Pooled Liability Assurance Network
MASTER PROGRAM
DOCUMENT FOR THE
POOLED WORKERS' COMPENSATION PROGRAM
Approved: June 26, 2025
ATTACHMENT 2
2 POOLED LIABILITY ASSURANCE
NETWORK
MASTER PROGRAM DOCUMENT
FOR THE
POOLED WORKERS’
COMPENSATION PROGRAM
Table of Contents
ARTICLE I: DEFINITIONS ............................................................................................................................ 4 ARTICLE II: GENERAL................................................................................................................................. 6 A. AUTHORITY...................................................................................................................................... 6 B. PURPOSE............................................................................................................................................ 6 C. PARTICIPATION ............................................................................................................................... 6 D. GOVERNANCE.................................................................................................................................. 6 E. GOALS AND OBJECTIVES.............................................................................................................. 6 ARTICLE III: PROGRAM ELEMENTS......................................................................................................... 8 A. PROGRAM YEARS ........................................................................................................................... 8 B. RETAINED LIMITS........................................................................................................................... 8 C. DEPOSIT PREMIUMS....................................................................................................................... 9 D. EXPERIENCE MODIFICATION..................................................................................................... 10 E. DIVIDENDS AND ASSESSMENTS ............................................................................................... 10
1. DIVIDENDS ................................................................................................................................. 10
2. ASSESSMENTS ........................................................................................................................... 11 F. EXCESS COVERAGE...................................................................................................................... 12 G. PAY-AS-YOU-GO RESERVE FUND FOR PAYMENT OF CLAIMS .......................................... 13
1. ESTABLISHMENT OF FUND .................................................................................................... 13
2. ACCOUNTING AND REPLENISHMENT OF FUND ............................................................... 13 ARTICLE IV: ADMINISTRATION.............................................................................................................. 14 A. BOARD ............................................................................................................................................. 14 B. EXECUTIVE COMMITTEE ............................................................................................................ 14 C. ADMINISTRATOR .......................................................................................................................... 14 D. WORKERS' COMPENSATION PROGRAM MANAGER'S DUTIES........................................... 15 ARTICLE V: CLAIMS ADMINISTRATION............................................................................................... 17 A. CLAIMS PROCEDURES MANUAL............................................................................................... 17 B. CLAIMS AUDIT............................................................................................................................... 17 C. CLAIM SETTLEMENT AUTHORITY ........................................................................................... 17 D. DISPUTES......................................................................................................................................... 18 3 ARTICLE VI: PARTICIPATION.................................................................................................................. 19 A. ELIGIBILITY AND APPLICATION............................................................................................... 19
1. ELIGIBILITY ............................................................................................................................... 19
2. APPROVAL OF APPLICATION................................................................................................. 19 B. PARTICIPANTS' DUTIES ............................................................................................................... 20 C. TERMINATION................................................................................................................................ 20
1. VOLUNTARY TERMINATION ................................................................................................. 20
2. INVOLUNTARY TERMINATION ............................................................................................. 21 D. CONTINUED LIABILITY UPON TERMINATION....................................................................... 21 ARTICLE VII: TERMINATION AND DISSOLUTION OF THE PWCP ................................................... 22 ARTICLE VIII: AMENDMENTS ................................................................................................................. 23 4 POOLED LIABILITY ASSURANCE NETWORK (PLAN)
MASTER PROGRAM DOCUMENT (MPD)
FOR THE
POOLED WORKERS' COMPENSATION PROGRAM (PWCP)
ARTICLE I: DEFINITIONS
The following definitions apply to this MPD:
1. Administrator shall mean the person responsible for the daily administration, management, and operation of the Authority’s programs as defined in the Bylaws.
2. Authority shall mean the Pooled Liability Assurance Network (PLAN).
3. Board shall mean the Board of Directors of the Pooled Liability Assurance Network.
4. Deposit Premium shall mean that amount to be paid by each Participant for each program year as determined by the Board in accordance with Article III, Section C of thisMPD.
5. Joint Powers Agreement shall mean the agreement made by and among the public entities listed in Appendix A (Member Entities) of the Joint Powers Agreement, hereafter referred to as Agreement.
