Marvin Mandel, Governor                        1535

(e)    Negotiate and contract with any liquidator, rehabilitator,
conservator, or ancillary receiver to carry out the 'power and duties
of the Association.

(f)    Take such legal action as may be necessary to avoid payment
of improper claims.

(g)    Exercise,, for the purposes of this Act and to the extent ap-
proved by the Commissioner, the powers of a domestic life or health
insurer, but in no case may the Association issue insurance policies
or annuity contracts other than those issued to perform the contrac-
tual obligations of the impaired insurer.

512. Assessments.

(1)    For the purpose of providing the funds necessary to carry
out the powers and duties of the Association, the board of directors
shall assess the member insurers, separately for each account, at such
time and for such amounts as the board finds necessary. The board
shall collect the assessments after 30 days written notice to the mem-
ber insurers before payment is due.

(2)    There shall be three classes of assessments, as follows:

(a)    Class A assessments shall be made for the purpose of meeting
administrative costs and other general expenses not related to a par-
ticular impaired insurer.

(b)    Class B assessments shall be made to the extent necessary
to carry out the powers and duties of the Association under Section
511 with regard to an impaired domestic insurer.

(c)    Class C assessments shall be made to the extent necessary to
carry out the powers and duties of the Association under Section 511
with regard to an impaired foreign or alien insurer.

(3) (a) The amount of any Class A assessment for each account
shall be determined by the board. The amount of any Class B or
Class C assessment shall be divided among the accounts in the pro-
portion that the premiums received by the impaired insurer on the
policies covered by each account bears to the premiums received by
such insurer on all covered policies.

(b)    Class A and Class C assessments against member insurers
for each account shall be in the proportion that the premium received
on business in this State by each assessed member insurer on policies
covered by each account bears to such premiums received on business
in this State by all assessed member insurers.

(c)    Class B assessment for each account shall be made separately
for each state in which the impaired domestic insurer was authorized
to transact insurance at any time, in the proportion that the pre-
miums received on business in such state by the impaired insurer on
policies covered by such account bears to such premiums received in
all such states by the impaired insurer. The assessments against
member insurers shall be in the proportion that the premiums re-
ceived on business in each such state by each assessed member in-
surer on policies covered by each account bears to such premiums
received on business in each such state by all assessed member
insurers.