§ 60C.07 — Plan of Operation
Plain-Language Summary
This section requires the guaranty association to create a plan of operation and get it approved by the commissioner. The plan must set up procedures for handling claims, managing money, and running the board of directors. If the association fails to submit a good plan, the commissioner can make rules instead.
60C.07 PLAN OF OPERATION.
§
Subdivision 1.Required submission.
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 become effective upon written approval from the commissioner. If the association fails to submit a suitable plan of operation within 90 days following July 1, 1971, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate reasonable rules necessary to effectuate the provisions of this chapter. The rules continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner. §
Subd. 2.Contents.
The plan of operation shall:
(a) Establish the procedures whereby all the powers and duties of the association under section 60C.05 will be performed.
(b) Establish procedures for handling assets of the association.
(c) Establish the amount and method of reimbursement of members of the board of directors under section 60C.08, subdivision 3.
(d) Establish procedures by which claims may be filed with the association.
(e) Establish regular places and times for meetings for the board of directors.
(f) Establish procedures for records to be kept 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 30 days after the action or decision.
(h) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner.
(i) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(j) Establish procedures for the disposition of liquidating dividends or other money received from the estate of insolvent insurers. §
Subd. 3.Delegation authority.
The plan of operation may provide that any or all powers and duties of the association, except those under section 60C.05, subdivisions 1, clause (b) and 2, clause (b), 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. The 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 subdivision 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 chapter.
History:
1971 c 145 s 7; 1997 c 52 s 6; 2003 c 74 s 5
History: History: 1971 c 145 s 7; 1997 c 52 s 6; 2003 c 74 s 5