Program approval required — State risk manager — Plan of management and operation.

RCW 48.62.071

in effect

Before the establishment of a joint self-insurance program covering property or liability risks by local government entities, or an individual or joint local government self-insured health and welfare benefits program, the entity or entities must obtain the approval of the state risk manager. Risk manager approval is not required for the establishment of an individual local government self-insurance program covering property or liability risks. The entity or entities proposing creation of a self-insurance program requiring prior approval shall submit a plan of management and operation to the state risk manager and the state auditor that provides at least the following information: (1) The risk or risks to be covered, including any coverage definitions, terms, conditions, and limitations or in the case of health and welfare benefits programs, the benefits to be provided, including any benefit definitions, terms, conditions, and limitations; (2) The amount and method of financing the benefits or covered risks, including the initial capital and proposed rates and projected premiums; (3) The proposed claim reserving practices; (4) The proposed purchase and maintenance of insurance or reinsurance in excess of the amounts retained by the self-insurance program; (5) In the case of a joint program, the legal form of the program, including but not limited to any bylaws, charter, or trust agreement; (6) In the case of a joint program, the agreements with members of the program defining the responsibilities and benefits of each member and management; (7) The proposed accounting, depositing, and investment practices of the program; (8) The proposed time when actuarial analysis will be first conducted and the frequency of future actuarial analysis; (9) A designation of the individual upon whom service of process shall be executed on behalf of the program. In the case of a joint program, a designation of the individual to whom service of process shall be forwarded by the risk manager on behalf of the program; (10) All contracts between the program and private persons providing risk management, claims, or other administrative services; (11) A professional analysis of the feasibility of creation and maintenance of the program; and (12) Any other information required by rule of the state risk manager that is necessary to determine the probable financial and management success of the program or that is necessary to determine compliance with this chapter. Before the establishment of a joint self-insurance program covering property or liability risks by local government entities, or an individual or joint local government self-insured health and welfare benefits program, the entity or entities must obtain the approval of the state risk manager. Risk manager approval is not required for the establishment of an individual local government self-insurance program covering property or liability risks. The entity or entities proposing creation of a self-insurance program requiring prior approval shall submit a plan of management and operation to the state risk manager and the state auditor that provides at least the following information: (1) The risk or risks to be covered, including any coverage definitions, terms, conditions, and limitations or in the case of health and welfare benefits programs, the benefits to be provided, including any benefit definitions, terms, conditions, and limitations; (2) The amount and method of financing the benefits or covered risks, including the initial capital and proposed rates and projected premiums; (3) The proposed claim reserving practices; (4) The proposed purchase and maintenance of insurance or reinsurance in excess of the amounts retained by the self-insurance program; (5) In the case of a joint program, the legal form of the program, including but not limited to any bylaws, charter, or trust agreement; (6) In the case of a joint program, the agreements with members of the program defining the responsibilities and benefits of each member and management; (7) The proposed accounting, depositing, and investment practices of the program; (8) The proposed time when actuarial analysis will be first conducted and the frequency of future actuarial analysis; (9) A designation of the individual upon whom service of process shall be executed on behalf of the program. In the case of a joint program, a designation of the individual to whom service of process shall be forwarded by the risk manager on behalf of the program; (10) All contracts between the program and private persons providing risk management, claims, or other administrative services; (11) A professional analysis of the feasibility of creation and maintenance of the program; and (12) Any other information required by rule of the state risk manager that is necessary to determine the probable financial and management success of the program or that is necessary to determine compliance with this chapter.

Source: WA Statutes (Official Site)URL: https://app.leg.wa.gov/RCW/default.aspx?cite=48.62&full=trueFetched: 6/29/2026