§431P-7 - Plan of operation.

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

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until the rule is superseded by a plan of operation, or amendment, adopted by a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

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

(2) Establish procedures for providing notice to all
persons with interests insurable by the fund in the State of the type of
insurance 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 use
by the fund and servicing facilities;

(4) Adopt actuarially sound rates, based on
reasonable assumptions relative to expectations of hurricane frequency and
severity, to be charged for insurance provided by the fund, in accordance with
article 14 of chapter 431;

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

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

(7) Establish procedures for processing and
maintaining records of the fund relating to its financial transactions, its
agents, its employees, its operations, and all transactions with any servicing
facility;

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

(9) Establish procedures for the payment of valid
claims;

(10) Establish procedures for prorating available
funds 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 held
by the fund subject to the limitations in article 6 of chapter 431. [L 1993, c
339, pt of §2; am L Sp 1995, c 17, §3]