§ 518C.7 — Plan of operation

Iowa § 518C.7

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 518C: COUNTY AND STATE MUTUAL INSURANCE GUARANTY ASSOCIATION

Text

1. a. The association shall submit a plan of operation to the commissioner, together
with any amendments necessary or suitable to ensure the fair, reasonable, and equitable
administration of the association. The plan of operation and any amendment become
effective upon written approval by the commissioner.
b. If the association fails to submit a suitable plan of operation within ninety days
following July 1, 2000, or if at any time after submission of a suitable plan the association
fails to submit suitable amendments to the plan, the commissioner, after notice and
opportunity for hearing, shall adopt rules necessary or advisable to effectuate the provisions
of this chapter. 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superseded by a plan submitted by the association and approved by the commissioner.
2. A member insurer shall comply with the association’s plan of operation.
3. The plan of operation shall provide for all of the following:
a. Procedures for the performance of the duties and execution of the powers of the
association under section 518C.6.
b. Procedures for managing the assets of the association.
c. Procedures by which claims may be filed with the association and acceptable forms
of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent
insurer constitutes 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.
d. The place and time for meetings of the board of directors, as necessary.
e. Procedures for keeping records of all financial transactions of the association, its
agents, and the board of directors.
f. That any member insurer aggrieved by a final action or decision of the association
may appeal the action or decision to the commissioner within thirty days after the action or
decision.
g. Additional provisions necessary or proper for the performance of the duties and
execution of the powers of the association.
4. The plan of operation may delegate any or all duties and powers of the association,
except those under section 518C.6, subsection 1, paragraph “c”, and section 518C.6,
subsection 2, paragraph “c”, to a person with the approval of both the board of directors
and the commissioner. Such delegation shall only be made to a person extending protection
which is not substantially less favorable and effective than that provided by this chapter.
Such person shall be reimbursed as a servicing facility and shall be paid for the performance
of any other functions of the association.