West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-65 - Self-Insurance Pools For Political Subdivisions › Section 114-65-7 - Responsibilities of Board of Directors

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1.
				The board shall be responsible for holding arid managing the assets of and directing
				the affairs of the pool and shall be elected in the manner prescribed by the pool's
				governing instruments. At least a majority of the board must be members of the pool,
				but a board member shall not be an owner, officer or employee of any service agent,
				its parent or any of its affiliated companies, under contract with the
				pool.
7.2. The board shall fix
				contributions to the pool and supervise the finances of the pool and the pool's
				operations to the extent necessary to assure conformity with law, this rule, the
				member agreement, and the pool's governing instruments.
7.3. The board shall take all necessary
				precautions to safeguard the assets of the pool, including, but not limited to, the
				following:
7.3.a. Doing all acts necessary to
				assure that each member continues to be able to fulfill the obligations of
				membership; and also reporting promptly to the Commissioner any grounds or change in
				circumstances which may affect the pool's ability to meet its obligations such as
				withdrawal of a member;
7.3.b.
				Designating an administrator to administer the affairs of the pool, to carry out the
				policies established by the board and to provide day to day management of the pool.
				The administrator shall furnish a fidelity bond in an amount sufficient to protect
				the pool against the misappropriation or misuse of any monies or securities.
				Evidence of the bond shall be filed with the Commissioner, said bond being one of
				the conditions required for approval of the pool. The administrator shall not be an
				owner, officer or employee of any service agent, its parent or any of its affiliated
				companies, any of which are under contract with the pool;
7.3.c. Retaining control of all monies collected
				for the pool and the disbursement of such monies by the pool. All assets of the pool
				shall remain in the custody of the board or the authorized administrator. However, a
				claims fund for payment of claims due and other related expenses maybe established
				for the use of any authorized service agent;
7.3.d. Actively collecting delinquent accounts
				resulting from any past due contributions by members. Any member of a pool who fails
				to make the required contributions after due notice may be terminated from the pool
				until this past due account, including cost of collection, has been paid or
				adequately provided for:
Provided,
That prior to being terminated,
				the Commissioner must approve the termination by ensuring that the member being
				terminated has either obtained West Virginia workers' compensation coverage for its
				employees or is no longer operating its business:
Provided,
				further.
That the pool remains liable for all compensable injuries,
				exposures and deaths of member's employees occurring prior to the termination of the
				member; and
7.3.e. Assuring that, for
				workers' compensation pools, payroll verifications of all members of the pool are
				completed within 180 days after the close of a plan year and requiring that efforts
				are made to collect any additional amounts due within 30 days of the completion of
				each audit.