2006 Kentucky Revised Statutes - .040   Plan of operation -- Content of plan -- Approval -- Revised plan -- Amendments.

304.40-040 Plan of operation -- Content of plan -- Approval -- Revised plan -- Amendments. (1) Within forty-five (45) days following the order of the executive director implementing the operation of the association, the directors of the association shall submit to the executive director for his review a proposed plan of operation, consistent with the provisions of this subtitle. (2) The plan of operation shall provide for economic, fair, and nondiscriminatory administration and for the prompt and efficient provision of medical malpractice insurance; and shall contain other provisions including, but not limited to, preliminary assessment of all members for initial expenses necessary to commence operations, establishment of necessary facilities, management of the association, assessment of members to defray losses and expenses, commission arrangements, reasonable and objective underwriting standards, acceptance and cession of reinsurance, appointment of servicing carriers or other servicing arrangements and procedures for determining amounts of insurance to be provided by the association. (3) The plan of operation shall be subject to approval by the executive director after consultation with the members of the association, representatives of the public, and other affected individuals and organizations. If the executive director disapproves all or any part of the proposed plan of operation, the directors shall within fifteen (15) days submit for review an appropriate revised plan of operation or part thereof. If the directors fail to do so, the executive director shall promulgate a plan of operation or part thereof, as the case may be. The plan of operation approved or promulgated by the executive director shall become effective upon order of the executive director. (4) Amendments to the plan of operation may be made by the directors of the association, subject to the approval of the executive director, or shall be made at the direction of the executive director. Effective: July 15, 1980 History:Amended 1980 Ky. Acts ch. 188, sec. 247, effective July 15, 1980. -- Created 1976 Ky. Acts ch. 164, sec. 4, effective June 19, 1976. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.