6. Limit of Coverage shall mean the amount of coverage stated in the Declarations or certificate of coverage, orsub-limits asstated therein for each Participant or covered party per occurrence, subject to any lower sublimit stated in the MOC.
7. Loss Experience shall mean only such amounts as are actually paid by the Participant or the Authority in payment of benefits underthe Workers’Compensation Act, in settlement of claims, or in satisfaction of awards or judgments for liabilities imposed by the Workers’ Compensation Act for bodily injury or occupational disease to an employee as defined in the Workers’ Compensation Act and PWCP Memorandum of Coverage (MOC).
8. Member Entity shall mean a signatory to the Agreement establishing the Pooled Liability Assurance Network.
9. Participant shall mean a Member Entity who has elected to participate in thePWCP.
10. Program Year shall mean that period of time commencing at 12:01 a.m. on July 1 and ending at 12:00 am on the following July 1.
5 11. Retained Limits shall mean the amount stated on the applicable Declarations or certificate of coverage, which will be paid by the Participant or covered party before the Authority is obligated to make any payment from the pooled funds.
12. Self-Insured Retention (SIR) shall mean the Authority’s limit of coverage above Participant’s retained limits and up to the attachment point for excess coverage.
13. Third Party Administrator (TPA) shall mean the claims administrator for the Authority for the PWCP.
6 ARTICLE II: GENERAL
A. AUTHORITY
1. The Primary Workers’ Compensation Program (PWCP) Master Program Document (MPD) is one of the Authority's governing documents. However, any conflict between the PWCP MPD, the Authority’s Agreement, the Bylaws, or the PWCP Memorandum of Coverage (MOC) shall be determined in favor of the Agreement, the Bylaws, or the MOC, in that order.
2. The PWCP MPD is intended to be the primary source of information, contain the rules and regulations, and serve as the operational guide for the conduct of the PWCP.
3. The PWCP has been organized under authority granted by, and shall be conducted in accordance with, the laws of the State of California; regulations prescribed by the Department of Industrial Relations (DIR) and the State of California Audit Unit; and the accreditation standards set forth by the California Association of Joint Powers Authorities (CAJPA).
B. PURPOSE
The Authority, as a part of its overall objectives, has designed the PWCP to provide for the needs of the PWCP Participants in the area of workers' compensation liability.
C. PARTICIPATION
All Member Entities may become Participants in the PWCP and are encouraged to do so.
However, the terms and conditions which may be imposed on MemberEntities which desire to join the PWCP may be different, depending upon payroll, number of employees, the size of the Member Entity, its loss record, and other pertinent information.
D. GOVERNANCE
Each Participant’s appointed Director and one alternate Directorshall be the representative for the PWCP. The Participant will be entitled to one vote on all issues or decisions that involve the PWCP. It is expected, but not mandatory, that the Director from each Participant will be the individual designated as the Participant’s appointee to theBoard and that the alternate Director will be the individual designated asthe Participant’s alternate Director on the Board.
E. GOALS AND OBJECTIVES
1. The Authority offers Member Entities this PWCP designed to provide coverage for the liabilities imposed by the workers' compensation laws of California as well as those imposed by common law upon employers.
2. The PWCP shall provide workers' compensation coverage for the Participants utilizing an optimum mix of risk retention and risk transfer. The PWCP may provide various levels of retentions for the Participants, provide a risk sharing 7 pool for losses above individual retention levels up to the Authority’s SelfInsured Retention (SIR), and obtain excess coverage for the amount of the loss which exceeds the Authority’s SIR. Additionally, the PWCP shall provide for the sharing of operating costs and payment of the excess coverage by charging all Participants their share of such costs.
3. Although the PWCP is provided to the Participants under those terms and conditions which prevail at the time of the Participant’s joining the PWCP, the Board shall have the right to alter, from time to time, the terms and conditions of the excess coverage and the pooled underlying coverage in response to the needs and abilities of the PWCP and the Participants, as well as in response to availability of coverage from outside sources.
4. The Authority offers participation in a risk sharing pool, covering losses of Participants in accordance with the MOC adopted by the Member Entities.
The assets of the pooled program shall be maintained at all times as the assets of the Participants collectively. The assets may be disbursed only pursuant to the provisions of this MPD, and no Participant shall have an individual right to exercise control over said assets.
