(1) If
at any time the plan can no longer be operated on a sound
financial basis, the association may elect to dissolve the plan,
subject to explicit approval by the commissioner of a plan for
dissolution. Once a plan operated by an association has been
dissolved, that association may not again implement a plan
pursuant to this chapter for five calendar years.
(2) At dissolution, the assets of the association
represented by the contributing trust fund shall be deposited
with the commissioner for a period of twenty-one years, to be
made available for claims arising during that period based upon
occurrences during the term of coverage. At the time of transfer
of the funds, the association shall certify to the commissioner a
list of all current subscribers, with their correct mailing
addresses, and shall have notified all current subscribers of
their obligation to keep the commissioner informed of any changes
in their mailing addresses over the twenty-one year period, and
that this obligation extends to their representatives,
successors, assigns, and to the representatives of their estates.
Upon dissolution, the association is required to provide to the
commissioner a list of all plan subscribers during all of the
years of operation of the plan.
At the end of the twenty-one year period, any funds
remaining in the trust account must be distributed to those
subscribers who were current subscribers in the most recent year
of operation of the plan, with each current subscriber receiving
an equal share of the distribution, without regard for the length
of time each child day care center was a subscriber.
In the alternative, in the discretion of the association,
the balance of the contributing trust fund may be used to
purchase similar or more liberal coverage from a commercial
insurer. Each subscriber shall, however, be given the option to
deposit its share of the fund with the commissioner as provided
in this section if it elects not to participate in the proposed
commercial insurance.
[2003 c 248 § 24; 1986 c 142 § 14.]