20-2203. Powers of the joint underwriting association
The association may, on behalf of its members and with the approval of the director, do all of the following, which may be exercised directly or by contractual delegation:
1. Issue or cause to be issued policies of liability insurance on a claims-made basis to applicants, including incidental coverages, subject to limits as specified in the plan of operation. The policies shall be offered on one of the following bases:
(a) One hundred thousand dollars for each claimant under one policy and three hundred thousand dollars for all claimants under one policy in any one year.
(b) Two hundred fifty thousand dollars for each claimant under one policy and seven hundred fifty thousand dollars for all claimants under one policy in any one year.
(c) Five hundred thousand dollars for each claimant under one policy and one million five hundred thousand dollars for all claimants under one policy in any one year.
(d) One million dollars for each claimant under one policy and three million dollars for all claimants under one policy in any one year.
2. Underwrite the insurance and adjust and pay losses with respect to the insurance or retain service companies to perform those functions.
3. Assume reinsurance from its members.
4. Cede reinsurance.
5. Receive, invest and disburse monies.
6. Open bank accounts and delegate authority for deposit, withdrawal and disbursement of monies.
7. Borrow monies for the association's necessary administrative expenses.
8. Provide for such fidelity and surety bonds as are deemed necessary to transact the business of the association.
9. Review, consider and act on any matters deemed by it to be necessary and proper for the administration of the association.
10. Develop, promulgate and effectuate loss prevention programs.
11. Sue and be sued, except that no judgment against the association shall create any liability in the individual member companies, and the association may provide for the indemnification of its member companies, members of the board of directors and officers and employees and other persons acting on behalf of the association.
12. Employ attorneys and other persons necessary to perform the functions of the association.
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