Montana Code 33-10-216. Plan of operation — delegation of powers provision
33-10-216. Plan of operation — delegation of powers provision. (1) (a) The association shall submit to the commissioner a plan of operation and any amendments to the plan that are necessary or suitable to ensure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments to the plan become effective upon the commissioner’s written approval or 60 days after receipt by the commissioner’s office if the commissioner does not disapprove the submitted plan of operation and any amendments within those 60 days.
Terms Used In Montana Code 33-10-216
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Montana life and health insurance guaranty association created under 33-10-203. See Montana Code 33-10-202
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Insolvent insurer: means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction upon a finding of insolvency. See Montana Code 33-10-202
- Member insurer: means an insurer, health service corporation, or health maintenance organization that is licensed or that holds a certificate of authority to transact any kind of insurance in this state for which coverage is provided under this part and includes any insurer, health service corporation, or health maintenance organization whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn. See Montana Code 33-10-202
(b)If the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate reasonable rules necessary or advisable to effectuate the provisions of this part. The rules remain in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(2)All member insurers shall comply with the plan of operation.
(3)The plan of operation must, in addition to requirements enumerated elsewhere in this part:
(a)establish procedures for handling the assets of the association;
(b)establish the amount and method of reimbursing members of the board of directors under 33-10-204;
(c)establish regular places and times for meetings of the board of directors;
(d)establish procedures for keeping records of all financial transactions of the association, its agents, and the board of directors;
(e)establish procedures to select the board of directors and submit notice of the selections to the commissioner;
(f)establish any additional procedures for assessments under 33-10-227;
(g)establish procedures for the removal of a director for cause, including in a case in which a member insurer director becomes an impaired or insolvent insurer;
(h)require the board of directors to establish a policy and procedures for addressing conflicts of interests;
(i)contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(4)The plan of operation may provide that any or all powers and duties of the association, except those under 33-10-205(9)(c) and 33-10-227, may be delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this association or its equivalent in two or more states. A corporation, association, or organization to which these powers and duties are delegated must be reimbursed for any payments made on behalf of the association and must be paid for performing any function of the association. A delegation of authority under this subsection may 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 that extends protection not substantially less favorable or less effective than that provided by this part.