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Code · Washington · Title 48 — Insurance · Chapter 48.90

RCW 48.90.050

347 words·~2 min read·/wa/title-48/chapter-48-90/48-90-050·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Any association desiring to establish a plan pursuant to this chapter shall prepare and submit to the commissioner a proposed plan of organization and operation, including the following elements:
(1)A statement that the association meets the requirements of this chapter.
(2)A financial plan specifying:
(a)The coverage to be offered by the self-insurance pool, setting forth a deductible level and maximum level of claims that the pool will self-insure;
(b)The amount of cash reserves to be maintained for the payment of claims;
(c)The amount of insurance, if any, to be purchased to cover claims in excess of the amount of claims to be satisfied directly from the association's own cash reserves;
(d)The amount of stop-loss coverage to be purchased in the event the joint self-insurance pool's resources are exhausted in a given fiscal period;
(e)A mechanism for determining and assessing the contingent liability of subscribers in the event the assets in the contributing trust fund are at any time insufficient to cover liabilities; and
(f)Certification that all subscribers in the pool are apprised of the limitations of coverage to be provided.
(3)A plan of management setting forth:
(a)The means of fulfilling the requirements in RCW 48.90.050 (2);
(b)The names and addresses of board members and their terms of office, and a copy of the corporate bylaws defining the method of election of board members;
(c)The frequency of studies or other evaluation to establish the periodic contribution rates for each of the subscribers;
(d)The responsibilities of subscribers, including procedures for entry into and withdrawal from the pool, the allocation of contingent liabilities and a procedure for immediate assessments if the contributing trust fund falls below the level set in RCW 48.90.050 (2)(b);
(e)A plan for monitoring risks and disseminating information with respect to their reduction or elimination;
(f)A contract with a professional insurance management corporation, for the management and operation of any joint self-insurance pool established by the association; and
(g)The corporate address of the association.
[ 1986 c 142 s 5 .]
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