376.740. Plan of operation, required, approval of director--provisions of plan. - Missouri Statutes

Plan of operation, required, approval of director--provisions of plan.

376.740. 1. The association shall submit a plan ofoperation and any amendments thereto necessary or suitable toassure the fair, reasonable, and equitable administration of theassociation to the director. The plan of operation and anyamendments thereto shall become effective upon the director'swritten approval or unless he has not disapproved it withinthirty days.

2. If the association fails to submit a suitable plan ofoperation within one hundred twenty days following the effectivedate, August 13, 1988, of sections 376.715 to 376.758 or if atany time thereafter the association fails to submit suitableamendments to the plan, the director shall, after notice andhearing, adopt and promulgate such reasonable rules as arenecessary or advisable to effectuate the provisions of sections376.715 to 376.758. Such rules shall continue in force untilmodified by the director or superseded by a plan submitted bythe association and approved by him.

3. All member insurers shall comply with the plan ofoperation.

4. The plan of operation shall, in addition to requirementsenumerated in sections 376.715 to 376.758:

(1) Establish procedures for handling the assets of theassociation;

(2) Establish the amount and method of reimbursing membersof the board of directors;

(3) Establish regular places and times for meetingsincluding telephone conference calls of the board of directors;

(4) Establish procedures for records to be kept of allfinancial transactions of the association, its agents, and theboard of directors;

(5) Establish the procedures whereby selections for theboard of directors will be made and submitted to the director;

(6) Establish any additional procedures for assessmentswhich may be necessary;

(7) Contain additional provisions necessary or proper forthe execution of the powers and duties of the association.

5. The plan of operation may provide that any or all powersand duties of the association except those pursuant toprovisions of subsection 3 of section 376.733 and subsections 1and 2 of section 376.735 are delegated to a corporation,association, or other organization which performs or willperform functions similar to those of this association, or itsequivalent, in two or more states. Such a corporation,association, or organization shall be reimbursed for anypayments made on behalf of the association and shall be paid forits performance of any function of the association. Adelegation under this subsection shall take effect only with theapproval of both the board of directors and the director, andmay be made only to a corporation, association, or organizationwhich extends protection not substantially less favorable andeffective than that provided by sections 376.715 to 376.758.

(L. 1988 S.B. 430 §§ 21, 22)