Washington Administrative Code
Title 200 - Enterprise Services, Department of
RISK MANAGEMENT
Chapter 200-150 - Self-insurance requirements as to nonprofit corporations
Section 200-150-080 - Standards for management and operations-Conflict of interest
Universal Citation: WA Admin Code 200-150-080
Current through Register Vol. 24-06, March 15, 2024
(1) Every joint self-insurance program shall require the claims auditor, the third-party administrator, the actuary, and the broker of record to contract separately with the joint self-insurance program. Each contract shall require that a written statement be submitted to the program on a form provided by the state risk manager providing assurance that no conflict of interest exists prior to acceptance of the contract by the joint self-insurance program.
(2) All joint self-insurance programs shall meet the following standards regarding restrictions on the financial interests of the program administrators:
(a) No member
of the board of directors; trustee; administrator, including a third-party
administrator; or any other person having responsibility for the management or
administration of a joint self-insurance program or the investment or other
handling of the program's money shall:
(i)
Receive directly or indirectly or be pecuniarily interested in any fee,
commission, compensation, or emolument arising out of any transaction to which
the program is or is expected to be a party except for salary or other similar
compensation regularly fixed and allowed for because of services regularly
rendered to the program.
(ii)
Receive compensation as a consultant to the program while also acting as a
member of the board of directors, trustee, third-party administrator, or as an
employee.
(iii) Have any direct or
indirect pecuniary interest in any loan or investment of the program.
(b) No consultant or legal counsel
to the joint self-insurance program shall directly or indirectly receive or be
pecuniarily interested in any commission or other compensation arising out of
any contract or transaction between the joint self-insurance program and any
insurer or consultant.
(c) Brokers
of record for the joint self-insurance programs may receive compensation for
insurance transactions performed within the scope of their licenses. The terms
of compensation shall be provided for by contract between the broker of record
and the governing body, and the amount or percentage of the compensation must
be disclosed in writing. Contracts between brokers of record and the governing
body shall include a provision that contingent commissions or other form of
compensation not specified in the contract shall not be paid to the broker of
record as a result of any joint self-insurance program insurance transactions.
The joint self-insurance program shall establish a contract provision which
requires the broker provide to the program a written annual report on a form
provided by the state risk manager which discloses the actual financial
compensation received. The report shall include verification that no
undisclosed commission was received as a result of any such insurance
transaction made on behalf of the program.
(d) No third-party administrator shall serve
as an officer or on the board of directors of a self-insurance
program.
Disclaimer: These regulations may not be the most recent version. Washington may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.