Page:United States Statutes at Large Volume 87.djvu/330

 298

PUBLIC LAW 93-89-AUG. 14, 1973

[87 STAT.

title referred to as the "Board"). For purposes of administration and assessment, the Association shall be divided into three separate accounts: (a) the workmen's compensation insurance account; (b) the automolbile insurance account; and (c) the account for all other insurance to which this title applies. Board members. SEC. 106. (a) The Board shall cousist of uot less than five uor uiore than nine persons serving terms as established in the plan of operation. The members of the Board shall be selected by member insurers subject to the approval of the Commissioner. Vacancies on the Board shall be Vacancies. filled for the remaining period of the term in the same manner as initial appointments. If no members are selected within sixty days after the effective date of this title, the Commissioner may appoint the i nitial members of the Board. (b) In approving selections to the Board, the Commissioner shall consider among other things whether all member insurers are fairly represented. Expenses. (c) Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board. Duties. SEC. 107. (a) The Association shall— (1) be obligated to the extent of the covered claims existing prior to the determination of insolvency and arising within thirty days after the determination of insolvency, or before the policy expiration date if less than thirty days after the determination, or before the insured replaces the policy or causes its cancellation, if he does so within thirty days of the determination, but such obligation shall include only that amount of each covered claim which is in excess of $100 and is less than $300,000, except that the Association shall pay the full amount of any covered claim arising out of a workmen's compensation policy; except in no event shall the Association be obligated to a policyholder or claimant in an amount in excess of the obligation of the insolvent insurer under the policy from which the claim arises; (2) be deemed the insurer to the extent of its obligation on the covered claims and to such extent shall have all righti, duties, and obligations of the insolvent insurer as if the insurer had not become insolvent; (3) allocate claims paid and expenses incurred among the three accounts separately, and assess member insurers separately, according to subsection (b) of this section, for each account amounts necessary to pay the obligations of the Association under paragraph (1) of this subsection subsequent to an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost^ of examinations under section 112 and other expenses authorized by this title; (4) investigate claims brought against the Association and adjust, compromise, settle, and pay covered claims to the extent of the Association's obligation and deny all other claims and may review settlements, releases and judgments to which the insolvent insurer or its insureds were parties to determine the extent to which such settlements, releases and judgments may be properly contested; (5) notify such persons as the Commissioner directs under section 109(b)(1); (6) handle claims through its employees or through one or more insurers or other persons designated, subject to the approval of the Commissioner, as servicing facilities, except auoh designation may be declined by a member insurer; and

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