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Searching 2021-2022 Session

The Vermont Statutes Online


Title 8 : Banking and Insurance



(Cite as: 8 V.S.A. § 3616)
  • § 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 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 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subchapter, the Commissioner may adopt appropriate rules under 3 V.S.A. chapter 25 which shall continue in force until superseded by amendments submitted by the Association to the Commissioner and approved by him or her.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 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 of Directors and the Commissioner, 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 subchapter. (Added 1969, No. 279 (Adj. Sess.), § 8; amended 1979, No. 18, § 12.)