§1868. Dissolution

            A. If the fund elects to dissolve, it shall apply to the department for authority to dissolve. An application for dissolution shall be made on a form prescribed by the department and shall be approved or disapproved by the department within sixty days of receipt.

            B. The dissolution of the fund without authorization is prohibited and shall not absolve or release the fund, a member, or any person or entity which has executed an indemnity agreement from the fund's or person's obligations incurred or entered into prior to the dissolution of the fund.

            C. Applications to dissolve shall be granted if either of the following conditions are met:

            (1) The fund has no outstanding liabilities including incurred but not reported liabilities.

            (2) The fund is covered by an irrevocable commitment from a licensed insurer which provides for payment of all outstanding liabilities and related services, including payment of claims, preparation of reports, and administration of transactions associated with the period during which the plan provided coverage.

            D. Upon the dissolution of the fund and after payment of all outstanding liabilities and indebtedness, the assets of the fund shall be distributed to all members participating in the fund pursuant to a distribution plan submitted by the fund to the department and approved by the department.

            Acts 2023, No. 259, §§1, 3A, eff. June 12, 2023.