§ 36-2205. Trust instrument – Mandatory provisions.

In addition to the requirements of Section 60 of this act, the trust instrument shall provide:

1.  That there shall be a minimum period during which any insured must participate in the trust;

2.  That all insureds shall execute a participation agreement;

3.  That the trustee shall be an individual or an institution such as a bank, insurance company or other appropriate entity;

4.  A preliminary assessment of all insureds for initial expenses necessary to commence operation;

5.  For establishment of necessary facilities;

6.  Details of the management of the trust;

7.  Procedures for assessment of all insureds to defray losses and expenses;

8.  Description of commission arrangements;

9.  Description of reasonable and objective underwriting standards;

10.  Procedures for and description of acceptance and cession of reinsurance;

11.  Procedures for and descriptions of appointment of servicing carriers or other servicing arrangements; and

12.  Procedures for determining amounts of insurance to be provided by the trust.

Added by Laws 2004, c. 368, § 62, eff. July 1, 2004.