§431:21-105 Powers and duties of the association. (a) In addition to any other requirements imposed by law, the association shall:
(1) Formulate and administer a plan of operation to insure persons having an insurable interest in real or tangible personal property in an area designated by the commissioner;
(2) Establish in the plan of operation a maximum period of time during which a high-rise condominium association may be eligible to be insured by the association, which shall not exceed sixty months;
(3) Reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while processing applications and servicing policies on behalf of the association; and
(4) Collect and maintain statistical information and other information required by the commissioner.
(b) In addition to any other powers allowed by law, the association may:
(1) Add additional insurance coverages with the approval of the commissioner, including coverage for commercial risks up to the limits of coverage as set forth in the plan of operation;
(2) Employ or retain persons as are necessary to perform the duties of the association;
(3) Contract with a member insurer to perform the duties of the association;
(4) Sue or be sued;
(5) Borrow funds necessary to effectuate the purposes of this article in accord with the plan of operation;
(6) If approved by the commissioner, activate, reduce, or terminate the collection of an assessment on member insurers in amounts necessary to cover extraordinary losses incurred by the association; provided that:
(A) Each member insurer shall be notified of the assessment not later than thirty days before it is due;
(B) The association, subject to the approval of the commissioner, may set the amount of the assessment; provided further that:
(i) No member insurer may be assessed in any year an amount greater than two per cent of that member insurer's net direct written premiums for the preceding calendar year; and
(ii) The association may at any time reduce the amount of the assessment;
(C) The association, subject to the approval of the commissioner, may establish the period of time during which the assessment shall be collected; provided that the time period shall not exceed thirty-six months; provided further that the association at any time may terminate the collection of the assessment; and
(D) The association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact business;
(7) Devise a method to give credit to member insurers as set forth in the plan of operation;
(8) Negotiate and become a party to contracts as are necessary to carry out the purposes of this article;
(9) Establish outside the state treasury a reserve trust fund and any accounts thereunder and any other trust fund or account necessary to carry out the purposes of this article. Moneys deposited in the reserve trust fund and any accounts thereunder or any other trust fund or account established by the association shall be held by the association, as trustee, in a depository as defined in section 38-1 or according to a similar arrangement at the discretion of the board of directors, including but not limited to trust or custodial accounts created for the benefit of the fund's secured parties under contractual claims financing arrangements. These moneys may be invested and reinvested in accordance with the plan of operation. Disbursements from the trust funds shall not be subject to chapter 103D and shall be made in accordance with procedures adopted by the board of directors;
(11) Perform all other acts as are necessary or proper to effectuate the purpose of this article. [L 1991, c 284, pt of §2; am L 1992, c 143, §4; am L 2025, c 296, §3]