20-687. Plan of operation

A. The board shall submit to the director a plan of operation and any amendments necessary to assure the fair, reasonable and equitable administration of the fund. The plan of operation and any amendments shall become effective on approval in writing by the director. If the board fails to submit a plan of operation or if at any time the board fails to submit suitable amendments to the plan, the director shall adopt any plan or amendment that is necessary or advisable to effectuate the provisions of this article and the plan or amendment shall continue in force until modified by the director or superseded by a plan submitted by the board and approved by the director.

B. All member insurers shall comply with the plan of operation.

C. The plan of operation, in addition to all other requirements, shall:

1. Establish procedures for handling the assets of the fund and claims against the fund.

2. Establish the amount and method of reimbursing members of the board of directors pursuant to section 20-684.

3. Establish regular places and times for meetings of the board of directors.

4. Establish procedures for records to be kept of all financial transactions of the fund, its agents and the board of directors.

5. Establish the procedures for selecting the board of directors and submitting such selections to the director.

6. Establish any additional procedures for assessments required pursuant to section 20-686.

7. Contain additional provisions necessary for the execution of the powers and duties of the board.

D. The plan of operation may provide that any or all powers and duties of the board, except those in section 20-685, subsection H, paragraph 3 and section 20-686, are delegated to any corporation, association or other organization that performs or will perform functions similar to those of this fund in two or more states. Such a corporation, association or organization shall be reimbursed for any payments made on behalf of the fund and shall be paid for its performance of any function of the fund. A delegation pursuant to this subsection shall take effect only with the approval of both the board of directors and the director 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 article.