1.__Organization. The plan is established as an independent, nonprofit insurance company and is authorized to conduct all activities described in this chapter, either directly or through subcontractual arrangements with other appropriate entities.__The plan is also authorized to identify and purchase reinsurance coverage.

2.__Board of directors.__The plan is governed by a board of directors, referred to in this chapter as "the board."

A. The board consists of 9 members appointed as follows:

(1)__Three members appointed by the Governor;

(2)__Three members appointed by the President of the Senate; and

(3)__Three members appointed by the Speaker of the House of Representatives.

For each set of initially selected directors, one-year, 2-year and 3-year terms of office must be randomly assigned.__After the initial terms are completed, directors are appointed for 3-year terms.__An individual may not serve more than 3 consecutive terms.

3.__Executive director.__The board shall hire an executive director to administer and oversee the plan.__The executive director serves at the direction of the board.

4.__Eligibility.__All eligible state residents, except those covered by Medicare or MaineCare, must be annually enrolled in the plan as of July 1st.__To be eligible, a person must have established legal residence in this State for the entire calendar year preceding the date of the person's enrollment.__ Eligible residents filing personal tax returns as a single person with no dependents must be considered single subscribers in the plan; those residents filing all other personal tax returns must be considered family subscribers in the plan.

5.__Benefit coverage.__The plan covers medical expenses, generally defined to be those hospital, professional, diagnostic, therapeutic, pharmacy and similar services associated with acute medical care, after satisfaction of an annual deductible established in subsection 6.