20-2205. Plan of operation; contents
Within forty-five days after the effective date of the initial order of the director
issued pursuant to section 20-2202, the directors of the association shall submit to the
director for his review a proposed plan of operation consistent with the provisions of
this chapter. The plan of operation shall provide for economic, fair and
nondiscriminatory administration and for the prompt and efficient provision of liability
insurance coverage in designated lines. The plan shall contain provisions pertaining to
preliminary assessment of all members for initial expenses necessary to commence
operations, establishment of necessary facilities, management of the association,
assessment of members or surcharging of insureds to defray losses and expenses,
commission arrangements, reasonable and objective underwriting standards, acceptance and
cession of reinsurance, retention of servicing carriers or other servicing arrangements,
procedures for determining amounts of insurance to be provided by the association and
retention of persons necessary to effectuate the purposes of this chapter. The plan
shall contain a provision for a system or program of reasonable loss control efforts.
|