The commissioners of any joint insurance fund created under the provisions of this act shall prepare and, after the approval by resolution of the board of each participating nonprofit corporation, or approval of the owner of each participating Keys amendment facility, as the case may be, shall adopt bylaws for the joint insurance fund. The bylaws shall include, but not be limited to:
a. Procedures for the organization and administration of the joint insurance fund, the insurance fund commission and, if appropriate, the executive board of the fund. The procedures may include the designation of one participating nonprofit corporation or Keys amendment facility, as the case may be, to serve as the lead agency to be responsible for the custody and maintenance of the assets of the fund and such other duties as may be assigned by the commissioners of the fund;
b. Procedures for the assessment of members for their contributions to the fund and for the collection of contributions in default;
C. Procedures for the maintenance and administration of appropriate reserves in accordance with sound actuarial principles;
d. Procedures for the purchase of commercial direct insurance or reinsurance, if any;
e. Contingency plans for paying losses in the event that the fund is exhausted;
f. Procedures governing loss adjustment and legal fees;
g. Procedures for the joining of the fund by a nonparticipating nonprofit corporation or Keys amendment facility, as the case may be;
h. Procedures for the withdrawal from the fund by a participating nonprofit corporation or Keys amendment facility, as the case may be;
i. Procedures for the expulsion of a participating nonprofit corporation or Keys amendment facility, as the case may be;
j. Procedures for the termination and liquidation of the joint insurance fund and the payment of its outstanding obligations; and
k. Such other procedures and plans as the Commissioner of Insurance may require by rule or regulation.
L. 1987, C. 431, S.6.
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