless an insurer is issuing replacement coverage in at least the same amount, without lapse of coverage.

Maximum aggregate provisions. A provision in an individual policy or group certificate that sets a maximum limit on total claim payments shall apply only to that individual policy or group certificate.

D. Creditor and insurer obligations when debtor prepays debt.

1. Except as provided in subsection (D)(2), if a debtor prepays a debt in full, any credit insurance covering the debt shall terminate on the date of prepayment. The creditor and insurer shall refund to or credit the debtor with any unearned premium according to R20-6-604.06.

2. If a debt is fully prepaid because of the debtor's death or any other lump-sum credit insurance payment, a creditor or insurer is not required to refund premium for the coverage under which the lump sum was paid.

3. If a claim under credit disability coverage is in progress at the time of prepayment, the insurer:

a. May calculate the refund as if the prepayment did not occur until the end of the period for payment of benefits, and

b. Is not required to refund premiums for any period for which credit disability benefits are payable.

E. Benefits payable on revolving account. If a debtor is paying for credit insurance coverage on a revolving account and dies, the insurer shall pay a benefit amount equal to the amount of indebtedness outstanding on the date of death. The insurer may exclude preexisting conditions occurring within six months of any advance on the revolving account, running separately for each advance or charge.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.02 Satisfying the Reasonableness Standard

A. An insurer shall comply with all requirements of A.R.S. § 20-1610 regarding premium and insurance charges.

B. An insurer may satisfy the reasonableness standard in A.R.S. § 20-1610(B) if the insurer's premium rate develops a loss ratio of not less than 50% for credit life insurance and not less than 60% for credit disability insurance.

C. While in effect, the rates described in R20-6-604.04 and R20-6-604.05, subject to any deviations approved under R20-6-604.08 are conclusively presumed to develop the loss ratios described in subsection (B). For purposes of prospective effect, the Department may rebut this presumption by disapproving or withdrawing approval for the rates as prescribed in A.R.S. § 20-1610.

D. An insurer may provide coverage other than the standard coverage described in R20-6-604.04 and R20-6-604.05. An insurer that wishes to provide nonstandard coverage shall:

1. File the nonstandard coverage policy information as prescribed in A.R.S. § 20-1609, and

2. Demonstrate that the rates for the coverage are reasonably expected to develop a loss ratio of not less than 50% for credit life insurance and not less than 60% for credit disability insurance.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.03 Determination of Prima Facie Rates

A. The Director shall, by order, establish prima facie rates as prescribed in this Section.

B. At least once every three years, the Director shall:

1. Determine the rate of expected claims on a statewide basis;

2. Compare the rate of expected claims with the rate of actual claims for the past three years determined from the incurred claims and earned premiums at prima facie rates; and

3. If the Director determines that the prima facie rates require adjustment, issue a notice of hearing and proposed order adjusting the actual statewide prima facie rates. The hearing date on the proposed order shall be no earlier than 45 days from the date of the notice.

C. The Director shall mail a copy of the notice and proposed order to:

1. Each insurer that reported transaction of credit insurance on its annual statement immediately preceding the date of the notice, and

2. Any other person who sends the Director a written request for notice of proceedings to adjust the prima facie rates.

D. Any person may submit written comments to the Director or appear at the hearing and provide oral comments on the record. Written comments shall be received no later than the close of record date specified in the notice of hearing.

E. The Director shall:

1. Consider written and oral comments; and

2. Issue a final order setting prima facie rates no later than 30 days after the close of record date specified in the notice of hearing.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.04 Credit Life Insurance Rates and Provisions

A. Under the process prescribed in R20-6-604.03, the Director shall issue an order establishing prima facie rates for credit life insurance.

B. The Department shall presume that an insurer meets the loss ratios prescribed in R20-6-604.02(B) if the insurer uses the prima facie rates, subject to the requirements in this Section and R20-6-604.08. An insurer may use the prima facie rates without filing additional actuarial support.

C. A credit life insurance policy shall meet the requirements listed in this Section. The policy shall:

1. Provide coverage for death, by whatever means caused, to all eligible debtors, with or without evidence of individual insurability for debtors that purchase coverage within 30 days of being eligible;

2. Have no exclusions other than for:

a. Suicide within six months after the effective date of coverage, or

b. A preexisting condition;

3. Have no age restrictions, except the following permissible exclusions:

a. An age restriction providing that no insurance will become effective on a debtor on or after the attainment of age 70 and that all insurance shall terminate on a debtor attaining age 70; and

b. An age restriction for a revolving credit life insurance policy that:

i. Excludes a class of debtors determined by age, or

ii. Provides for termination of insurance or reduction in the amount of insurance when a debtor reaches age 70; and

4. For insurance on revolving accounts, have the date on which an advance or charge occurs as the effective date of coverage for each part of the insurance attributable to a different advance or a charge to the plan account. Any exclusion period or preexisting condition limitation shall run separately for each advance or charge.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.05 Credit Disability Insurance Rates and Provisions

A. Under the process prescribed in R20-6-604.03, the Director shall issue an order establishing prima facie rates for credit disability insurance.

C. A credit disability insurance policy shall meet the requirements listed in this Section. The policy shall:

1. Provide coverage for disability, by whatever means caused, to all eligible debtors, with or without evidence of individual insurability for debtors that purchase coverage within 30 days of becoming eligible;

2. Include a definition of disability that is no more restrictive than the following:

a. For the first 12 months of disability, the inability of the insured to perform the essential functions of the insured's occupation; and

b. After the first 12 months of disability, the inability of the insured to perform the essential functions of any occupation for which the insured is reasonably suited by virtue of education, training, or experience;

3. Not include any employment requirement that a debtor be employed more than full-time on the effective date of coverage, with a definition of "full-time" as a regular work week of at least 30 hours;

4. Have no exclusions other than for disabilities resulting from:

a. Normal pregnancy,

b. Intentionally self-inflicted injury, or

c. A preexisting condition;

5. For insurance on revolving accounts, have the date on which an advance or charge occurs as the effective date of coverage for each part of the insurance attributable to a different advance or a charge to the plan account. Any exclusion period or preexisting condition limitation shall run separately for each advance or charge;

6. Have no age restrictions, except the following permissible exclusion:

An age restriction providing that no insurance will become effective on a debtor on or after the attainment of age 65 and that all insurance shall terminate on a debtor attaining age 66; and

7. Include a provision for a daily benefit of not less than one-thirtieth of the monthly benefit payable under the policy.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.06 Refund Methods

A. When refunding premiums as prescribed in A.R.S. § 20-1611, an insurer shall use the following methods:

For insurance paid by a single premium, the Rule of Anticipation method; and

2. For insurance paid by other than a single premium, a method that refunds at least the pro rata gross unearned amount charged to the debtor.

B. The Director may approve other refund methods similar to those described in subsection (A), that are actuarially equivalent to the type of coverage the debtor purchased.

C. An insurer's refund method may recognize adjustments to a daily basis for interest or payments if the adjustments are consistent with the underlying credit transaction.

D. An insurer is not required to refund any amount less than $5.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.07 Experience Reports

A. By April 1 of each year, an insurer that transacts credit insurance in this state shall file with the Director an experience report, on a form specified by the Director, for each class of business that the insurer transacts as provided in this Section.

1. In this Section, a "class of business" means:

a. Credit unions;

b. Banks, savings and loan institutions, and mortgage companies;

c. Finance companies, small loan companies, and consumer lenders defined in A.R.S. § 6-601(5);

d. Dealers, including auto, truck, and boat dealers, retail stores, and other persons selling financed goods; and

e. All other persons selling credit insurance not specifically listed in subsection (A)(1)(a) through (d).

2. The report shall include the following information:

a. Mode of premium payment,

b. Plan of benefits description,

c. Earned premiums,

d. Incurred claims,

e. Loss ratios, and

f. For credit life insurance, mean insurance in force.

B. For each day a report is late, the Director may assess a penalty as prescribed in A.R.S. § 20-223.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.08 Use of Prima Facie Rates; Rate Deviations

A. Use of rates greater than prima facie rates. An insurer may file for approval and use of any deviated rates that are higher than the prima facie rates referred to in R20-6-604.04 and R20-6-604.05 as prescribed in A.R.S. § 20-1610.

1. The deviated rates shall meet the minimum loss ratio standards and other requirements prescribed by R20-6-604.02.

2. The filing shall specify the accounts to which the rates apply.

3. The rates may be:

a. Applied uniformly to all accounts of the insurer; or

b. Applied on an equitable basis approved by the Director to accounts of the insurer for which the insurer's experience has been less favorable than expected.

B. Approval period of deviated rates. An insurer may use a deviated rate for the same period of time as the experience period used to establish the rate, not to exceed a period of three years from the date of approval. An insurer may file for a new deviated rate before the end of the approval period, but not more often than once in any 12 month period.

C. Approval is non-transferable. The Director's approval of a deviated rate is not transferable to another insurer. If an insurer acquires an account for which another insurer obtained a deviated rate, the successor insurer may not charge the deviated rate without obtaining approval for the deviated rate as prescribed in subsection (B).

D. Use of rates lower than filed rates. An insurer may use a rate that is less than its filed rate without notice to the Director.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.09 Supervision of Consumer Credit Insurance Operations

A. At least once every three years, an insurer transacting credit insurance in Arizona shall review the credit insurance operations of each creditor with whom the insurer does business to ensure that each creditor is complying with applicable credit insurance laws. The insurer shall review the following:

The creditor does not charge rates in excess of the prima facie rates or any deviated rates for which the insurer obtains approval;

2. The creditor makes benefit payments as prescribed in the policy; and

The creditor refunds unearned premiums as prescribed in R20-6-604.06.

B. The insurer shall maintain for the Director's inspection a written record of each review and action the insurer takes to address any creditor noncompliance found by the insurer, for at least three years following the end of the review.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-604.10 Prohibited Transactions

A. The practices listed in this Section are deemed unfair trade practices under A.R.S. § 20-442. An insurer that commits any of the following practices is subject to penalties as prescribed in A.R.S. § 20-456:

1. Offering or providing a creditor with any special advantage or any service not set out in either the group insurance contract or in the agency contract, other than payment of commissions;

2. Agreeing to deposit with a bank or financial institution, the insurer's money or securities as a substitute for a deposit of money or securities that the financial institution would otherwise require from the creditor as a compensating balance or deposit offset for a loan or other advancement; or

3. Depositing money or securities without interest or at a lesser rate of interest than the creditor, bank, or financial institution is currently paying on other similar deposits.

B. This Section does not prohibit an insurer from maintaining demand deposits or premium deposit accounts that are reasonably necessary for use in the ordinary course of the insurer's business.

History

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).

Ariz. Admin. Code § R20-6-605 Emergency Expired

History

Former General Rule 72-26. Repealed effective December 4, 1986 (Supp. 86-6). Adopted as an emergency effective January 9, 1990, pursuant to A.R.S. § 41-1026 valid for only 90 days; re-adopted as an emergency with changes effective March 26, 1990, pursuant to A.R.S. § 41-1026 valid for only 90 days (Supp. 90-1). Re-adopted as an emergency without change effective June 20, 1990, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 90-2). Emergency expired. R20-6-605 recodified from R4-14-605 (Supp. 95-1).

