44-591.Same; board of trustees; duties.To ensure the financial stability of the operations of eachgroup-funded workers compensation pool, the board of trusteesof each pool is responsible for all operations of the pool. The board oftrusteesshall consist of not less than three nor more than 11 persons selectedaccording to the bylaws of the pool for stated terms ofoffice to direct the administration of a pool,and whose duties include approving applications by new members of the pool. The majority of the trustees must be members of the pool, but a trusteemay not be an owner, officer or employee of any service agent orrepresentative. All trustees must be residents of this state or officers of corporationsauthorized to do business in this state. The board of trustees of eachfund shall take all necessary precautions to safeguard the assets of thefund, including all of the following:
(a) Designate an administrator to administer the financial affairs ofthe pool who shall furnish a fidelity bond to the pool in an amount sufficientto protect the pool against the misappropriation or misuse of any moneysor securities. The commissioner shall determine the amount of the bondand the administrator shall file evidence of the bond with the commissioner. The bond is one of the conditions required for approval of the establishmentand continued operation of a pool.
(b) Retain control of all moneys collected or disbursed from the pooland segregate all moneys into a claims fund account and an administrativefund account. The amount allocated to the claims fund account shall besufficient to cover payment of any aggregate loss fund as defined in theaggregate excess policy. Only disbursements that are credited toward theaggregate loss fund are made from the claims fund account. All administrativecosts and other disbursements are made from the administrative fund account. The administrator of the pool shall establish a revolving fund for use bythe authorized service agent which is replenished from time to time fromthe claims fund account. The service agent and its employees shall be coveredby a fidelity bond, with the pool as obligee, in an amount sufficient toprotect all moneys placed in the revolving fund.
(c) Audit the accounts and records of the pool annually or at any timeas required. The commissioner may prescribe the type of audits and a uniformaccounting system for use by pool and service agents to determine the solvencyof the pool.
(d) The trustees shall not extend credit to individual members for paymentof a premium.
(e) The board of trustees shall not borrow any moneys from the pool orin the name of the pool without advising the commissioner of the natureand purpose of the loan and obtaining approval from the commissioner.
(f) The board of trustees may delegate authority for specific functionsto the administrator of the pool. The functions which the board may delegateinclude such matters as contracting with a service agent, determining thepremium chargeable to and refunds payable to members, investing surplusmoneys and approving applications for membership. The board of trusteesshall specifically define all authority it delegates in the written minutesof the trustees' meetings. Any delegation of authority is not effectivewithout a formal resolution passed by the trustees.
History: L. 1983, ch. 166, § 11;L. 1995, ch. 67, § 3; July 1.
44-591.Same; board of trustees; duties.To ensure the financial stability of the operations of eachgroup-funded workers compensation pool, the board of trusteesof each pool is responsible for all operations of the pool. The board oftrusteesshall consist of not less than three nor more than 11 persons selectedaccording to the bylaws of the pool for stated terms ofoffice to direct the administration of a pool,and whose duties include approving applications by new members of the pool. The majority of the trustees must be members of the pool, but a trusteemay not be an owner, officer or employee of any service agent orrepresentative. All trustees must be residents of this state or officers of corporationsauthorized to do business in this state. The board of trustees of eachfund shall take all necessary precautions to safeguard the assets of thefund, including all of the following:
(a) Designate an administrator to administer the financial affairs ofthe pool who shall furnish a fidelity bond to the pool in an amount sufficientto protect the pool against the misappropriation or misuse of any moneysor securities. The commissioner shall determine the amount of the bondand the administrator shall file evidence of the bond with the commissioner. The bond is one of the conditions required for approval of the establishmentand continued operation of a pool.
