(a)(1)  The plan of operation as previously established and approved under this section shall continue to be effective. The association may amend the plan of operation when necessary or suitable to assure the fair, reasonable, and equitable administration of the association. Amendments shall become effective upon the commissioner‘s written approval.

(2)  If at any time the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate any reasonable rules necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the commissioner or superseded by amendments to the plan submitted by the association and approved by the commissioner.

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Terms Used In Rhode Island General Laws 27-34.3-10

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Association: means the Rhode Island life and health insurance guaranty association created under §?27-34. See Rhode Island General Laws 27-34.3-5
  • Commissioner: means the commissioner of insurance within the department of business regulation of this state. See Rhode Island General Laws 27-34.3-5
  • 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 which after January 1, 1996, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. See Rhode Island General Laws 27-34.3-5
  • Member insurer: means any insurer licensed or that holds a certificate of authority to transact in this state any kind of insurance for which coverage is provided under §?27-34. See Rhode Island General Laws 27-34.3-5

(b)  All member insurers shall comply with the plan of operation.

(c)  The plan of operation shall, in addition to requirements enumerated in this chapter:

(1)  Establish procedures for handling the assets of the association;

(2)  Establish the amount and method of reimbursing members of the board of directors under § 27-34.3-7;

(3)  Establish regular places and times for meetings including telephone conference calls of the board of directors;

(4)  Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;

(5)  Establish the procedures by which selections for the board of directors will be made and submitted to the commissioner;

(6)  Establish any additional procedures for assessments under § 27-34.3-9;

(7)  Contain additional provisions necessary or proper for the execution of the powers and duties of the association;

(8)  Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer; and

(9)  Require the board of directors to establish a policy and procedures for addressing conflicts of interests.

(d)  The plan of operation may provide that any or all powers and duties of the association, except those under §§ 27-34.3-8( l )(3) and 27-34.3-9, 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 (2) or more states. This corporation, association, or organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subsection 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 of Section.
P.L. 1995, ch. 114, § 1; P.L. 2004, ch. 39, § 1; P.L. 2004, ch. 44, § 1; P.L. 2009, ch. 158, § 1; P.L. 2009, ch. 169, § 1.