Ariz. Admin. Code § R20-6-606 [Repealed]

History

Adopted effective July 1, 1980 (Supp. 80-3). Amended effective June 1, 1981. See also subsection (G) (Supp. 81-1). Amended subsections (D), (E)(3)(a), (F)(2)(b), (3)(a), (4)(e), (G), and (H) effective January 11, 1982 (Supp. 82-1). Amended subsections (G) and (H) as an emergency effective August 1, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-3). Emergency expired. Amended and readopted as an emergency effective November 18, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-4). Emergency expired. Corrected and readopted as an emergency effective February 10, 1989, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 89-1). Emergency expired. Amended effective August 4, 1989 (Supp. 89-3). Amended and adopted as an emergency effective September 13, 1989 (Supp. 89-3). Emergency expired (Supp. 89-4). Amended effective November 19, 1990 (Supp. 90-4). Repealed by emergency action effective December 18, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Repealed again by emergency action effective March 17, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Repealed effective May 28, 1992 (Supp. 92-2). R20-6-606 recodified from R4-14-606 (Supp. 95-1).

Ariz. Admin. Code § R20-6-607 Reasonableness of Benefits in Relation to Premium Charged

A. Applicability. This rule shall apply to individual disability insurance (as defined in A.R.S. § 20-253) policy forms and rates.

B. When rate filing is required. Every individual policy form, rider or endorsement form affecting benefits which is submitted for approval shall be accompanied by a rate filing unless such rider or endorsement form does not require a change in the rate. Any subsequent addition to or change in rates applicable to such policy, rider or endorsement form shall also be filed.

C. General contents of all rate filings. Each rate submission shall include an actuarial memorandum describing the basis on which rates were determined and shall indicate and describe the calculation of the ratio, hereinafter called "anticipated loss ratio," of the present value of the expected benefits to the present value of the expected premiums over the entire period for which rates are computed to provide coverage. Each rate submission must also include a certification by a qualified actuary that to the best of the actuary's knowledge and judgment, the rate filing is in compliance with applicable laws and regulations of this state and that the benefits are reasonable in relation to the premiums.

D. Previously approved forms. Filings of rate revisions for a previously approved policy, rider or endorsement form shall also include the following:

1. A statement of the scope and reason for the revision, and an estimate of the expected average effect on premiums including the anticipated loss ratio for the form.

2. A statement as to whether the filing applies only to new business, only to in-force business, or both, and the reasons.

3. A history of the experience under existing rates, including at least the data indicated in subsection (E). The history may also include, if available and appropriate, the ratios of actual claims to the claims expected according to the assumptions underlying the existing rates. All additional data must be reconciled, as appropriate, to the required data. Additional data might include:

a. Substitution of actual claim run-offs for claim reserves and liabilities,

b. Determination of loss ratios with the increase in policy reserves (other than unearned premium reserves) added to benefits rather than subtracted from premiums,

c. Substitution of net level policy reserves for preliminary term policy reserves,

d. Adjustment of premiums to an annual mode basis, or

e. Other adjustments or schedules suited to the form and to the records of the company.

4. The date and magnitude of each previous rate change, if any.

E. Experience records. Insurers shall maintain records of earned premiums and incurred benefits for each calendar year for each policy form, including data for rider and endorsement forms which are used with the policy form, on the same basis, including all reserves, as required for the Accident and Health Policy Experience Exhibit to the NAIC annual statement convention blank. Separate data may be maintained for each rider or endorsement form to the extent appropriate. Experience under forms which provide substantially similar coverage may be combined. The data shall be for all years of issue combined, for each calendar year of experience since the year the form was first issued, except the data for calendar years prior to the most recent five years may be combined.

F. Evaluation experience data. In determining the credibility and appropriateness of experience data, due consideration must be given to all relevant factors, such as:

Statistical credibility of premiums and benefits, e.g., low exposure, low loss frequency.

2. Experienced and projected trends relative to the kind of coverage, e.g., inflation in medical expenses, economic cycles affecting disability income experience.

3. The concentration of experience at early policy durations where select morbidity and preliminary term reserves are applicable and where loss ratios are expected to be substantially lower than at later policy durations.

4. The mix of business by risk classification.

G. Anticipated loss ratio standard. With respect to a new form or a currently approved form, except currently approved non-cancelable policy forms, under which the average annual premium (as defined below) is expected to be at least $700, benefits shall be deemed reasonable in relation to premiums provided the anticipated loss ratio is at least as great as shown in the following table:

| Renewal Clause | | | | | | --- | --- | --- | --- | --- | | Type of Coverage | OR | CR | GR | NC | | Medical expense | 60% | 55% | 55% | 50% | | Loss of income and other | 60% | 55% | 50% | 45% |

For a policy form including riders and endorsements, under which the expected average annual premium per policy is $200 or more but less than $700, subtract 5 percentage points from the numbers in the table above, or if less than $200, subtract 10 percentage points.

The average annual premium per policy shall be computed by the insurer based on an anticipated distribution of business by all applicable criteria having a price difference, such as age, sex, amount, dependent status, rider frequency, etc., except assuming an annual mode for all policies (i.e., the factional premium loading shall not affect the average annual premium or anticipated loss ratio calculation.)

The above anticipated loss ratio standards do not apply to a class of business which is regulated by specific statutes or regulations mandating loss ratios for such business, e.g., Medicare Supplement and Credit Life and Disability. Definitions of Renewal Clause OR - Optionally Renewable: renewal is at the option of the insurance company. CR - Conditionally Renewable: renewal can be declined by the insurance company only for stated reasons other than deterioration of health.

GR - Guaranteed Renewable: renewal cannot be declined by the insurance company for any reason, but the insurance company can revise rates on a class basis.

NC - Non-Cancelable: renewal cannot be declined nor can rates be revised by the insurance company.

H. Rate revisions. With respect to filings of rate revisions for a previously approved form, benefits shall be deemed reasonable in relation to premiums provided both the following loss ratios meet the standards in subsection (G) above.

1. The anticipated loss ratio over the entire future period for which the revised rates are computed to provide coverage;

2. The anticipated loss ratio derived by dividing (a) by (b) where:

a. Is the sum of the accumulated benefits, from the original effective date of the form or the effective date of this regulation, whichever is later, to the effective date of the revision, and the present value of future benefits; and

b. Is the sum of the accumulated premiums from the original effective date of the form or the effective date of the regulation, whichever is later, to the effective date of the revision, and the present value of future premiums. Such present values shall be taken over the entire period for which the revised rates are computed to provide coverage, and such accumulated benefits and premiums to include an explicit estimate of the actual benefits and premiums from the last date as of which an accounting has been made to the effective date of the revision. Interest shall be used in the calculation of these accumulated benefits and premiums and present values only if it is a significant factor in the calculation of this loss ratio.

I. Anticipated loss ratios lower than those indicated in subsections (H)(1) and (H)(2) will require justification based on the special circumstances that may be applicable.

1. Examples of coverages requiring special consideration are as follows:

a. Accident only;

b. Short term nonrenewable, e.g., airline trip, student accident;

c. Specified peril, e.g., common carrier; and

d. Other special risks.

2. Examples of other factors requiring special consideration are as follows:

a. Marketing methods, giving due consideration to acquisition and administration costs and to premium mode;

b. Extraordinary expenses;

c. High risk of claim fluctuation because of the low loss frequency of the catastrophic, or experimental nature of the coverage;

d. Product features such as long elimination periods, high deductibles and high maximum limits;

e. The industrial or debit method of distribution; and

f. Forms issued prior to the effective date of this rule. Companies are urged to review their experience periodically and to file rate revisions, as appropriate, in a timely manner to avoid the necessity of later filing of exceptionally large rate increases.

Notwithstanding the foregoing paragraphs to the contrary, hospital indemnity and cancer and other dread diseases policies shall develop the loss ratios pursuant to subsection (G).

J. Severability provision. If any provision of this rule or the application thereof to any person or circumstances is held invalid, the remainder of the rule and the application of such provision to other persons or circumstances shall not be affected thereby.

K. Effective date. This rule shall become effective upon filing with the Secretary of State and shall apply to all individual disability policy form and rate filings submitted on and after said date.

History

Adopted effective July 14, 1981 (Supp. 81-1). R20-6-607 recodified from R4-14-607 (Supp. 95-1). Amended by final rulemaking at 24 A.A.R. 103, effective 2/17/2018.

Article 7 LICENSING PROVISIONS AND PROCEDURES

Ariz. Admin. Code § R20-6-701 [Repealed]

History

Former General Rule 56-1; Repealed effective January 1, 1981 (Supp. 80-6). R20-6-701 recodified from R4-14-701 (Supp. 95-1).

Ariz. Admin. Code § R20-6-702 Expired

History

Former General Rule 56-2. R20-6-702 recodified from R4-14-702 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-703 Expired

History

Former General Rule 61-6. R20-6-703 recodified from R4-14-703 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-704 Expired

History

Former General Rule 6-19. R20-6-704 recodified from R4-14-704 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-705 Expired

History

Former General Rule 66-13. R20-6-705 recodified from R4-14-705 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-706 Expired

History

Former General Rule 69-15; Repealed effective February 22, 1977 (Supp. 77-1). New Section R4-14-706 adopted effective November 5, 1980 (Supp. 80-5). R20-6-706 recodified from R4-14-706 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-707 Expired

History

Former General Rule 69-18; Amended effective March 17, 1981 (Supp. 81-2). R20-6-707 recodified from R4-14-707 (Supp. 95-1). Section expired under A.R.S. § 41-1056(E) at 9 A.A.R. 2115, effective April 30, 2003 (Supp. 03-2).

Ariz. Admin. Code § R20-6-708 Licensing Time-frames

A. Definitions. The definitions in A.R.S. § 41-1072 and the following definitions apply to this Article.

"Department" means the Insurance Division of the Department of Insurance and Financial Institutions.

"License" has the meaning prescribed in A.R.S. § 41-1001(13).

3. "Overall time frame" means the number of days after the Department's receipt of an application for a license during which the Department determines whether to grant or deny a license. The overall time frame consists of both the administrative completeness review time frame and the substantive review time frame A.R.S. § 41-1072(2) .

4. "Substantive review time frame" means the number of days after the completion of the administrative completeness review time frame during which the Department determines whether an application or applicant for a license meets all substantive criteria required by state or rule A.R.S. § 41-1072(3) .

C. Within the time-frame for the administrative completeness review set forth in Table A, the Department shall notify the applicant in writing whether the application is complete or deficient.

If an applicant does not make some response to each specific deficiency in a notice of deficiency issued during an administrative completeness review, the Department may issue a notice to the applicant within 10 days after receipt of the applicant's response, stating that the response is inadequate. The notice of inadequate response shall identify each specified deficiency to which the applicant did not make some response.

~~a. If the Department issues a notice of inadequate response under this subsection, the suspension of the administrative completeness review time-frame and the overall time-frame is not terminated.~~

~~b. If the Department does not issue a notice of inadequate response under this subsection, the~~ The Department is not precluded from issuing additional notices of deficiency during an administrative completeness review.

3. If an applicant does not adequately respond to each specified deficiency in a notice of deficiency issued under subsection (C)(1) within 60 days after the date of a notice of deficiency, the application is deemed withdrawn, and the Department is not required to take further action with respect to the application.

If an applicant does not make some response to each component or item of information requested in a comprehensive written request for additional information, the Department may issue a notice to the applicant within 10 days after receipt of the applicant's response stating that the response is inadequate. The notice of inadequate response shall identify each component or item of information required, to which the applicant did make some response.

~~a. If the Department issues a notice of inadequate response under this subsection, the suspension of the substantive review time-frame and overall time-frame is not terminated.~~

~~b. If the Department does not issue a notice of inadequate response under this subsection, the~~ The Department is not precluded from issuing supplemental requests by mutual agreement for additional information, during the substantive review.

3. If an applicant does not adequately respond to each component or item of information required in a comprehensive written request or a supplemental request for additional information within 60 days after the date of a comprehensive written request, or within 60 days after the date of the supplemental request for additional information, the application is deemed withdrawn, and the Department is not required to take further action with respect to the application.