5. The PWCP will provide coverage for injuries and illnesses to the Participants’ employees under the terms and conditions set forth in the MOC. In addition to the coverage provided by the MOC, the Authority may purchase excess insurance or reinsurance. The amount of coverage to be pooled and/or purchased is at the discretion of the Board.
8 ARTICLE III: PROGRAM ELEMENTS
A. PROGRAM YEARS
1. Each program year shall be accounted for separately. The income and expenses of each program year shall be accounted forseparately from any other program year’s income or expenses.
2. A program year shall not be closed until at least ten years of age if, at such time the Board authorizes closure, being convinced that all known claims for the year are closed and the probability of further claims being discovered is minimal. Any closed years, however, may be reopened if deemed necessary and approved by the Board.
B. RETAINED LIMITS
1. The PWCP shall annually establish the limit of coverage for the pool.
The underlying coverage of the PWCP shall provide Participants’ retained limits of $0, $15,000, $250,000, and $500,000 per occurrence, or other limits as modified by resolution. The Participants may annually select their retained limits. The amount of each loss, including expenses, which is less than the retained limit chosen by the applicable Participant, shall be paid by the Participant.
2. A Participant with either element of public safety, law enforcement and/or fire departments, may not have a $0 retained limit. Rather, the Participant will be evaluated based on total percentage of payroll as it compares to the average payroll of the total of program Participants; based on this calculation, the Participant will be permitted to select a retained limit not lower than the categories represented in Attachment “A”.
3. A Participant’s total payroll regardless of whether or not it has a public safety element, will also define the Participant’s level of retained limit based on the categories represented in Attachment “A”.
4. A Participant may alter its retained limit only at the inception of a program year upon thirty (30) days’ advance written notice. The Board, with a two-thirds vote, and by providing 60 days advance written notice to the Participant, may require a Participant at the inception of the program year to take a retained limit different than the Participant’s retained limit in the expiring program year.
5. The amount of each loss, including expenses, which is less than the retained limit chosen by the Participantshall be paid by the Participant. Those amounts of each loss that are less than the retained limit chosen by the Participant may be paid on behalf of the Participant from the pay-as-you-go reserve fund. If a Participant directly pays any claim within its retained limit, such Participant shall report all such payments to the PLAN JPA to ensure better claims control and actuarial analysis.
9 C. DEPOSIT PREMIUMS
1. Annually, each Participant shall pay a deposit premium to the Authority for each program year. Such deposit premiums shall consist of the amount needed to cover excess insurance or reinsurance premiums (if any), administrative expenses and actuarially determined losses, plus a margin for added confidence as determined by the Board.
2. The deposit premium shall be calculated for each Participant by taking the Participant’s estimated payroll, by class code, and multiplied by theBoard-adopted rate per $100 of annual payroll. The Board approved rate will consider the nonpublic safety rate as the base rate and the “public safety” rate as that of 2.5 times the base rate. The estimated payroll is calculated using the most recent two quarters of actual payroll, annualized for the remainder of the year with an inflation factor of five percent. The deposit premium shall be adjusted based upon the Participant’s experience modification (ex-mod). An annual audit of a Participant’s payroll may be conducted by the Authority.
3. The deposit premium shall also include:
(a). All volunteers declared or otherwise required to be covered. The value of the volunteers’ service shall be based upon a flat rate per volunteer; and (b). All other persons engaged in work that could make the Authority liable under Part I (workers’ compensation insurance) of the MOC. If the Participant does not have payroll records for these persons, the contract price remuneration for their services and materials may be used as the premium basis. This paragraph will not apply if the Participant gives the Authority proof that the employers of these persons lawfully secured their workers’ compensation obligations.
4. The excess insurance or reinsurance premiums (if any)shall be allocated among the Participant’s using deposit premium calculation with the experience modification.
5. The administrative expenses charged to each Participant shall be calculated as follows: Sixty percent (60%) of the amount calculated is allocated by each Participant’s relative percentage of payroll; forty percent (40%) of the amount calculated is allocated equally to each Participant.
10 D. EXPERIENCE MODIFICATION
1. Each Participant shall be evaluated each year for an experience modification adjustment that shall be applied to the deposit premium.
