§ 10-4-509 — Plan of operation

Colorado § 10-4-509

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

(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 ninety
days following July 1, 1971, or if at any time thereafter 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 5. 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modified by the commissioner or superseded by a plan submitted by the association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.

(3) All member insurers shall comply with the plan of operation.

(4) The plan of operation shall:

(a) Establish the procedures whereby all the powers and duties of the
association under section 10-4-508 will be performed;

(b) Establish procedures for handling assets of the association;

(c) Establish the amount and method of reimbursing members of the board
of directors under section 10-4-507;

(d) Establish procedures by which claims may be filed with the association
and provide 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.

(e) Establish regular places and times for meetings of the board of directors;

(f) Establish procedures for records to be kept of all financial transactions of
the association, its agents, and the board of directors;

(g) Provide that any member insurer aggrieved by any final action or decision
of the association may appeal to the commissioner within thirty days after the
action or decision;

(h) Establish the procedures whereby selections for the board of directors
will be submitted to the commissioner;

(i) Contain additional provisions necessary or proper for the execution of the
powers and duties of the association.

(5) The plan of operation may provide that any or all powers and duties of the
association, except those under section 10-4-508 (1)(c) and (2)(c), are delegated to a
corporation, association, or other organization which performs or will perform
functions similar to those of the 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 (5) 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
part 5.

Legislative History

Source: L. 71: p. 759, � 1. C.R.S. 1963: � 72-34-9.