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 § 5.]