2006 Louisiana Laws - RS 22:1383 — Plan of operation

§1383.  Plan of operation

A.(1)  The association shall submit to the commissioner and the Senate Committee on Insurance and the House Committee on Insurance a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner; however, beginning on August 15, 1993, prior to the implementation of any new plan or any amendment to such new plan or an existing plan of operation, the Senate Committee on Insurance and the House Committee on Insurance may hold a hearing on such new plan or any amendments to a new or existing plan of operation.  After a hearing, if any, the respective legislative committees shall either approve or reject the plan or amendment as presented.  No plan or amendment shall be implemented if it was rejected by a legislative committee.  If a hearing is not held within thirty days after receipt of the plan or amendment by such committees, then the plan or amendment may be implemented as approved by the commissioner.

(2)  If the association fails to submit a suitable plan of operation within ninety days following September 1, 1970, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this Part.  Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.  All rules and regulations promulgated by the commissioner under the provisions of this Paragraph shall have no effect until they are reviewed and approved by the Senate Committee on Insurance and the House Committee on Insurance.

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

C.  The plan of operation shall:

(1)  Establish the procedures whereby all the powers and duties of the association under R.S. 22:1382 will be performed.

(2)  Establish procedures for handling assets of the association.

(3)  Establish the amount and method of reimbursing the members of the board of directors under R.S. 22:1381.

(4)  Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims.  Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent and a list of such claims shall be periodically submitted to the association or similar organization in another state by the receiver 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 transactions of the association, its agents, and the board of directors.  All such records shall be subject to review by the Senate Committee on Insurance and/or the House Committee on Insurance upon written request of the respective legislative chairman.

(7)  Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty days after the action or decision.

(8)  Establish the procedures whereby selections for the board of directors will be submitted to the commissioner.

(9)  Contain additional provisions necessary or proper for the execution of the powers and duties of the association.

D.  The plan of operation may provide that any or all powers and duties of the association, except those under R.S. 22:1382(A)(3) and R.S. 22:1382(B)(2) are delegated to a 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.  Such a corporation, association or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions of the association.  A delegation under this subsection shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association or organization which extends protection not substantially less favorably and effective than that provided by this Part.

Added by Acts 1970, No. 81, §1; Acts 1993, No. 397, §2, eff.  June 2, 1993.