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Texas Municipal League Workers' Compensation Joint Insurance Fund 211 East Seventh Street, Suite 1020, Austin, Texas 78701~3283 INTERLOCAL AGREEMENT This Contract and Interlocal Agreement is entered into by and between the Texas Municipal League Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") and the undersigned political subdivision of the State of Texas (hereinafter referred to as "Employer Member") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workers' Compensation Act for employees of political subdivisions. WITNESSETH: The undersigned Employer Member in consideration of the adoption of a plan of self-insurance as authorized in Article 830%, Ver- non's Annotated Texas Statutes, to provide workers' compensation benefits at a minimum cost and in further consideration of other political subdivisions executing identicallnterlocal Agreements does hereby agree to become a self-insured workers' compensation employer by becoming one of the members of the Fund Pool of self-insured Employer Members. The conditions of membership agreed upon by and between the parties are as follows: 1. Definition of terms used in this Interlocal Agreement. a. Board. Refers to the Board of Trustees of the Texas Municipal League Workers' Compensation Joint Insurance Fund. b. Premium and Contribution. Are used interchangeably in some parts of this Interlocal Agreement. "Premium" is used to identify the rating formulas established by the State Board of Insurance, which are used as guidelines to establish Employer Members' cash contributions to the Fund. Any reference at any time in this Interlocal Agreement to an insurance term not ordinarily a part of self-insurance shall be deemed for convenience only and is not to be construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretation such as, but not limited to, the reference to "reinsurance." c. Manual Rates. The basic workers' compensation rates applicable to each classification of employees promulgated by the State Board of Insurance. d. Experience Modifier. Refers to the factor applied to the manual rates that reflects the political subdivision's loss ex- perience, which is based on the State Board of Insurance promulgated insurance plan. e. Standard Rates. Rates that are determined by applying the experience modifier of each individual Employer Member to the annual rates. f. Fund Modifier. The percentage figure that is applied to the standard rates by the Fund to reflect the savings to the Employer Member by entering into the Interlocal Agreement. g. Fund Year. October 1 through September 30. h. Agreement Period. The continuous period since the Employer Member first became a Member of this Fund excluding, however, any period or periods of time therein that the Employer Member did not participate as a Member of the Fund. 2. The Board of Trustees, acting through its agents and TML staff, is responsible for the administration of all Fund business on behalf of the Employer Members. 3. Statutory workers' compensation benefits are provided for paid employees of the Employer Member only. The Employer Member may extend statutory coverage to the following class or classes of volunteers by specific endorsement to the Interlocal Agreement: elected officials; volunteer firemen; police reserves; volunteer ambulance/ems attendants; all inside volunteers; all outside volunteers. Provisions exist for reporting estimated annual payroll substitute figures which shall be used to develop an annual contribution for this additional statutory coverage. 4. The term of this Agreement and the self.insurance provided to the Employer Member shall be continuous commencing 12:01 A.M. on the date designated in this Agreement until terminated as provided below. This Agreement may be terminated by either party giving to the other sixty (60) days prior written notice of intent to ter- minate except the Employer Member may terminate this Agreement and its statutory coverages thereunder without giving the sixty (60) days notice if the reason is because of a change by the Fund in the Employer Member's contribution, provided that no termination by the Employer Member shall be effective prior to the date that written notice of termination is actually