This text of Louisiana § 22:2089 (Plan of operation) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§2089. Plan of operation
A.
(1)The association shall submit to the commissioner a plan of operation and any
amendments thereto necessary or suitable to assure the fair, reasonable, and equitable
administration of the association. The plan of operation and any amendments thereto shall
become effective either upon the commissioner's written approval or thirty days after
submission if he has not disapproved it.
(2)If at any time the association fails to submit suitable amendments to the plan, the
commissioner shall, in accordance with the Administrative Procedure Act, adopt and
promulgate such reasonable rules as are necessary or advisable to effectuate the provisions
of this Part. The rules shall continue in force until modified by the commissioner or
superseded by a plan submitted by the a
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§2089. Plan of operation
A.(1) The association shall submit to the commissioner a plan of operation and any
amendments thereto necessary or suitable to assure the fair, reasonable, and equitable
administration of the association. The plan of operation and any amendments thereto shall
become effective either upon the commissioner's written approval or thirty days after
submission if he has not disapproved it.
(2) If at any time the association fails to submit suitable amendments to the plan, the
commissioner shall, in accordance with the Administrative Procedure Act, adopt and
promulgate such reasonable rules as are necessary or advisable to effectuate the provisions
of this Part. The rules shall continue in force until modified by the commissioner or
superseded by a plan submitted by the association and approved by the commissioner.
B. All member insurers shall comply with the plan of operation.
C. The plan of operation shall, in addition to requirements enumerated elsewhere in
this Part:
(1) Establish procedures for handling the assets and liabilities of the association.
(2) Establish the amount and method of reimbursing members of the board of
directors under R.S. 22:2086.
(3) Establish regular places and times for meetings, including telephone conference
calls, of the board of directors.
(4) Establish procedures for records to be kept of all financial transactions of the
association, its agents, and the board of directors.
(5) Establish the procedures whereby selections for the board of directors shall be
made and submitted to the commissioner.
(6) Establish any additional procedures for assessments pursuant to R.S. 22:2088.
(7) Contain additional provisions necessary or proper for the execution of the powers
and duties of the association.
(8) Establish procedures by which a director may be removed for cause, including
but not limited to the case where the director of a member insurer becomes impaired or
insolvent.
(9) Require the board of directors to establish policy and procedures for addressing
conflicts of interest.
D. The plan of operation may provide that any or all powers and duties of the
association, except those under R.S. 22:2087(M)(3) are delegated to a corporation,
association, or other organization which performs or will perform functions similar to those
of this association, or its equivalent, in two or more states. Any corporation, association, or
organization which undertakes this function shall be reimbursed for any payments made on
behalf of the association and shall be paid for its performance of any function of the
association. A delegation under this Subsection shall take effect only with the prior approval
of both the board of directors and the commissioner, and may be made only to a corporation,
association, or organization which extends protection not substantially less favorable and
effective than that provided by this Part.