2. The calculation of the adjustment shall include the actual loss experience of the individual Participant as it relates to the average loss experience of the group as a whole. Such loss experience shall not consider loss years that are more than five years old. The losses shall be valued as of December 31 and limited to $25,000 per claim. For example, when calculating ex-mod for 19/20, loss data from July 1, 2013, through June 30, 2018, valued at December 31, 2018, would be considered. The criteria that shall be used is the relationship of actual average loss experienceover the period being rated as it relates to the average payroll for the same period.
3. The ex-mod shall be limited to a minimum of 75% and maximum of 125%.
E. DIVIDENDS AND ASSESSMENTS
1. DIVIDENDS
(a). At the end of each fiscal year, a dividend calculation shall be performed for all open program years. Each year thereafter there shall be an additional dividend calculation made until such time as the program year is closed.
Any dividends available to be declared and returned to the Participants will be at the discretion of the Board provided that the total dividend to be distributed from all qualifying program years shall not reduce the total equity for all program years below a discounted 90% confidence level. (b). Calculation
i. Dividends may not be declared from a program year until five years after the end of that program year.
ii. Dividends may be declared only at such time as the PWCP has equity, with liabilities actuarially stated, discounted at a 90% confidence level. The calculated amountshall represent the maximum dividend available to be declared.
iii. The dividend shall be reduced if any of the five succeeding years (after the five years eligible for dividend calculation) have negative equity, with liabilities actuarially stated at a discounted 90% confidence level.
iv. Dividends may only be declared if the equity at the 90% confidence level is five times the Self-Insured Retention.
11 2. ASSESSMENTS
Assessments may be levied on the Participants for the risk sharing layer of any program year(s), as approved by the Board at such time that an actuary finds that the assets of the PWCP, as a whole, do not meet the expected discounted losses of the PWCP. Each Participant’s share of the assessment shall be allocated based upon the deposit premiums collected for the risk sharing layer of each respective program year being assessed. If such assessment is not sufficient to relieve the pool of its actuarially determined deficit in the year of the assessment, such assessment shall be levied each subsequent year until the actuarially determined deficit is relieved. The timing of payment shall be determined by the Board at the time of assessment.
Equity from the risk sharing layer may be exchanged between eligible program years if sufficient funds are available. The transfer of equity will be performed so that the individual Participant’s share of equity is separately applied so as to maintain the integrity of each Participant’s balance. 12 F. EXCESS COVERAGE
1. The Board shall ensure that each program year is provided with excess workers’ compensation coverage for the Participants. It is the intent and purpose of the Authority to continue to provide such coverage to the Participants, provided that such coverage can be obtained, and the coverage is not unreasonably priced. This coverage may be obtained from an insurance company, by participating in another pool established under the Government Code as a joint powers authority, or offered through another PWCP pooling procedure. If the coverage is purchased from an insurance company, such insurance company shall have an A.M. Best Rating Classification of A- or better and an A.M. Best Financial Rating of VII or better or their equivalents.
2. The Authority, through the PWCP, shall provide, where economically practical, at least $10,000,000 of total combined limits. Total combined limits are the maximum this PWCP will pay for each injury or illness, regardless of whether the liability arises from Workers’ Compensation Laws under Part I or Part II of the PWCP MOC.
3. Premiums forsuch coveragesshall be paid by the PWCP from the proceedsreceived as deposit premiums from the Participants.
4. The Board may, from time to time, alter excess coverage based on insurance market conditions, available alternatives, costs, and other factors. The Board shall place excess coverage with the two competing objectives ofsecurity and minimizing costs to the PWCP as a whole.
13 G. PAY-AS-YOU-GO RESERVE FUND FOR PAYMENT OF CLAIMS
1. ESTABLISHMENT OF FUND
PLAN shall pay all losses from $1 and then charge the members back monthly for the amounts within their Retained Limit.
2. ACCOUNTING AND REPLENISHMENT OF FUND
(a). There shall be a separate accounting of the deposits for each Participant.
