§ 3616. Plan of operation
(a)(1) The Association shall submit to the Commissioner a plan of operation and any amendments
thereto necessary or suitable to ensure 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 Commissioner.
(2) If after approval by the Commissioner of the plan of operation, the Association fails
to submit amendments to the plan when necessary or advisable to effectuate the provisions
of this subchapter, the Commissioner may adopt appropriate rules under 3 V.S.A. chapter 25 that shall continue in force until superseded by amendments submitted by the Association
to the Commissioner and approved by him or her.
(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 3615 of this title will be performed.
(2) Establish procedures for handling assets of the Association.
(3) Establish the amount and method of reimbursing members of the Board of Directors under
section 3614 of this title.
(4) 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.
(5) Establish regular places and times for meetings of the Board of Directors.
(6) Establish procedures for records to be kept of all financial transactions of the Association,
its agents, and the Board of Directors.
(7) Provide that any member insurer aggrieved by any final action or decision of the Association
may appeal to the Commissioner within 30 days after the action or decision.
(8) Establish the procedures whereby selections for the Board of Directors will be submitted
to the Commissioner.
(9) Contain additional provisions necessary or proper for the execution of the powers
and duties of the Association.
(d) The plan of operation may provide that any or all powers and duties of the association,
except those under subdivisions 3615(a)(3) and 3615(b)(2) of this title, are delegated to a corporation, association, or other organization that 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 of Directors and the Commissioner,
and may be made only to a corporation, association, or organization that extends protection
not substantially less favorable and effective than that provided by this subchapter. (Added 1969, No. 279 (Adj. Sess.), § 8; amended 1979, No. 18, § 12.)