HomeMy WebLinkAboutWashington State Association of Counties (WSAC) AMENDED
INSURANCE TRUST AGREEMENT
WHEREAS, Certain counties of the State of Washington entered into a
trust agreement with the Executive Board and the Executive Secretary of the
Washington State Association of Counties (WSAC) on or about the 17th day
of December, 1958, for the purpose of establishing a fund to insure the
employees of the respective signatory counties for group insurance and
health care benefits in accordance with the insurance laws and regulations
of the State; and
WHEREAS, The parties have determined to make certain amendments in the
program that necessitate the alteration of the Trust Agreement; and
WHEREAS, The parties, and all subsequent counties of the State that
determine to become part of the program, do hereby agree that the December
17, 1958, Insurance Trust Agreement be amended as follows:
NOW, THEREFORE, The parties hereto do agree:
The Executive Board of the WSAC, hereinafter referred to as the Trustees,
does agree to and has contracted with insurance and/or service carriers to
provide life insurance, health and welfare benefits and group insurance for
the employees of the several counties, hereinafter referred to as Employer,
participating in the program; and a copy of said contract or contracts is on
file at the office of the Trustees at 6730 Martin Way N.E. , Olympia, Washicgton;
and
The Trustees agree to and are providing the methods of payment by the
Employer and, where necessary, will establish and maintain an insurance fund
out of which premiums on the insurance plan and costs of administration may
be paid.
The Trustees and the Employers do accept the trust agreement upon the
following terms and conditions:
1. The effective date of the original trust agreement was the 1st day
of January, 1959, or with respect to any Employer who after January 1, 1959,
executed and delivered its signed acceptance of the terms of the agreement and
said acceptance was approved by the Trustees, the first day of the month coincident
with or next following such approval.
To any new employer applicants, this Agreement shall not be binding and
effective unless and until the Employer has executed and delivered to the Trustees
its signed acceptance of the terms of this Axn ndatory Trust Agreement and unless
and until the application has been approved and accepted by the Trustees. Upon
meeting these conditions, the effective date as to the new Employer shall be
the first day of the month coincident with or next following such acceptance
and approval.
The anniversary date of this Agreement as used herein shall mean any
January 1st in any year after the amended agreement takes effect.
2. Insurance Premium
(a) Each employer shall contribrte to and pay over to the Trustees
or to a designated agent or agency each month an amount sufficient to pay his
allocated share of the premiums next due on the contract to provide coverage for
his employees.
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of their duties hereunder: Provided, that such Trustee or Trustees or designated
agents as are authorized by a majority of all the Trustees to draw checks
against the Insurance Fund shall be bonded to any amount of not less than
$5,000.00, and the costs of such bonds are to be an appropriate charge against
the Insurance Fund. The Trustees shall have no liability for any action taken,
allowed or omitted by it in connection with this Agreement in the absence of
the Trustees' willful misconduct or lack of good faith.
(b) The Trustees shall have the power to designate agents or
agencies to collect premiums for the group insurance and shall have the power
to provide the method of payment of premiums and to maintain the Insurance Fund
created by the original trust agreement.
(c) If the Trustees designate agents or agencies to collect
the insurance premiums, the Trustees shall provide that the agents or agencies
shall make their books of account and records available as required by the
Washington State Insurance Commissioner.
(d) If the Trustees collect the premiums and manage the Insurance
Fund completely, the Trustees shall:
1. Deposit all monies received by them to the "Washington
Counties Insurance Fund" which was created in the original trust agreement,
in such bank or banks as they may designate for that purpose. The Trustees
shall not be required to invest such monies so as to obtain income therefrom.
2. Keep at the place of business of the Insurance Fund a
copty of the ma'ter insurance contract and a true and accurate book of account
and records of their transactions as trustees. An audit of the Fund and books
and records shall be made annually, or more frequently as the Trustees determine.
(e) A statement of the results of each audit shall be made avail-
able for inspection by all interested parties at the place of business of the
Insurance Fund and a summary of each audit shall be mailed to each participa-
ting Employer. The Trustees shall annually furnish reports to the Employer
as to the status of the Insurance Fund, the share thereof allocable to the
Employer to whom the report is made, and other information pertinent to the
Administration of the Insurance Fund.
