(a) The association shall submit to the director a plan of operation and any amendments to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments take effect on the written approval of the plan by the director or 30 days after receipt by the director if not disapproved by the director.
(b) If the association fails to submit suitable amendments to the plan, the director shall, after notice and hearing, adopt regulations to implement this chapter. These regulations remain in effect until amended or repealed by the director.
(c) A member insurer shall comply with the plan of operation. The plan of operation must
(1) establish procedures for handling assets of the association;
(2) establish the amount and method of reimbursing members of the board under AS 21.79.050(c);
(3) establish regular places and times for meetings of the board in the state; the board may conduct meetings telephonically;
(4) establish procedures for keeping records of all financial transactions of the association, its agents, and the board;
(5) establish terms of office for members of the board, and establish procedures for the selection of the members of the board and for the director's approval of the members selected;
(6) establish additional procedures for assessments under AS 21.79.070;
(7) establish procedures for removing a member of the board for cause, including procedures for removing a member of the board who becomes an impaired or insolvent insurer;
(8) establish policy and procedures for addressing conflicts of interest; and
(9) contain additional provisions necessary or proper for the association to exercise its powers and duties.
(d) The plan of operation may delegate the powers and duties of the association, other than those under AS 21.79.060(l)(3) and 21.79.070, to a corporation or other organization performing functions similar to those of the association, or its equivalent, in two or more states. The association shall reimburse the corporation or organization for a payment made for the association and for performing a function of the association. A delegation under this subsection takes effect only with the approval of the board and the director.
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