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In consideration of the mutual covenants contained herein, this Interlocal Cooperation Agreement is made and entered into by and among Kansas counties which execute this Agreement and become members of the Kansas Workers Risk Cooperative for Counties (“KWORCC”), each of which hereby agrees to abide by the terms and conditions of this Agreement and all actions taken pursuant to this Agreement.

1.1. The Kansas Municipal Group-Funded Pool Act, K.S.A. 12-2616, et seq., as amended, the Interlocal Cooperation Act, K.S.A. 12-2901, et seq., as amended, and the Kansas Tort Claims Act, K.S.A. 75-6101, et seq., as amended, authorized this Agreement and the powers commonly held and to be jointly exercised by Kansas counties which become members of the Cooperative.

As used in this Agreement, the following terms shall have the meaning hereinafter set out:
2.1 Act. The Kansas Municipal Group-Funded Pool Act, K.S.A. 12-2616, et seq., as amended.
2.2 Administrator. Administrator of the Cooperative, who shall serve as its chief operating officer.
2.3 Agreement. The Bylaws and Interlocal Cooperation Agreement for KWORCC.
2.4 Board of Trustees or Board. The Board of Trustees of the Cooperative.
2.5 Bylaws. The Bylaws and Interlocal Cooperation Agreement for KWORCC.
2.6 Contributions. Amounts paid by members to receive the benefits of the Cooperative.
2.7 Member. Any Kansas county or Agency, authority, institution or other instrumentality thereof which enters into this Agreement and becomes a Member of the Cooperative.
2.8 Cooperative. The Kansas Workers Risk Cooperative for Counties sometimes referred to as and intended to be a pool.
2.9 Representative. The person designated pursuant to Section 11.1.b. to be a Member’s official representative for the purposes of the Cooperative, who is an elected county official of a Member county designated by that County’s Board of Commissioners, provided that regardless of the number of Members from a County, only one elected official may represent all Members from that County.
2.10 Trustee. A person serving on the Board of Trustees who is an elected county official and whose county is a Member of the Cooperative.
2.11 Deficit Fund Year. A policy year in which the benefits to injured workers and claims and administrative expenses exceed the premiums paid.

3.1 The purposes of this agreement are to:

1. Maintain a group-funded Cooperative to fund through joint self-insurance, excess insurance, or other lawful manner, obligations imposed upon employers under the Workers’ Compensation Act as set forth by K.S.A. 44-574 and any of the acts contained in article 5 or 5a of Chapter 44 of the Kansas Statutes Annotated and amendments thereto, and to do any act authorized by law or as determined by the Board, with the powers set forth in this Agreement; and
2. Provide, through the Cooperative, certain claims and risk management services related to the liabilities for workers compensation, and assist Members in reducing and preventing such losses due to workers compensation claims and injuries.

4.1 KWORCC is a separate legal public entity, constituting an interlocal governmental agency as provided by law. The Cooperative shall continue in effect until dissolved in accordance with this Agreement.
4.2 The Cooperative is formed, financed, organized, and shall operate in accordance with the provisions of this Agreement. This Agreement constitutes the bylaws of the Cooperative or pool.
4.3 The Cooperative may sue and be sued.
4.4 In accordance with the provisions of the Interlocal Cooperation Act, this Agreement shall be submitted to the Attorney General to determine whether it is in proper form and compatible with the laws of Kansas, and to such other state officers encompassed by this Agreement, as may be required by the Interlocal Cooperation Act or other laws of this state, and to the Commissioner of Insurance as part of the application and certification process to establish a Group-Funded Pool under the Act. Any county which enters into this Agreement shall cause to be filed a copy of this Agreement with the Register of Deeds for the Member county and with the Secretary of State, in accordance with the provisions of K.S.A. 12-2905, and amendments thereto.
4.5 This Agreement may be amended and shall continue in effect until the Cooperative is dissolved, as provided herein.
4.6 This Agreement does not establish an insurance company, nor shall the benefits or obligations of KWORCC constitute a policy of insurance coverage.
4.7 This Agreement shall constitute a qualified group-funded pool under the Kansas Municipal Group-Funded Pool Act, K.S.A. 12-2616, et seq., as amended, thereto which shall be subrogated to the rights and duties under the Workers’ Compensation Act of the Employer so far as appropriate, including the immunities provided by K.S.A. 44-501 and amendments thereto.

1. Submits a written resignation to the Board.
2. Dies.
3. Ceases to be an elected official of a Member county.
4. Fails to attend three consecutive regularly scheduled meetings of the Board by telephone or in person.
5. Is removed by the Members pursuant to Article 10.
6. Is convicted of any felony or any Class A misdemeanor or Class B misdemeanor.

