The contracts entered into by the alliance shall:
I. Establish performance standards for specific contractual elements;
II. Set liquidated damages for breach of the contract;
III. Require the insurer to notify the member employers of cancellation of the policy;
IV. Require the member employers in the event of cancellation to arrange for continuation coverage for their employees to the extent provided under federal and state law; and
V. Contain a provision stating that if after timely receipt of the premium payment from the employer, the alliance fails to make the premium payment to the insurer, with the result that coverage is terminated, that the alliance shall be liable for benefits to the same extent as the insurer or carrier would have been liable if coverage had not been terminated.