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(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,



cept such fine shall not exceed 5 per centum of the un


paid assessment per month, except that no fine shall be

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(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


13 made under this Act shall be subject to review in accordance

14 with section 11 of the District of Columbia Administrative

15 Procedure Act (D.C. Code, sec. 1-1510).


16 SEC. 110. (a) Any person recovering under this title 17 shall be deemed to have assigned his rights under the policy

to the Association to the extent of his recovery from the 19 Association. Every insured or claimant seeking the protec20 tion of this title shall cooperate with the Association to the 21 same extent as such person would have been required to

22 cooperate with the insolvent insurer. The Association shall

23 have no cause of action against the insured of the insolvent 24 insurer for any sums it has paid out except such causes of 25 actions as the insolvent insurer would have had if such sums


1 had been paid by the insolvent insurer. In the case of an 2 insolvent insurer operating on a plan with assessment lia3 bility, payments of claims of the Association shall not op4 erate' to reduce the insured's liability to the receiver, liqui5 dator, or statutory successor for unpaid assessments.

(b) The receiver, liquidator, or statutory successor of an insolvent insurer shall be bound by settlements of covered 8 claims by the Association or a similar organization in an9 other State. The court having jurisdiction shall grant such 10 claims priority equal to that which the claimant would 11 have been entitled in the absence of this title against the



12 assets of the insolvent insurer.

13 (c) The Association shall periodically file with the 14 receiver or liquidator of the insolvent insurer statements 15 of the covered claims paid by the Association which shall 16 preserve the rights of the Association against the assets

17 of the insolvent insurer.


SEC. 111. (a) Any person having a claim against an

19 insurer under any provision in an insurance policy, other 20 than a policy of an insolvent insurer which is also a covered 21 claim, shall be required to exhaust first his right under 22 such policy. Any amount payable on a covered claim under

23. this title shall be reduced by the amount of any recovery

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(b) Any person having a claim which may be recovered


1 under more than one insurance guaranty association or its 2 equivalent shall seek recovery first from the association of 3 the place of residence of the insured except that if it is a 4 first party claim for damage to property with a permanent

5 location, he shall seek recovery first from the association of

6 the location of the property, and if it is a workmen's com

7 pensation claim, he shall seek recovery first from the asso8 ciation of the residence of the claimant. Any recovery under

9 this title shall be reduced by the amount of recovery from

10 any other insurance guaranty association or its equivalent. 11 SEC. 112. (a) To aid in the detection and prevention

12 of insurer insolvencies,


(1) it shall be the duty of the Board, upon majority


vote, to notify the Commissioner of any information in


dicating 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


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(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


1 Commissioner designates. The cost of such examination 2 shall be paid by the Association and the examination 3 report shall be treated as are other examination reports. In


no event shall such examination report be released to the 5 Board prior to its release to the public, but this shall not pre6 clude the Commissioner from complying with subsection

7 (c) of this section. The Commissioner shall notify the Board

8 when the examination is completed. The request for an

9 examination shall be kept on file by the Commissioner but it 10 shall not be open to public inspection prior to the release of


the examination report to the public.

(c) It shall be the duty of the Commissioner to report



to the Board when he has reasonable cause to believe that

14 any member insurer examined or being examined at the 15 request of the Board may be insolvent or in a financial con16 dition hazardous to the policyholders or the public. 17 (d) The Board may, upon majority vote, make reports

18 and recommendations to the Commissioner upon any matter


germane to the solvency, liquidation, rehabilitation, or con

20 servation of any member insurer. Such reports and recom

21 mendations shall not be considered public documents. 22 (e) The Board may, upon majority vote, make rec

23ommendations to the Commissioner for the detection and

24 prevention of insurer insolvencies.


(f) The Board shall, at the conclusion of any insurer


1 insolvency in which the Association was obligated to pay

2 covered claims, prepare a report on the history and causes

3 of such insolvency, based on the information available to 4 the Association, and submit such report to the Commissioner. 5 SEC. 113. The Association shall be subject to examination 6 and regulation by the Commissioner. The Board shall sub

7 mit, not later than March 30 of each year, a financial report

8 for the preceding calendar year on a form approved by the 9 Commissioner.

10 SEC. 114. The Association shall be exempt from pay11 ment of all fees and taxes levied or collected by the District 12 of Columbia, except taxes levied on real or personal property. 13 SEC. 115. The rates and premiums charged for insurance 14

policies to which this title applies shall include amounts suf15 ficient to recoup a sum equal to the amounts paid to the As16 sociation by the member insurer less any amounts returned 17

to the member insurer by the Association and such rates shall


not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member


20 insurer.


SEC. 116. There shall be no liability on the part of, and 22

no cause of action of any nature shall rise against, any mem23 ber insurer, the Association or its agents or employees, the 24 Board, or the Commissioner or his representatives for any

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