Ala. Admin. Code r. 482-1-082-.04
Within one month of the effective date of this chapter and after notice by the Commissioner of the time and place of the organizational meeting, the members of the guaranty association shall elect with the approval of the Commissioner at least five and not more than nine members for an initial board of directors. Each licensed HMO shall have one vote in person or by proxy. If no directors are elected the Commissioner may appoint directors from the members for the guaranty association. These directors shall serve for one year terms until staggered terms of one to three years are established for the directors by the articles of association. Vacancies of the board shall be filled for the remaining period of the director's term by a majority vote of the remaining board members, subject to the approval of the commissioner. The reasonable expenses of the association and the directors shall be paid by assessment of the members of the association.
The board of directors shall within ninety days of their election meet and promulgate articles of association, bylaws and a plan of operation to govern their activities. These articles and bylaws shall be submitted to the Commissioner for consent and approval before they are effective. The organizational articles of the guaranty association shall be similar to the organizational requirements of the Life and Disability Guaranty Association as required by Section 27-44-1etseq., Code of Ala. 1975.
Author: Commissioner of Insurance
Ala. Admin. Code r. 482-1-082-.04
Statutory Authority:Code of Ala. 1975, §§ 27-21A-12(i), 27-2-17, 27-21A-19