These monies, although invested with the rest of the Authority’s funds, shall not be allocated investment earnings and shall remain in the control of the Authority. Every four years, through the budget process, the amount to be held by the Authority on behalf of each Participant may be adjusted. (b). Paymentsfrom the fund shall be initiated by sending a check requisition form to the Third-Party Administrator. Upon receipt, the Third-Party Administrator shall execute payment and charge the payment to the requesting Participant’s account.
(c). Each month, a register of payments made on behalf of each Participantshall be sent to the Participant for whom payments were made from the fund.
Accompanying the register will be an invoice for the amounts needed to replenish the fund to its original amount. The Participants shall have thirty (30) days from the date of said invoice to make repayments to the fund. 14 ARTICLE IV: ADMINISTRATION
A. BOARD
1. Discussion of developments and performance of the PWCP may occur as part of any scheduled Board meeting.
2. The Board shall have the responsibility and authority to carry out and perform all functions, and make all decisions, affecting the PWCP, consistent with the powers of the Authority and not in conflict with the Agreement, the Bylaws, or theMOC.
B. EXECUTIVE COMMITTEE
1. The Executive Committee shall have the responsibility and authority to carry out and perform all other functions and make all other decisions affecting the PWCP, provided that such functions and decisions are consistent with the powers of the Authority and are not in conflict with the Agreement, the Bylaws, or the MOC.
2. The Executive Committee shall meet at least twice a year to review the developments and performance of this PWCP. The Executive Committee shall review, study, advise, make recommendations to the Board, and/or take any action which the Committee believes to be in the best interests of the PWCP and its Participants, provided that such action is not prohibited by law or is not an action reserved unto the Board.
C. ADMINISTRATOR
The Administrator shall be responsible for:
1. The overall operation of the PWCP;
2. Monitoring the status of the PWCP and its operations, the development of losses, the program’s administrative and operational costs,service companies’ performance, and brokers’ performance;
3. Assisting the Board in selecting brokers, actuaries, auditors, and other service companies;
4. Promoting the programs to prospective new participants;
5. Preparing, distributing, and maintaining all records of the PWCP, including its MPD and MOC as these may be amended from time to time; and
6. Preparing Certificates of Coverage and Waivers of Subrogation as may be required by the Participants in the PWCP.
15 D. WORKERS' COMPENSATION PROGRAM MANAGER'S DUTIES
The Workers’ Compensation Program Manager (WCPM) shall:
1. Generally, oversee all workers' compensation claims administration and management and report to the Administrator;
2. Develop for Board approval performance standards for Third Party Administrators;
3. Maintain files on all claims reported to the Authority;
4. Recommend to the Board the setting of reserves for those cases that are likely to penetrate to pooled funds;
5. Upon the reporting of each claim that has an expectation of exceeding the minimum incurred loss threshold set by the Board, review said claim for the Authority and report said claims to the Board at the next scheduled meeting;
6. Review the progress of all reported claims for the Authority and, if directed by the Board, propose reserve changes, and/or take control and assume settlement authority for the claim;
7. Recommend claim settlements to the Board for approval;
8. Annually, prepare a detailed report on the PWCP, showing the activity by program year and the cumulative activity of all years, including number of claims, losses which have been incurred by each Participant, and the losses which have been shared through pooling;
9. Assist the Participants in training their personnel in the correct proceduresfor timely and accurately reporting claims;
10. As required, provide advice and assistance to Participants;
11. Work with the Third-Party Administrators, including but not limited to the following:
(a) Periodically review Third-Party Administrators’ claims files. The review should include the new indemnity claims reported, claims currently open and reported twelve months prior, and those claims for which a Participant has requested a specific review;
(b) Provide guidance to the Third-Party Administrator on the management of problem or complex claims;
(c) Advise, where needed, on the selection of legal representation in anticipation of litigation;
(d) Monitor and evaluate the effectiveness of the defense firms and the 16 management of the litigation;
(e) Monitor and evaluate the effectiveness of medical treatment as respects claims costs, especially those involving complex medical issues; (f) Evaluate, where needed, recommendations for settlement of claims; (g) Mediate differences, if any, between the Third-Party Administrator and a Participant; and
(h) Review the performance of the Third-Party Administrators’ personnel assigned to the Authority’s account with special emphasisin the handling of “open claims.”
