Vermont § 4984 - Plan of operation

§ 4984. Plan of operation

• (a) Within 45 days following the creation of an association pursuant to section 4982 of this title, or such additional time as may be prescribed by the Commissioner, the board of directors
  of the association shall submit to the Commissioner for review and approval a proposed
  plan of operation consistent with the provisions of this chapter. If the Commissioner
  approves the proposed plan, the Commissioner shall certify such approval to the board
  and the plan shall take effect 10 days after such certification. If the Commissioner
  disapproves of all or any part of the proposed plan, the Commissioner shall return
  the plan to the board with a statement in writing of the reasons for the disapproval
  and any recommendations the Commissioner may make. The board may accept the Commissioner’s
  recommendations and submit the amended plan to the Commissioner or submit a new plan
  within 30 days after the return of the disapproved plan to the board. Within 10 days
  after receipt of the second plan, the Commissioner shall propose a plan and certify
  it to the board. A plan proposed by the Commissioner shall take effect 10 days after
  certification to the board. (b) The plan of operation shall provide for economic, fair, and nondiscriminatory administration,
  and for the prompt and efficient provision of insurance on a self-supporting basis.
  The plan shall contain other provisions including preliminary assessment of all members
  for initial expenses necessary to commence operations, establishment of necessary
  facilities, management of the association, administrative expenses, reasonable commission
  arrangements, reasonable and objective underwriting standards, procedures for acceptance
  and cession of reinsurance, appointment of servicing carriers or other servicing arrangements
  or the direct issuance of syndicate policies, procedures for determining amounts of
  insurance to be provided by the association, provisions for assessment of deficits
  under section 4986 of this title, and an equitable apportionment among the members in the association’s writings,
  expenses, servicing allowance, management fees, and losses. (c) Amendments to the plan may be made by the board of directors of the association, subject
  to the approval of the Commissioner. The Commissioner may also make amendments to
  the plan subject to the approval of the board. An amendment to the plan shall take
  effect not less than 10 days after adoption. (Added 1985, No. 265 (Adj. Sess.), § 4, eff. June 4, 1986; amended 2021, No. 105 (Adj. Sess.), § 237, eff. July 1, 2022.)