§36-2205. Trust instrument – Mandatory provisions.
167 words·~1 min read·
/ok/title-36-insurance/36-2205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.