SD Codified L § 58-29C-53 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 29C - Life And Health Insurance Guaranty Association|Section 58-29C-53 - Plan of operation--Effective date--Requirements--Delegation of powers.

58-29C-53. Plan of operation--Effective date--Requirements--Delegation of powers.A. (1) The association shall submit to the director a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon the director's written approval or unless it has not been disapproved within thirty days.(2)If the association fails to submit a suitable plan of operation within one hundred twenty days following July 1, 2003, or if at any time thereafter the association fails to submit suitable amendments to the plan, the director shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the director or superseded by a plan submitted by the association and approved by the director.B. All member insurers shall comply with the plan of operation.C. The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:(1)Establish procedures for handling the assets of the association;(2)Establish the amount and method of reimbursing members of the board of directors under §58-29C-50;(3)Establish regular places and times for meetings including telephone conference calls 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)Establish the procedures whereby selections for the board of directors will be made and submitted to the director;(6)Establish any additional procedures for assessments under §58-29C-52;(7)Contain additional provisions necessary or proper for the execution of the powers and duties of the association;(8)Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer;(9)Require the board of directors to establish a policy and procedures for addressing conflicts of interests.D. The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29C-51L(3) and §58-29C-52, are delegated to a corporation, association, or other 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 for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subpart 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 this chapter. Source: SL 2003, ch 252, §10; SL 2013, ch 252, §6.