§ 24-A §2385-D — Safety groups

A safety group is an insured plan that provides for an alternative source of insurance for members of an organization or association. An insurer may issue a workers' compensation and employers' liability policy or policies insuring a safety group if the following requirements are met.
1.
Filings.
The organization or association shall file with the superintendent:
2.
Advance premium discounts.
Any advance premium discount for any new or existing safety group must be filed with the superintendent not later than 5 days after the effective date.
3.
Management.
The safety group shall designate a person to act as the manager or authorized representative of the group. The manager or representative may be remunerated by the members for expenses, including all ordinary operating expenses of the group, but the amount charged to members may not exceed 10% of earned premiums.
4.
Dividends.
Dividends or returned premiums paid or credited to a safety group must be paid or credited to the individual members of the group, except that the indebtedness for any unpaid premium must be first deducted from any dividend or premium returned.
5.
Other requirements.
Any safety group formed or operating under this section is subject to the requirements of sections 2931 to 2940, except that the safety group or the insurer may establish reasonable underwriting standards regarding eligibility for acceptance and continued membership of the safety group. These underwriting standards must be filed with the superintendent and may be disapproved by the superintendent if they unreasonably limit membership in the safety group.

Legislative History

PL 1991, c. 885, §B12 (NEW). PL 1991, c. 885, §B13 (AFF).