(a)

(1) The Arkansas Life and Health Insurance Guaranty Association shall submit to the Insurance Commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the Arkansas Life and Health Insurance Guaranty Association. The plan of operation and any amendments thereto shall become effective upon the commissioner's written approval or unless he or she has not disapproved it within thirty (30) days.

(2) If the Arkansas Life and Health Insurance Guaranty Association fails to submit a suitable plan of operation within one hundred twenty (120) days following March 9, 1989, or if at any time thereafter the Arkansas Life and Health Insurance Guaranty Association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Arkansas Life and Health Insurance Guaranty Association and approved by the commissioner.

(b) All member insurers shall comply with the plan of operation.

(c) The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:

(1) Establish procedures for handling the assets of the Arkansas Life and Health Insurance Guaranty Association;

(2) Establish the amount and method of reimbursing members of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association under § 23-96-109(b);

(3) Establish regular places and times for meetings, including telephone conference calls of the board;

(4) Establish procedures for records to be kept of all financial transactions of the Arkansas Life and Health Insurance Guaranty Association, its agents, and the board;

(5) Establish the procedures whereby selections for the board will be made and submitted to the commissioner;

(6) Establish any additional procedures for assessments under § 23-96-115;

(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the Arkansas Life and Health Insurance Guaranty Association.

(d)

(1) The plan of operation may provide that any or all powers and duties of the Arkansas Life and Health Insurance Guaranty Association, except those under § 23-96-114(c)(3) and § 23-96-115, may be delegated to the State Insurance Department or to a corporation, association, organization, or other entity which performs or will perform functions similar to those of this association, or its equivalent, in two (2) or more states. Such a corporation, association, organization, or other entity, including, as applicable, the department, shall be reimbursed for any payments made on behalf of the Arkansas Life and Health Insurance Guaranty Association and shall be paid for its performance of any function of the Arkansas Life and Health Insurance Guaranty Association.

(2) A delegation under this subsection shall take effect only with the approval of both the board and the commissioner, and may be made only to a corporation, association, organization or other entity, including the department, which extends protection not substantially less favorable and effective than that provided by this chapter.