(1) The sponsor of any prepaid legal services plan, or authorized representative thereof, may contract with any company licensed to transact life or casualty insurance in this state, under which contracts such company agrees, for a consideration consisting of a specified premium to assume the monetary obligations of the plan to provide or pay for the legal services covered by the subscription contracts issued under such plan, upon the failure of the plan itself to meet such obligations within a specified period. The duration of such contracts shall not be longer than three (3) years, and every such contract shall be filed with and subject to the approval of the commissioner for the fairness of its terms and premiums. The contracts shall be deemed approved ninety (90) days after date of filing with the commissioner, unless, prior to the expiration of such ninety-day period, the commissioner notifies the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval. Any sponsor entering into such contracts shall fairly disclose to all subscribers affected by them the nature and extent of the extra protection provided by them. Any plan having lawful access to any other source of funds besides the premiums collected, which may be used to meet the obligations of the plan under its subscription contracts, shall make similar fair disclosure to affected subscribers.

(2) Any sponsor of any prepaid legal services plan, or authorized representative thereof, may contract with any person to provide administrative services necessary to the administration of the plan and the subscription contracts issued thereunder. The duration of such contracts shall not be longer than three (3) years, and every such contract shall be filed with and subject to the approval of the commissioner as to the fairness of its terms. The contracts shall be deemed approved ninety (90) days after the date of filing with the commissioner unless, prior to the expiration of such ninety-day period, the commissioner notifies the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval.