Any agreement entered into for the purpose of establishing and operating a risk management pool shall provide:

(1) A financial plan setting forth in general terms the:

(a) Types of insurance coverage to be offered by the pool, applicable deductible levels, and maximum level of claims which the pool will self-insure;

(b) Amount of cash reserves to be set aside for the payment of claims;

(c) Amount of standard insurance to be purchased by the pool to provide coverage over and above the claims which are not to be satisfied directly from the pool's resources; and

(d) Amount of aggregate excess insurance coverage and specific excess insurance coverage to be purchased in a given fiscal period; and

(2) A plan of management setting forth:

(a) The means of establishing the governing authority of the pool. (i) The governing authority shall be a board of directors who are elected or appointed officials of member public agencies. (ii) The number of members of the board who are either elected or appointed officials of member public agencies shall not be less than the requisite number of members needed to transact all the business of the pool;

(b) The responsibility of the board of directors with regard to fixing annual contributions to the pool from members, maintaining reserves, levying and collecting from members assessments for deficiencies, disposing of surpluses, and administering the pool in the event of termination or insolvency;

(c) A procedure by which new members may be admitted to and existing members may leave the pool. The procedure shall permit members to withdraw from participation in a pool. Withdrawal shall not affect the obligations of the withdrawing member under any contract or agreement with the pool or impair the payment of any outstanding bonds or any interest on such bonds;

(d) The identification of funds and reserves by exposure area;

(e) A provision requiring that all claims shall be paid promptly;

(f) A provision requiring that no part of the net earnings or assets of the pool shall inure to the benefit of any private person;

(g) A provision requiring that, upon dissolution of the pool, all of the assets of the pool will vest in member public agencies in the manner set forth in the plan of management;

(h) A system or program of loss control; and

(i) Any other standards, procedures, or practices necessary or desirable for the continued operation of the pool.