§ 27-34-9. Plan of operation.
(a) The association shall submit to the commissioner a plan of operation and any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and amendments shall become effective upon approval in writing by the commissioner.
(b) If the association fails to submit a suitable plan of operation or suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate any reasonable rules necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the commissioner or superseded by a plan or amendments to it submitted by the association and approved by the commissioner.
(c) All member insurers shall comply with the plan of operation.
(d) The plan of operation shall:
(1) Establish the procedures where all of the powers and duties of the fund under § 27-34-8 will be performed;
(2) Establish the procedures for handling the assets of the association;
(3) Require that written procedures be established for the disposition of liquidating dividends or other monies received from the estate of the insolvent insurer;
(4) Require that written procedures be established to designate the amount and method of reimbursing members of the board of directors under § 27-34-7;
(5) Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims;
(6) Establish regular places and times for meetings of the board of directors;
(7) Require that written procedures be established for records to be kept of all financial transactions of the association, its agents, and the board of directors;
(8) 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;
(9) Establish the procedures under which selections for the board of directors will be submitted to the commissioner; and
(10) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(e) The plan of operation may provide that any or all powers and duties of the association, except those under §§ 27-34-8(a)(3) and 27-34-8(b)(2), are delegated to a corporation, association, similar to the association or other organization which performs or will perform functions similar to those of the association, or its equivalent, in two or more states. The corporation, association, similar to the 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 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 which extends protection not substantially less favorable and effective than that provided by this chapter.
History of Section.
P.L. 1988, ch. 407, § 2; P.L. 2002, ch. 292, § 61; P.L. 2010, ch. 91, § 1; P.L. 2010,
ch. 117, § 1.