Code of Virginia - Title 38.2 Insurance - Section 38.2-1706 Plan of operation

§ 38.2-1706. Plan of operation

A. 1. Neither the plan of operation nor any amendment to it shall become effective until submitted to and approved by the Commission. The Commission shall approve the plan or any amendment to it if it assures the fair, reasonable, and equitable administration of the Association.

2. The plan of operation approved under former § 38.1-482.24 shall remain in effect until modified in accordance with subdivision 3 of this subsection.

3. If the Association fails to submit suitable amendments to the plan, the Commission shall, after notice and hearing, adopt and promulgate reasonable rules that are necessary or advisable to effect this chapter. These rules shall continue in force until modified by the Commission or superseded by a plan or amendment submitted by the Association and approved by the Commission.

B. All member insurers shall comply with the plan of operation.

C. The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:

1. Establish procedures for handling assets of the Association.

2. Establish the amount and method of reimbursing members of the board of directors under § 38.2-1703.

3. Establish regular places and times for meetings of the board of directors.

4. Establish procedures to keep records of all financial transactions of the Association, its agents, and the board of directors.

5. Establish the procedures for submitting to the Commission selections for the board of directors.

6. Establish any additional procedures for assessments under § 38.2-1705.

7. Establish a plan for equitable distribution of refunds to members.

8. Contain additional provisions necessary or proper for the execution of the powers and duties of the Association.

D. Except as provided by subdivision 3 of subsection A of § 38.2-1704 and § 38.2-1705, the plan of operation may provide that any or all powers and duties of the Association may be delegated to the corporation, association, or other organization which performs or will perform functions similar to those of this Association, or its equivalent, in two or more states. The corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association. A delegation under this subsection shall take effect only with the approval of both the board of directors and the Commission, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this chapter.

(1976, c. 330, § 38.1-482.24; 1986, c. 562.)

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Last modified: April 16, 2009