§ 27-8-8-7 — Association plan of operation

Indiana § 27-8-8-7

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 8: LIFE, ACCIDENT, AND HEALTH
• Ch. 8: Indiana Life and Health Insurance Guaranty Association

Text

(a) The association shall submit to the
commissioner a plan of operation and any amendments to the plan of
operation that are necessary or appropriate to assure the fair,
reasonable, and equitable administration of the association. The plan
of operation and an amendment to the plan of operation are effective:
(1) if the plan or amendment is not disapproved by the
commissioner within thirty (30) days after being submitted to the
commissioner; or
(2) upon the commissioner's written approval, if sooner than the
time set in subdivision (1).
(b) If the association fails to submit a suitable plan of operation
within one hundred eighty (180) days from September 1, 1978, or if at
any other time the association fails to submit suitable amendments to
the plan, the commissioner shall adopt rules under IC 4-22-2 necessary
to effectuate the provisions of this chapter. The rules continue in force
until modified by the commissioner or superseded by a plan submitted
by the association and approved by the commissioner.
(c) A member insurer shall comply with the plan of operation.
(d) The plan of operation must, in addition to requirements stated
elsewhere in this chapter establish:
(1) procedures for handling the assets of the association;
(2) the amount and method of reimbursing members of the board
under section 4 of this chapter;
(3) regular places and times for meetings, including, if desired by
the association, telephone conference calls, of the board;
(4) procedures for records to be kept of all financial transactions
of the association, its agents, and the board;
(5) procedures whereby selections for the board will be made and
submitted to the commissioner; and
(6) any additional procedures for assessments under sections 6
and 6.2 of this chapter.
The plan of operation may contain additional provisions necessary or
appropriate for the execution of the powers and duties of the
association.
(e) The plan of operation may provide that any or all powers and
duties of the association, except those under sections 5(r)(3), 6, 6.2,
and 6.5 of this chapter, may be delegated to a corporation, association,
or other organization that performs or will perform functions similar to
those of the association, or its equivalent, in two (2) or more states. The
corporation, association, or organization must be reimbursed for
payments made on behalf of the association and must be paid for its
performance of any function of the association. A delegation under this
subsection takes effect only with the approval of both the board and the
commissioner and may be made only to a corporation, association, or
organization that extends protection that is not substantially less
favorable and effective than that provided by this chapter.
(f) To the extent and in the manner specified in the plan of
operation, the board may create one (1) or more committees, each of
which may exercise the authority of the board to the extent specified in
the plan of operation or by the board.
As added by Acts 1978, P.L.129, SEC.3. Amended by
P.L.193-2006, SEC.21.