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• 0 <br />Highlights of Requirements for <br />Risk Pool under Chapter 172 <br />Please consult your own legal counsel before <br />attempting to set up a Chapter 172 Pool <br />• Political Subdivision may self -fund accident, health, dental, and <br />long-term disability for employees/dependents/retirees <br />• Pool may be for single entity or multiple units through <br />Interlocal Agreement <br />• Contributions to the Pool must be maintained in a separate fund <br />• Must make thorough investigation of background, experience, <br />and financial qualifications of any Third Party Administrator or <br />other entity employed to administer benefits <br />• Must be operated by a Board of Trustees, and it is highly <br />recommended that a proper trust document be adopted <br />A" • Trustees must have 16 hours of training in specified areas <br />dealing with establishment and operation of the Pool, within <br />180. days of appointment <br />• Must either carry excess loss coverage or reinsurance, or notify <br />each covered person that that there is no coverage, or that it has <br />been cancelled <br />• Must invest according to the Public Funds Investment Act or the <br />Texas Trust Code <br />• Must have annual financial audit by CPA and file audit with <br />Texas Department of Insurance (TDI) <br />• Trustees must declare insolvency if Pool is unable to pay claims <br />within 60 days of verification <br />• Special restrictions placed on counties <br />• Pool coverage is not insurance and Pool is not subject to TDI <br />regulation (entities operating outside of Chapter 172 may not <br />enjoy this exemption) <br />4 <br />