(f) If the Trustees designate agents or agencies to collect the
insurance premiums and a method of payment otter than by the Trustees, the
Trustees, in adr:. tion to utilizing Insurance Find monies to defray the cost:,
may assess participating counties on a yearly basis a sum sufficient to cover
the necessary and reasonable costs of administration. Said sums collected
shall be deposited in the Insurance Fund and be payable only by the Trustees
or their designated agent or agents. Books and records of the Insurance Fund
shall be audited as provided in Article 3, Section (c) .
(g) The Trustees shall have the power to create and appoint an
Insurance Advisory committee to assist the Trustees in the management and
operation of the insurance program; and to define the duties, powers, terms,
eligibility, and make up of the committee.
(h) The Trustees may consult and employ legal counsel and obtain
other expert assistance and shall be fully protected in acting, or permitting
or omitting action, upon the advice it may receive from such persons in
commection with the plan. VOL 4 FACE 2.356
4
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No amendment shall become operative if Employers representing more than
fifty percent (50%) of the covered employees shall dissent.
(b) Termination
While it is the intention of the parties to this Agreement
that it will continue on a permanent basis, the Agreement may be terminated
on January 1st of any year by fifty percent (50%) of Employers giving the
Trustees written notice of such termination at least thirty-two (32) days
prior to such termination date. Upon termination of the Trust by the Employers,
as a group, the balance standing to the credit of each Employer in the Insurance
Fund shall be paid to each Employer.
Any Employer may terminate his participation under the Trust on
January 1st of any year by giving the Trustees written notice of its desire
to terminate at least thirty-two (32) days prior to such termination date.
Such withdrawal. shall be effective as of the date immediately preceding the
premium due date, under the group insurance policy which insures covered employees,
next following receipt of such notice by the Trustees. Upon withdrawing, the
Participating Employer shall pay to the Trustees, all contributions due and pay-
able for periods preceding the effective date of withdrawal. Upon a complete
withdrawal from the Trust, an Employer, and all of its covered employees, shall
cease to have any rights whatsoever in the Insurance Fund or any insurance pro-
vided thereunder except as may be otherwise provided in the Group Insurance
Plan(s) which covered such insured employees.
6. The provi.eions of this amendatory trust agreement shall replace and
amend all the provisions of the original and amended insurance trust agreement>
of December 17, 1958, July 12, 1967, and June 20, 1975. All the powers and
duties of the Trustees and the Employers set forth herein shall govern over the
original trust agrLement; provided that nothing contained herein shall abrogate
the provisions of Eny contract.
IN WITNESS WHEREOF, The parties ereto hav hereunto set their hands
and seals this .1,..6 day of , 197f
TRUSTEES EMPLOYERS
/4"-61111-44#11.4 x
/2V17111"1 ,
/s/ Mike Murphy 1
/s/ Ralph Danekas
/s/ Gordon Kunz
/s/ John Spellman
/s/ Bob Greive
/s/ Patrick Gallagher
/s/ Donald Moa
/s/ Delmon Anderson
/s/ Roy Lumaco
/s/ Harold Cooper
•
/s/ Mel Lakin
/s/ Ray W. Christensen
,:AIL 4 ME 023 S
kr Washington State Association
o ,} of Counties
AREA CODE 206 6730 MARTIN WAY N.E.
TELEPHONE 491-7100 OLYMPIA, WASHINGTON 98506
REEEDVIE--
December 7, 1978 DEC 111978
JEFFERSON CNN
BOARD OF COMMISSIONERS
TO: Board Chairman and Members, Washington Counties
Insurance Fund
SUBJECT: New Trust Articles
Pursuant to the action of the Insurance Advisory Committee on October
13, 1978, and the Trustees action on December 1, 1978, the Washington
Counties Insurance Fund bylaws have been amended to eliminate the possi-
bility of withdrawing members removing funds from the Trust. These amend-
ments will be effective 30 days after transmittal of this agreement, unless
written notice of dissent is received in this office from employers repre-
senting over 5J% of the covered employees.
I have enclos3 two copies of the amended Trust Agreement to be signed
by member cour :ies and districts. Please forward one signed copy to
this office at your earliest convenience and retain one copy for your
records. If there are any questions, please call me in Olympia.
Thank you, in advance, for your prompt return of the new Trust Articles.
Yo 't:k'uly,
//-1:. ,:/f, ---''7 --- _g--;---% ------
Robert E. Beaty
Counsel
REB:brs
Enclosures .