MASSACHUSETTS INSURERS INSOLVENCY FUND
Plan of operation
Section 6. (1) (a) The Fund shall, within ninety days after the nomination of the initial board of directors, submit to the commissioner a plan of operation, and thereafter such amendments thereto as may be necessary or suitable to assure the fair, reasonable and equitable administration of the Fund. The plan of operation and any amendments thereto shall become effective as approved in writing by the commissioner. All insurers shall comply with the plan of operation so approved.
(b) If the Fund fails to submit a suitable plan of operation within said ninety day period or if at any time thereafter the Fund fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules and regulations as are necessary or advisable to carry out the provisions of 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 Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Fund and approved by the commissioner.
(2) The plan shall establish:
(a) procedures for carrying out the powers and duties of the Fund under section five;
(b) procedures for handling assets of the Fund;
(c) The method of reimbursing members of the board of directors for expenses incurred;
(d) procedures by which claims may be filed with the Fund and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the Fund or its agent and a list of such claims shall be periodically submitted to the Fund by the receiver or liquidator;
(e) regular places and times for meeting of the board;
(f) procedures for records to be kept of all activities and financial transactions of the Fund, its agents and the board of directors;
(g) the procedures whereby nominations for the board of directors will be submitted to the commissioner; and shall
(h) provide that any insurer aggrieved by any action or decision of the Fund may appeal to the commissioner within thirty days after the action or decision.
(3) The plan of operation may provide that any or all powers and duties of the Fund, except those under clause (c) of paragraph (1) of section five and clause (c) of paragraph (2) of section five, are delegated to a corporation, association or other organization which performs or will perform functions similar to those of the Fund or its equivalent in two or more states. Such 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 Fund. A delegation of powers and duties under this section 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 is permanent and extends protection not substantially less favorable and effective than that provided by this chapter.