OPERATIONAL RULES

FOR THE

PURMS JOINT SELF-INSURANCE AGREEMENT

Adopted as of March 30, 1995

TABLE OF CONTENTS

                                                                                                                                                    

SECTION I - Interlocal Agreement 2

6.         Board of Directors. 2

7.         Board Meetings. 3

7.2     Notice of Special Meetings. 3

7.3     Notice of Emergency Meetings. 3

7.4     Establishment of Board Meeting Agenda. 3

7.7     Pre-Vote Analysis. 4

8.         Fund Officers. 4

8.2     Succession and Vacancies. 4

9.         Committees. 5

10.       Fund Administration. 10

11.       Fund Records and Board and Committee Meeting Minutes. 11

11.1       Official Fund Records. 11

11.2       Custodian and Right to Inspect Records. 12

11.3       Approval of Board, Executive and Operations Committee Minutes. 12

11.4       Distribution of Administrative Committee Minutes. 12

12.       Fund Auditor, Fund Accounting and Financial Reporting Requirements. 12

12.2       Fund's Investment Related Bookkeeping Procedures. 12

12.4       Fund Disbursement Procedures When the Administrator Physically Makes the Disbursements. 12

12.5       Accounting Guidelines, Financial Statements and Fiscal Year 12

12.6       Fund's Monthly Receipts and Expenditures Analyses. 13

12.7       Financial Reporting Requirements. 13

16.       Subgroups and the Purchase of Additional Excess or Different Excess Insurance. 13

17.       Risk Management Procedures.  [Reserved] 18

18.       New Members. 18

18.1       New Member Admission Requirements. 18