Sec 20-367. Workers' compensation appeals board; composition

A. A workers' compensation appeals board is established in the department.

B. The board shall have at least nine but not more than eleven members who are appointed by the director. The members shall serve three year terms. A member shall not serve more than two consecutive terms.

C. The board shall be comprised of at least:

1. The following voting members:

(a) Five representatives of insurers, one of which is the insurer with the largest Arizona workers' compensation market share as reported by the department of insurance in its latest annual report. Any licensed rating organization that meets the requirements prescribed in section 20-363, subsection E may nominate from its membership in this state one representative for each complete twenty per cent share of the total statewide workers' compensation net written premium for the preceding calendar year attributable to its membership. The director shall appoint any remaining insurer representatives needed to constitute five members as ratably as possible based on distribution of the total statewide workers' compensation net written premium for the preceding calendar year.

(b) Four representatives of the public. At least two shall be representatives of employers, and the remaining public members shall be persons who are knowledgeable about workers' compensation insurance.

2. One representative from any designated statistical agent who shall serve as a nonvoting advisory member.

D. The board members shall select a chairperson who shall call meetings as needed to consider requests made pursuant to section 20-367.01 or on request of the director.

E. The board shall submit to the director a plan of operation and all amendments that are necessary or suitable to ensure the fair, reasonable and equitable administration of the appeals process. The plan of operation and all amendments are effective on approval by the director.

F. Subject to the powers of the director, the board shall review appeals that are filed pursuant to section 20-367.01. The board may affirm the action of the rating organization or insurer or direct any rating organization or insurer to modify or reverse its application of the rating system that resulted in the appeal.

G. Members of the board are not eligible to receive compensation or travel expenses under title 38, chapter 4, article 2.