§ 58-45-30. Directors to submit plan of operation to Commissioner; review and approval; amendments; appeal from Commissioner to superior court.
§ 58‑45‑30. Directors to submit plan of operation to Commissioner; review and approval;amendments; appeal from Commissioner to superior court.
(a) The Directors shallsubmit to the Commissioner for his review and approval, a proposed plan ofoperation. The plan shall set forth the number, qualifications, terms ofoffice, and manner of election of the members of the board of directors, andshall grant proper credit annually to each member of the Association foressential property insurance, farmowners, homeowners insurance, and theproperty portion of commercial multiple peril policies voluntarily written inthe beach and coastal areas and shall provide for the efficient, economical,fair and nondiscriminatory administration of the Association and for the promptand efficient provision of essential property insurance in the beach andcoastal areas of North Carolina to promote orderly community development inthose areas and to provide means for the adequate maintenance and improvementof the property in those areas. The plan may include the establishment ofnecessary facilities; management of the Association; the assessment of membersto defray losses and expenses; underwriting standards; procedures for theacceptance and cession of reinsurance; procedures for determining the amountsof insurance to be provided to specific risks; time limits and procedures forprocessing applications for insurance; and any other provisions that areconsidered necessary by the Commissioner to carry out the purposes of this Article.
(b) The proposed planand any amendments thereto shall be filed with the Commissioner and approved byhim if he finds that such plan fulfills the purposes provided by G.S. 58‑45‑1.In the review of the proposed plan the Commissioner may, in his discretion,consult with the directors of the Association and may seek any furtherinformation which he deems necessary to his decision. If the Commissionerapproves the proposed plan, he shall certify such approval to the directors andthe plan shall become effective 10 days after such certification. If theCommissioner disapproves all or any part of the proposed plan of operation heshall return the same to the directors with his written statement for thereasons for disapproval and any recommendations he may wish to make. Thedirectors may alter the plan in accordance with the Commissioner'srecommendation or may within 30 days from the date of disapproval return a newplan to the Commissioner. Should the directors fail to submit a plan that meetsthe requirements of this Article or accept the recommendations of theCommissioner within 30 days after his disapproval of the plan, the Commissionershall promulgate and place into effect a plan of operation that meets therequirements of this Article certifying the same to the directors of theAssociation. Any such plan promulgated by the Commissioner shall take effect 10days after certification to the directors.
(c) The directors ofthe Association may, subject to the approval of the Commissioner, amend theplan of operation at any time. The Commissioner may review the plan ofoperation at any time the Commissioner deems expedient or prudent, but not lessthan once in each calendar year. After review of the plan the Commissioner mayamend the plan after consultation with the directors and upon certification tothe directors of the amendment. Any order of the Commissioner with respect tothe proposed plan of operation or any amendments thereto shall be subject toreview upon petition by the Association as provided by G.S. 58‑2‑75.
(d) As used in thissubsection, "homeowners' insurance policy" means a multiperil policyproviding full coverage of residential property similar to the coverageprovided under an HO‑2, HO‑3, HO‑4, or HO‑6 policyunder Article 36 of this Chapter. The Association shall issue, for principalresidences, homeowners' insurance policies approved by the Commissioner.Homeowners' insurance policies shall be available to persons who reside in thebeach and coastal areas who meet the Association's underwriting standards andwho are unable to obtain homeowners' insurance policies from insurers that areauthorized to transact and are actually writing homeowners' insurance policiesin this State. The Association shall file for approval by the Commissioner underwritingstandards to determine whether property is insurable. The standards shallreflect underwriting standards commonly used in the voluntary homeowners'insurance business. The terms and conditions of the homeowners' insurancepolicies available under this subsection shall not be more favorable than thoseof homeowners' insurance policies available in the voluntary market in beachand coastal counties.
(e) The Associationshall, subject to the Commissioner's approval or modification, provide in theplan of operation for coverage for appropriate classes of manufacturing risks.
(f) As used in thissection, "plan of operation" includes all written rules, practices,and procedures of the Association, except for staffing and personnel matters. (1967, c. 1111, s. 1; 1969,c. 249; 1986, Ex. Sess., c. 7, s. 8; 1987, c. 731, s. 1; c. 864, s. 41; 1991,c. 720, s. 59; 1991 (Reg. Sess., 1992), c. 784, s. 5; 1997‑498, s. 3;2002‑185, s. 2; 2003‑158, ss. 1, 3.1; 2009‑472, s. 1.)