(b) Retain control of all moneys collected or disbursed from the pooland segregate all moneys into a claims fund account and an administrativefund account. The amount allocated to the claims fund account shall besufficient to cover payment of any aggregate loss fund as defined in theaggregate excess policy. Only disbursements that are credited toward theaggregate loss fund are made from the claims fund account. All administrativecosts and other disbursements are made from the administrative fund account. The administrator of the pool shall establish a revolving fund for use bythe authorized service agent which is replenished from time to time fromthe claims fund account. The service agent and its employees shall be coveredby a fidelity bond, with the pool as obligee, in an amount sufficient toprotect all moneys placed in the revolving fund.
(c) Audit the accounts and records of the pool annually or at any timeas required. The commissioner may prescribe the type of audits and a uniformaccounting system for use by pool and service agents to determine the solvencyof the pool.
(d) The trustees shall not extend credit to individual members for paymentof a premium.
(e) The board of trustees shall not borrow any moneys from the pool orin the name of the pool without advising the commissioner of the natureand purpose of the loan and obtaining approval from the commissioner.
(f) The board of trustees may delegate authority for specific functionsto the administrator of the pool. The functions which the board may delegateinclude such matters as contracting with a service agent, determining thepremium chargeable to and refunds payable to members, investing surplusmoneys and approving applications for membership. The board of trusteesshall specifically define all authority it delegates in the written minutesof the trustees' meetings. Any delegation of authority is not effectivewithout a formal resolution passed by the trustees.
History: L. 1983, ch. 166, § 11;L. 1995, ch. 67, § 3; July 1.
44-591.Same; board of trustees; duties.To ensure the financial stability of the operations of eachgroup-funded workers compensation pool, the board of trusteesof each pool is responsible for all operations of the pool. The board oftrusteesshall consist of not less than three nor more than 11 persons selectedaccording to the bylaws of the pool for stated terms ofoffice to direct the administration of a pool,and whose duties include approving applications by new members of the pool. The majority of the trustees must be members of the pool, but a trusteemay not be an owner, officer or employee of any service agent orrepresentative. All trustees must be residents of this state or officers of corporationsauthorized to do business in this state. The board of trustees of eachfund shall take all necessary precautions to safeguard the assets of thefund, including all of the following:
(a) Designate an administrator to administer the financial affairs ofthe pool who shall furnish a fidelity bond to the pool in an amount sufficientto protect the pool against the misappropriation or misuse of any moneysor securities. The commissioner shall determine the amount of the bondand the administrator shall file evidence of the bond with the commissioner. The bond is one of the conditions required for approval of the establishmentand continued operation of a pool.
(b) Retain control of all moneys collected or disbursed from the pooland segregate all moneys into a claims fund account and an administrativefund account. The amount allocated to the claims fund account shall besufficient to cover payment of any aggregate loss fund as defined in theaggregate excess policy. Only disbursements that are credited toward theaggregate loss fund are made from the claims fund account. All administrativecosts and other disbursements are made from the administrative fund account. The administrator of the pool shall establish a revolving fund for use bythe authorized service agent which is replenished from time to time fromthe claims fund account. The service agent and its employees shall be coveredby a fidelity bond, with the pool as obligee, in an amount sufficient toprotect all moneys placed in the revolving fund.
(c) Audit the accounts and records of the pool annually or at any timeas required. The commissioner may prescribe the type of audits and a uniformaccounting system for use by pool and service agents to determine the solvencyof the pool.
(d) The trustees shall not extend credit to individual members for paymentof a premium.
(e) The board of trustees shall not borrow any moneys from the pool orin the name of the pool without advising the commissioner of the natureand purpose of the loan and obtaining approval from the commissioner.
(f) The board of trustees may delegate authority for specific functionsto the administrator of the pool. The functions which the board may delegateinclude such matters as contracting with a service agent, determining thepremium chargeable to and refunds payable to members, investing surplusmoneys and approving applications for membership. The board of trusteesshall specifically define all authority it delegates in the written minutesof the trustees' meetings. Any delegation of authority is not effectivewithout a formal resolution passed by the trustees.
History: L. 1983, ch. 166, § 11;L. 1995, ch. 67, § 3; July 1.
