7 1 in the proportion that the net direct written premiums of 2 the member insurer for the preceding calendar year on 3 the kinds of insurance in the account bears to the net direct 4 written premiums of all member insurers for the preceding 5 calendar year on the kinds of insurance in the account. 6 Each member insurer shall be notified of the assessment not 7 later than thirty days before it is due. No member insurer 8 may be assessed in any year on any account an amount 9 greater than 2 per centum of that member insurer's net 10 direct written premiums for the preceding calendar year on 11 the kinds of insurance in the account. If the maximum assess12 ment, together with the other assets of the Association in 13 any account, does not provide in any one year in any ac14 count an amount sufficient to make all necessary payments 15 from that account, the funds available shall be prorated and 16 the unpaid portion shall be paid as soon thereafter as funds 17 become available. The Association may exempt or defer, 18 in whole or in part, the assessment of any member insurer, 19 if the assessment would cause the member insurer's finan20 cial statement to reflect amounts of capital or surplus less 21 than the minimum amounts required for a certificate of 22 authority by any jurisdiction in which the member insurer 23 is authorized to transact insurance. Each member insurer 24 may set off against any assessment, authorized payments 25 made on covered claims and expenses incurred in the pay 8 ment of such claims by the member insurer if they are 2 chargeable to the account for which the assessment is made. 10 11 12 13 31 14 15 16 17 18 19 20 2223 21 (c) The Association may (1) employ or retain such persons as are neces sary to handle claims and perform other duties of the Association; (2) borrow funds necessary to effect the purposes of this title in accord with the plan of operation; (3) sue or be sued; (4) negotiate and become a party to such contracts as are necessary to carry out the purpose of this title; (5) perform such other acts as are necessary or proper to effectuate the purpose of this title; and (6) refund to the member insurers in proportion to the contribution of each member insurer to that ac count that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the Board of Directors finds that the assets of the Asso ciation in any account exceed the liabilities of that account as estimated by the Board for the coming year. SEC. 108. (a) (1) The Board shall submit to the Com 22 missioner a plan of operation and any amendments thereto 233 23 necessary or suitable to assure the fair, reasonable, and equi 24 table administration of the Association. The plan of operation 9 1 and any amendments thereto shall become effective upon ap 2 proval in writing by the Commissioner. 30 (2) If the Board fails to submit a suitable plan of op 4 eration within ninety days following the effective date of this 5 title or if at any time thereafter the Board fails to submit 6 suitable amendments to the plan, the Commissioner shall, 7 after notice and hearing, adopt and promulgate such reason8 able rules as are necessary or advisable to effectuate the pro9 visions of this title. Such rules shall continue in force until 10 modified by the Commissioner or superseded by a plan sub11 mitted by the Board and approved by the Commissioner. (b) All member insurers shall comply with the plan 12 13 of operation. 14 15 16 17 18 (c) The plan of operation shall (1) establish the procedures whereby all the powers and duties of the Association under section 107 will be performed; (2) establish procedures for handling assets of the Association; (3) establish the amount and method of reimburs ing members of the Board under section 106; (4) establish procedures by which claims may be filed with the Association and establish acceptable forms of proof of covered claims; 1 2 3 4 5 69 7 8 9 10 11 121 13 14 15 16 10 (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 appeal 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 all 17 powers and duties of the Association, except those under 18 subsections 107 (a) (3) and (b) (2), are delegated to a 19 corporation, association, or other organization which performs 20 or will perform functions similar to those of this Association, or its equivalent, in two or more States. Such a corporation, 22 association, or organization shall be reimbursed as a servic23 ing facility would be reimbursed and shall be paid for its 24 performance of any other functions of the Association. A 25 delegation under this subsection shall take effect only with 21 11 1 the approval of both the Board and the Commissioner, and 2 may be made only to a corporation, association, or orga 3 nization which extends protection in a manner substan4 tially similar to that provided by this title. 5 (e) Notice of claims to the receiver or liquidator of the 6 insolvent insurer shall be deemed notice to the Association 7 or its agent and a list of such claims shall be periodically 8 submitted to the Association or similar organization in another 9 State by the receiver or liquidator. 10 11 12 13 14 15 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 pre 16 17 miums of each member insurer. (b) The Commissioner may— (1) require that the Association notify the insureds 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 notifica tion by mail is not available; |