Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 15 - Workers Compensation Insurance › Part 1 - Workers Compensation Group Self Insurance (formerly Insurance Regulation 33) (230-RICR-20-15-1) › Section 230-RICR-20-15-1.9 - Trustees - Trustees Responsibilities and Administration Fiscal Agent

Current through June 14, 2024
A. To insure stability of the operations of
				  each group self-insurers plan, a board of trustees, elected by the members of
				  the group self-insurer shall be responsible for all operations of the group
				  self-insurer. A trustee shall not be an owner, officer or employee of a
				  business furnishing services to the group self-insurer.
B. The board of trustees of each group shall
				  take all necessary precautions to safeguard the assets of the group including
				  but not limited to all of the following:
1.
				  designation of an administrator or fiscal agent or both to administer the
				  day-to-day affairs of the group self-insurer. The board of trustees may
				  delegate authority for specific functions to the administrator or fiscal agent
				  including but not limited to such matters as: contracting for services,
				  determining the premium charge to and refunds payable to members, investing
				  surplus monies, and approving applications for membership. All delegated
				  authority shall be specifically defined in the by-laws and/or the written
				  minutes of the trustees' meetings and shall be subject to disapproval by the
				  Department. The Department shall require the administrator or fiscal agent or
				  both, to furnish a fidelity bond with the trustees as obligees in an amount
				  sufficient to protect the plan against the misappropriation or misuse of any
				  monies or securities.
2. the
				  trustees shall retain control of all monies collected or disbursed and shall
				  segregate such monies into a loss fund and a trustees' fund. The amount
				  allocated to the loss fund shall be sufficient to cover payment of the entire
				  aggregate loss fund as defined in the aggregate excess insurance policy. Only
				  disbursements that are credited toward the loss fund, as defined in the
				  aggregate excess insurance policy, will be made from the loss fund. All
				  administrative costs and other disbursements will be made from the trustees'
				  fund. If the trustees contract for the provision of claims services, they shall
				  establish a revolving fund for use by the claims service company, which will be
				  replenished from time to time from the loss fund. The claim service company and
				  its employees shall be covered by a fidelity bond with the trustees as obligees
				  in an amount sufficient to protect all monies placed in such revolving
				  fund;
3. the board of trustees or
				  its fiscal agent or administrator shall not utilize any of the monies collected
				  as premiums for any purpose unrelated to workers' compensation. Further, it
				  shall not borrow any monies from the fund or in the name of the fund without
				  advising of the nature and purpose of the loan and obtaining approval from the
				  Department, nor shall they have the authority to extend credit to individual
				  members for payment of premium. Trustees' funds and claims funds shall be
				  invested in the following types of investments only:
a. savings accounts or certificates of
				  deposit in a duly chartered commercial bank located within the State of Rhode
				  Island and insured through the Federal Deposit Insurance Corporation;
b. share accounts or savings certificates in
				  a duly chartered savings and loan association located within the State of Rhode
				  Island and insured through the Federal Savings and Loan Insurance
				  Corporation;
c. direct obligations
				  of the United States Treasury, such as notes, bonds and bills which are backed
				  by the full faith and credit of the United States;
d. any bonds or security issued by the State
				  of Rhode Island and backed by the full faith and credit of the State.