405-C:6 Formation. –
Before the establishment of a multiple-caregiver self-insured risk coverage arrangement, the covered entities shall obtain the approval of the commissioner. The entity or entities proposing the creation of the arrangement shall submit, as part of the application, a plan of management and operation to the commissioner that provides at a minimum, the following information:
I. The risk or risks to be covered, including any coverage definitions, terms, conditions, and limitations;
II. The amount and method of funding the covered risks, including the initial capital and proposed rates and projected premiums;
III. The proposed claim reserving practices;
IV. The proposed purchase and maintenance of insurance or reinsurance in excess of the amounts retained by the joint self-insurance arrangement;
V. The legal form of the program including, but not limited to, any constitution, articles of incorporation, bylaws, charter, trust, or other agreement among the participating entities;
VI. The agreements with participants in the arrangement defining the responsibilities and benefits of each participant and management;
VII. The proposed accounting, depositing, and investment practices of the arrangement;
VIII. Evidence satisfactory to the commissioner showing that the arrangement will be operated in accordance with sound actuarial principles. The commissioner shall not approve the arrangement unless the commissioner determines that the plan is designed to provide sufficient revenues to pay current and future liabilities, as determined in accordance with sound actuarial principles;
IX. A designation of the individual to whom service of process must be forwarded by the commissioner on behalf of the arrangement, including that individual's name and address;
X. All contracts between the program and private persons providing risk management, claims, or other administrative services;
XI. A professional analysis of the feasibility of the creation and maintenance of the program;
XII. A legal analysis or an Internal Revenue Service opinion on the federal income tax exposure or liability of the program; and
XIII. Such additional information as the commissioner may reasonably require to determine compliance with this chapter.