F. In computing the time periods prescribed in these time-frame rules, the last day of a notice period is included in the computation, unless it is a Saturday, Sunday, or legal holiday.

G. ~~This rule applies to applications filed on or after January 1, 1999.~~

History

Former General Rule 70-22; Correction, original publication did not include Exhibit C. (Supp. 76-1). Repealed effective January 8, 1980 (Supp. 80-1). R20-6-708 recodified from R4-14-708 (Supp. 95-1). Amended effective January 1, 1999; filed in the Office of the Secretary of State December 4, 1998 (Supp. 98-4). Amended by final rulemaking at 29 A.A.R. 612, effective 4/10/2023.

Ariz. Admin. Code § R20-6-709 [Repealed]

History

Former General Rule 71-23; Repealed effective January 1, 1981 (Supp. 80-6). R20-6-709 recodified from R4-14-709 (Supp. 95-1).

Article 8 PROHIBITED PRACTICES, PENALTIES

Ariz. Admin. Code § R20-6-801 Unfair Claims Settlement Practices

A. Applicability. This rule applies to all persons and to all insurance policies, insurance contracts and subscription contracts except policies of Worker's Compensation and title insurance. This rule is not exclusive, and other acts not herein specified, may also be deemed to be a violation of A.R.S. § 20-461, The Unfair Claims Settlement Practices Act.

B. Definitions

1. "Agent" means any individual, corporation, association, partnership or other legal entity authorized to represent an insurer with respect to a claim. "Agent" has the same meaning as "Insurance producer" as defined at A.R.S. § 20-281(5).

2. "Claimant" means either a first party claimant, a third party claimant, or both and includes the claimant's designated legal representative and includes a member of the claimant's immediate family designated by the claimant.

3. "Department" means the Arizona Department of Insurance and Financial Institutions - Insurance Division.

4. "Director" has the meaning of A.R.S. § 20-102.

5. "First party claimant" means an individual, corporation, association, partnership or other legal entity asserting a right to payment under an insurance policy or insurance contract arising out of the occurrence of the contingency of loss covered by the policy or contract.

6. "Insurance policy or insurance contract" has the meaning of A.R.S. § 20-103.

7. "Insurer" has the meaning of A.R.S. § 20-106(C).

8. "Investigation" means all activities of an insurer directly or indirectly related to the determination of liabilities under coverages afforded by an insurance policy or insurance contract.

9. "Notification of claim" means any notification, whether in writing or other means, acceptable under the terms of any insurance policy or insurance contract, to an insurer or its agent, by a claimant, which reasonably apprises the insurer of the facts pertinent to a claim.

10. "Person" has the meaning of A.R.S. § 20-105.

11. "Third party claimant" means any individual, corporation, association, partnership or other legal entity asserting a claim against any individual, corporation, association, partnership or other legal entity insured under an insurance policy or insurance contract of an insurer.

12. "Worker's compensation" includes, but is not limited to, Longshoremen's and Harbor Worker's Compensation.

C. File and record documentation. The insurer's claim files shall be subject to examination by the Director or by his duly appointed designees. the files shall contain all notes and work papers pertaining to the claim in such detail that pertinent events and the dates of the events can be reconstructed.

D. Misrepresentation of policy provisions

1. No insurer shall fail to fully disclose to first party claimants all pertinent benefits, coverages or other provisions of an insurance policy or insurance contract under which a claim is presented.

2. No agent shall conceal from first party claimants benefits, coverages or other provisions of any insurance policy or insurance contract when the benefits, coverages or other provisions are pertinent to a claim.

3. No insurer shall deny a claim on the basis that the claimant has failed to exhibit the damaged property to the insurer, unless the insurer has requested the claimant to exhibit the property and the claimant has refused without a sound basis.

4. No insurer shall, except where there is a time limit specified in the policy, make statements, written or otherwise, requiring a claimant to give written notice of loss or proof of loss within a specified time limit and which seek to relieve the company of its obligations if the time limit is not complied with unless the failure to comply with the time limit prejudices the insurer's rights.

5. No insurer shall request a first party claimant to sign a release that extends beyond the subject matter that gave rise to the claim payment.

6. No insurer shall issue checks or drafts in partial settlement of a loss or claim under a specific coverage which contain language that releases the insurer or its insured from its total liability.

E. Failure to acknowledge pertinent communications

1. Every insurer, upon receiving notification of a claim shall, within 10 working days, acknowledge the receipt of the notice unless payment is made within the 10 working days. If an acknowledgment is made by means other than writing, an appropriate notation of such acknowledgment shall be made in the claim file of the insurer and dated. Notification given to an agent of an insurer shall be notification to the insurer.

2. Every insurer, upon receipt of any inquiry from the Department respecting a claim shall, within 15 working days of receipt of the inquiry, furnish the Department with an adequate response to the inquiry.

3. An appropriate reply shall be made within 10 working days on all other pertinent communications from a claimant which reasonably suggest that a response is expected.

4. Every insurer, upon receiving notification of a claim, shall promptly provide necessary claim forms, instructions, and reasonable assistance so that first party claimants can comply with the policy conditions and the insurer's reasonable requirements. Compliance with this paragraph within 10 working days of notification of a claim shall constitute compliance with subsection (E)(1).

F. Standards for prompt investigation of claims. Every insurer shall complete investigation of a claim within 30 days after notification of a claim, unless the investigation cannot reasonably be completed within 30 days.

G. Standards for prompt, fair and equitable settlements applicable to all insurers

Notice of acceptance of denial of claim.

a. Within 15 working days after receipt by the insurer of properly executed proofs of loss, the first party claimant shall be advised of the acceptance or denial of the claim by the insurer. No insurer shall deny a claim on the grounds of a specific policy provision, condition, or exclusion unless reference to the provision, condition or exclusion is included in the denial. The denial must be given to the claimant in writing and the claim file of the insurer shall contain a copy of the denial.

b. If the insurer needs more time to determine whether a first party claim should be accepted or denied, it shall also notify the first party claimant within 15 working days after receipt of the proofs of loss, giving the reasons more time is needed. If the investigation remains incomplete, the insurer shall, 45 days from the date of the initial notification and every 45 days thereafter, send to the claimant a letter setting forth the reasons additional time is needed for investigation.

c. Where there is a reasonable basis supported by specific information available for review by the Director for suspecting that the first party claimant has fraudulently caused or contributed to the loss by arson, the insurer is relieved from the requirements of subsections (G)(1)(a) and (b). Provided, however, that the claimant shall be advised of the acceptance or denial of the claim by the insurer within a reasonable time for full investigation after receipt by the insurer of a properly executed proof of loss.

2. If a claim is denied for reasons other than those described in subsection (G)(1)(a), and is made by any other means than writing, an appropriate notation shall be made in the claim file of the insurer.

3. Insurers shall not fail to settle first party claims on the basis that responsibility for payment should be assumed by others, except as may otherwise be provided by policy provisions.

4. Insurers shall not continue negotiations for settlement of a claim directly with a claimant who is neither an attorney nor represented by an attorney until the claimant's rights may be affected by a statute of limitations or a policy or contract time limit, without giving the claimant written notice that the time limit may be expiring and may affect the claimant's right. The notice shall be given to first party claimants 30 days, and to third party claimants 60 days, before the date on which the time limit may expire.

No insurer shall make statements which indicate that the rights of a third party claimant may be impaired if a form or release is not completed within a given period of time unless the statement is given for the purpose of notifying the third party claimant of the provision of a statute of limitations.

H. Standards for prompt, fair and equitable settlements applicable to automobile insurance

1. When the insurance policy provides for the adjustment and settlement of first party automobile total losses on the basis of actual cash value or replacement with another of like kind and quality, one of the following methods must apply:

a. The insurer may elect to offer a replacement automobile which is a specific comparable automobile available to the insured, with all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of the automobile paid, at no cost other than any deductible provided in the policy. The offer and any rejection of the offer must be documented in the claim file.

b. The insurer may elect a cash settlement based upon the actual cost, less any deductible provided in the policy, to purchase a comparable automobile including all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of a comparable automobile. the cost may be determined by:

i. The cost of a comparable automobile in the local market area when a comparable automobile is available in the local market area.

ii. One of two or more quotations obtained by the insurer from two or more qualified dealers located within the local market area when a comparable automobile is not available in the local market area.

c. When a first party automobile total loss is settled on a basis which deviates from the methods described in subsections (H)(1)(a) and (b), the deviation must be supported by documentation giving particulars of the automobile condition. Any deductions from the cost, including deduction for salvage, must be measurable, discernible, itemized and specified as to dollar amount and shall be appropriate in amount. The basis for the settlement shall be fully explained to the first party claimant.

2. Where liability and damages are reasonably clear, insurers shall not recommend that third party claimants make claim under their own policies solely to avoid paying claims under the insurer's policy or insurance contract.

3. Insurers shall not require a claimant to travel unreasonably either to inspect a replacement automobile, to obtain a repair estimate, or to have the automobile repaired at a specific repair shop.

4. Insurers shall, upon the claimant's request, include the first party claimant's deductible, if any, in subrogation demands. Subrogation recoveries shall be shared on a proportionate basis with the first party claimant, unless the deductible amount has been otherwise recovered. No deduction for expenses can be made from the deductible recovery unless an outside attorney is retained to collect the deductible recovery. The deduction may then be for only a pro rata share of the allocated loss adjustment expense.

5. If an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired. The insurer shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one or more conveniently located repair shops.

6. When the amount claimed is reduced because of betterment or depreciation, all information for the reduction shall be contained in the claim file. The reductions shall be itemized and specified as to dollar amount and shall be appropriate for the amount of reductions.

7. When the insurer elects to repair and designates a specific repair shop for automobile repairs, the insurer shall cause the damaged automobile to be restored to its condition prior to the loss at no additional cost to the claimant other than as stated in the policy and within a reasonable period of time.

8. The insurer shall not use as a basis for cash settlement with a first party claimant an amount which is less than the amount which the insurer would pay if the repairs were made, other than in total loss situations, unless the amount is agreed to by the insured.

I. Severability. If any provision of this Section or its application to any person or circumstances is held invalid, the remainder of the Section and the application of the provision to other persons and circumstances shall not be affected.

J. ~~Effective date. This rule shall become effective 90 days from the date of filing with the Secretary of State.~~

History

Adopted effective January 12, 1982 (Supp. 81-5). R20-6-801 recodified from R4-14-801 (Supp. 95-1). Amended by final rulemaking at 29 A.A.R. 3621, effective 1/7/2024.

Ariz. Admin. Code § R20-6-802 Emergency Expired

History

Emergency rule adopted effective May 31, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-2). Emergency expired. Emergency rule readopted without change effective September 5, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency expired. R20-6-802 recodified from R4-14-802 (Supp. 95-1).

Article 9 TERMINATION OR DISSOLUTION

Ariz. Admin. Code § R20-6-901 Reserved

Article 10 LONG-TERM CARE INSURANCE

Ariz. Admin. Code § R20-6-1001 Applicability and Scope

Except as otherwise specifically provided, this Article applies to all long-term care insurance policies, including qualified long-term care contracts and life insurance policies that accelerate benefits for long-term care, delivered or issued for delivery in this state by insurers; fraternal benefit societies; nonprofit health, hospital and medical service corporations; prepaid health plans; health care service organizations and all similar organizations.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1001 recodified from R4-14-1001 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1002 Definitions

The definitions in A.R.S. § 20-1691 and the following definitions apply in this Article.

A. "Benefit trigger," for purposes of a tax-qualified long-term care insurance contract, as defined in Section 7702B(b) of the Internal Revenue Code of 1968, as amended, "benefit trigger" shall include a determination by a licensed health care practitioner that an insured is a chronically ill individual.