1. Delegate, by resolution adopted at a meeting of the Trustees and specifically defined in the written minutes of the Trustees’ meetings, authority for specific functions to the Administrator, but only to the extent permitted by the Act.
2. Establish Member contributions, pursuant to guidelines adopted by the Board from time to time.
3. Serve as the policyholder of any group policies or plans.
4. Determine the methods of claim administration and payment; provide for claim experience for the Members collectively or separately as provided by law; and establish claim procedures and conditions to be met prior to the payment or defense of a claim all as permitted and subject to law.
5. Jointly self-insure or obtain excess insurance (specific or aggregate), or any combination thereof, or otherwise provide for the funding of coverage provided by or through the Cooperative as the Board deems appropriate.
6. Establish the duties of the Administrator.
7. Provide for the administration of the monies received, for the manner of payments to be received, and for payment of all expense of the Cooperative; establish standards for the accountability of all receipts and disbursements of the Cooperative; and establish procedures for safekeeping, handling and investing such monies received or paid.
8. Make investments in accordance with K.S.A. 12-2622 and amendments thereto.
9. Acquire, lease, hold and dispose of personal property as provided by law.
10. Acquire, hold and dispose of real property, including but not limited to leases and rental, only upon a majority of the membership obtained by ballot, election, polling or otherwise, which approval may be solicited and/or obtained by mail or at the annual meeting; provided, however, the Board may lease office facilities as are reasonable and necessary for the conduct of business without membership approval.
11. Exercise the full power and authority of any Member of the Cooperative when requested, in writing, to do so by the Member’s governing body.
12. Provide for necessary activities to accomplish the purposes of this Agreement and of the Cooperative.
13. Do any act permitted by law and not in conflict with this Agreement.
14. Provide for an independent audit of claim handling procedures, payments and overall operations of the Cooperative, at such time as the Board may determine.
15. Establish loss reduction, prevention and risk management policies, procedures, educational programs and requirements for Members of the Cooperative.
16. Adopt and adjust the coverage provided through the Cooperative in concurrence with any affected excess insurers.
17. Enter into contracts as necessary or appropriate for the operation of the Cooperative.
18. Appoint committees from time to time, as the Board considers appropriate. Each committee shall consist of one or more designated Trustees. Any such committee so appointed shall have the authority only to investigate and report its findings and recommendations to the Board, unless otherwise specifically provided in a resolution of the Board, but no such committee shall have the power or authority to (I) amend the Bylaws, (ii) declare a dividend or refund to the Members, or (iii) recommend the dissolution of KWORCC to the Members.
19. Approve attorneys or firms of attorneys to represent Members in claims covered by or through the Cooperative.
20. Obtain the services of agents, attorneys, brokers, consultants, employees and service providers as necessary or appropriate for the operation for the Cooperative.

1. Perform all duties required by the Act.
2. Obtain and provide to Members annually an audit of the finances of the Cooperative performed by an independent Certified Public Accountant.
3. Provide to Members quarterly financial statements to account for income, expenses, assets and liabilities of the Cooperative.
4. Provide for an annual actuarial review of the Cooperative.
5. Adopt a budget annually and report the budget to the Members.
6. Require that fidelity bonds be in effect for the Administrator, claims service provider and its employees, and every other person having access to monies of the Cooperative.

1. Transfer authorized surplus funds from another policy year;
2. Transfer funds from a special reserve fund; or,
3. Any alternate option approved by the Kansas Insurance Department.

1. Elect Trustees pursuant to Article 6.
2. Remove any elected or appointed Trustee from the Board by a two-thirds vote of the Members present at a meeting.
3. Dissolve the Cooperative by a two-thirds vote of the Members present at a meeting. Written notice of any proposed dissolution of the Cooperative shall be provided to each Member at least thirty days in advance of the vote thereon.
4. Amend this Agreement by a two-thirds vote of the Members present at a meeting. Written notice of any proposed amendment shall be provided to each Member at least thirty days in advance of the vote thereon. If Members have received advance written notice of the proposed amendment in accordance with this paragraph, Members may revise the proposed amendment during the meeting as long as the revision does not materially change the purpose and intent of the proposed amendment and a minimum of two-thirds of all Member Counties votes in favor of the proposed revision at the meeting. However, if less than two-thirds of the Member Counties vote to revise the published amendment, the revision nevertheless may be passed if: (i) two-thirds of the Members present at the meeting approves the revision; (ii) such amendment, as revised, is sent to the Member Counties with opportunity to object within 30 days after such meeting and (iii) within thirty (30) days from said mailing, less than 35% of the Membership provides written objection (by majority vote of Commissioners) to the said revised amendment.

10.2 Members shall meet at least once annually at such time and place, within the State of Kansas, as shall be designated from time to time by the Board and stated in the Notice of meeting. Special meetings may be called by the Board or pursuant to a procedure to be established by the Board, and shall be called upon written request executed by at least thirty percent (30%) of the Members.

