515B.6 Plan of operation.
490 words·~2 min read·
/ia/chapter-515b-insurance-guaranty-association/515b-6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. a. The association shall submit a plan of operation to the commissioner, together with any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments shall become effective upon approval in writing by the commissioner.
b. If the association fails to submit a suitable plan of operation within ninety days following the effective date of this chapter or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and opportunity for hearing, adopt and promulgate reasonable rules 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 Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
2. All member insurers shall comply with the plan of operation.
3. The plan of operation shall:
a. Establish the procedures for performance of all the duties and powers of the association under section 515B.5.
b. Establish procedures for managing assets of the association.
c. Establish the amount and method of reimbursing members of the board of directors under section 515B.4.
d. 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.
e. Establish regular places and times for meetings of the board of directors.
f. Establish procedures for keeping records of all financial transactions of the association, its agents, and the board of directors.
g. 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.
h. Establish procedures for submission to the commissioner of selections for the board of directors.
i. Contain additional provisions necessary or proper for the execution of the duties and powers of the association.
4. The plan of operation may provide that any or all duties and powers of the association, except those under section 515B.5, subsection 1, paragraph “c”, and section 515B.5, subsection 2, paragraph “c”, are delegated to a person which performs or will perform functions similar to those of this association in two or more states. Such person shall be reimbursed as a servicing facility and shall be paid for 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 person which extends protection not substantially less favorable and effective than that provided by this chapter.
[C71, 73, 75, 77, 79, 81, §515B.6]
Referred to in §515B.3