CREIGHTON ELEMENTARY SCHOOL DISTRICT NO. 14

Self-Insurance Programs (Trust Board)

Objective:
The Governing Board will establish trust funds to manage self-insurance retention programs in accordance with A.R.S. 15-382 and other applicable laws. These funds will cover employee benefits, workers' compensation, property, and liability losses, as well as the management of these programs.

1. Scope of Coverage:
   The self-insurance trust funds will be used to provide:

   • Employee health plan benefits as allowed under section 501(C)(9) of the Internal Revenue Code.
   • Workers' compensation benefits in accordance with Title 23 of the Arizona Revised Statutes.
   • Coverage for specified property and liability losses, as well as other losses the district chooses to self-insure.
   • Management and administration of the self-insurance programs, including defense costs, insurance premiums, and other related expenses.

2. Budget and Audits:
   Funds allocated to the self-insurance programs will adhere to district budgetary guidelines. An annual audit of the trust funds will be conducted by a certified public accountant.

3. Trust Board Composition:
   The trust funds will be managed by a Trust Board comprising at least five (5) trustees. No more than one trustee may be a member of the Governing Board, and no more than one may be a district employee. Trustees will be appointed by the Governing Board and serve staggered three-year terms. Trustees will be provided with errors and omissions insurance during their tenure.

4. Trust Board Responsibilities:
   The Trust Board will be responsible for managing the trust funds, including:

   • Interpreting and applying all provisions of the self-insurance plans approved by the Governing Board.
   • Formulating and enforcing rules and regulations consistent with applicable laws and the provisions of the approved insurance plans.
   • Making determinations on claims and ensuring the appropriate payment of benefits.
   • Ensuring all required reports for fund management and administration are prepared.
   • Contracting and paying premiums for additional insurance in furtherance of the district's self-insurance plans.
   • Recommending plan changes and funding levels to ensure the cost-effectiveness and financial stability of the district's self-insurance programs.
   • Developing and implementing preventative safety and health programs for students and employees in line with approved plans and applicable laws.
   • Managing litigation related to claims brought against the district.

5. Procedures:
   The Trust Board will develop and codify procedures to address its responsibilities, ensuring compliance with approved plans and applicable laws.

Legal References:

• Arizona Revised Statutes (A.R.S.) 15-341, 15-381, 15-382, 15-383, 15-384, 15-386, 15-387, 15-388, 15-502
• Arizona Attorney General Opinion (A.G.O.) I80-216