(a)No later than July 1, 2024, 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 becomes effective upon approval in writing by the commissioner, which the commissioner shall provide no later than August 1, 2024.
(b)The plan of operation must:
(1)Establish the procedures whereby all the powers and duties of the association will be performed;
(2)Establish procedures for handling assets of the association, for the orderly transition of security deposits held by the commissioner to the association, and for the orderly transition of member self-insurer reporting responsibilities from the commissi
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(a) No later than July 1, 2024, 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 becomes effective upon approval in writing by the commissioner, which the commissioner shall provide no later than August 1, 2024. (b) The plan of operation must: (1) Establish the procedures whereby all the powers and duties of the association will be performed; (2) Establish procedures for handling assets of the association, for the orderly transition of security deposits held by the commissioner to the association, and for the orderly transition of member self-insurer reporting responsibilities from the commissioner to the association, including claims reporting, actuarial reporting, and financial reporting; (3) Establish the amount and method of reimbursing members of the board of directors; (4) Establish regular places and times for meetings of the board of directors; (5) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors; (6) Provide that any member self-insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty (30) days after the action or decision; such appeal process must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; (7) Establish the procedures whereby recommendations for the board of directors will be submitted to the commissioner; (8) Establish a risk-based security program for eligible members; (9) Establish procedures for the indemnification and defense of officers and directors of the association as against claims arising from the performance of the officers' and directors' duties; and (10) Contain additional provisions necessary or proper for the execution of the powers and duties of the association, including any amendments to the plan of operation. (c) The plan of operation may provide that any or all powers of the association are delegated to a corporation, association other than the Tennessee self-insurers' guaranty association, or other organization that performs or will perform functions similar to those of the association, or its equivalent, in two (2) or more states. Such a corporation, association other than the Tennessee self-insurers' guaranty association, or organization must be paid for its performance of any other functions of the association. A delegation under this subsection (c) takes effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association other than the Tennessee self-insurers' guaranty association, or organization that extends protection not substantially less favorable and effective than that provided by this part. (d) All member self-insurers shall comply with the plan of operation.