508D.7 - PLAN OF OPERATION.

        508D.7  PLAN OF OPERATION.         1.  The facility shall submit to the oversight organization a plan      of operation and any amendments to the plan of operation necessary or      suitable to assure the fair, reasonable, and equitable administration      of the facility's business.  The plan of operation and any amendments      to the plan are effective upon the oversight organization's written      approval.         2.  The plan of operation, in addition to other requirements      established in this chapter, shall establish all of the following:         a.  Procedures for administering the assets under the control      of the facility.         b.  Regular places and times for meetings of the board of      directors.         c.  Procedures for records to be kept of all financial      transactions engaged in by the facility, the agents of the facility,      and the board of directors.         d.  Procedures for selecting the board of directors and      submitting the selections to the oversight organization.         e.  Procedures for permitting life and health insurance      guaranty associations to become members of the facility.         f.  Procedures for the assumption of the insurance business or      the assignment of the insurance business to the facility by member      guaranty associations.         g.  Procedures for determining and making assessments against      member guaranty associations by the board of directors.         h.  Additional provisions necessary and proper for the      execution of the powers and duties of the facility.         i.  A description of staffing requirements and qualifications      for positions within the facility.         3.  The plan of operation may provide that any powers and duties      of the facility, except the power to borrow money and the power to      make assessments, may be delegated to a corporation, association, or      other organization or individual which performs or will perform those      functions.  Such corporation, association, or other organization or      individual shall be reimbursed for any payments made on behalf of the      facility and shall be compensated for the performance of any      permissible function, as directed by the facility.  A delegation of      any power or duty pursuant to this subsection takes effect only with      the approval of the board of directors.  
         Section History: Recent Form
         94 Acts, ch 1011, §7         Referred to in § 508D.4, 508D.5