1. A. Except as stated in subsection (C), a Self-Insurance Pool shall maintain during all periods of self-insurance a fidelity or crime insurance policy that protects the pool from unlawful actions of the following:

   1. 1. Individuals appointed to the Self-Insurance Pool Board (individual and collective liability);
   2. 2. The Administrator of the Self-Insurance Pool;
   3. 3. Employees of the Self-Insurance Pool; and
   4. 4. Employees of the Administrator, if applicable.
2. B. The limit of liability of the fidelity or crime insurance policy required in subsection (A) shall be no less than $1 million per occurrence and shall be sufficient to protect the Self-Insurance Pool from damages resulting from unlawful acts related to of any assets controlled or managed by the Self-Insurance Pool Board, the Administrator, employees of the Self-Insurance Pool, and employees of the Administrator, if applicable.
3. C. A Self-Insurance Pool that maintains at least $3 million in surplus funds at all times during an approved period of self-insurance is exempt from the requirements in this Section.

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).