AZ HB2137

Amends Arizona Revised Statutes Section 23-966 regarding self-insured employers who fail to comply with workers' compensation law or pay claims properly.

Designates the special fund as successor in interest to excess insurance policies that cover a self-insured employer's workers' compensation obligations, allowing the special fund to recover directly from excess insurers.

Authorizes the special fund to pursue claims against the employer for all monies spent or anticipated to be spent on assigned claims, including administrative costs, necessary expenses, and attorney fees, using the employer's cash, securities, bonds, or other assets.

Specifies that excess insurer payment obligations are subject to applicable coverage terms and policy limits in the excess policy.

Permits the special fund to use third-party processors and professionals (attorneys, auditors, actuaries, consultants) as necessary to process claims, determine liability, and collect amounts owed to the fund.