B. "Exceptional increase" means only those rate increases that an insurer has filed as exceptional and that the Director determines the need for the premium rate increase is justified due to changes in laws or regulations applicable to long-term care coverage in this state; or due to increased and unexpected utilization that affects the majority of insurers of similar products.

1. Except as provided in Sections R20-6-1014 and R20-6-1015, exceptional increases are subject to the same requirements as other premium rate schedule increases.

2. The Director may request independent actuarial review on the issue of whether an increase should be deemed an exceptional increase.

3. The Director may also determine whether there are any potential offsets to higher claims costs.

C. "Incidental," as used in R20-6-1014(L) and R20-6-1015(L), means that the value of the long-term care benefits provided is less than 10% of the total value of the benefits provided over the life of the policy, with value measured as of the date of issue.

D. "Licensed health care professional" means an individual qualified by education and experience in an appropriate field, to determine, by record review, an insured's actual functional or cognitive impairment.

E. "Long-term care benefit classification" means one of the following:

1. Institutional long-term care - benefits only;

2. Non-institutional long-term care - benefits only; or

3. Comprehensive long-term care benefits.

F. "Managed care plan" means a health care or assisted living arrangement designed to coordinate patient care or control costs through utilization review, case management, use of specific provider networks, or a combination of these methods.

G. "Personal information" has the same meaning prescribed in A.R.S. § 20-2102(19).

H. "Privileged information" has the same meaning prescribed in A.R.S. § 20-2102(22).

I. "Qualified actuary" means a member in good standing of the American Academy of Actuaries.

J. "Similar policy forms" means all long-term care insurance policies and certificates that are issued by a particular insurer and that have the same long-term care benefit classification as a policy form being reviewed.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1002 recodified from R4-14-1002 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1003 Policy Terms

A. A long-term care insurance policy delivered or issued for delivery in this state shall not use the terms set forth below, unless the terms are defined in the policy and the definitions satisfy the following requirements:

1. "Activities of daily living" means eating, toileting, transferring, bathing, dressing, or continence.

2. "Acute condition" means that an individual is medically unstable and requires frequent monitoring by medical professionals, such as physicians and registered nurses, to maintain the individual's health status.

3. "Adult day care" means a program of social and health-related services for six or more individuals, that is provided during the day in a community group setting, for the purpose of supporting frail, impaired, elderly, or other disabled adults who can benefit from the services and care in a setting outside the home.

4. "Agent" means an insurance producer as defined in A.R.S. § 20-281(5).

5. "Bathing" means washing oneself by sponge bath, or in a tub or shower, and includes the act of getting in and out of the tub or shower.

6. "Chronically ill individual" has the meaning prescribed for this term by A.R.S. § 20-1691(3) and Section 7702B(c)(2) of the Internal Revenue Code of 1986, as amended.

a. Under this provision, a chronically ill individual means any individual who has been certified by a licensed health care practitioner as:

i. Being unable to perform (without substantial assistance from another individual) at least 2 activities of daily living for a period of at least 90 days due to loss of functional capacity; or

ii. Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment.

b. The term "chronically ill individual" does not include an individual otherwise meeting these requirements unless within the preceding twelve-month period a licensed health care practitioner has certified that the individual meets these requirements.

7. "Cognitive impairment" means a deficiency in a person's:

a. Short or long-term memory;

b. Orientation as to person, place, or time;

c. Deductive or abstract reasoning; or

d. Judgment as it relates to safety awareness.

8. "Continence" means the ability to maintain control of bowel and bladder function, or when unable to maintain control, the ability to perform associated personal hygiene, such as caring for a catheter or colostomy bag.

9. "Dressing" means putting on and taking off all items of clothing and any necessary braces, fasteners, or artificial limbs.

10. "Eating" means feeding oneself by getting food into the body from a receptacle such as a plate, cup, or table, or by a feeding tube or intravenously.

11. "Guaranteed renewable" means the insured has the right to continue a long-term-care insurance policy in force by the timely payment of premiums and the insurer has no unilateral right to make any change in any provision of the policy or rider while the insurance is in force, and cannot decline to renew, except that the insurer may revise rates on a class basis.

12. "Hands-on assistance" means physical help to an individual who could not perform an activity of daily living without help from another individual, and includes minimal, moderate, or maximal help.

13. "Home health services" means the services described at A.R.S. § 36-151.

14. "Level premium" means that an insurer does not have any right to change the premium, even at renewal.

15. "Licensed health care practitioner" has the same meaning as A.R.S. § 20-1691(6).

16. "Maintenance or personal care services" has the same meaning as A.R.S. § 20-1691(10).

17. "Medicare" means "The Health Insurance for the Aged Act, Title XVIII of the Social Security Amendments of 1965 as Then Constituted or Later Amended," or "Title I, Part I of Public Law 89-97, as Enacted by the Eighty-Ninth Congress of the United States of America and popularly known as the Health Insurance for the Aged Act, as then constituted and any later amendments or substitutes thereof," or words of similar import.

18. "Noncancellable" means the insured has the right to continue the long-term care insurance in force by the timely payment of premiums during which period the insurer has no right to unilaterally cancel or make any change in any provision of the insurance or in the premium rate.

19. "Personal care" means the provision of hands-on assistance to help an individual with activities of daily living in relation to the level of skill required, the nature of the care, and the setting in which the care must be delivered.

20. "Qualified long-term care services" has the meaning prescribed for this term under A.R.S. § 20-1691(13) and means services that meet the requirements of Section 7702B(c)(1) of the Internal Revenue Code of 1986, as amended, as follows: necessary diagnostic, preventative, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance or personal care services which are required by a chronically ill individual, and are provided pursuant to a plan of care prescribed by a licensed health care practitioner.

21. "Toileting" means getting to and from the toilet, getting on and off the toilet, and performing tasks associated with personal hygiene.

22. "Transferring" means moving into or out of a bed, chair, or wheelchair.

B. Any long-term care policy delivered or issued for delivery in this state shall include the following policy terms and provisions as specified in this subsection:

1. "Home care" shall be defined in relation to the level of skill required, the nature of the care, and the setting in which the care must be delivered.

2. "Intermediate care" shall be defined in relation to the level of skill required, the nature of the care, and the setting in which the care must be delivered.

3. "Mental or nervous disorder" shall not be defined to include more than neurosis, psychoneurosis, psychopathy, psychosis, or mental or emotional disease or disorder.

4. "Skilled nursing care," "specialized care," "assisted living care" and other services shall be defined in relation to the level of skill required, the nature of the care and the setting in which care is delivered.

5. Service providers, including "skilled nursing facility," "extended care facility," "convalescent nursing home," "personal care facility," "specialized care providers," "assisted living facility" and "home care agency" shall be defined in relation to the services and facilities required to be available and the licensure, certification, registration or degree status of those providing or supervising the services. When the definition requires that the provider be appropriately licensed, certified or registered, it shall also state what requirements a provider must meet in lieu of licensure, certification or registration when the state in which the service is to be furnished does not require a provider of these services to be licensed, certified or registered, or when the state licenses, certifies or registers the provider of services under another name.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1003 recodified from R4-14-1003 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017. Amended by final rulemaking at 29 A.A.R. 3621, effective 1/7/2024.

Ariz. Admin. Code § R20-6-1004 Required Policy Provisions

A. Renewability

1. An individual long-term care insurance policy shall contain a renewability provision which shall be either "guaranteed renewable" or "noncancellable." The renewability provision shall be appropriately captioned, shall appear on the first page of the policy, and shall state that the coverage is guaranteed renewable or noncancellable. This requirement does not apply to a long-term care insurance policy that is part of or combined with a life insurance policy that does not contain a renewability provision and that reserves the right not to renew solely to the policyholder.

2. An insurer shall not use the terms "guaranteed renewable" and "noncancellable" in any individual long-term care insurance policy without further explanatory language according to the disclosure requirements of this Article.

3. A qualified long-term care insurance policy shall have the guaranteed renewability provisions specified in Section 7702B(b)(1)(C) of the Internal Revenue Code of 1986, as amended, in the policy.

4. A long-term care insurance policy or certificate shall include a statement that premium rates are subject to change, unless the policy does not afford the insurer the right to raise premiums.

B. Limitations and Exclusions

1. If a long-term care insurance policy or certificate contains any limitations with respect to preexisting conditions, the limitations shall appear as a separate paragraph of the policy or certificate and shall be labeled as "Preexisting Condition Limitations."

2. A long-term care insurance policy or certificate containing any limitations or conditions for eligibility not prohibited by A.R.S. §§ 20-1691.03 and 20-1691.05 shall describe the limitations or conditions, including any required number of days of confinement, in a separate paragraph of the policy or certificate and shall label the paragraph "Limitations or Conditions on Eligibility for Benefits."

3. A policy shall not be delivered or issued for delivery in this state as long-term care insurance if the policy limits or excludes coverage by type of illness, treatment, medical condition or accident, except as follows:

a. Preexisting conditions or disease;

b. Mental or nervous disorders; however, this shall not permit exclusion or limitation of the benefits on the basis of Alzheimer's Disease;

c. Alcoholism and drug addiction;

d. Illness, treatment or medical condition arising out of:

i. War, declared or undeclared, or act of war;

ii. Participation in a felony, riot or insurrection;

iii. Service in the armed forces or auxiliary units;

iv. Suicide, attempted suicide, or intentionally self-inflicted injury; or

v. Aviation, if non-fare-paying passenger;

e. Treatment provided in a government facility, unless otherwise required by law;

f. Services for which benefits are available under Medicare or other governmental program, except Medicaid;

g. Any state or federal workers' compensation, employer's liability or occupational disease law, or any motor vehicle no-fault law;

h. Services provided by a member of the covered person's immediate family and services for which no charge is normally made in the absence of insurance;

i. Expenses for services or items available or paid under another long-term care insurance or health insurance policy; or

j. In the case of a qualified long-term care insurance policy, expenses for services or items to the extent that the expenses are reimbursable under Title XVIII of the Social Security Act or would be reimbursable but for the application of a deductible or coinsurance amount;

4. Subsection (B) does not prohibit exclusions and limitations by type of provider or territorial limitations. No long-term care issuer may deny a claim because services are provided in a state other than the state of policy issued under the following conditions:

a. When the state other than the state of policy issue does not have the provider licensing, certification or registration required in the policy, but where the provider satisfies the policy requirements outlined for providers in lieu of licensure, certification or registration; or

b. When the state other than the state of policy issue licenses, certifies or registers the provider under another name.

5. "State of policy issue" means the state in which the insurer issued the individual policyor certificate.

C. Extension of benefits. A long-term care insurance policy shall provide that termination of long-term care insurance is without prejudice to any benefits payable for institutionalization if the institutionalization began while the long-term care insurance was in force and continues without interruption after termination. An insurer may limit this extension of benefits period to the duration of the benefit period, if any, or to payment of the maximum benefits and the insurer may still apply any policy waiting period and all other applicable provisions of the policy.

D. Reinstatement. A long-term care insurance policy shall include a provision for reinstatement of coverage if a lapse occurs if the insurer receives proof that the insured was cognitively impaired or had a loss of functional capacity before expiration of the grace period in the policy. The option to reinstate shall be available to the insured for at least five months after the date of termination and shall allow for the collection of past due premiums, as appropriate. The standard of proof of cognitive impairment or loss of functional capacity shall not be more stringent than the benefit eligibility criteria for these conditions set forth in the original long-term care policy.

E. Continuation or conversion

1. A group long-term care insurance policy shall provide covered individuals with a basis for continuation or conversion of coverage as specified in this subsection.

