Title 58, INSURANCE

In approving selections to the board, the director shall consider, among other things, whether all member insurers are fairly represented. No less than two members of the board shall be domestic insurers. Source: SL 2000, ch 247 , § 5.

Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors. Source: SL 2000, ch 247 , § 6.

The association may: (1) Employ or retain such persons as are necessary to handle claims and perform other duties of the association; (2) Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation; (3) Sue or be sued. The power to sue inclu…

The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real property. Source: SL 2000, ch 247 , § 8.

To aid in the detection and prevention of insurer insolvencies, it is 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…

To aid in the detection and prevention of insurer insolvencies, the board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholde…

The director shall report to the board of directors when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or the pub…

The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of insurer insolvencies. Source: SL 2000, ch 247 , § 12.

The board of directors may, upon majority vote, make recommendations to the director on matters generally related to improving or enhancing regulation for solvency. Source: SL 2000, ch 247 , § 13.

The board of directors may, at the conclusion of any domestic 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 the repo…

The association is obligated to pay covered claims existing prior to the order of liquidation, arising within thirty days after the order of liquidation, or before the policy expiration date if less than thirty days after the order of liquidation, or before the insured replaces t…

The association shall be deemed the insurer to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become inso…

The association shall investigate claims brought against the association and adjust, compromise, settle, and pay covered claims to the extent of the association's obligation and deny any other claims and may review settlements, releases, and judgments to which the insolvent insur…

The association, at its sole discretion, may transfer claims handling and financial responsibility for a covered claim to, or recover from, the following persons the amount of any covered claim paid on behalf of such person pursuant to this chapter: (1) Any insured whose net wort…

The association shall handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the director, but such designation may be declined by a member insurer.…

The association shall reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the association and shall pay the other expenses of the association authorized by this chap…

For purposes of administration and assessment, the association shall be divided into three separate accounts: (1) The workers' compensation insurance account; (2) The automobile insurance account; and (3) The account for all other insurance to which this chapter applies. Source: …

The association shall allocate claims paid and expenses incurred among the three accounts separately, and assess member insurers separately for each account amounts necessary to pay the obligations of the association under § 58-29A-68 subsequent to an insolvency, the expenses of …

In addition to any other assessments authorized by this chapter, the association may assess each member insurer an administrative assessment not to exceed five hundred dollars per annum. The administrative assessment shall be made for the purpose of paying operating expenses of t…

The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bears to the net direct written premiums of all member insurers for the preceding …

No member insurer may be assessed in any year on any account an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account. Source: SL 2000, ch 247 , § 25.

Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer if they are chargeable to the account for which the assessment is made. Source: SL 2000, ch 247 , § 26.

The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by…

If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall b…

The association may refund to the member insurers in proportion to the contribution of each member insurer to that account that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors finds that the assets of t…

The association shall submit to the director a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments is effective upon approval in writing by the directo…

The plan of operation shall: (1) Establish the procedures whereby all the powers and duties of the association under §§ 58-29A-60 , 58-29A-68 to 58-29A-73 , inclusive, and §§ 58-29A-75 to 58-29A-82 , inclusive, will be performed; (2) Establish procedures for handling assets of th…

All member insurers shall comply with the plan of operation. Violation of this section is a Class 2 misdemeanor. Source: SL 2000, ch 247 , § 32.

The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29A-60(2) and those under §§ 58-29A-75 to 58-29A-81 , inclusive, are delegated to a corporation, association, or other organization which performs or will per…

If at any time the association fails to submit suitable amendments to the plan of operation, the director shall, after notice and hearing, promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in forc…

The director shall notify the association of the existence of an insolvent insurer not later than three days after the director receives notice of the determination of the insolvency. The association is entitled to a copy of any complaint seeking an order of liquidation with a fi…

The director shall, upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. Source: SL 2000, ch 247 , § 36.

Any proceeding in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed until the last day fixed by the court for the filing of claims a…

The director may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the director may levy a …

The director may revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily. Source: SL 2000, ch 247 , § 39.

Any person having a claim against an insurer, whether or not the insurer is a member insurer, under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall be required to first exhaust any right under the policy. Any a…

Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first - party claim for damage to property with a p…

Any person recovering under this chapter shall be deemed to have assigned that person's rights under the policy to the association to the extent of any recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the associa…

The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out, except such causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in § 58-29A-71 . Source…

In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association may not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments. Source: SL 2000, ch 247 , § 44.

The receiver, liquidator, or statutory successor of an insolvent insurer is bound by determinations of covered claim eligibility under this chapter and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall…

The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association which shall preserve the rights of the association against the assets o…

This chapter may be cited as the Insurers Supervision, Rehabilitation, and Liquidation Act. Source: SL 1989, ch 436 , § 1.

No person may obstruct or interfere with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto. This section may not be construed to abridge otherwise existing legal rights, including the right to good faith resistance to…

The liquidator's proposal shall provide for disbursements to the associations in amounts estimated at least equal to the claim payments made or to be made thereby for which such associations could assert a claim against the liquidator, and shall further provide that if the assets…

The liquidator's proposal shall, with respect to an insolvent insurer writing life or health insurance or annuities, provide for disbursements of assets to any guaranty association or any foreign guaranty association covering life or health insurance or annuities or to any other …