405-C:5 Agreement to Form; Authorized Activities. –
I. A covered entity may join or form a self-insured risk coverage arrangement together with one or more other covered entities and may jointly purchase insurance or reinsurance with one or more other covered entities for liability risks as permitted under this chapter. Covered entities may contract for or hire personnel to provide risk management, claims, and administrative and legal services in accordance with this chapter.
II. The agreement to form a self-insured risk coverage arrangement may include the organization of a separate legal entity with powers delegated to the entity. Any such separate legal entity shall be in compliance with all applicable New Hampshire laws.
III. If provided for in the organizational documents, a joint self-insured risk coverage arrangement may, in conformance with this chapter:
(a) Contract or otherwise provide for risk management and loss control services;
(b) Contract or otherwise provide legal counsel for the defense of claims and other legal services;
(c) Jointly purchase insurance and reinsurance coverage in a form and amount as provided for in the organizational documents;
(d) Obligate the participants to pledge funds or revenues to secure the obligations or pay the expenses of the arrangement, including the establishment of a reserve fund for coverage, and any additional assessment if the reserve fund or the arrangement's revenue or assets are insufficient to cover the liabilities; and
(e) Possess any other powers and perform all other functions reasonably necessary to carry out the purposes of this chapter.