Arizona public entities were permitted to form cooperative, self-funded risk retention pools beginning in 1986, under Arizona Revised Statute 11 -952.0 1. There are four basic elements to a risk retention pool's operation:

1. Funding: Each Member is charged an annual amount, i.e., premium, based upon the Member's individual loss exposures and claims experience. The exposures of, and charges to, the Members are then "Pooled"; and covered losses and expenses are paid out of the Pool's funds. Investment income is retained by the Pool allowing Member charges to stabilize or decrease or be returned in the form of dividends.
2. Administration and Loss Control: On a continuing basis, the Pools evaluates additional coverage opportunities, safety and loss control assistance required by the Membership, rate structure and the basic rules of daily operation.
3. Claims Management: An aggressive but fair claims management program is provided. Rules and guidelines for claims determination and settlement authority are continually being improved.
4. Board of Trustees: The bylaws allow for the election of a Board of Trustees to direct the Pools. The Board of Trustees consists of elected officials or employees from the Pool Members. The board has contracted with Southwest Risk Services, SWRS, Administrator, to provide all the essential elements of the insurance pool administration.

Administrator: Southwest Risk Services
14902 North 73rd Street
Scottsdale, AZ 85260
Phone: (602) 996-8810 • Fax: (602) 996-9045