210 Neb. Admin. Code, ch. 47, § 015

Current through September 17, 2024

Section 210-47-015 - Voluntary dissolution of the pool

015.01 A pool shall not voluntarily dissolve or cease to function unless the governing board obtains the approval of the director and obtains the approval of the pool's members in accordance with the agreement establishing the pool and the pool's by-laws, which shall require a two-thirds majority vote. The governing board may submit a written application seeking the director's approval to voluntarily dissolve, at least 90 days in advance of the proposed dissolution date, setting forth the following:

015.01A Desired date of pool's dissolution;

015.01B Resolution of the governing board to terminate the pool and seeking the director's approval of such termination; and

015.01C A plan of dissolution adopted by the governing board which describes the pool's arrangements for satisfying its obligations, including the insurance or reinsurance of its obligations with insurers under appropriate agreements approved by the director, or such alternative arrangements which provide for the payment of all claims, liabilities and debts such as a contingency or trust fund for future claims and obligations. Such obligations shall include both known claims and associated expenses and claims incurred but not reported and associated expenses. The plan shall provide for the distribution of any assets remaining after payment of claims, liabilities and debts and the return of any unearned premium contributions. The return of surplus contributions must be based on an equitable formula.

015.02 The director shall, within 30 days from the date the application for voluntary dissolution was submitted to the Department, issue a written determination regarding the application to voluntarily dissolve, and if approved, the pool shall proceed by placing the matter before the pool members for a vote within 30 days after the approval of the director.

015.03 The governing board of the pool shall certify the results of the vote to the Department and proceed accordingly.

210 Neb. Admin. Code, ch. 47, § 015

Amended effective 11/19/2022