§431P-7  Plan of operation.  (a) The fund shall adopt a plan of operation and a manual of rules and ratesnecessary or suitable to ensure both the solvency and the reasonable andequitable administration of the fund.  The adoption of or amendments to theplan of operation and manual of rules and rates shall not be subject to chapter91, except that the policy forms for policies of hurricane property insuranceshall be adopted pursuant to chapter 91.

(b)  If the fund fails to adopt a plan ofoperation, or the fund fails to adopt amendments to the plan of operation, thecommissioner shall adopt a plan of operation or make amendments necessary tocarry out the purposes of this chapter.  Any plan of operation, or amendment,adopted by rule of the commissioner, shall continue in full force and effectuntil the rule is superseded by a plan of operation, or amendment, adopted by amajority vote of all members of the fund's board, and approved by thecommissioner.

(c)  The plan of operation shall:

(1)  Establish procedures for performance of allpowers and duties of the fund;

(2)  Establish procedures for providing notice to allpersons with interests insurable by the fund in the State of the type ofinsurance available from the fund in the event the fund offers insurance;

(3)  Provide for and adopt all necessary forms,including insurance policies to be used by and on behalf of the fund, for useby the fund and servicing facilities;

(4)  Adopt actuarially sound rates, based onreasonable assumptions relative to expectations of hurricane frequency andseverity, to be charged for insurance provided by the fund, in accordance witharticle 14 of chapter 431;

(5)  Publish manuals of rules, rates, and rating andclassification plans, which shall address mandatory deductibles, limits ofcoverage, and the classification of risks and rate modifications based on theexposure of insureds;

(6)  Establish procedures for receiving and servicingapplications to the fund;

(7)  Establish procedures for processing andmaintaining records of the fund relating to its financial transactions, itsagents, its employees, its operations, and all transactions with any servicingfacility;

(8)  Establish procedures for the collection andremittance of the premiums and return of unearned premiums where applicable;

(9)  Establish procedures for the payment of validclaims;

(10)  Establish procedures for prorating availablefunds pursuant to section 431P-15;

(11)  Establish procedures for obtaining reinsurance;

(12)  Establish procedures to borrow funds; and

(13)  Develop a plan for the investment of moneys heldby the fund subject to the limitations in article 6 of chapter 431. [L 1993, c339, pt of §2; am L Sp 1995, c 17, §3]