LD 933
pg. 23
Page 22 of 38 PUBLIC Law Chapter 346 Page 24 of 38
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LR 2060
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domestic life or health insurer, but in no case may the
association issue insurance policies or annuity contracts
other than those issued to perform the contractual obligations
of the impaired insurer.;

 
H.__Organize itself as a corporation or in other legal form
permitted by the laws of this State;

 
I. Request information from a person seeking coverage from
the association in order to aid the association in
determining its obligations under this chapter with respect
to the person, and the person shall promptly comply with the
request;

 
J. Join an organization of one or more other state
associations of similar purposes, to further the purposes
and administer the powers and duties of the association; and

 
K. Take necessary or appropriate action to discharge its
duties and obligations under this chapter or to exercise its
powers under this chapter.

 
12.__Reinsurance of obligations; election by association.__At
any time within one year after the date on which the association
becomes responsible for the obligations of a member insurer, the
association may elect to succeed to the rights and obligations of
the member insurer that accrue on or after the coverage date and
that relate to contracts covered in whole or in part by the
association under any one or more indemnity reinsurance
agreements entered into by the member insurer as a ceding insurer
and selected by the association.__However, the association may
not exercise an election with respect to a reinsurance agreement
if the receiver, rehabilitator or liquidator of the member
insurer has previously and expressly disaffirmed the reinsurance
agreement.__The election is effected by a notice to the receiver,
rehabilitator or liquidator and to the affected reinsurers.__If
the association makes an election, the following requirements
apply with respect to the agreements selected by the association.

 
A.__For contracts covered in whole or in part by the
association, the association is responsible for all unpaid
premiums due under the agreements for periods both before
and after the coverage date and for the performance of all
other obligations to be performed after the coverage date.__
The association may charge contracts covered in part by the
association, through reasonable allocation methods, the
costs for reinsurance in excess of the obligations of the
association.


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