2006 Code of Virginia § 38.2-2904 - Plan of operation

38.2-2904. Plan of operation.

A. Within forty-five days after appointment of the members of the board, thedirectors of the Association shall submit to the Commission for review aproposed plan of operation consistent with this chapter.

B. The plan of operation shall provide for economic, fair andnondiscriminatory administration and for the prompt and efficient provisionof commercial liability insurance. The plan shall contain other provisionsgoverning:

1. Preliminary assessment of all members for initial expenses necessary tocommence operations;

2. Establishment of necessary facilities;

3. Management of the Association;

4. Assessment of members to defray losses and expenses;

5. Reasonable and objective minimum underwriting standards;

6. Acceptance and cession of reinsurance;

7. Appointment of servicing carriers or other servicing arrangements;

8. The establishment of premium payment plans;

9. Procedures for determining amounts of insurance to be provided by theAssociation;

10. Procedures for the recoupment of preliminary assessments and otherassessments of members as authorized by this chapter; and

11. Any other matters necessary for the efficient and equitable operation andtermination of the Association.

C. The plan of operation shall be subject to approval by the Commission afterconsultation with the members of the Association and representatives ofinterested individuals and organizations. If the Commission disapproves allor any part of the proposed plan of operation, the directors shall withinfifteen days submit for review an appropriate revised plan of operation. Ifthe directors fail to do so, the Commission shall promulgate a plan ofoperation. The plan of operation approved or promulgated by the Commissionshall become effective and operational upon order of the Commission.

D. At any time after the Association is activated, and after investigation,notice, and hearing, the Commission may order the submission of asupplemental plan of operation if it finds that any line, subclassificationor type of commercial liability insurance not covered by the existing plan ofoperation is not reasonably available according to the terms of subsection Aof 38.2-2901. Such supplemental plan of operation shall be submitted withinforty-five days of the Commission's order and shall be subject to all otherprovisions of this chapter governing the plan of operation.

E. Amendments to the plan of operation may be made by the directors of theAssociation, subject to the approval of the Commission.

(1988, cc. 769, 783.)