Section 375.776

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2013, 2 histories   

  375.776.  Board of directors, selection, terms — powers and duties. — 1.  The board of directors, subject to the supervision of the director, shall:

  (1)  Establish a plan of operation whereby the duties of the association under section 375.775 will be performed;

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

  (3)  Establish regular places and times for meetings 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)  Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the director within thirty days after the action or decision;

  (6)  Establish the procedures whereby selections for the board of directors will be submitted to the director; and

  (7)  Have and exercise such additional powers necessary or proper for the execution of the powers and duties of the association.

  2.  The plan of operation may provide that any or all powers and duties of the association, except those under subsection 8 and subdivision (4) of subsection 10 of section 375.775, are delegated to a corporation, association, or organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states.  Such a corporation, 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 section shall take effect only with the approval of both the board of directors and the director, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by sections 375.771 to 375.779.

  3.  The board of directors of the association shall consist of not less than seven nor more than nine persons serving terms as established in the plan of operation.  The members of the board shall be selected by member insurers subject to the approval of the director.  Not less than four of the members shall represent domestic insurers.  Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members subject to the approval of the director.

  4.  Members of the board shall receive no remuneration.

  5.  To aid in the detection and prevention of insurer insolvencies:

  (1)  It shall be the duty of the board of directors, upon majority vote, to notify the director of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public;

  (2)  The board of directors may, upon majority vote, make reports and recommendations to the director upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer.  Such reports and recommendations shall not be considered public documents; and

  (3)  The board of directors shall, at the conclusion of any insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit such report to the director.

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(L. 1989 S.B. 333, A.L. 2004 S.B. 1299, A.L. 2013 S.B. 59)