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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

112

:
LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION






Subchapter

001
:
LIFE AND HEALTH INSURANCE COMPANIES










 

§

4160. 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 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force until modified by the Commissioner or superseded by a plan submitted by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:

(1) Establish

procedures for handling the assets of the Association.

(2) Establish

the amount and method of reimbursing members of the Board of Directors under

section 4157 of this title.

(3) Establish

regular places and times for meetings of the Board of Directors.

(4) Establish

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

Association, its agents, and the Board of Directors.

(5) Establish

the procedures whereby selections for the Board of Directors will be made and

submitted to the Commissioner.

(6) Establish

any additional procedures for assessments under section 4159 of this title.

(7) 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 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.)