Arizona Revised Statutes Title 23. Labor § 23-962. Insurance by governmental units; payment of premiums

A. Any county, city, town, municipal corporation or school district shall insure in any manner prescribed by the terms of § 23-961. Effective July 1, 1983, this state through the department of administration shall self-insure its liability, if any, under chapter 5 of this title  1 and this chapter without the necessity of complying with § 23-961, subsection A, paragraph 2. On or before June 30, 1983, the state compensation fund and the department of administration shall enter into an interagency contract pursuant to title 11, chapter 7, article 3  2 for the return to this state of the reserves established and held by the state compensation fund for all claims against this state that were incurred on or before that date. These reserves shall be credited to the state general fund. The department of administration shall direct the continuing payment and processing of all claims against this state for injuries to state employees that were incurred both before and after July 1, 1983. All claims payments shall be made or reimbursed by the department on behalf of this state and for expenses incurred in connection with the payment and processing of such claims. The department of administration may procure excess loss coverage from an insurance carrier for individual or aggregate claims, or both, in such amounts and at such primary retention levels as the department of administration deems in the best interest of the state.

B. The clerk of the board of supervisors of each county, the clerk of each political subdivision and the superintendent of each school district that insures its workers' compensation liability with an insurance carrier shall furnish quarterly to the insurance carrier a true payroll showing the total amount paid to employees subject to the provisions of this chapter during each month of the quarter, segregated in accordance with the requirements of the insurance carrier.

C. Each clerk and school superintendent shall thereupon prepare and submit to his respective governing body for approval a claim for the amount of premiums due the insurance carrier. Such premiums shall be at once paid to the insurance carrier by the proper officer. The department of administration shall draw a warrant for such premiums as are due until June 30, 1983 from the state in favor of the treasurer for the benefit of the insurance carrier and the treasurer shall at once pay the warrant from the general fund and the appropriation made therefor in the general appropriation bill for the insurance carrier.