(a) Any group of persons may form a commercial self-insurance fund for the purpose of pooling and spreading liabilities of its group members in any commercial property or casualty risk or surety insurance.
(b) As used in this chapter, “commercial self-insurance fund” or “fund” means a group of members, operating individually and collectively through an association, that must be:
(1) Established by:
(A) A not-for-profit trade association, industry association, or professional association of employers or professionals which has a constitution or bylaws, which is incorporated under the laws of the territory, and which has been organized and maintained in good faith for a continuous period of one year for purposes other than that of obtaining or providing insurance; or
(B) A not-for-profit group comprised of a condominium association as defined in Title 28, chapter 33, Virgin Islands Code, which is incorporated under the laws of the territory, which restricts its membership to condominium associations only, and which has been organized and maintained in good faith for a continuous period of one year for purposes other than that of obtaining or providing insurance.
(2) Operated pursuant to a trust agreement by a board of trustees which shall have complete fiscal control over the fund and which shall be responsible for all operations of the fund. The majority of the trustees shall be owners, partners, officers, directors, or employees of one or more members of the fund. The trustees shall have the authority to approve applications of members for participation in the fund and to contract with an authorized administrator or servicing company to administer the day-to-day affairs of the fund.
(c) Each member of a commercial self-insurance trust fund established pursuant to this chapter must maintain membership in an association as set forth in subsection (b)(1)(A) and (B) of this section.
(d) Any financial institution may participate as a member in a commercial self-insurance fund. A financial institution may not require as a condition precedent to making a loan that the prospective borrower insure with any commercial self-insurance fund. Any financial institution participating in a commercial self-insurance fund may participate only for the purpose of providing coverage on the financial institution's direct commercial property and commercial casualty or surety insurance exposures. The financial institution may not participate for the purpose of covering the direct or indirect exposures of its customers.
(e) A commercial self-insurance fund shall not participate in the Virgin Islands Insurance Guaranty Association.