| 56-12-108. Plan of operation -
Requirements of plan - Delegation of authority.
(a)
- The association shall submit to the commissioner a plan
of operation and any amendments thereto necessary or suitable to assure
the fair, reasonable, and equitable administration of the association. The
plan of operation and any amendments thereto shall become effective upon
approval in writing by the commissioner.
- If the association fails to submit suitable amendments
to the plan, the commissioner shall, after notice and hearing, adopt and
promulgate such reasonable rules as are necessary or advisable to
effectuate the provisions of this part. Such rules shall continue in force
until modified by the commissioner or superseded by a plan submitted by
the association and approved by the commissioner.
(b) All member insurers shall
comply with the plan of operation.
(c) The plan of operation
shall:
- Establish the procedures whereby all the powers and
duties of the association under § 56-12-107 will be performed;
- Establish procedures for handling assets of the
association;
- Establish the amount and method of reimbursing members
of the board of directors under § 56-12-106;
- Establish procedures by which claims may be filed with
the association and establish acceptable forms of proof of covered claims.
Notice of claims to the receiver or liquidator of the insolvent insurer
shall be deemed notice to the association or its agent, and a list of such
claims shall be periodically submitted to the association or similar
organization in another state by the receiver or liquidator.
- Establish regular places and times for meetings of the
board of directors;
- Establish procedures for records to be kept of all
financial transactions of the association, its agents, and the board of
directors;
- Provide that any member insurer aggrieved by any final
action or decision of the association may appeal to the commissioner
within thirty (30) days after the action or decision;
- Establish the procedures whereby selections for the
board of directors will be submitted to the commissioner;
- Contain additional provisions necessary or proper for
the execution of the powers and duties of the association; and
- Establish procedures for the disposition of liquidating
dividends or other moneys received from the estate of the insolvent
insurer.
(d) The Plan of operation may
provide that any or all powers and duties of the association, except those
under § 56-12-107(a)(3) and (b)(3), are delegated to a corporation,
association, or other organization which performs or will perform functions
similar to those of this association, or its equivalent, in two (2) or
more states. Such a corporation, association, or organization shall be
reimbursed as a servicing facility would be reimbursed and shall be paid for
its performance of any other functions of the association. A delegation
under this subsection (d) shall take effect only with the approval of both the
board of directors and the commissioner, and may be made only to a
corporation, association, or organization that extends protection not
substantially less favorable and effective than that provided by this part.
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