20-2201

20-2201. Voluntary plans; assessments;
fund

A. If the director finds after a hearing that in any part of this state any
liability insurance coverage is not readily available in the voluntary insurance market
and that the public interest requires such availability, the director may authorize the
formation of voluntary plans to provide the coverage for any class or classes of risk in
this state which are entitled to but otherwise unable to obtain the coverage. The
director may request insurers, agents and brokers to prepare the plans or assist as
needed in the preparation and administration of the plans.

B. A plan formulated pursuant to this section shall give consideration to all of
the following:

1. The need for adequate and readily accessible coverage.

2. Alternative methods of improving the market affected.

3. Inherent limitations of providing coverage.

4. The need for reasonable underwriting standards.

5. The requirement of reasonable loss prevention measures.

C. The plans shall establish procedures that will encourage use of the voluntary
insurance market as a condition of placement of coverage through the plan.

D. The director may annually assess each insurer authorized to transact liability
insurance in this state up to two hundred dollars for the costs of administering the
plan. Monies collected from assessments shall be deposited in the assessment fund for
voluntary plans established by subsection E of this section.

E. An assessment fund for voluntary plans is established consisting of the monies
that are deposited pursuant to subsection D of this section. The director shall
administer the fund monies as a continuing appropriation for the purposes provided for in
this section. Monies in the fund are exempt from the provisions of section 35-190
relating to lapsing of appropriations.