38.2-1607 - Plan of operation.
§ 38.2-1607. Plan of operation.
A. 1. The plan of operation and any amendments to it shall be submitted tothe Commission by the Association and shall not become effective untilapproved by the Commission in writing. The Commission shall approve the planor amendment to the plan if it complies with this chapter and assures thefair, reasonable, and equitable administration of the Association.
2. The plan of operation approved under former § 38.1-764 shall remain ineffect until modified in accordance with subdivision 3 of this subsection.
3. If the Association fails to submit suitable amendments to the plan, theCommission shall, after notice and hearing, adopt and promulgate anyreasonable rules that are necessary or advisable to effect this chapter.Those rules shall continue in force until modified by the Commission orsuperseded by a plan or amendments submitted by the Association and approvedby the Commission.
B. All member insurers shall comply with the plan of operation.
C. The plan of operation shall:
1. Establish the procedures for exercising the powers and duties of theAssociation under § 38.2-1606.
2. Establish procedures for handling assets of the Association.
3. Establish the amount and method of reimbursing members of the board ofdirectors under § 38.2-1605.
4. Establish procedures by which claims may be filed with the Association andestablish acceptable forms of proof of covered claims. Notice of claims tothe receiver or liquidator of the insolvent insurer shall be deemed notice tothe Association or its agent and a list of those claims shall be periodicallysubmitted to the Association or similar organizations in another state by thereceiver or liquidator.
5. Establish regular places and times for meetings of the board of directors.
6. Establish procedures for records to be kept of all financial transactionsof the Association, its agents, and the board of directors.
7. Provide that any member insurer aggrieved by any final action or decisionof the Association may appeal to the Commission within thirty days after theaction or decision.
8. Establish the procedures for submitting to the Commission the names ofelected members of the board of directors.
9. Contain additional provisions necessary or proper for the execution of thepowers and duties of the Association.
D. The plan of operation may provide that any or all powers and duties of theAssociation, except those under subdivision 3 of subsection A of § 38.2-1606and subdivision 2 of subsection B of § 38.2-1606, shall be delegated to acorporation, association, or other organization that performs or will performfunctions similar to those of this Association, or its equivalent, in two ormore states. The corporation, association or organization shall becompensated for providing those and any other permissible services. Adelegation under this subsection shall take effect only with the approval ofboth the board of directors and the Commission. The delegation may be madeonly to a corporation, association, or organization that extends protectionwhich is substantially no less favorable or effective than that provided bythis chapter.
(1970, c. 766, § 38.1-764; 1986, c. 562.)