12. Approve in writing, when deemed appropriate, waivers of subrogation and, if necessary, request approval from the excess carrier to waive subrogation. 17 ARTICLE V: CLAIMS ADMINISTRATION
A. CLAIMS PROCEDURES MANUAL
1. A Workers' Compensation Claims Procedures Manual (Manual) including reporting procedures, forms, and other vital information shall be adopted by the Board and provided to all Participants.
2. All Participants shall be held accountable for understanding and abiding by the procedures stated in the Manual, as well as any changesthereto.
B. CLAIMS AUDIT
1. At least once every two years, the adequacy of claims adjusting for both the Authority and the Participants shall be examined by an independent auditor who specializes in claims auditing.
2. The Executive Committee shall approve the claims auditor. The costs ofsuch claims audit shall be paid by the Authority.
3. The claims audit report shall address the issues of both adequacy of claims procedures and accuracy of claims data. The report shall be filed with the Authority and sent to each Participant.
C. CLAIM SETTLEMENT AUTHORITY
1. Each Participant shall have settlement authority for all claims, including attorney fees and other costs, which do not exceed 100% of the Participant’s retained limit.
The WCPM will review these claims from time to time and may offer recommendations to the Participant’s Third-Party Administrator and the Participant regarding settlement. This provision does not apply to claims for Medicare eligible or beneficiary claimants; Participants shall immediately notify the WCPM once a claimant has been identified as Medicare eligible or a Medicare beneficiary.
2. The WCPM shall have settlement authority for all claims up to the PWCP’sretention level. The Administrator and the WCPM will ensure that the Participant is kept informed regarding these claims and will take into consideration the Participant's desires in any settlement process. The WCPM will provide an annual report tothe Board on settlement authority extended. WCPM may be appealed to the Board within 30 days after notice of the decision to the Participant. The decision of the Board shall be final.
3. If the Authority determinesthat a conflict of interest may or does exist in the Third-Party Administrator’s handling of a claim or claims, the Authority hasthe right, in its sole discretion, to take any action, and give the Third-Party Administrator any instruction, which the Authority deems necessary to minimize or eliminate the conflict of interest.
18 4. If the Participant waives itsrightsto subrogation on a claimcovered under, or which may be covered under, the PWCP MOC, and if the amount of the claim exceeds the Participant’s retained limit (and therefore comes within the Authority’s layer), then the Authority’s coverage shall not apply to the claim and the Authority shall not be liable for any indemnity, reimbursement, payment, or costs on the claim exceeding the member’s SIR, unlessthe Authority’s WCPM approvesthe waiver of subrogation in writing.
5. The exclusion of coverage for waiver of subrogation shall apply only to a waiver of subrogation made or approved by a Participant after the date of the injury or illness that resulted in the claim. This exclusion shall not apply to a waiver of subrogation contained in an agreement or contract that was approved by the Participant prior to the date of the injury or illness that resulted in the claim.
D. DISPUTES
1. Any matter in dispute between a Participant and the Administrator or WCPM shall be heard by the Board whose decision may be appealed to the Board within thirty (30) days of the Committee’s decision. The decision of the Executive Committee or, if appealed, the decision of the Board shall be final.
19 ARTICLE VI: PARTICIPATION
A. ELIGIBILITY AND APPLICATION
1. ELIGIBILITY
(a). The applicant must commit to at least three full program years of participation in this PWCP.
(b). Any Member Entity may apply to participate in the PWCP by providing an adopted resolution of its governing body and such other information/materials as may be required. The applicant’s resolution shall commit the applicant to three full years of participation in the PWCP, if accepted, and consent tobe governed for workers' compensationmattersin accordance with the MPD, the MOC and other documents and policies adopted by the Board. The resolution may also state the retained limit desired by the applicant. (c). The application for participation shall be submitted at least thirty (30) days prior to the date of the last Board meeting of the program year to ensure that the State Certificate of Consent to Self-Insure is received prior to the inception date, and that the Board has adequate time to review and evaluate the acceptability of the applicant. It is recommended that an applicant enter the PWCP only at the commencement of a new program year. If an applicant choosesto enter the PWCP at any other time, the deposit premium for the remainder of the program year will be prorated. The new Participant will begin coverage on the date that is mutually acceptable to the Participant and the Board; however, the new Participant will be required to share losses with the other members of the PWCP for the entire program year.
