§3616. Plan of operation

Link to law: http://legislature.vermont.gov/statutes/section/08/101/03616
Published: 2015

Print

The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

101

:
INSURANCE COMPANIES GENERALLY






Subchapter

009
:
PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION










 

§

3616. Plan of operation

(a)(1) 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.

(2) If after

approval by the commissioner of the plan of operation, the association fails to

submit amendments to the plan when necessary or advisable to effectuate the

provisions of this subchapter, the commissioner may adopt appropriate rules

under chapter 25 of Title 3 which shall continue in force until superseded by

amendments submitted by the association to the commissioner and approved by

him.

(b) All member

insurers shall comply with the plan of operation.

(c) The plan of

operation shall:

(1) Establish

the procedures whereby all the powers and duties of the association under

section 3615 of this title will be performed.

(2) Establish

procedures for handling assets of the association.

(3) Establish

the amount and method of reimbursing members of the board of directors under

section 3614 of this title.

(4) 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.

(5) Establish

regular places and times for meetings of the board of directors.

(6) Establish

procedures for records to be kept of all financial transactions of the

association, its agents, and the board of directors.

(7) Provide that

any member insurer aggrieved by any final action or decision of the association

may appeal to the commissioner within 30 days after the action or decision.

(8) Establish

the procedures whereby selections for the board of directors will be submitted

to the commissioner.

(9) Contain

additional provisions necessary or proper for the execution of the powers and

duties of the association.

(d) The plan of

operation may provide that any or all powers and duties of the association,

except those under subdivisions 3615(a)(3) and 3615(b)(2) of this title, 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 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 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

subchapter. (1969, No. 279 (Adj. Sess.), § 8; amended 1979, No. 18, § 12.)
Read Entire Law on legislature.vermont.gov