20-2206
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20-2206. Approval of plan of operation A. The plan of operation prepared pursuant to section 20-2205 is subject to approval by the director after consultation with the members of the association and other affected individuals and organizations. If the director disapproves all or any part of the proposed plan of operation, the directors of the association, within fifteen days, shall submit for review an appropriate revised plan of operation or a part of a revised plan. If the directors of the association fail to act, the director shall promulgate a plan of operation or a part of a plan, whichever is appropriate. The plan of operation approved or promulgated by the director becomes effective and operational on order of the director. B. A plan of operation shall require the association to issue a claims-made policy. Pending the approval of the plan of operation, the association shall designate a service company or service companies to bind the association for the coverage. The policies shall make provision for payment of dividends. |