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Texas Insurance Code - Section 462.103. Plan Of Operation

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 462.103. Plan Of Operation

§ 462.103. PLAN OF OPERATION.  (a) The association shall 
perform the association's functions under a plan of operation 
necessary or suitable to ensure the fair, reasonable, and equitable 
administration of the association.  The plan of operation must:
		(1)  be submitted to and approved in writing by the 
commissioner;           
		(2)  establish:                                                               
			(A)  procedures under which the powers and duties 
of the association are performed;
			(B)  procedures for handling assets of the 
association;                    
			(C)  the amount and method of reimbursing board 
members;                   
			(D)  acceptable forms of proof of covered claims;                            
			(E)  regular places and times for board meetings;                            
			(F)  procedures for records to be kept of each 
financial transaction of the association, the association's 
agents, and the board;  and
			(G)  procedures under which selections for the 
board are submitted to the commissioner;
		(3)  provide:                                                                 
			(A)  for the establishment of a claims filing 
procedure that includes:     
				(i)  notice by the association to claimants;                                
				(ii)  procedures for filing claims seeking 
recovery from the association;  and
				(iii)  a procedure for appealing the denial 
of claims by the association;  and
			(B)  that a member insurer aggrieved by a final 
action or decision of the association may appeal to the 
commissioner not later than the 30th day after the date of the 
action or decision;  and
		(4)  contain additional provisions necessary or proper 
for the execution of the association's powers and duties.
	(b)  The association shall submit to the commissioner any 
amendment to the plan of operation necessary or suitable to ensure 
the fair, reasonable, and equitable administration of the 
association.  The amendment takes effect on the commissioner's 
written approval.
	(c)  If the association does not submit a suitable amendment 
to the plan of operation, the commissioner after notice and hearing 
shall adopt reasonable rules as necessary or advisable to implement 
this chapter.  A rule continues in effect until modified by the 
commissioner or superseded by an amendment submitted by the 
association and approved by the commissioner.
	(d)  Each member insurer shall comply with the plan of 
operation.            

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 10, 2007