TITLE 41

INSURANCE

CHAPTER 36

INSURANCE GUARANTY ASSOCIATION

41-3609.  Plan of operation — Approval — Adoption of interim rules by director — Contents of plan — Delegation of powers and duties — Reimbursement of delegate corporation or organization. 

(1) (a) The association shall submit to the director 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 any amendments thereto shall become effective upon approval in writing by the director.

(b)  If the association fails to submit a suitable plan of operation within ninety (90) days following May 6, 1970 or if at any time thereafter the association fails to submit suitable amendments to the plan, the director shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this act. Such rules shall continue in force until modified by the director or superseded by a plan submitted by the association and approved by the director.

(2)  All member insurers shall comply with the plan of operation.

(3)  The plan of operation shall:

(a)  Establish the procedures whereby all the powers and duties of the association under section 41-3608, Idaho Code, 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 41-3607, Idaho Code.

(e)  Establish procedures by which claims may be filed with the association 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 such claims shall be periodically 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, its 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 director within thirty (30) days after the action or decision.

(i)  Establish the procedures whereby selections for the board of directors will be submitted to the director.

(j)  Contain additional provisions necessary or proper for the execution of the powers and duties of the association.

(4)  The plan of operation may provide that any or all powers and duties of the association, except those under sections 41-3608(1)(d) and 41-3608(2)(b), Idaho Code, 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 director, 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 act.

History:

[41-3609, added 1970, ch. 152, sec. 9, p. 462; am. 1997, ch. 109, sec. 7, p. 261.]