2. The policy shall include a provision that maintains coverage under the existing group policy when the coverage would otherwise terminate, subject only to the continued timely payment of premiums when due. A group policy that restricts provision of benefits and services to, or has incentives to use certain providers or facilities, may provide continuation benefits that are substantially equivalent to the benefits of the existing group policy. The Director shall make a determination as to the substantial equivalency of benefits and, in doing so, shall take into consideration the differences between managed care and non-managed care plans, including provider system arrangements, service availability, benefit levels and administrative complexity.

3. The policy shall include a provision that an individual, whose coverage under the group policy would otherwise terminate or has been terminated for any reason, including discontinuation of the group policy in its entirety or with respect to an insured class, who has been continuously insured under the group policy (and any group policy which it replaced) for at least six months immediately prior to termination, is entitled to the issuance of a converted policy by the insurer under whose group policy the individual is covered, without evidence of insurability.

4. A converted policy shall be an individual policy of long-term care insurance providing benefits identical to or benefits that the Director determines to be substantially equivalent to or in excess of those provided under the group policy from which conversion is made. Where the group policy from which conversion is made restricts provision of benefits and services to, or contains incentives to use certain providers or facilities, the Director, in making a determination as to the substantial equivalency of benefits, shall take into consideration the differences between managed care and non-managed care plans, including, but not limited to, provider system arrangements, service availability, benefit levels and administrative complexity, and other plan elements.

5. An insurer may require an individual seeking a conversion policy to make a written application for the converted policy and pay the first premium due, if any, as directed by the insurer not later than 31 days after termination of coverage under the group policy. The insurer shall issue the converted policy effective on the day following the termination of coverage under the group policy. The converted policy shall be renewable annually.

6. Unless the group policy from which conversion is made replaced previous group coverage, the insurer shall calculate the premium for the converted policy on the basis of the insured's age at inception of coverage under the group policy from which conversion is made. If the group policy from which conversion is made replaced previous group coverage, the premium for the converted policy shall be calculated on the basis of the insured's age at inception of coverage under the group policy replaced.

7. An insurer is required to provide continuation of coverage or issuance of a converted policy as provided in this subsection, unless:

a. Termination of group coverage resulted from an individual's failure to make any required payment of premium or contribution when due; or

b. The terminating coverage is replaced not later than 31 days after termination, by group coverage that:

i. Is effective on the day following the termination of coverage;

ii. Provides benefits identical to or benefits the Director determines to be substantially equivalent to or in excess of those provided by the terminating coverage; and iii. Has a premium calculated in a manner consistent with the requirements of subsection (E)(6).

8. Notwithstanding any other provision of this Section, a converted policy that an insurer issues to an individual who at the time of conversion is covered by another long-term care insurance policy providing benefits on the basis of incurred expenses, may contain a provision that reduces benefits payable if the benefits provided under the additional coverage, together with the full benefits provided by the converted policy, would result in payment of more than 100% of incurred expenses. An insurer may include this provision in the converted policy only if the converted policy also provides for a premium decrease or refund that reflects the reduction in payable benefits.

9. The converted policy may provide that the benefits payable under the converted policy, together with the benefits payable under the group policy from which conversion is made, shall not exceed those that would have been payable had the individual's coverage under the group policy remained in force and effect.

10. Notwithstanding any other provision of this Section, an insured individual whose eligibility for group long-term care coverage is based upon the individual's relationship to another person, is entitled to continuation of coverage under the group policy if the qualifying relationship terminates by death or dissolution of marriage.

F. Discontinuance and replacement. If a group long-term care policy is replaced by another group long-term care policy issued to the same policyholder, the succeeding insurer shall offer coverage to all persons covered under the previous group policy on its date of termination. Coverage provided or offered to individuals by the insurer and premiums charged to persons under the new group policy:

1. Shall not result in any exclusion for preexisting conditions that would have been covered under the group policy being replaced; and

2. Shall not vary or otherwise depend on the individual's health or disability status, claim experience, or use of long-term care services.

G. Premium Increases.

1. An insurer shall not increase the premium charged to an insured because of:

a. The increasing age of the insured at ages beyond 65, or

b. The duration of coverage under the policy.

2. Purchase of additional coverage is not considered a premium rate increase, however, for the calculation required under R20-6-1019, an insurer shall add to and consider the portion of the premium attributable to the additional coverage as part of the initial annual premium.

3. A reduction in benefits is not considered a premium change, however, for the calculation required under R20-6-1019, an insurer shall base the initial annual premium on the reduced benefits.

H. Electronic enrollment for group policies.

1. For coverage offered to a group defined in A.R.S. § 20-1691(5) (a, any requirement that an insurer or insurance producer obtain an insured's signature is satisfied if:

a. The group policyholder or insurer obtains the insured's consent by telephonic or electronic enrollment, and provides the enrollee with verification of enrollment information within five business days of enrollment; and

b. The telephonic or electronic enrollment process has necessary and reasonable safeguards to assure the accuracy, retention, and prompt retrieval of records, and the confidentiality of individually identifiable and privileged information.

2. If the Director requests, the insurer shall make available records showing the insurer's ability to confirm enrollment and coverage amounts.

I. Minimum standards for home health and community care benefits.

1. If an insurer issues a long-term care insurance policy or certificate that provides benefits for home-health or community care, the policy or certificate shall not limit or exclude benefits by any of the following:

a. Requiring that the insured would need skilled care in a skilled nursing facility if home health services are not provided;

b. Requiring that the insured first or simultaneously receive nursing or therapeutic services, or both, in a home, community or institutional setting before home health services are covered;

c. Requiring that eligible services be provided by a registered nurse or licensed practical nurse;

d. Requiring that a nurse or therapist provide services covered by the policy that can be provided by a home health aide or other licensed or certified home care worker acting within the scope of licensure or certification;

e. Requiring that the insured or claimant have an acute condition before home health services are covered;

f. Limiting benefits to services provided by Medicare-certified agencies or providers;

g. Excluding coverage for personal care services provided by a home health aide;

h. Requiring that home health care services be provided at a level of certification or licensure greater than that required by the eligible service; or

i. Excluding coverage for adult day care services.

2. If a long-term care insurance policy provides benefits for home health or community care services, it shall provide home health or community care coverage that equals a dollar amount equivalent to at least one-half of one year's missing home benefit coverage available at the time covered home health or community care services are being received. This requirement does not apply to policies or certificates issued to residents of continuing care retirement communities.

3. An insurer may apply home health care coverage to non-home health care benefits in the policy or certificate when determining maximum coverage under the terms of the policy or certificate.

J. Appeals. Policy shall include a clear description of the process for appealing and resolving benefit determinations.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1004 recodified from R4-14-1004 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1005 Unintentional Lapse

A. An insured may designate in writing at least one person to receive notice of lapse or termination of a long-term care insurance policy for nonpayment of premium, in addition to the insured. Designation shall not constitute acceptance of any liability by the third-party notice recipient for services provided to the insured.

B. An insurer shall not issue an individual long-term care insurance policy or certificate until the applicant has provided either a written designation of at least one person, in addition to the applicant, who shall receive notice of lapse or termination of the policy or certificate for nonpayment of premium, with the person's full name and home address, or the applicant's written waiver, dated and signed, indicating that the applicant chooses not to designate a notice recipient.

C. The insurer shall use a form for written designation or waiver that provides space clearly delineated for the designation. The insurer shall include the following language on the form for waiver of the right to name a designated recipient: "Protection against unintended lapse. I understand that I have the right to designate at least one person other than myself to receive notice of lapse or termination of this long-term care insurance policy for nonpayment of premium. I understand that this notice will not be given until 30 days after a premium is due and unpaid. I elect NOT to designate a person to receive this notice."

D. At least once every two years, an insurer shall notify the insured of the right to change the person designated to receive notice in subsection (A). An insured may add, delete, or change a designated recipient or change a designated recipient at any time by notifying the insurer in writing, and providing the name and home address for the new designated recipient or the designated recipient to be deleted.

E. If the insured pays premiums for the long-term care insurance policy or certificate through a payroll or pension deduction plan, the insurer is not required to comply with the requirements in subsections (A) through (D) until 60 days after the insured is no longer on the payment plan.

F. An individual long-term care insurance policy shall not lapse or be terminated for nonpayment of premium unless the insurer gives the insured and any recipient designated under subsections (A) through (D) written notice at least 30 days before the effective date of termination or lapse, by first class mail, postage prepaid, at the address provided by the insured for purposes of receiving notice of lapse or termination. An insurer shall not give notice until 30 days after the date on which a premium is due and unpaid. Notice is deemed given five days after the date of mailing.

G. Reinstatement. In addition to the requirement in subsections (A) through (D), a long-term care insurance policy or certificate shall include a provision that provides for reinstatement of coverage in the event of a lapse if the insurer is provided proof that the policy-holder or certificateholder was cognitively impaired or had a loss of functional capacity before the grace period contained in the policy expired. This option shall be available to the insured if requested within five months after termination and shall allow for the collection of past due premium, where appropriate. The standard of proof of cognitive impairment or loss of functional capacity shall not be more stringent than the benefit eligibility criteria on cognitive impairment or the loss of functional capacity contained in the policy or certificate. Reinstatement after termination for other than unintentional lapse shall be governed by A.R.S. § 20-1348.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1005 recodified from R4-14-1005 (Supp. 95-1). Section R20-6-1005 renumbered to R20-6-1006; new Section R20-6-1005 made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1006 Inflation Protection

A. An insurer shall not offer a long-term care insurance policy unless the insurer offers to the policyholder, at the time of purchase, in addition to any other inflation protection, the option to purchase a policy with an inflation protection provision that provides for benefit levels to increase with benefit maximums or reasonable durations which are meaningful to account for reasonably anticipated increases in the costs of long-term care services covered by the policy. The terms of the required provision shall be no less favorable than one of the following:

1. A provision that provides for annual increases in benefit levels compounding annually at a rate of not less than 5%;

2. A provision that guarantees an insured the right to periodically increase benefit levels without providing evidence of insurability or health status, if the insured did not decline the option for the previous period. The increased benefit shall be no less than the difference between the existing policy benefit and that benefit compounded annually at a rate of at least 5% for the period beginning from the purchase of the existing benefit and extending until the year in which the offer is made; or 3. A provision for coverage of a specified percentage of actual or reasonable charges that is not subject to a maximum specified indemnity amount or limit.

B. If the policy is issued to a group, the insurer shall extend the offer required by subsection (A) to the group policyholder; except, if the policy is issued under A.R.S. § 20-1691.04(C) to a group, other than to a continuing care retirement community, the insurer shall make the offer to each proposed certificateholder.

C. An insurer is not required to make the offer in subsection (A) for life insurance policies or riders with accelerated long-term care benefits.

D. An insurer shall include the information listed in this subsection in or with the outline of coverage.

1. A graphic comparison of the benefit levels of a policy that increases benefits over the policy period with a policy that does not increase benefits. The graphic comparison shall show benefit levels over at least a 20-year period.

Any expected premium increases or additional premiums to pay for automatic or optional benefit increases. If premium increases or additional premiums will be based on the attained age of the applicant at the time of the increase, the insurer shall provide a revised schedule of attained-age premiums. An insurer may use a reasonable hypothetical or a graphic demonstration for this disclosure.

E. Inflation-protection benefit increases shall continue without regard to an insured's age, claim status, claim history, or length of time the person has been insured under the policy.

F. An insurer's offer of inflation protection that provides for automatic benefit increases shall include an offer of a premium that the insurer expects to remain constant. The insurer shall disclose in the offer in a conspicuous manner that the premium may change in the future unless the premium is guaranteed to remain constant.

G. An insurer shall include in a long-term care insurance policy inflation protection as provided in subsection (A)(1) unless the insurer obtains a rejection of inflation protection signed by the insured as required in subsection (H). The rejection may be either on the application form or on a separate form.

