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Current as of January 01, 2025 | Updated by Findlaw Staff
(a)(1) The Fund shall submit to the commissioner a plan of operation and any amendments to the plan of operation necessary or suitable to ensure the fair, reasonable and equitable administration of the Fund. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner.
(2) If the Fund fails to submit a suitable plan of operation within 90 days after July 1, 2025, or if at any time thereafter the Fund fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt reasonable rules necessary or advisable to carry out this chapter. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Fund and approved by the commissioner.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation shall establish:
(i) procedures for the performance of the powers and duties of the Fund under section 5;
(ii) procedures for handling assets of the Fund;
(iii) written procedures for the disposition of liquidating dividends or other monies received from the estate of an insolvent member insurer;
(iv) written procedures to designate the amount and method of reimbursing members of the board of directors under section 4 for reasonable expenses incurred in the performance of their duties;
(v) procedures by which claims may be filed with the Fund and acceptable forms of proof of covered claims;
(vi) regular places and times for meetings of the board of directors;
(vii) written procedures for records to be kept of all financial transactions of the Fund, its agents and the board of directors;
(viii) an option for any member insurer aggrieved by any final action or decision of the Fund to appeal to the commissioner within 30 days after the action or decision;
(ix) procedures under which selections for the board of directors shall be submitted to the commissioner; and
(x) any additional provisions necessary or proper for the execution of the powers and duties of the Fund.
(3) The plan of operation may provide that any or all powers and duties of the Fund, except those provided under subsection (c) of section 5 and clause (ii) of subsection (j) of said section 5, shall be delegated to a corporation, association similar to the Fund or other organization which performs or will perform functions similar to those of the Fund or its equivalent in not less than 2 states. The corporation, association similar to the Fund 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 Fund. A delegation under this paragraph 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 that extends protection not substantially less favorable and effective than that provided by this chapter.
Cite this article: FindLaw.com - Massachusetts General Laws Part I. Administration of the Government (Ch. 1-182) Ch. 175D, § 7 - last updated January 01, 2025 | https://codes.findlaw.com/ma/part-i-administration-of-the-government-ch-1-182/ma-gen-laws-ch-175d-sect-7/
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