1. The Association shall submit to the Commissioner a plan of operation and any amendments thereto necessary or suitable to ensure the fair, reasonable and equitable administration of the Association. The plan of operation and any amendments thereto become effective upon approval in writing by the Commissioner, or 30 days after submission if the Commissioner has not disapproved them. All member insurers shall comply with the plan of operation.

2. If at any time the Association fails to submit suitable amendments to the plan, the Commissioner shall adopt, after notice and hearing, such reasonable regulations as are necessary or advisable to effectuate the provisions of this chapter. The regulations continue in force until modified by the Commissioner or superseded by a plan submitted by the Association and approved by the Commissioner.

3. In addition to satisfying the other requirements of this chapter, the plan of operation must:

(a) Establish procedures for handling the assets of the Association.

(b) Establish the amount and method of reimbursing members of the Board of Directors under NRS 686C.140.

(c) Establish regular places and times for meetings of the Board.

(d) Establish procedures for records to be kept of all financial transactions of the Association, its agents and the Board.

(e) Establish the procedures whereby selections for the Board will be made and submitted to the Commissioner.

(f) Establish any additional procedures for assessments under NRS 686C.230 to 686C.270, inclusive.

(g) Contain additional provisions necessary or proper for the execution of the powers and duties of the Association.

4. The plan of operation may provide that any or all powers and duties of the Association, except those under subsection 3 of NRS 686C.220 and NRS 686C.230 to 686C.285, inclusive, 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. Such an organization must be reimbursed for any payments made on behalf of the Association and paid for its performance of any function of the Association. A delegation under this subsection takes effect only with the approval of the Board of directors and the Commissioner, and may be made only to an organization that extends protection not substantially less favorable and effective than that provided by this chapter.

(Added to NRS by 1973, 308; A 1981, 105; 1991, 878; 2001, 1043)