H. A rejection of inflation protection is deemed part of an application and shall state: "I have reviewed the outline of coverage and the graphs that compare the benefits and premiums of this policy with and without inflation protection. Specifically, I reviewed Plans [insert description of plans], and I reject inflation protection."

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1006 recodified from R4-14-1006 (Supp. 95-1). R20-6-1006 renumbered to R20-6-1007; new Section R20-5-1006 renumbered from R20-6-1005 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1007 Required Disclosure Provisions

A. Riders and endorsements. Except for riders or endorsements by which an insurer effectuates a request made in writing by the insured under an individual long-term care insurance policy, if an insurer adds a rider or endorsement to an individual long-term care insurance policy after date of issue or at reinstatement or renewal that reduces or eliminates benefits or coverage in the policy, the insurer shall require signed acceptance by the individual insured. After the date of policy issue, any rider or endorsement that increases benefits or coverage with a concomitant increase in premium during the policy term shall require the signed written agreement of the insured unless the increased benefits or coverage are required by law. If the insurer charges a separate additional premium for benefits provided in connection with riders or endorsements, the premium charge shall be set forth in the policy, rider, or endorsement.

B. Payment of Benefits. A long-term care insurance policy that provides for the payment of benefits based on standards described as "usual and customary," "reasonable and customary" or words of similar import shall define the terms and explain them in its accompanying outline of coverage.

C. Disclosure of tax consequences. For life insurance policies that provide an accelerated benefit for long-term care, an insurer shall provide a disclosure statement at the time of application for the policy or rider and at the time the accelerated benefit payment request is submitted, that receipt of these accelerated benefits may be taxable, and that assistance should be sought from a personal tax adviser. The disclosure statement shall be prominently displayed on the first page of the policy or rider and any other related documents. This subsection shall not apply to qualified long-term care insurance contracts.

D. Benefit triggers. A long-term care insurance policy shall use activities of daily living and cognitive impairment to measure an insured's need for long-term care. The long-term care insurance policy shall describe these terms and provisions in a separate paragraph in the policy labeled "Eligibility for the Payment of Benefits" that includes and explains:

1. Any additional benefit triggers,

Benefit triggers that result in payment of different benefit levels, and

3. Any requirement that an attending physician or other specified person certify a certain level of functional dependency for the insured to be eligible for benefits.

E. A long-term care insurance contract shall contain a disclosure statement in the policy and in the outline of coverage indicating whether it is intended to be a qualified long-term care insurance contract as specified in the outline of coverage in Appendix J, paragraph 3. The contract shall also include a Specification Page which shall include the benefits, amounts, durations, the premium rate including all optional benefits selected by the insured, and any other benefit data applicable to the insured.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1007 recodified from R4-14-1007 (Supp. 95-1). Former Section R20-6-1007 renumbered to R20-6-1010; new Section R20-6-1007 renumbered from R20-6-1006 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1008 Required Disclosure of Rating Practices to Consumers

A. This Section applies as follows:

1. Except as provided in subsection (A)(2), this Section applies to any long-term care policy or certificate issued in this state on or after May 10, 2005.

For certificates issued under an in-force, long-term care insurance policy issued to a group as defined in A.R.S. § 20-1691(5)(a), the provisions of this Section apply on the first policy anniversary that occurs on or after November 10, 2005.

B. Unless a policy is one for which an insurer cannot increase the applicable premium rate or rate schedule, the insurer shall provide the information listed in this subsection to the applicant at the time of application or enrollment. If the method of application does not allow for delivery at that time, the insurer shall provide the information to the applicant no later than at the time of delivery of the policy or certificate.

1. A statement that the policy may be subject to rate increases in the future.

2. An explanation of potential future premium rate revisions, and the policyholder's or certificateholder's option if a premium rate revision occurs.

The premium rate or rate schedules applicable to the applicant that will be in effect until the insurer makes a request for an increase.

4. A general explanation for applying premium rate or rate schedule adjustments that includes:

a. A description of when premium rate or rate-schedule adjustments will be effective (e.g., next anniversary date, next billing date); and

b. The insurer's right to a revised premium rate or rate schedule as provided in subsection (B)(3) if the premium rate or rate schedule is changed.

5. Information regarding each premium rate increase on this policy form or similar policy form over the past 10 years for this state or any other state that, at a minimum, identifies:

a. The policy forms for which premium rates have been increased;

b. The calendar years when the form was available for purchase; and

c. The amount or percent of each increase, which may be expressed as a percentage of the premium rate before the increase, or as minimum and maximum percentages if the rate increase is variable by rating characteristics.

6. The insurer may, in a fair manner, provide explanatory information related to the rate increases in addition to the information required under subsection (B)(5).

C. An insurer may exclude from the disclosure required under subsection (B)(5), premium rate increases applicable to:

1. Blocks of business acquired from other nonaffiliated insurers; and

Policies acquired from other nonaffiliated insurers if the increases occurred before the acquisition.

D. If an acquiring insurer files for a rate increase on a long-term care insurance policy form or a block of policy forms acquired from a nonaffiliated insurer on or before the later of the January 10, 2005, or the end of a 24-month period following the acquisition of the policies or block of policies, the acquiring insurer may exclude that rate increase from the disclosure required under subsection (B)(5). However, the nonaffiliated insurer that sells the policy form or a block of policy forms shall include that rate increase in the disclosure required under subsection (B)(5). If the acquiring insurer files for a subsequent rate increase, even within the 24-month period, on the same policy form acquired from a nonaffiliated insurer or block of policy forms acquired from nonaffiliated insurers, the acquiring insurer shall make all disclosures required by subsection (B)(5), including disclosure of the earlier rate increase.

E. Unless the method of application does not allow an insured to sign an acknowledgement that the insurer made the disclosures required under subsection (B) at the time of application, the applicant shall sign an acknowledgement of disclosure at that time. Otherwise, the applicant shall sign a disclosure acknowledgement no later than at the time of delivery of the policy or certificate.

F. An insurer shall use the forms in Appendix A and Appendix B to comply with the requirements of subsections (B) through (E). The text and format of an insurer's forms shall be substantially similar to the text and format of Appendices A and B.

G. An insurer shall provide notice of an upcoming premium rate schedule increase to all policyholders or certificateholders, if applicable, at least 45 days before the effective date of the increase. The notice shall include the information required by subsection (B).

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1008 recodified from R4-14-1008 (Supp. 95-1). Former Section R20-6-1008 renumbered to R20-6-1011; new Section R20-6-1008 made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1009 Initial Filing Requirements

A. This Section applies to any long-term care policy issued in this state on or after May 10, 2005.

B. At the time of making a filing under A.R.S. § 20-1691.08, an insurer shall provide to the Director a copy of the disclosure documents required under R20-6-1008 and an actuarial certification that includes the following:

1. The initial premium rate schedule is sufficient to cover anticipated costs under moderately adverse experience and that the premium rate schedule is reasonably expected to be sustainable over the life of the form with no future premium increases anticipated;

2. The policy design and coverage provided have been reviewed and taken into consideration;

3. The underwriting and claims adjudication processes have been reviewed and taken into consideration;

4. The premiums contain at least the minimum margin for moderately adverse experience as defined in subsection (4)(a) or the specification of and justification for a lower margin as required by subsection (4)(b).

a. A composite margin shall not be less than 10% of lifetime claims.

b. A composite margin that is less than 10% may be justified in uncommon circumstances. The proposed amount, full justification of the proposed amount and methods to monitor developing experience that would be the basis for withdrawal of approval for such lower margins must be submitted.

c. A composite margin lower than otherwise considered appropriate for the stand-alone long-term care policy may be justified for long-term care benefits provided through a life policy or an annuity contract. Such lower composite margin, if utilized, shall be justified by appropriate actuarial demonstration addressing margins and volatility when considering the entirety of the product.

d. A greater margin may be appropriate in circumstances where the company has less credible experience to support its assumptions used to determine the premium rates.

5. A statement that the premium rate schedule:

a. Is not less than the premium rate schedule for existing similar policy forms also available from the insurer except for reasonable differences attributable to benefits, or

b. A comparison of the premium schedules for similar policy forms that are currently available from the insurer with an explanation of the differences; and

6. A statement that reserve requirements have been reviewed and considered. Support for this statement shall include:

a. Sufficient detail or sample calculations provided so as to have a complete depiction of the reserve amounts to be held; and

b. A statement that the difference between the gross premium and the net valuation premium for renewal years is sufficient to cover expected renewal expenses; or if such a statement cannot be made, a complete description of the situations where this does not occur. An aggregate distribution of anticipated issues may be used as long as the underlying gross premiums maintain a reasonably consistent relationship.

C. An actuarial memorandum shall be included that is signed by a member of the Academy of Actuaries and that addresses and supports each specific item required as part of the actuarial certification and provides at least the following:

1. An explanation of the review performed by the actuary prior to making the statements in subsections (B)(2) and (B)(3);

2. A complete description of pricing assumptions;

3. Sources and levels of margins incorporated into the gross premiums that are the basis for the statement in subsection (B)(1) of the actuarial certification and an explanation of the analysis and testing performed in determining the sufficiency of the margins. The actuary shall clearly describe deviations in margins between ages, sexes, plans or states. Deviations in margins required to be described are other than those produced utilizing generally accepted actuarial methods for smoothing and interpolating gross premium scales; and

4. A demonstration that the gross premiums include the minimum composite margin specified in subsection (B)(4).

D. In any review of the actuarial certification and actuarial memorandum, the Director may request review by an actuary with experience in long-term care pricing who is independent of the insurer. In the event the Director asks for additional information as a result of any review, the period in A.R.S. § 20-1691.08 does not include the period during which the insurer is preparing the requested information.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1009 recodified from R4-14-1009 (Supp. 95-1). Section R20-6-1009 renumbered to R20-6-1012; new Section R20-6-1009 made by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1010 Requirements for Application Forms and Replacement Coverage, Prohibition Against Preexisting Conditions and Probationary Periods in Replacement Policies or Certificates; Reporting Requirements

A. An insurer's application form for a long-term care insurance policy shall include the questions listed in this Section to elicit information as to whether, as of the date of the application, the applicant has another long-term care insurance policy or certificate in force or whether a long-term care policy or certificate is intended to replace any other health or long-term care policy or certificate presently in force. An insurer may include the questions in a supplementary application or other form to be signed by the applicant and insurance producer, except where the coverage is sold without an insurance producer. For a replacement policy issued to a group as defined in A.R.S. § 20-1691(5)(a), the insurer may modify the questions only to the extent necessary to elicit information about health or long-term care insurance policies other than the group policy being replaced if the certificateholder has been notified of the replacement.

1. Do you have another long-term care insurance policy or certificate in force (including health care service contract, health maintenance organization contract)?

2. Did you have another long-term care insurance policy or certificate in force during the last 12 months?

a. If so, with which company?

b. If that policy lapsed, when did it lapse?

3. Are you covered by Medicaid?

4. Do you intend to replace any of your medical or health insurance coverage with this policy or certificate?

B. The application or enrollment form for such policies or certificates shall clearly indicate the payment plan the applicant selects.

C. An insurance producer shall list any other health insurance policies the insurance producer has sold to the applicant, including:

Policies that are still in force, and

2. Policies sold in the past five years that are no longer in force.

D. Solicitations Other than Direct Response. On determining that a sale will involve replacement, an insurer, other than an insurer using direct response solicitation methods, or its insurance producer; shall furnish the applicant, before issuing or delivering the individual long-term care insurance policy, a notice that substantially conforms to the form prescribed in Appendix C or D regarding replacement of health or long-term care coverage. The insurer shall:

1. Give one copy of the notice to the applicant, and

2. Keep an additional copy signed by the applicant.

E. Direct Response Solicitations. Insurers using direct response solicitation methods as defined in A.R.S. § 20-1661 shall deliver a notice that substantially conforms to the form prescribed in Appendix C or D regarding replacement of health or long-term care coverage to the applicant upon issuance of the policy.

