| A. A pool shall be managed by a board of trustees consisting of at least 5 individuals elected for a stated term of office. At least 2/3 of a board shall be from the membership of the pool.
B. Minimum duties and responsibilities of a board. In addition to those duties and responsibilities provided by law, the duties of a board shall include:
1. Responsibility for all operations of a pool;
2. Ensuring compliance with this Article and the applicable provisions of the Arizona Workers' Compensation Act;
3. Hiring of an administrator to manage the daily operations of a pool;
4. Reviewing and taking action on applications for membership in a pool;
5. Contracting with a service company or seeking authorization from the Commission to process workers' compensation claims in-house;
6. Determining the premium to be charged to a member;
7. Investing surplus monies in compliance with this Article and other applicable law;
8. Enacting procedures that limit disbursement of money to payment and expenses associated with claims processing and administrative expenses necessary to conduct the operations of the pool;
9. Ensuring that the pool complies with statutory accounting principles (SAP) and provides accurate financial information to enable complete and accurate preparation of financial reports;
10. Maintaining all records and documents relating to the formation and ongoing operations of the pool; and
11. Ensuring that accounts and records of the pool are audited as required under this Article.
C. Delegation of board duties to administrator.
1. Except as prohibited by law, a board may delegate to an administrator the duties the board determines proper.
2. Delegation of duties from a board to an administrator shall be in writing. A copy of the delegation agreement shall be provided to the Commission with each renewal application.
D. Board prohibitions. A board or board trustee shall not commit or perform the following acts:
1. Extend credit to members for payment of a premium;
2. Utilize money collected as premiums for a purpose unauthorized by this Article;
3. Borrow money from a pool or in the name of a pool without providing written notice to the Commission of the nature and purpose of the loan; and
4. Approve admission into a pool an employer who has a negative net worth and whose admission would impair the ability of the pool to meet its financial obligations under the Arizona Workers' Compensation Act.
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