R17-5-810. Self-insurance as Alternate Proof of Financial Responsibility; Provisions; Applicability

A. Self-insurance applicant qualification. A person or entity may apply for self-insurance under this Section if the applicant: 1. Owns the minimum number of vehicles prescribed under A.R.S. § 28-4007(A) with current Arizona registration; 2. Demonstrates minimum assets of $1 million on documentation required under subsections (C) and (D); 3. Meets any additional financial responsibility requirements under A.R.S. § 28-4033(A), according to the insured vehicle’s weight and/or intended use; and 4. Provides a business office contact for the company with a current phone number and mailing information. B. A self-insurance applicant shall provide, on a self-insurance application form provided by the Department, the following information: 1. Applicant’s name; 2. Business name, if applicable; 3. Mailing address, city, state, and ZIP code; 4. A selection of coverage type: a. Public liability only; or b. Public liability and property damage; 5. Number of vehicles in the applicant’s fleet; 6. A selection list that describes the nature of the applicant’s business; 7. A description of any hazardous materials transported by type, class, and weight; 8. A report of all accidents in the prior 39-month period before the application date; 9. The applicant’s signature and official business title to certify that all information is true and correct; and 10. Acknowledgment by a notary public or by the signature of an authorized Department agent. C. Supplementary documentation. In addition to a completed self-insurance application form, the applicant shall submit a profit and loss statement certified by a Certified Public Accountant for the 12-month period before the application date. The profit and loss statement shall include one of the following: 1. A balance sheet; or 2. An annual financial report. D. On approval of an application, the Department shall issue a certificate of self-insurance that is continuously valid, but shall require the self-insurer to submit a 12-month update of supplementary documentation prescribed under subsection (C) on or before July 1 of each successive year. E. An initial self-insurance applicant or a self-insurer making an annual update shall submit documentation required under subsections (B) through (D) to the following address: Motor Vehicle Division Financial Responsibility Unit P.O. Box 2100, Mail Drop 535M Phoenix, AZ 85001-2100 F. A self-insurer shall keep a copy of the self-insurance certificate in each covered vehicle at all times. G. A self-insurer shall submit periodic, written notification updates to the Department of vehicles added or removed from self-insurance coverage. The written notification shall include the vehicle identification number of each vehicle. H. A self-insurer that terminates self-insurance shall provide new evidence of financial responsibility as required under A.R.S. § 28-4135 for each vehicle previously covered under a self-insurance certificate. I. In addition to the reasonable grounds prescribed under A.R.S. § 28-4007(C), the Department may cancel a self-insurance certificate under the following circumstances: 1. A self-insurer fails to comply with provisions of the Department’s annual update requirement under subsection (D), or 2. A self-insurer no longer owns the covered business or fleet. J. For the purpose of A.R.S. § 28-4007(C) and this Section, the Department shall conduct a self-insurance cancellation hearing according to the provisions prescribed under 17 A.A.C. 1, Article 5.