{"data":{"id":"us-nc/n.c.-gen.-stat.-58-48-40","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-48-40","heading":"Plan of operation.","body":"(a)\tThe Association shall submit to the Commissioner a plan of operation and any amendment 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 approval in writing by the Commissioner.\nIf the Association fails to submit a suitable plan of operation within 90 days following June 25, 1971, or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this Article. Such rules shall continue in force until modified by the Commissioner or superseded by a plan submitted by the Association and approved by the Commissioner.\n(b)\tAll member insurers shall comply with the plan of operation.\n(c)\tThe plan of operation shall:\n(1)\tEstablish the procedures whereby all the powers and duties of the Association under G.S. 58-48-35 will be performed.\n(2)\tEstablish procedures for handling assets of the Association.\n(3)\tEstablish the amount and method of reimbursing members of the board of directors under G.S. 58-48-30.\n(4)\tEstablish procedures by which claims may be filed with the Association 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 Association or its agent and a list of such claims shall be periodically submitted to the Association or similar organization in another state by the receiver or liquidator.\n(5)\tEstablish regular places and times for meetings of the board of directors.\n(6)\tEstablish procedures for records to be kept of all financial transactions of the Association, its agents, and the board of directors.\n(7)\tProvide that any member insurer aggrieved by any final action or decision of the Association may appeal to the Commissioner within 30 days after the action or decision.\n(8)\tEstablish the procedures whereby selections for the board of directors will be submitted to the Commissioner.\n(9)\tContain additional provisions necessary or proper for the execution of the powers and duties of the Association.\n(d)\tThe plan of operation may provide that any or all powers and duties of the Association, except those under G.S. 58-48-35(a)(3) and G.S. 58-48-35(b)(2), 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 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 subsection 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 extends protection not substantially less favorable and effective than that provided by this Article. (1971, c. 670, s. 1; 1973, c. 1446, s. 2.)","path":["Chapter 58. Insurance.","Article 48. Postassessment Insurance Guaranty Association."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-48-40.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"bb3a9552eebf5ab7dd0d33d77ae27226d734d64a8823d02a772ccebc17ae799a","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-48-35","next":"us-nc/n.c.-gen.-stat.-58-48-42"},"notice":"GroundRules: Original legal text. Not legal advice."}