1. 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, 41-621.01, and this Article, as applicable.
2. 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.

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

   1. 1. Responsibility for all operations of the Self-Insurance Pool;
   2. 2. Ensuring compliance with the Act and this Article;
   3. 3. Hiring an Administrator to manage the daily operations of the Self-Insurance Pool;
   4. 4. Reviewing and acting on applications for membership in the Self-Insurance Pool;
   5. 5. Contracting with a Third-Party Administrator, unless the Division has authorized the Self-Insurance Pool to Self-Administer;
   6. 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. 7. Maintaining all records and documents relating to the formation and ongoing operations of the Self-Insurance Pool;
   8. 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. 9. Maintaining all reports, books, records, and data relating to matters governed by this Article according to R20-5-1512; and
   10. 10. Ensuring that accounts and records of the Self-Insurance Pool are audited as required under R20-5-1513(A).
4. 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.

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

   1. 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. 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. 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. 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.

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

   1. 1. Extend credit to members for payment of a premium;
   2. 2. Utilize money collected as premiums for any purpose not authorized by this Article;
   3. 3. Borrow money from the Self-Insurance Pool;
   4. 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. 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.

Historical Note

New Section made by final rulemaking at 28 A.A.R. 3435 (October 28, 2022), with an immediate effective date of October 5, 2022 (Supp. 22-4).