R2-10-108. Deductibles and Waivers

A. Agency Claim Settlement or Judgment More Than $150,000. 1. The Department shall charge each agency a deductible of not more than $10,000 on each claim settlement or judgment approved for payment of more than $150,000. 2. RM shall waive the deductible if the agency provides a response to RM containing an agency action plan to be taken to eliminate or limit similar future risk to the state, and: a. The agency action plan is submitted to RM within 60 days of the agency’s notification of claim approval or payment. The agency action plan shall include the following; i. Findings outlining the cause or causes of the claim; ii. Actions that will be implemented to prevent recurrence of similar losses or claims; iii. Development of action items and time lines for completion; and iv. Appointment of an agency contact to act as a liaison for all matters relating to the plan. b. RM approves the agency action plan as reasonable and effective; and c. The agency implements the plan within 30 days of RM approval, and provides periodic status reports as outlined in the approved Agency Action Plan. 3. If the agency fails to comply with all the conditions outlined in subsection (A)(2), RM shall charge a deductible of $10,000 on the subject judgment or claim payment as well as each subsequent claim resulting from that cause or exposure until the agency fully complies with subsection (A)(2). B. RM may waive any deductible to any agency for just cause. Just cause may exist when the application of a deductible is not warranted due to the circumstances of the claim, or is in the best interest of the state. C. If a dispute arises between RM and the agency pertaining to this Section, one or more meetings shall be held at progressively upward, incremental Department of Administration management levels until the agency and RM reach a solution.