§ 27-6-8-8 — Plan of operation

Indiana § 27-6-8-8

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 6: REINSURANCE; INTERINSURANCE
• Ch. 8: Property and Casualty Insurance and Guaranty

Text

(a)(i) 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
amendments thereto shall become effective upon approval in writing
by the commissioner.
(ii) If the association fails to submit a suitable plan of operation by
March 31, 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 and promulgate reasonable rules as are
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superseded by a plan submitted by the association and approved by the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.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation shall:
(i) Establish the procedures whereby all the powers and duties of
the association under section 7 of this chapter will be performed.
(ii) Establish procedures for handling assets of the association.
(iii) Establish the amount and method of reimbursing members of
the board of directors under section 6 of this chapter.
(iv) Establish procedures by which claims may be filed with the
association by the liquidator 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 these claims shall be
periodically submitted to the association or similar organization
in another state by the receiver or liquidator.
(v) Establish regular places and times for meetings of the board
of directors.
(vi) Establish procedures for records to be kept of financial
transactions of the association, its agents, and the board of
directors.
(vii) Provide that any member insurer aggrieved by any final
action or decision of the association may appeal to the
commissioner within thirty (30) days after the action or decision.
(viii) Establish the procedures whereby selections for the board of
directors will be submitted to the commissioner.
(ix) 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 section 7(a)(3) and 7(b)(3)
of this chapter, 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 (2) 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
chapter.
Formerly: Acts 1971, P.L.390, SEC.1. As amended by
P.L.252-1985, SEC.223; P.L.52-2013, SEC.6.