§ 26.1-42.1-06 — Plan of operation

North Dakota § 26.1-42.1-06

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-42.1: Insurance Guaranty Association

Text

1. The association shall submit to the commissioner a plan of operation and any
amendments to this plan necessary or suitable to assure the fair, reasonable, and
equitable administration of the association. The plan of operation and any
amendments become effective upon written approval by the commissioner. If the
association fails to submit a suitable plan of operation within ninety days following
August 1, 1999, or if at any time after August 1, 1999, the association fails to submit
suitable amendments to the plan, the commissioner, after notice and hearing, shall
adopt rules as necessary or advisable to implement this chapter. These rules continue
in force until modified by the commissioner or superseded by a plan submitted by the
association and approved by the commissioner.
2. All member insurers shall comply with the plan of operation.
3. The plan of operation must:
a. Establish procedures by which all the powers and duties of the association under
section 26.1-42.1-05 will be performed.
b. Establish procedures for handling assets of the association.
c. Establish procedures for the disposition of liquidating dividends or other moneys
received from the estate of the insolvent insurer.
d. Establish the amount and method of reimbursing members of the board of
directors under section 26.1-42.1-04.
e. Establish procedures by which claims may be filed with the association, if
necessary, and establish acceptable forms of proof of covered claims. Notice of
claims to the receiver or liquidator of the insolvent insurer are deemed notice to
the association or the association's agent and periodically a list of claims must be
submitted to the association or similar organization in another state by the
receiver or liquidator.
f. Establish regular places and times for meetings of the board of directors.
g. Establish procedures for records to be kept of all financial transactions of the
association, the association's agents, and the board of directors.
h. 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.
i. Establish procedures by which selections for the board of directors will be
submitted to the commissioner.
j. Contain provisions necessary or proper for the execution of the powers and
duties of the association.
4. The plan of operation may provide that powers and duties of the association, except
those under subdivision d of subsection 1 of section 26.1-42.1-05 and subdivision b of
subsection 2 of section 26.1-42.1-05, are delegated to a corporation, association, or
other organization that performs or will perform functions similar to those of this
association or this association's equivalent in two or more states. This corporation,
association, or organization must be reimbursed as a servicing facility would be
reimbursed and must be paid for performance of any other functions of the
association. A delegation under this subsection takes effect only with the approval of
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 less effective than that provided by this chapter.