1. Notice of any Membership meeting shall be mailed by the Administrator to each Member at least fifteen days in advance, which notice shall state the place, date and hour of the meeting, and in the case of a special meeting, the purpose(s) thereof. If mailed, such notice shall be deemed to be given when deposited in the United States mail, postage prepaid, directed to the Member at the Member’s address as it appears on the records of KWORCC. Attendance by a Member at a meeting shall constitute a waiver of notice of such meeting, except where the Member attends a meeting for the express purpose of objecting, at the beginning at the meeting, to the transaction of any business because the meeting is not lawfully called or convened.
2. The president of the Board shall preside at the meeting.
3. Fifty percent (50%) of the Members shall constitute a quorum to do business.
4. Proxy voting shall not be allowed.
5. Each Member shall be entitled to one vote, to be cast by its representative, or, in the absence of its representative, by an alternate representative approved by the Member in writing, and whose credentials are satisfactory to the Board pursuant to guidelines established by the Board and published to the Members.

1. Pay promptly all contributions and other payments to the Cooperative at such times and in such amounts as shall be established in accordance with this Agreement, including any interest and penalties for late payment as may be required by a policy adopted by the Board.
2. Designate in writing a representative and one or more alternate representatives for the Members’ meetings. Each representative and alternate representative must be an elected County official and must be appointed as a KWORCC representative or alternate representative for a term of not less than one (1) year by majority vote of the county commissioners of the Member to be the Member’s official representative for the purposes of the Cooperative. An alternate representative may exercise all the powers of a representative during a Member meeting, in the absence of the representative.
3. Allow the Cooperative and its Administrator, agents, contractors, employees and officers reasonable access to all facilities of the Member and all records required for the administration of the Cooperative and implementation of this Agreement.
4. Cooperate fully with the Cooperative’s attorneys and Administrator, and any other agent, contractor, employee or officer of the Cooperative, in activities relating to its purposes and powers. Provide information requested by the Cooperative, its Administrator and any other agent, contractor, employee or officer of the Cooperative, as reasonably required for administration and operation of the Cooperative.
5. Notwithstanding the provisions of K.S.A. 19-247, 19-702 and 19-723, and amendments thereto, allow the Cooperative, and attorneys and other designated by it, to represent the Member in the investigation, settlement and litigation of any claim within the scope of loss protection furnished by or through the Cooperative.
6. Follow the claims, loss reduction and prevention, and risk management policies and procedures established by the Board.
7. Report to the Cooperative, in the form and within the time required by the Board, all incidents or occurrences which could reasonably be expected to result in the Cooperative being required to consider a claim.
8. Report to the Cooperative, in the form and within the time required by the Board, the addition of new programs and facilities or the significant reduction or expansion of existing programs and facilities or other acts.

1. The Member shall receive notice from the Board of the alleged failure and shall receive a demand from the Board to cure the alleged failure, within thirty (30) days of receipt of said notice and demand along with notice that expulsion could result if the failure is not so cured.
2. The Member may request a hearing before and decision by the Members on the expulsion. The request shall be made in writing to the Board at least five days before the end of the period given by the Board to cure the alleged failure. At such hearing, the Board shall present the case for expulsion and the affected Member may present its case. The Member proposed to be expelled shall not be counted in determining the number of votes required, nor shall the representative of such Member be entitled to vote on the expulsion.
3. If no request is received pursuant to subparagraph b. of this paragraph 13.2, and if the failure is not cured within the time required by the Board’s notice or any extension of such time as the Board may grant, the Board may expel the Member. The Member may request a hearing before the Board on the proposed expulsion in lieu of a hearing before the Members. The request shall be made in writing and received by the Board at least five days before the end of the period given by the Board to cure the alleged failure, and shall be granted if so made.
4. The Board shall provide the Member at least ten days prior written notice of the time and place of any requested hearing as the Board or Members, as applicable, may set.

1. Unless otherwise agreed by the Board or its authorized representative and the Member, three persons shall be selected for the arbitration panel, one by the Board or its authorized representative, one by the Member and one by the two so selected to act as umpire to decide the items upon which the other two disagree. If the two so selected fail for 15 days to agree upon the umpire, the entire dispute of coverage shall be submitted to the American Arbitration Association for arbitration pursuant to their standard rules and regulations.
2. The decision of the panel, or the American Arbitration Association, as the case may be, shall be binding on the Board or its authorized representative and the Member, and may be filed and otherwise acted upon pursuant to the Kansas Uniform Arbitration Act, as may be amended.
3. The Cooperative shall pay the fees and expenses of the panelist selected by the Board or its authorized representative, the Member shall pay the fee and expenses of the panelist selected by it and the fees and expenses of the umpire shall be shared equally by the Cooperative and the Member.

In witness whereof, the parties hereto have entered into this Agreement by the execution of this signature page, which shall be attached to and be a part of this Agreement.