(a)  The association shall submit to the commissioner a plan of operation and any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and amendments shall become effective upon approval in writing by the commissioner.

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Terms Used In Rhode Island General Laws 27-34-9

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Association: means the Rhode Island insurance guaranty association created under §?27-34-6. See Rhode Island General Laws 27-34-5
  • Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-34-5
  • 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
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Insolvent insurer: means an insurer licensed to transact insurance in this state either at the time the policy was issued; when the obligation with respect to the covered claim was assumed under an assumed claims transaction; or when the insured event occurred, and against whom a final order of liquidation has been entered after the effective date of this chapter with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile. See Rhode Island General Laws 27-34-5
  • Member insurer: means any person who:

    (A)  Writes any kind of insurance to which this chapter applies, under §?27-34-3, including the exchange of reciprocal or interinsurance contracts;

    (B)  Is licensed to transact insurance in this state; and

    (C)  Is not otherwise excepted from membership by statute or regulation. See Rhode Island General Laws 27-34-5

(b)  If the association fails to submit a suitable plan of operation or 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 a plan or amendments to it submitted by the association and approved by the commissioner.

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

(d)  The plan of operation shall:

(1)  Establish the procedures where all of the powers and duties of the fund under § 27-34-8 will be performed;

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

(3)  Require that written procedures be established for the disposition of liquidating dividends or other monies received from the estate of the insolvent insurer;

(4)  Require that written procedures be established to designate the amount and method of reimbursing members of the board of directors under § 27-34-7;

(5)  Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims;

(6)  Establish regular places and times for meetings of the board of directors;

(7)  Require that written procedures be established for records to be kept of all financial transactions of the association, its agents, and the board of directors;

(8)  Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty (30) days after the action or decision;

(9)  Establish the procedures under which selections for the board of directors will be submitted to the commissioner; and

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

(e)  The plan of operation may provide that any or all powers and duties of the association, except those under §§ 27-34-8(a)(3) and 27-34-8(b)(2), are delegated to a corporation, association, similar to the association or other organization which performs or will perform functions similar to those of the association, or its equivalent, in two or more states. The corporation, association, similar to the association or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions 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. 1988, ch. 407, § 2; P.L. 2002, ch. 292, § 61; P.L. 2010, ch. 91, § 1; P.L. 2010, ch. 117, § 1.