AZ SB1590

Allows two or more employers to establish health benefits pools either through cooperative agreements or by forming nonprofit corporations to pool health insurance risks.

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

Mandates pools maintain excess loss insurance with specific retention limits of $50,000 and aggregate limits of $250,000, with minimum coverage of $250,000 specific and $1 million aggregate.

Requires annual audits by certified public accountants, five-year examinations by the department, and pro-rata member assessments not to exceed annual contributions if the pool becomes insolvent.

Establishes minimum 24-month membership commitment periods, 60-day termination notice requirements, and protects members in good financial standing from removal based on medical loss risk.