Section R20-5-723. Trustee Fund; Loss Fund

A.      A pool shall maintain a trustee fund and a loss fund.

B.       Trustee fund.

1.        All premiums and assessments charged to members of a pool shall be paid to the trustee fund which fund shall be placed in a designated federally insured depository in Arizona.

2.        A pool shall create a loss fund from the trustee fund.

3.        A pool shall pay administrative expenses of the pool from the trustee fund.

4.        Money from the trustee fund shall be transferred to the loss fund as needed to enable a pool to pay from the loss fund cash needs related to liabilities imposed or arising under the Arizona Workers’ Compensation Act.

C.      Loss fund.

1.        A pool shall place its loss fund in a designated federally insured depository in Arizona.

2.        A pool shall pay all workers’ compensation expenses from the loss fund.

3.        A loss fund shall be maintained at all times by an autho- rized service company or administrator charged with pro- cessing and paying workers’ compensation claims.

4.        A pool shall ensure that its loss fund is financially able to cover current cash needs related to liabilities imposed or arising under the Arizona Workers’ Compensation Act.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).