“Plan of operation” defined. “Plan of operation” means an analysis of the expected activities and results of a risk retention group, including:
1. The coverages, deductibles, limits of coverage, rates and systems of rating classification for each line of insurance the group intends to offer;
2. Historical and expected loss experience of the proposed members, and national experience of similar exposures to the extent that this experience is reasonably available;
3. Pro forma financial statements and projections;
4. Appropriate opinions by a qualified, independent casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition;
5. Identification of management, underwriting procedures, policies for investment and methods for managerial oversight; and
6. Such other matters as are prescribed by the Commissioner for liability insurers authorized by the insurance laws of the state in which the risk retention group is chartered.
Last modified: February 27, 2006