Special Fund Apportionments

Special Fund Division

Pursuant to A.R.S. § 23-1065, there are specific instances where permanent compensation benefits may be apportioned or divided between an insurance carrier and the Special Fund. 

Prior to January 1, 1986, apportionment laws as set forth in A.R.S.. Section 23-1065 were very restrictive; the apportionment statute as it pertains to injuries occurring from and after December 31, 1985, provides that the Special Fund will share in any loss of earning capacity award involving the following conditions:

  1. When an employee has a non-industrial, pre-existing medical condition (set forth in the statute) and suffers an industrially related injury and meets the other criteria of the statute, or
  2. An employee has had a scheduled injury and suffers a subsequent scheduled injury.

Upon receipt of an apportionment request, Special Fund reviews the claim file to determine if file contains sufficient documentation for consideration of apportionment. 

If apportionment request is approved, reimbursement to the carrier is made in accordance with apportionment statutes. All reimbursement requests are reviewed prior to payment being issued to ensure that requested amount is appropriate.