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(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 ap

peal 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.

(d) The plan of operation may provide that any or 16 all powers and duties of the Association, except those under 17 subsections 107 (a) (3) and (b) (2), are delegated to a 18 corporation, association, or other organization which per19 forms or will perform functions similar to those of this 20 Association, or its equivalent, in two or more States. Such 21 a corporation, association, or organization shall be reim22 bursed as a servicing facility would be reimbursed and shall 23 be paid for its performance of any other functions of the 24 Association. A delegation under this subsection shall take 25 effect only with the approval of both the Board and the

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1 Commissioner, and may be made only to a corporation, as2 sociation, or organization which extends protection in a

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manner substantially similar to that provided by this title.

(e) Notice of claims to the receiver or liquidator of the 5 insolvent insurer shall be deemed notice to the Association 6 or its agent and a list of such claims shall be periodically 7 submitted to the Association or similar organization in an8 other State by the receiver or liquidator.

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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 in

sureds of the insolvent 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

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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

(3) revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily. (c) All final orders or decisions of the Commissioner 12 made under this Act shall be subject to review in accordance 13 with section 11 of the District of Columbia Administrative 14 Procedures Act (D.C. Code, sec. 1–1510).

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SEC. 110. (a) Any person recovering under this title shall be deemed to have assigned his rights under the policy 17 to the Association to the extent of his recovery from the Association. Every insured or claimant seeking the protection of 19 this title shall cooperate with the Association to the same 20 extent as such person would have been required to cooperate with the insolvent insurer. The Association shall have no cause of action against the insured of the insolvent insurer for

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any sums it has paid out except such causes of action as

the insolvent insurer would have had if such sums had been

25 paid by the insolvent insurer. In the case of an insolvent

20-374 O-74-2

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1 insurer operating on a plan with assessment liability, pay2 ments of claims of the Association shall not operate to reduce 3 the insured's liability to the receiver, liquidator, or statutory 4 successor for unpaid assessments.

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(b) The receiver, liquidator, or statutory successor of an insolvent insurer shall be bound by settlements of covered 7 claims by the Association or a similar organization in another 8 State. The court having jurisdiction shall grant such claims 9 priority equal to that which the claimant would have been 10 entitled in the absence of this title against the assets of the 11 insolvent insurer.

12 (c) The Association shall periodically file with the re13 ceiver or liquidator of the insolvent insurer statements of the 14 covered claims paid by the Association which shall preserve 15 the rights of the Association against the assets of the in16 solvent insurer.

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SEC. 111. (a) Any person having a claim against an 18 insurer under any provision in an insurance policy, other 19 than a policy of an insolvent insurer which is also a covered 20 claim, shall be required to exhaust first his right under such 21 policy. Any amount payable on a covered claim under this 22 title shall be reduced by the amount of any recovery under 23 such insurance policy.

24 (b) Any person having a claim which may be recov25 ered under more than one insurance guaranty association

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or its equivalent shall seek recovery first from the associa

2 tion of the place of residence of the insured except that if it 3 is a first party claim for damage to property with a per4 manent location, he shall seek recovery first from the asso5 ciation of the location of the property, and if it is a work6 men's compensation claim, he shall seek recovery first from 7 the association of the residence of the claimant. Any recov8 ery under this title shall be reduced by the amount of recov9 ery from any other insurance guaranty association or its 10 equivalent.

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SEC. 112. (a) To aid in the detection and prevention 12 of insurer insolvencies

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(1) it shall be the duty of the Board, upon majority vote, to notify the Commissioner of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public; and

(2) the Board may, upon majority vote, request that the Commissioner order an examination of any

member insurer which the Board in good faith believes may be in a financial condition hazardous to the policy

holders or the public.

(b) An examination may be conducted, under this sec

24 tion, as a National Association of Insurance Commissioner

25 examination or may be conducted by such person as the

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