Page:United States Statutes at Large Volume 87.djvu/332

 300

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powers

PUBLIC LAW 93-89-AUG. 14, 1973

[87 STAT.

(b) All member insurers shall comply with the plan of operation. (c) The plan of operation shall— (1) establish the procedures whereby all the powers and duties of the Association under section 107 will be performed; (2) establish procedures for handling assets of the Association; (3) establish the amount and method of reimbursing members of the Board under section 106; (4) establish procedures by which claims may be filed with the Association and establish acceptable forms of proof of covered claims; (5) establish regular places and times for meetings of the Board; (6) establish procedures for records to be kept of all financial transactions of the Association, its agents, and the Board; (7) provide that any member insurer aggrieved by a final action or decision of the Association may appeal to the Commissioner within thirty days after the action or decision; (8) establish the procedures whereby selections for the Board will be submitted to the Commissioner; and (9) contain additional provisions necessary or proper for the execution of the powers and duties of the Association. (^) "^^^^ plan of operation may provide that any or all powers and duties of the Association, except those under subsections 107(a)(3) and (c)(2), 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 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 and the Commissioner, and may be made only to a corporation, association, or organization which extends protection in a manner substantially similar to that provided by this title. (e) Notice of claims to the receiver or licjuidator 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. SEC. 109. (a) The Commissioner shall— (1) notify the Association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency; and (2) upon request of the Board provide the Association with a statement of the net direct written premiums of each member insurer. (b) The Commissioner may— (1) require that the Association notify the insureds of the involvent insurer and any other interested parties of the determination of insolvency and of their rights under this title by mail at their last known address, where available, or by publication in a newspaper of general circulation, if sufficient information for notification by mail is not available; (2) suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in the District of Columbia of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation, or levy a fine on any member insurer which fails to pay an assessment when due, except such fine shall not exceed 5 per centum of the unpaid assessment per month, except that no fine shall be less than $100 per month; and

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