2. APPROVAL OF APPLICATION
The Board shall, after reviewing the resolution and other underwriting criteria, determine the acceptability of the exposures presented by the applicant and shall advise the applicant in writing of its decision to accept or reject the request within 10 days after the decision has been made.
20 B. PARTICIPANTS' DUTIES
1. The Participants shall provide payroll, using the State DE-9 form, and all other requested information in conformance with the policies adopted by theBoard.
2. The Participantsshall disclose activities not usual and customary in their operation.
3. The Participants shall at all times cooperate with the Authority's Administrator, WCPM, Third Party Administrator, and loss control personnel, regarding claims handling and underwriting activities of the Authority.
4. Each year the Authority shall bill Participants for a workers' compensation deposit premium for the next program year. The billings shall be due and payable in accordance with the Bylaws.
5. Billings may be made to Participants for a program year found to be actuarially unsound. All billings for payments to bring a program year into an actuarially sound condition are due and payable upon receipt.
6. Former Participants in the PWCP shall be required to pay all applicable billings for the program years in which they participated. Delinquent billings, together with penalties and interest, shall be charged and collected from the Participant in accordance with the Bylaws.
7. Penalties and interest shall be charged against any amounts delinquent in accordance with the Bylaws.
C. TERMINATION
1. VOLUNTARY TERMINATION
(a). A Participant which has not maintained its participation in the PWCP for three full program yearsshall not be permitted to withdraw from the PWCP prior to the end of itsthree-year commitment period and shall be obligated for payment of premiums for these three years.
(b). A Participant which has maintained its participation in the PWCP for three full program years may terminate its participation if, at least six months before the next program year, a written request to terminate participation is received from the Participant.
(c). Any Participant seeking to terminate its participation without proper and timely notice shall be responsible for the full cost of the next year’s premium.
The notice will be deemed effective for the year following the year in which the additional premium is paid.
21 2. INVOLUNTARY TERMINATION
(a) The Board may initiate termination of a Participant from the PWCP for the following reasons:
(i) Termination as a Member Entity of the Authority;
(ii) Declination to cover the Participant by the entity providing excess coverage;
(iii) Nonpayment of premiums, assessments, or other charges; (iv) Frequent late payment of premiums, assessments, and/or other charges, including interest and penalty charges;
(v) Failure to timely provide requested underwriting information; (vi) Consistent poor loss history relative to the pool; (vii) Substantial change in exposures which are not acceptable in this PWCP;
(viii) Financial impairment which is likely to jeopardize this PWCP’s ability to collect amounts due in the future; and/or
(ix) Revocation of Certificate to Self-Insure.
(x) Refusal to participate in loss control activities.
The Board’s determination of the existence of any of these conditions shall be final.
(b) The Board shall have the authority, upon a two-thirds approval, to authorize a termination notice be sent to a Participant. Such notice shall be sent at least 60 days prior to the effective date of termination.
D. CONTINUED LIABILITY UPON TERMINATION
Termination of participation, whether voluntary or involuntary, in future program years does not relieve the terminated Participant of any benefits or obligations of those program years in which it participated. These obligations include payment of assessments, retrospective adjustments, or any other amounts due and payable. 22 ARTICLE VII: TERMINATION AND DISSOLUTION OF THE PWCP The PWCP may be terminated and dissolved at any time by a vote of two-thirds of the Participants.
However, the PWCP shall continue to exist for the purpose of disposing of all claims, distributing assets, and all other functions necessary to conclude the affairs of the PWCP.
Upon termination of the PWCP, all assets of the PWCP shall be distributed only among the Participants, including any of those which previously withdrew pursuant to Article VI, in accordance with and proportionate to their deposit premiums and assessments paid during the term of participation. The Board shall determine such distribution within six months after the last pending claim or loss covered by the PWCP has been finally resolved and there is a reasonable expectation that no new claims will be filed.
23 ARTICLE VIII: AMENDMENTS
This MPD may be amended by a two-thirds (2/3rds) vote of the Participants present and voting at the meeting, provided prior written notice, as provided within the Agreement, has been given to the Board.