40-2907. Same; plan of operation; rules and regulations of commissioner; compliance with plan; provisions of plan.
40-2907
40-2907. Same; plan of operation; rules and regulations ofcommissioner; compliance with plan; provisions of plan.(a) (1) The association shall submit to the commissioner a plan ofoperation and any amendments thereto necessary or suitable to assure thefair, reasonable and equitable administration of the association. Theplan of operation and any amendments thereto shall become effective uponapproval in writing by the commissioner.
(2) If the association fails to submit a suitable plan of operationwithin ninety (90) days following the effective date of this act or ifat any time thereafter the association fails to submit suitableamendments to the plan, the commissioner shall, after notice andhearing, adopt and promulgate such reasonable regulations as arenecessary or advisable to effectuate the provisions of this act. Suchregulations shall continue in force until modified by the commissioneror superseded by a plan submitted by the association and approved by thecommissioner.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation shall: (1) Establish the procedureswhereby all the powers and duties of the association under K.S.A.40-2906 will be performed.
(2) Establish procedures for handling assets of the association.
(3) Establish the amount and method of reimbursing members of theboard of directors under K.S.A. 40-2905.
(4) Establish procedures by which claims may be filed with theassociation and establish acceptable forms of proof of covered claims.Notice of claims to the receiver or liquidator of the insolvent insurershall be deemed notice to the association or its agent and a list ofsuch claims shall be periodically submitted to the association orsimilar organization in another state by the receiver or liquidator.
(5) Establish regular places and times for meetings of the board ofdirectors.
(6) Establish procedures for records to be kept of all financialtransactions of the association, its agents and the board of directors.
(7) Provide that any member insurer aggrieved by any final action ordecision of the association may appeal to the commissioner within thirty(30) days after the action or decision.
(8) Establish the procedures whereby selections for the board ofdirectors will be submitted to the commissioner.
(9) Contain additional provisions necessary or proper for theexecution of the powers and duties of the association.
(d) The plan of operation may provide that any or all powers andduties of the association, except those under K.S.A. 40-2906(a)(3)and (b)(2), are delegated to acorporation, association or other organization which performs or willperform functions similar to those of this association, or itsequivalent, in two (2) or more states. Such a corporation, associationor organization shall be reimbursed as a servicing facility would bereimbursed and shall be paid for its performance of any other functionsof the association. A delegation under this subsection shall take effectonly with the approval of both the board of directors and thecommissioner, and may be made only to a corporation, association ororganization which extends protection not substantially less favorableand effective than that provided by this act.
History: L. 1970, ch. 185, § 7; March 27.