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.