Management Contract With The Administrator — Mandatory Provisions

TITLE 41 INSURANCE CHAPTER 49 PETROLEUM CLEAN WATER TRUST FUND ACT 41-4929. Management contract with the administrator — Mandatory provisions. (1) The management contract entered into between the administrator and the board as required in this chapter, shall not become effective unless the contract is filed with and approved by the director. The contract shall be deemed approved unless disapproved by the director within twenty (20) days after date of filing, subject to such reasonable extension of time as the director may require by notice given within the twenty (20) day period. Any disapproval shall be delivered to the administrator in writing, stating the grounds therefor. (2)  Any such contract, or contract holder, shall provide that the administrator shall, within ninety (90) days after expiration of each calendar year, furnish the director a written statement of amounts received under or on account of the contract and amounts expended thereunder during such calendar year, including the emoluments received therefrom by the principal management personnel of the administrator involved with the affairs of the trust fund, and with such classification of items and further detail as the director may reasonably require. (3)  The director shall disapprove any such contract if he finds that it: (a)  Subjects the trust fund to unreasonable or excessive charges; or (b)  Does not contain fair and adequate standards of performance; or (c)  Contains other inequitable provisions which impair the proper interests of the owners or operators insured by the trust fund. (4)  The director may, after a hearing held thereon, withdraw his approval of any such contract theretofore approved by him, if he finds that the basis of his original approval no longer exists, or that the contract has, in actual operation, shown itself to be subject to disapproval on any of the grounds referred to in subsection (3) of this section.