F. If replacement is intended, the replacing insurer shall send the existing insurer written notice of the proposed replacement within five working days from the date the replacing insurer receives the application or issues the policy, whichever is sooner. The notice shall identify the existing policy by name of the insurer and the insured, and policy number or insured's address including zip code.

G. A life insurance policy that accelerate benefits for long-term care shall comply with this Section if the policy being replaced is a long-term care insurance policy. If the policy being replaced is a life insurance policy, the insurer shall comply with the replacement requirements of Title 20, Chapter 6, Article 1.1. If a life insurance policy that accelerates benefits for long-term care is replaced by another such policy, the replacing insurer shall comply with the requirements of this Section and with A.R.S. Title 20, Chapter 6, Article 1.1.

H. Prohibition against preexisting conditions and probationary periods in replacement policies or certificates. If a long-term care insurance policy or certificate replaces another long-term care policy or certificate, the replacing insurer shall waive any time periods applicable to preexisting conditions and probationary periods in the new long-term care policy for similar benefits if similar exclusions are satisfied under the original policy.

I. Reporting requirements.

1. An insurer shall maintain the following records for each insurance producer:

a. The amount of the insurance producer's replacement sales as a percent of the insurance producer's total annual sales, and

b. The amount of lapses of long-term care insurance policies sold by the insurance producer as a percent of the insurance producer's total annual sales.

2. No later than June 30 of each year, on the forms specified in Appendix E and Appendix F, an insurer shall report the following information for the preceding calendar year to the Department:

a. The 10% of its insurance producers licensed in Arizona with the greatest percentages of lapses and replacements as measured by subsection (I)(1);

b. The number of lapsed policies as a percent of the total annual sales and as a percent of the insurer's total number of policies in force as of the end of the preceding calendar year;

c. The number of replacement policies sold as a percent of the insurer's total annual sales and as a percent of its total number of policies in force as of the end of the preceding calendar year; and

d. For qualified long-term care insurance contracts, the number of claims denied for each class of business, expressed as a percentage of claims denied.

J. In subsection (I):

1. "Claim" means a request for payment of benefits under an in-force policy, regardless of whether the benefit claimed is covered under the policy or any terms or conditions of the policy have been met.

2. "Denied" means the insurer refuses to pay a claim for any reason other than for claims not paid for failure to meet the waiting period or because of an applicable preexisting condition.

3. "Policy" means only long-term care insurance.

"Report" means on a statewide basis.

K. Reported replacement and lapse rates do not alone constitute a violation of insurance laws or necessarily imply wrongdoing. The reports are for the purpose of reviewing more closely agent activities regarding the sale of long-term care insurance. Reports required under this Section shall be filed with the Director.

L. Annual rate certification requirements. This subsection applies to any long-term care policy issued in Arizona on or after November 10, 2017. The following annual submission requirements apply subsequent to initial rate filings for individual long-term care insurance policies made under this Section:

1. An actuarial certification prepared, dated and signed by a member of the American Academy of Actuaries which contains a statement of the sufficiency of the current premium rate schedule, including:

a. For the rate schedules currently marketed, that the premium rate schedule continues to be sufficient to cover anticipated costs under moderately adverse experience and that the premium rate schedule is reasonably expected to be sustainable over the life of the form with no future premium increases anticipated or a statement that margins for moderately adverse experience may no longer be sufficient. For a statement that margins for moderately adverse experience may no longer be sufficient, the insurer shall provide to the Director, within 60 days of the date the actuarial certification is submitted to the Director, a plan of action, including a time frame, for the re-establishment of adequate margins for moderately adverse experience so that the ultimate premium rate schedule would be reasonably expected to be sustainable over the future life of the form with no future premium increases anticipated. Failure to submit a plan of action to the Director within 60 days or to comply with the time frame stated in the plan of action constitutes grounds for the Director to withdraw or modify approval of the form for future sales pursuant to A.R.S. § 20-1691.08.

b. For the rate schedules that are no longer marketed, that the premium rate schedule continues to be sufficient to cover anticipated costs under best estimate assumptions or that the premium rate schedule may no longer be sufficient. If the premium rate schedule is no longer sufficient, the insurer shall provide to the Director, within 60 days of the date the actuarial certification is submitted to the Director, a plan of action, including time frame, for the re-establishment of adequate margins for moderately adverse experience;

2. A description of the review performed that led to the statement; and

3. An actuarial memorandum dated and signed by a member of the American Academy of Actuaries who prepares the information shall be prepared to support the actuarial certification and provide at least the following information:

a. A detailed explanation of the data sources and review performed by the actuary prior to making the statement in subsection (L)(1),

b. A complete description of experience assumptions and their relationship to the initial pricing assumptions,

c. A description of the credibility of the experience data, and

d. An explanation of the analysis and testing performed in determining the current presence of margins.

4. The actuarial certification required pursuant to subsection (L)(1) must be based on calendar year data and submitted annually starting in the second year following the year in which the initial rate schedules are first used. The actuarial memorandum required pursuant to subsection (L)(3) must be submitted at least once every three years with the certification.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1010 recodified from R4-14-1010 (Supp. 95-1). R20-6-1010 renumbered to R20-6-1013; new Section R20-6-1010 renumbered from R20-6-1007 and amended by final by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1011 Prohibition Against Post-claims Underwriting

A. An application for a long-term care insurance policy or certificate that is not guaranteed issue shall meet the requirements of this Section.

1. The application shall contain clear and unambiguous questions designed to ascertain the applicant's health condition.

a. If the application has a question asking whether the applicant has had medication prescribed by a physician, the application shall also ask the applicant to list the prescribed medication.

b. If the insurer knew or reasonably should have known that the medications listed in the application are related to a medical condition for which coverage would otherwise be denied, the insurer shall not rescind the policy or certificate for that condition.

The application shall include the following language which shall be set out conspicuously and in close conjunction with the applicant's signature block: " Caution: If your answers on this application are incorrect or untrue, [company] has the right to deny benefits or rescind your policy. "

3. The policy or certificate shall contain, at the time of delivery, the following language, or language substantially similar to the following, set out conspicuously: " Caution: The issuance of this long-term care insurance [policy] [certificate] is based on your responses to the questions on your application. A copy of your [application] [enrollment form] [is enclosed] [was retained by you when you applied]. If your answers are incorrect or untrue, the company has the right to deny benefits or rescind your policy. The best time to clear up any questions is now, before a claim arises! If, for any reason, any of your answers are incorrect, contact the company at this address: [insert address]. "

B. Before issuing a long-term care insurance policy or certificate that is not guaranteed issue to an applicant age 80 or older, the insurer shall obtain one of the following:

1. A report of a physical examination,

2. An assessment of functional capacity,

3. An attending physician's statement, or

4. Copies of medical records.

C. The insurer or its insurance producer shall deliver a copy of the completed application or enrollment form, as applicable, to the insured no later than at the time of delivery of the policy or certificate unless the insurer gave a copy to the applicant it at the time of application.

D. An insurer selling or issuing long-term care insurance benefits shall maintain a record of all policy or certificate rescissions, both state and country-wide, except those which the insured voluntarily effectuated.

E. On or before March 31 of each year, an insurer shall report the following information to the Director for the preceding calendar year, using the form prescribed in Appendix G:

1. Insurer name, address, phone number;

2. As to each rescission except those voluntarily effectuated by the insured:

a. Policy form number,

b. Policy and certificate number,

c. Name of the insured,

d. Date of policy issuance,

e. Date claim submitted,

f. Date of rescission, and

g. Detailed reason for rescission; and

3. Signature, name and title of the preparer, and date prepared.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1011 recodified from R4-14-1011 (Supp. 95-1). R20-6-1011 renumbered to R20-6-1014; new Section R20-6-1011 renumbered from R20-6-1008 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Amended by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1012 Reserve Standards

A. If long-term care benefits are provided through the acceleration of benefits under group or individual life policies or riders, an insurer shall determine policy reserves for long-time care benefits under A.R.S. § 20-510. An insurer shall also establish claim reserves for a policy or rider in claim status.

B. An insurer shall base reserves for policies and riders under subsection (A) on the multiple decrement model using all relevant decrements except for voluntary termination rates. An insurer may use single decrement approximations if the calculation produces essentially similar reserves, if the reserve is clearly more conservative, or if the reserve is immaterial. The insurer, when calculating reserves, may take into account the reduction in life insurance benefits due to the payment of long-term care benefits. The insurer shall not set the reserves for the long-term care benefit and the life insurance benefit to be less than the reserves for the life insurance benefit assuming no long-term care benefit.

C. In the development and calculation of reserves for policies and riders subject to this Section, an insurer shall give due regard to the applicable policy provisions, marketing methods, administrative procedures and all other considerations which impact projected claim costs including the following:

1. Definition of insured events,

2. Covered long-term care facilities,

3. Existence of home convalescence care coverage,

Definition of facilities,

Existence or absence of barriers to eligibility,

6. Premium waiver provision,

7. Renewability,

8. Ability to raise premiums,

9. Marketing method,

10. Underwriting procedures,

11. Claims adjustment procedures,

12. Waiting period,

13. Maximum benefit,

14. Availability of eligible facilities,

15. Margins in claim costs,

16. Optional nature of benefit,

17. Delay in eligibility for benefit,

18. Inflation protection provisions,

Guaranteed insurability option, and

20. Other similar or comparable factors affecting risk.

D. A member of the American Academy of Actuaries shall certify an insurer's use of any applicable valuation morbidity table as appropriate as a statutory valuation table.

E. When long-term care benefits are provided other than as described in subsection (A), an insurer shall determine reserves under A.R.S. § 20-508.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1012 recodified from R4-14-1012 (Supp. 95-1). R20-6-1012 renumbered to R20-6-1016; new Section R20-6-1012 renumbered from R20-6-1009 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Renumbered and Amended from R20-6-1013 by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1013 Loss Ratio

A. This Section applies to policies and certificates issued any time prior to May 10, 2005.

B. Benefits under an individual long-term care insurance policy are deemed reasonable in relation to premiums if the expected loss ratio is at least 60% calculated in a manner that provides for adequate reserving of the long-term care insurance risk. In evaluating the expected loss ratio, the director shall consider all relevant factors, including:

1. Statistical credibility of incurred claims experience and earned premiums;

2. The period for which rates are computed to provide coverage;

3. Experienced and projected trends;

Concentration of experience within early policy duration;

5. Expected claim fluctuation;

6. Experience refunds, adjustments, or dividends;

7. Renewability features;

8. All appropriate expense factors;

Interest;

10. Experimental nature of the coverage;

11. Policy reserves;

12. Mix of business by risk classification; and

Product features such as long elimination periods, high deductibles, and high maximum limits.

C. A premium rate schedule or proposed revision to a premium rate schedule that is expected to produce, over the lifetime of the long-term care insurance policy, benefits that are less than 60% of the proposed premium rate schedule is deemed to be unreasonable.

