[ Text of section effective until April 9, 2025. For text effective April 9, 2025, see below.]Section 7.
(1)The commissioner shall:
(a)notify the Fund of each insolvent insurer not later than three days after he receives notice of such insolvency and furnish to the Fund a copy of any complaint seeking an order of liquidation with a finding of insolvency against a company at the same time that such complaint is filed with a court of competent jurisdiction;
(b)provide the Fund with a statement of the net direct written premiums of each insurer; and(c) begin an examination not later than thirty days after receiving a request for examination of an insurer under clause (e) of paragraph (2) of section five. Such examination may be conducted as a National Association of Insurance Commissioner
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[ Text of section effective until April 9, 2025. For text effective April 9, 2025, see below.]Section 7. (1) The commissioner shall:(a) notify the Fund of each insolvent insurer not later than three days after he receives notice of such insolvency and furnish to the Fund a copy of any complaint seeking an order of liquidation with a finding of insolvency against a company at the same time that such complaint is filed with a court of competent jurisdiction;(b) provide the Fund with a statement of the net direct written premiums of each insurer; and(c) begin an examination not later than thirty days after receiving a request for examination of an insurer under clause (e) of paragraph (2) of section five. Such examination may be conducted as a National Association of Insurance Commissioners examination or may be conducted by such persons as the commissioner shall designate. The cost of such examination shall be paid by the Fund and the examination report shall be treated as are other examination reports. In no event shall such examination report be released to the board of directors prior to its release to the public. The commissioner shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the commissioner but it shall not be open to public inspection.(2) The commissioner may:(a) require that the Fund notify the insureds of the insolvent insurer and any other interested parties of the insolvency and of their rights under this chapter;(b) suspend or revoke, after notice and hearings, the certificate of authority to transact insurance in this state of any insurer which fails to pay an assessment when due or fails to comply with the plan; and(c) revoke the authority of any servicing facility if he finds claims are being handled unsatisfactorily.Chapter 175D: Section 7. Plan of operation[ Text of section as recodified by 2024, 389, Sec. 3 effective April 9, 2025. For text effective until April 9, 2025, see above.]Section 7. (a)(1) The Fund shall submit to the commissioner a plan of operation and any amendments to the plan of operation necessary or suitable to ensure the fair, reasonable and equitable administration of the Fund. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner.(2) If the Fund fails to submit a suitable plan of operation within 90 days after July 1, 2025, or if at any time thereafter the Fund fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt reasonable rules necessary or advisable to carry out this chapter. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Fund and approved by the commissioner.(b) All member insurers shall comply with the plan of operation.(c) The plan of operation shall establish:(i) procedures for the performance of the powers and duties of the Fund under section 5;(ii) procedures for handling assets of the Fund;(iii) written procedures for the disposition of liquidating dividends or other monies received from the estate of an insolvent member insurer;(iv) written procedures to designate the amount and method of reimbursing members of the board of directors under section 4 for reasonable expenses incurred in the performance of their duties;(v) procedures by which claims may be filed with the Fund and acceptable forms of proof of covered claims;(vi) regular places and times for meetings of the board of directors;(vii) written procedures for records to be kept of all financial transactions of the Fund, its agents and the board of directors;(viii) an option for any member insurer aggrieved by any final action or decision of the Fund to appeal to the commissioner within 30 days after the action or decision;(ix) procedures under which selections for the board of directors shall be submitted to the commissioner; and(x) any additional provisions necessary or proper for the execution of the powers and duties of the Fund.(3) The plan of operation may provide that any or all powers and duties of the Fund, except those provided under subsection (c) of section 5 and clause (ii) of subsection (j) of said section 5, shall be delegated to a corporation, association similar to the Fund or other organization which performs or will perform functions similar to those of the Fund or its equivalent in not less than 2 states. The corporation, association similar to the Fund 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 Fund. A delegation under this paragraph 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 that extends protection not substantially less favorable and effective than that provided by this chapter.