The Vermont Statutes Online
Banking and Insurance
LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION
LIFE AND HEALTH INSURANCE COMPANIES
4160. Plan of operation
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
(2) If the
Association fails to submit a suitable plan of operation within 180 days
following April 27, 1972 or if at any time thereafter the Association fails to
submit suitable amendments to the plan, the Commissioner shall, after notice
and hearing, adopt such reasonable rules as are necessary or advisable to
effectuate the provisions of this subchapter. 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force until modified by the Commissioner or superseded by a plan submitted by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, in addition to requirements enumerated elsewhere in this subchapter:
procedures for handling the assets of the Association.
the amount and method of reimbursing members of the Board of Directors under
section 4157 of this title.
regular places and times for meetings of the Board of Directors.
procedures for records to be kept of all financial transactions of the
Association, its agents, and the Board of Directors.
the procedures whereby selections for the Board of Directors will be made and
submitted to the Commissioner.
any additional procedures for assessments under section 4159 of this title.
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 subdivision 4158(9)(C) and section 4159 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 for any payments made on behalf of the
Association and shall be paid for its performance of any function 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. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972;
amended 2015, No. 23, § 83.)