D. Subsections (B) and (C) do not apply to life insurance policies that accelerate benefits for long-term care. A life insurance policy that funds long-term care benefits entirely by accelerating the death benefit is deemed to provide reasonable benefits in relation to premiums paid if the policy complies with all of the following:

1. The interest credited internally to determine cash value accumulations, including long-term care, if any, is guaranteed not to be less than the minimum guaranteed interest rate for cash value accumulations without long-term care set forth in the policy;

2. The portion of the policy that provides life insurance benefits complies with the nonforfeiture requirements of A.R.S. § 20-1231;

3. The policy complies with the disclosure requirements of A.R.S. § 20-1691.06(A) through (E);

4. At the time of making a filing under A.R.S. § 20-1691.08, the insurer files an actuarial memorandum that includes the following information:

a. A description of the basis on which the long-term care rates were determined;

b. A description of the basis for the reserves;

c. A summary of the type of policy, benefits, renewability, general marketing method, and limits on ages of issuance;

d. A description and a table of each actuarial assumption used; for expenses, an insurer shall include percent of premium dollars per policy and dollars per unit of benefits, if any;

e. A description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives;

f. The estimated average annual premium per policy and the average issue age;

g. A statement as to whether underwriting is performed, including:

i. Time of underwriting;

ii. A description of the type of underwriting used, such as medical underwriting or functional assessment underwriting; and

iii. For a group policy, whether an enrollee's dependents are subject to underwriting; and

h. A description of the effect of the long-term care policy provisions on the required premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both for active lives and those in long-term care claim status.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1013 recodified from R4-14-1013 (Supp. 95-1). Section R20-6-1013 renumbered to R20-6-1017; new Section R20-6-1013 renumbered from R20-6-1010 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Renumbered and Amended from R20-6-1014 by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1014 Premium Rate Schedule Increase

A. This Section applies to any long-term care policy or certificate issued in this state on or after May 10, 2005 and prior to November 10, 2017.

B. An insurer shall notify the Director of a proposed premium rate schedule increase, including an exceptional increase, at least 60 days before issuing notice to its policyholders. The notice to the Director shall include:

1. Information required by R20-6-1008;

2. Certification by a qualified actuary that:

a. If the requested premium rate schedule increase is implemented and the underlying assumptions, which reflect moderately adverse conditions, are realized, no further premium rate schedule increases are anticipated;

b. The premium rate filing complies with the provisions of this Section; and

c. The insurer may request a premium rate schedule increase less than what is required under this Section and the Director may approve the premium rate schedule increase, without submission of the certification required by subsection (B)(2)(a), if the actuarial memorandum discloses the premium rate schedule increase necessary to make the certification required by subsection (B)(2)(a), the premium rate schedule increase filing satisfies all other requirements of this Section, and is, in the opinion of the Director, in the best interest of the policyholders.

3. An actuarial memorandum justifying the rate schedule change request that includes:

a. Lifetime projections of earned premiums and incurred claims based on the filed premium rate schedule increase; and the method and assumptions used in determining the projected values, including the following:

i. Any assumptions that deviate from those used for pricing other forms currently available for sale;

ii. Annual values for the five years preceding and the three years following the valuation date, provided separately;

iii. Development of the lifetime loss ratio, unless the rate increase is an exceptional increase; and

iv. A demonstration of compliance with subsection (C).

b. For exceptional increases, the actuarial memorandum shall also include:

i. The projected experience that is limited to the increases in claims expenses attributable to the approved reasons for the exceptional increase; and

ii. If the Director determines under Section R20-6-1002(B)(3) that offsets may exist, the insurer shall use appropriate net projected experience;

c. Disclosure of how reserves have been incorporated in this rate increase when the rate increase will trigger contingent benefit upon lapse;

d. Disclosure of the analysis performed to determine why a rate adjustment is necessary, which pricing assumptions were not realized and why, and any other actions of the insurer on which the actuary has relied;

e. A statement that the actuary has considered policy design, underwriting, and claims adjudication practices;

f. Composite rates reflecting projections of new certificates in the event it is necessary to maintain consistent premium rates for new certificates and certificates receiving a rate increase; and

g. A demonstration that actual and projected costs exceed costs anticipated at the time of the initial pricing under moderately adverse experience and that the composite margin specified in R20-6-1009(B)(4) is projected to be exhausted;

4. A statement that renewal premium rate schedules are not greater than new business premium rate schedules except for differences attributable to benefits, unless the insurer provides the Director with documentation justifying the greater rate; and

5. Upon the Director's request, other similar and related information the Director may require to evaluate the premium rate schedule increase.

C. All premium rate schedule increases shall be determined in accordance with the following requirements:

1. The insurer shall return 70% of the present value of projected additional premiums from an exceptional increase to policyholders in benefits;

2. The sum of the accumulated value of incurred claims, without the inclusion of active life reserves, and the present value of future projected incurred claims, without the inclusion of active life reserves, shall not be less than the sum of the following:

a. The accumulated value of the initial earned premium times 58%;

b. 85% of the accumulated value of prior premium rate schedule increases on an earned basis;

c. The present value of future projected initial earned premiums times 58%; and

d. 85% of the present value of future projected premiums not in subsection (C)(2)(c) on an earned basis;

3. If a policy form has both exceptional and other increases, the values in subsections (C)(2)(b) and (C)(2)(d) shall also include 70% for exceptional rate increase amounts; and

4. All present and accumulated values used to determine rate increases shall use the maximum valuation interest rate for contract reserves as specified in the NAIC Accounting Practices and Procedures Manual to which insurers are subject under A.R.S. § 20-223. The actuary shall disclose the use of any appropriate averages in the actuarial memorandum required under subsection (B)(3).

D. For each rate increase that is implemented, the insurer shall file for approval by the Director updated projections, as defined in subsection (B)(3)(a), annually for the next three years and shall include a comparison of actual results to projected values. The Director may extend the period to greater than three years if actual results are not consistent with projected values from prior projections. For group insurance policies that meet the conditions in subsection (M), the insurer shall provide the projections required by this subsection to the policyholder in lieu of filing with the Director.

E. If any premium rate in the revised premium rate schedule is greater than 200% of the comparable rate in the initial premium schedule, the insurer shall file lifetime projections, as defined in subsection (B)(3)(a), for the Director's approval every five years following the end of the required period in subsection (D). For group insurance policies that meet the conditions in subsection (M), the insurer shall provide the projections required by this subsection to the policyholder instead of filing with the Director.

F. If the Director finds that the actual experience following a rate increase does not adequately match the projected experience and that the current projections under moderately adverse conditions demonstrate that incurred claims will not exceed proportions of premiums specified in subsection (C), the Director may require the insurer to implement premium rate schedule adjustments or other measures to reduce the difference between the projected and actual experience. In determining whether the actual experience matches the projected experience, the Director shall consider subsection (B)(3)(f), if applicable.

G. If the majority of the policies or certificates to which the increase applies are eligible for the contingent benefit upon lapse, the insurer shall file:

A plan, subject to Director approval, for improved administration or claims processing designed to eliminate the potential for further deterioration of the policy form experience requiring further premium rate schedule increases, or both, or to demonstrate that appropriate administration and claims processing have been implemented or are in effect; otherwise the Director may impose the conditions in subsections (H) through (J); and

2. The original anticipated lifetime loss ratio, and the premium rate schedule increase that would have been calculated according to subsection (C) had the greater of the original anticipated lifetime loss ratio or 58% been used in the calculations described in subsections (C)(2)(a) and (C)(2)(c).

H. For a rate increase filing that meets the criteria listed in this subsection, the Director shall review, for all policies included in the filing, the projected lapse rates and past lapse rates during the 12 months following each increase to determine if lapsation in excess of projected lapsation has occurred or is anticipated:

1. The rate increase is not the first rate increase requested for the specific policy form or forms,

2. The rate increase is not an exceptional increase, and

3. The majority of the policies or certificates to which the increase applies are eligible for the contingent benefit upon lapse.

I. If the Director finds excess lapsation under subsection (H) has occurred, is anticipated in the filing or is evidenced in the actual results as presenting in the updated projections provided by the insurer following the requested rate increase, the Director may find that a rate spiral exists and may require the insurer to offer, without underwriting, to all in-force insureds subject to the rate increase, the option to replace existing coverage with one or more reasonably comparable products being offered by the insurer or its affiliates. The information communicating the offer is subject to the Director's approval. The offer shall:

1. Be based on actuarially sound principles, but not on attained age;

2. Provide that maximum benefits under any new policy accepted by an insured shall be reduced by comparable benefits already paid under the existing policy; and

3. Allow the insured the option of retaining the existing coverage.

J. The insurer shall maintain the experience of the insureds whose coverage was replaced under subsection (I) separate from the experience of insureds originally issued the policy forms. If the insurer requests a rate increase on the policy form, the rate increase shall be limited to the lesser of:

1. The maximum rate increase determined based on the combined experience; and

2. The maximum rate increase determined based only on the experience of the insureds originally issued the form, plus 10%.

K. If the Director finds that an insurer has exhibited a history or pattern of filing inadequate initial premium rates for long-term care insurance, after considering the total number of policies filed over a period of time and the percentage of policies with inadequate rates, the Director may, in addition to remedies available under subsections (I) through (K),(H) through (J), prohibit the insurer from the following:

1. Filing and marketing comparable coverage for a period of up to five years, and

2. Offering all other similar coverages and limiting marketing of new applications to the products subject to recent premium rate schedule increases.

L. Subsections (A) through (K) shall not apply to a policy for which long-term care benefits provided by the policy are incidental, as defined under R20-6-1002(C), if the policy complies with all of the following provisions:

1. The interest credited internally to determine cash value accumulations, including long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest rate for cash value accumulations without long-term care set forth in the policy;

2. The portion of the policy that provides insurance benefits other than long-term care coverage meets the applicable nonforfeiture requirements under state law, including A.R.S. §§ 20-1231, 20-1232 and 20-2636;

3. The policy meets the disclosure requirements of A.R.S. § 20-1691.06;

4. The portion of the policy that provides insurance benefits other than long-term care coverage meets the disclosure requirements as applicable in the following:

a. A.R.S. Title 20, Chapter 6, Article 1.2; and

b. A.R.S. Title 20, Chapter 16, Article 2;

5. At the time of making a filing under A.R.S. § 20-1691.08, the insurer files an actuarial memorandum that includes:

a. Description of the bases on which the actuary determined the long-term care rates and the reserves;

b. A summary of the type of policy, benefits, renewability provisions, general marketing method, and limits on ages of issuance;

c. A description and a table of each actuarial assumption used, with the percent of premium dollars per policy and dollars per unit of benefits, if any, for expenses;

d. A description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives;

e. The estimated average annual premium per policy and the average issue age;

f. A statement as to whether the insurer performs underwriting at the time of application with an explanation of the following:

i. Whether underwriting is used, and if used, a description of the type of underwriting, such as medical underwriting or functional assessment underwriting; and

ii. For a group policy, whether the enrollee or any dependent will be underwritten and when underwriting occurs; and

g. A description of the effect of the long-term care policy provision on the required premiums, nonforfeiture values, and reserves on the underlying insurance policy, both for active lives and those in long-term care claim status.

M. Subsections (F) and (H) through (J) shall not apply to group insurance as defined in A.R.S. § 20-1691(6) where:

The policies insure 250 or more persons and the policyholder has 5,000 or more eligible employees of a single employer; or

2. The policyholder, and not the certificateholder, pays a material portion of the premium, which shall not be less than 20% of the total premium for the group in the calendar year prior to the year a rate increase is filed.

History

Adopted effective August 10, 1992 (Supp. 92-3). R20-6-1014 recodified from R4-14-1014 (Supp. 95-1). Section repealed; R20-6-1014 renumbered from R20-6-1011 and amended by final rulemaking at 10 A.A.R. 4661, effective January 3, 2005 (Supp. 04-4). Renumbered and Amended from R20-6-1015 by final exempt rulemaking at 23 A.A.R. 1119, effective 11/10/2017.

Ariz. Admin. Code § R20-6-1015 Premium Rate Schedule Increases for Policies Subject to Loss Ratio Limits Related to Original Filings

A. This Section applies to any long-term care policy or certificate issued in this state on or after November 10, 2017.