Virginia Code 38.2-1706: Plan of operation
A. 1. The Association‘s plan of operation approved under former § 38.1-482.24 shall remain in effect until modified in accordance with this subsection. The Association shall from time to time submit to the Commission any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the Association. Any amendments to the plan of operation shall become effective upon the Commission’s written approval or unless they have not been disapproved within 60 days.
Terms Used In Virginia Code 38.2-1706
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Virginia Life, Accident and Sickness Insurance Guaranty Association created under § 38. See Virginia Code 38.2-1701
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Insolvent insurer: means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. See Virginia Code 38.2-1701
- Insurer: means an insurance company. See Virginia Code 38.2-100
2. If at any time the Association fails to submit suitable amendments to the plan, the Commission shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the Commission or superseded by an amended plan submitted by the Association and approved by the Commission.
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 chapter:
1. Establish procedures for handling assets of the Association;
2. Establish the amount and method of reimbursing members of the board of directors under § 38.2-1703;
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 will be made and submitted to the Commission;
6. Establish any additional procedures for assessments under § 38.2-1705;
7. Establish a plan for equitable distribution of refunds to member insurers;
8. Contain additional provisions necessary or proper for the execution of the powers and duties of the Association;
9. Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer; and
10. Require the board of directors to establish a policy and procedures for addressing conflicts of interests.
D. The plan of operation may provide that any or all powers and duties of the Association, except those under subdivision L 3 of § 38.2-1704 and § 38.2-1705, are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this Association, or its equivalent, in two or more states. Such a corporation, association, or organization 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 approval of both the board of directors and the Commission, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this chapter.
1976, c. 330, § 38.1-482.24; 1986, c. 562; 2010, c. 510; 2018, c. 706.