Section 2: Establishment of fund; filing of trust instrument; certification; appointment of trustee; dissolution, voluntary or involuntary
Section 2. A group of two or more participating health care providers may establish a health care provider self-insurance trust fund under this chapter prior to the issuance of a certificate in accordance with section three. Said fund shall be deemed established upon the execution of a trust instrument by the initial participants and establishment of a fund balance.
When a group of participants has established a fund, said participants shall file the trust instrument with the commissioner with such supporting documentation as he might reasonably require by regulation. Such trust instrument shall be in compliance with the provisions of this chapter.
The coverage provisions of an insurance contract issued by a fund under its trust instrument shall not become effective to provide coverage until the fund is certified in accordance with section three although the fund may require and accept payments of premiums prior to certification.
A fund shall appoint a trustee to satisfy reasonable standards of performance which shall be promulgated by the commissioner by regulation.
A fund desiring to dissolve may petition the supreme judicial court for voluntary dissolution. The court may authorize such dissolution and may, upon such authorization, distribute the petitioner's assets in a manner consistent with the fund's legal obligations.
The commissioner may petition the supreme judicial court for the involuntary dissolution of any fund if such fund has not filed for two consecutive years, an annual statement in accordance with section six, or if the commissioner is satisfied that the fund is inactive and its continued existence is not in the public interest. Upon authorizing such dissolution, the court shall distribute all assets of the fund in accordance with the fund's legal obligations.