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304.41-040 Plan of operation.
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Within forty-five (45) days following the order of the commissioner
implementing the operation of the association, the directors of the association
shall submit to the commissioner for his or her review a proposed plan of
operation, consistent with the provisions of this subtitle.
The plan of operation shall provide for economic, fair, and nondiscriminatory
administration and for the prompt and efficient provision of legal professional
liability 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.
The plan of operation shall be subject to approval by the commissioner after
consultation with the members of the association, representatives of the public,
and other affected individuals and organizations. If the commissioner
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 commissioner shall
promulgate a plan of operation or part thereof, as the case may be. The plan of
operation approved or promulgated by the commissioner shall become
effective upon order of the commissioner.
Amendments to the plan of operation may be made by the directors of the
association, subject to the approval of the commissioner, or shall be made at
the direction of the commissioner.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1550, effective July 15, 2010. -Created 1978 Ky. Acts ch. 365, sec. 4, effective June 17, 1978.
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