W. Va. Code R. § 114-65-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-65-7 - Responsibilities of Board of Directors

7.1. The board shall be responsible for holding arid managing the assets of and directing the affairs of the pool and shall be elected in the manner prescribed by the pool's governing instruments. At least a majority of the board must be members of the pool, but a board member shall not be an owner, officer or employee of any service agent, its parent or any of its affiliated companies, under contract with the pool.

7.2. The board shall fix contributions to the pool and supervise the finances of the pool and the pool's operations to the extent necessary to assure conformity with law, this rule, the member agreement, and the pool's governing instruments.

7.3. The board shall take all necessary precautions to safeguard the assets of the pool, including, but not limited to, the following:

7.3.a. Doing all acts necessary to assure that each member continues to be able to fulfill the obligations of membership; and also reporting promptly to the Commissioner any grounds or change in circumstances which may affect the pool's ability to meet its obligations such as withdrawal of a member;

7.3.b. Designating an administrator to administer the affairs of the pool, to carry out the policies established by the board and to provide day to day management of the pool. The administrator shall furnish a fidelity bond in an amount sufficient to protect the pool against the misappropriation or misuse of any monies or securities. Evidence of the bond shall be filed with the Commissioner, said bond being one of the conditions required for approval of the pool. The administrator shall not be an owner, officer or employee of any service agent, its parent or any of its affiliated companies, any of which are under contract with the pool;

7.3.c. Retaining control of all monies collected for the pool and the disbursement of such monies by the pool. All assets of the pool shall remain in the custody of the board or the authorized administrator. However, a claims fund for payment of claims due and other related expenses maybe established for the use of any authorized service agent;

7.3.d. Actively collecting delinquent accounts resulting from any past due contributions by members. Any member of a pool who fails to make the required contributions after due notice may be terminated from the pool until this past due account, including cost of collection, has been paid or adequately provided for: Provided, That prior to being terminated, the Commissioner must approve the termination by ensuring that the member being terminated has either obtained West Virginia workers' compensation coverage for its employees or is no longer operating its business: Provided, further. That the pool remains liable for all compensable injuries, exposures and deaths of member's employees occurring prior to the termination of the member; and

7.3.e. Assuring that, for workers' compensation pools, payroll verifications of all members of the pool are completed within 180 days after the close of a plan year and requiring that efforts are made to collect any additional amounts due within 30 days of the completion of each audit.

7.4. Neither the board nor the administrator shall use any of the monies collected for any purpose unrelated to securing the members' liability or other rights and obligations under the member agreement and any administrative or other necessary expenses of the pool, and the board may not borrow any monies from the pool or in the name of the pool without advising the Commissioner of the nature and purpose of the loan and obtaining the Commissioner's approval.

7.5. The board may dispose of any surplus as provided in section 12 of this rule.

7.6. The board shall assure that the office of the administrator of the pool and all pertinent records necessary to verify the accuracy and completeness of all reports submitted to the Commissioner are maintained within West Virginia.

7.7. The board may adopt its own operating procedures and protocols as it deems necessary for the operation of the pool provided these rules and procedures are not inconsistent with this rule.

7.8. The board may designate a service agent or agents.

W. Va. Code R. § 114-65-7