23-966 - Arizona Statutes

23-966. Failure of employer or insurance carrier to pay claim or comply with commission order; reimbursement of funds A. If an insurance carrier or self-insured employer or other employer authorized by the commission to process or pay claims directly pursuant to this chapter does not fully comply with the provisions of the workers' compensation law relating to the payment of compensation, medical benefits or the final orders of the commission, the workers' compensation claims shall be assigned by the commission to the state compensation fund, and the state compensation fund shall process the claims and pay such compensation, benefits or amounts due on behalf of and under the direction of the special fund established by section 23-1065. The special fund shall periodically, but not less frequently than quarterly, reimburse the state compensation fund for the compensation, benefits or amounts so paid, together with reasonable administrative costs, necessary expenses and reasonable attorney fees. B. In addition to any reimbursement authorized under subsection A of this section, the special fund may use monies for any expense or service that is necessary to assist in the determination of liability of a claim that is assigned under this section or collected against the cash, securities, bond and other assets of the insurance carrier or employer. These expenses may include travel, discovery procedures and employing any expert, consultant or professional, including an attorney, auditor, examiner or actuary. C. The special fund shall have a claim against the insurance carrier or employer for all monies that are spent or anticipated to be spent under this section, including administrative costs, necessary expenses and attorney fees. Any claim by the special fund shall be made on the cash, securities or bond filed under section 23-961 or applicable rules or on any other asset of the insurance carrier or employer. D. The commission may increase the assessment established in section 23-1065 by not to exceed one-half of one per cent of such assessment in any one year to reimburse the special fund for its net loss incurred under this section.