§ 27-34.3-10 - Plan of operation.
SECTION 27-34.3-10
§ 27-34.3-10 Plan of operation. – (a) The plan of operation as previously established and approved under thissection shall continue to be effective. The association may amend the plan ofoperation when necessary or suitable to assure the fair, reasonable andequitable administration of the association. Amendments shall become effectiveupon the commissioner's written approval.
(2) If at any time the association fails to submit suitableamendments to the plan, the commissioner shall, after notice and hearing, adoptand promulgate any reasonable rules necessary or advisable to effectuate theprovisions of this chapter. The rules shall continue in force until modified bythe commissioner or superseded by amendments to the plan submitted by theassociation and approved by the commissioner.
(b) All member insurers shall comply with the plan ofoperation.
(c) The plan of operation shall, in addition to requirementsenumerated in this chapter:
(1) Establish procedures for handling the assets of theassociation;
(2) Establish the amount and method of reimbursing members ofthe board of directors under § 27-34.3-7;
(3) Establish regular places and times for meetings includingtelephone conference calls of the board of directors;
(4) Establish procedures for records to be kept of allfinancial transactions of the association, its agents, and the board ofdirectors;
(5) Establish the procedures by which selections for theboard of directors will be made and submitted to the commissioner;
(6) Establish any additional procedures for assessments under§ 27-34.3-9;
(7) Contain additional provisions necessary or proper for theexecution of the powers and duties of the association.
(8) Establish procedures whereby a director may be removedfor cause, including in the case where a member insurer director becomes animpaired or insolvent insurer; and
(9) Require the board of directors to establish a policy andprocedures for addressing conflicts of interests.
(d) The plan of operation may provide that any or all powersand duties of the association, except those under § 27-34.3-8( l )(3) and§ 27-34.3-9, are delegated to a corporation, association, or otherorganization which performs or will perform functions similar to those of thisassociation, or its equivalent, in two (2) or more states. This corporation,association, or organization shall be reimbursed for any payments made onbehalf of the association and shall be paid for its performance of any functionof the association. A delegation under this subsection shall take effect onlywith the approval of both the board of directors and the commissioner, and maybe made only to a corporation, association, or organization which extendsprotection not substantially less favorable and effective than that provided bythis chapter.