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JPA, CSAC-EIA Amended: February 28, 2006 <br /> Page 10 of 21 <br />and may provide any other coverages authorized by the Board of Directors. The Board shall determine, <br />for each such program, a minimum number of participants required for program implementation and may <br />develop specific program coverages requiring detailed agreements for implementation of the above <br />programs. <br /> (b) Program and Authority Funding. The members developing or participating in an <br />insurance program shall fund all costs of that program, including administrative costs, as hereinafter <br />provided. Costs of staffing and supporting the Authority, hereinafter called Authority general expenses, <br />shall be equitably allocated among the various programs by the Board, and shall be funded by the <br />members developing or participating in such programs in accordance with such allocations, as hereinafter <br />provided. In addition, the Board may, in its discretion, allocate a share of such Authority general expense <br />to those members which are not developing or participating in any program, and require those counties <br />and public entities to fund such share through a prescribed charge. <br /> (1) Development Charge. Development costs of an insurance program shall be <br />funded by a development charge, as established by the Board of Directors. The development charge <br />shall be paid by each participant in the program following the program’s adoption by the Board. <br />Development costs are those costs actually incurred by the Authority in developing a program for review <br />and adoption by the Board of Directors, including but not limited to: research, feasibility studies, <br />information and liaison work among participants, preparation and review of documents, and actuarial and <br />risk management consulting services. The development charge may also include a share of Authority <br />general expenses, as allocated to the program development function. <br /> The development charge shall be billed by the Authority to all participants in the <br />program upon establishment of the program and shall be payable in accordance with the Authority’s <br />invoice and payment policy. <br /> Upon the conclusion of program development: any deficiency in development <br />funds shall be billed to all participants which have paid the development charge, on a pro-rata or other <br />equitable basis, as determined by the Board; any surplus in such funds shall be transferred into the <br />Authority's general expense funds. <br /> (2) Annual Premium. Except as provided in (3) below, all post-development costs <br />of an insurance program shall be funded by annual premiums charged to the members participating in the <br />program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall <br />be determined by the Board of Directors upon the basis of a cost allocation plan and rating formula <br />developed by the Authority with the assistance of a casualty actuary, risk management consultant, or <br />other qualified person. The premium for each participating member shall include that participant’s share <br />of expected program losses including a margin for contingencies as determined by the Board, program <br />reinsurance costs, and program administrative costs for the year, plus that participant’s share of Authority <br />general expense allocated to the program by the Board. <br /> (3) Premium Surcharge <br /> (i) If the Authority experiences an unusually large number of losses under a <br />program during a policy year, such that notwithstanding reinsurance coverage for large individual losses,