Ariz. Admin. Code § 20-5-1527

Current through Register Vol. 30, No. 50, December 13, 2024

Section R20-5-1527 - Self-Insurance Pool Board; Administrator

A. A Self-Insurance Pool shall be directed by a Self-Insurance Pool Board consistent with A.R.S. §§ 11-952.01, 15-382, 23-961.01, 41621.01, and this Article, as applicable.

B. The Self-Insurance Pool Board of a Similar Industry Pool shall consist of five or more individuals elected for a stated term of office, at least 60% of which shall be representatives of members of the Similar Industry Pool.

C. The duties of a Self-Insurance Pool Board shall include:

1. Responsibility for all operations of the Self-Insurance Pool;

2. Ensuring compliance with the Act and this Article;

3. Hiring an Administrator to manage the daily operations of the Self-Insurance Pool;

4. Reviewing and acting on applications for membership in the Self-Insurance Pool;

5. Contracting with a Third-Party Administrator, unless the Division has authorized the Self-Insurance Pool to Self-Administer;

6. Ensuring the Self-Insurance Pool complies with statutory accounting principles (SAP) and provides accurate financial information to enable complete and accurate preparation of financial reports;

7. Maintaining all records and documents relating to the formation and ongoing operations of the Self-Insurance Pool;

8. Ensuring that accurate minutes of meetings of the Self-Insurance Pool Board are completed and signed by an authorized representative of the Self-Insurance Pool;

9. Maintaining all reports, books, records, and data relating to matters governed by this Article according to R20-5-1512; and

10. Ensuring that accounts and records of the Self-Insurance Pool are audited as required under R20-5-1513(A).

D. Except as prohibited by law, a Self-Insurance Pool Board may delegate duties to an Administrator. Delegation of duties to an Administrator shall be contained in a signed agreement or contract of hire between the Self-Insurance Pool Board and the Administrator.

E. An Administrator of a Self-Insurance Pool is subject to all of the following requirements:

1. Unless otherwise authorized by law, an Administrator for a Self-Insurance Pool shall not be a member of the Self-Insurance Pool Board.

2. Unless otherwise authorized by law, an Administrator for a Self-Insurance Pool shall not be a member of the Self-Insurance Pool or an employee of a member of the Self-Insurance Pool.

3. Before a Self-Insurance Pool Board can hire an Administrator, the Self-Insurance Pool shall disclose to the prospective Administrator all existing agreements between the pool and providers of services or insurance coverage and the prospective Administrator shall disclose to the Self-Insurance Pool Board any actual or perceived employment or financial interest that the Administrator or relative (as defined in A.R.S. § 38-502) of the Administrator has in the providers of services or insurance coverage.

4. Before a Self-Insurance Pool enters into an agreement with a provider of services or insurance coverage, the Administrator shall disclose to the Self-Insurance Pool Board any actual or perceived employment or financial interest that the Administrator or a relative (as defined in A.R.S. § 38-502) of the Administrator has in the prospective provider of services or insurance coverage.

F. Self-Insurance Pool Boards and Administrators shall not:

1. Extend credit to members for payment of a premium;

2. Utilize money collected as premiums for any purpose not authorized by this Article;

3. Borrow money from the Self-Insurance Pool;

4. Borrow money in the name and on behalf of the Self-Insurance Pool without providing prior written notice to the Division of the nature and purpose of the loan; and

5. Admit into the Self-Insurance Pool an employer whose admission would impair the ability of the Self-Insurance Pool to process and pay benefits required under the Act.

Ariz. Admin. Code § R20-5-1527

New section made by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.