AZ HB2690

Allows two or more employers to establish health benefits pools through cooperative agreements or nonprofit corporations to pool health insurance risks and claims.

Requires pools to be governed by a board of trustees with at least three members from at least two participating employers, responsible for establishing coverage terms, processing claims, and safeguarding assets.

Mandates annual audits by certified public accountants, actuarial evaluations of claim reserves, and departmental examinations every five years to ensure pool solvency and compliance.

Prohibits pools from removing members in good financial standing based on medical loss risk and requires members to commit to participation for at least 24 months with 60 days' notice for termination.

Establishes that pools are not deemed to be conducting insurance business but subjects them to federal ERISA law, with the Department of Insurance authorized to audit plan design and claims denials.