KRS 304.41-040: Plan of operation.

(1) Within forty-five (45) days following the order of the commissioner implementing

the operation of the association, the directors of the association shall submit to the

commissioner for his or her review a proposed plan of operation, consistent with the

provisions of this subtitle.

(2) The plan of operation shall provide for economic, fair, and nondiscriminatory

administration and for the prompt and efficient provision of legal professional

liability insurance; and shall contain other provisions including, b ut not limited to,

preliminary assessment of all members for initial expenses necessary to commence

operations, establishment of necessary facilities, management of the association,

assessment of members to defray losses and expenses, commission arrangemen ts,

reasonable and objective underwriting standards, acceptance and cession of

reinsurance, appointment of servicing carriers or other servicing arrangements and

procedures for determining amounts of insurance to be provided by the association.

(3) The pla n of operation shall be subject to approval by the commissioner after

consultation with the members of the association, representatives of the public, and

other affected individuals and organizations. If the commissioner disapproves all or

any part of the proposed plan of operation, the directors shall within fifteen (15)

days submit for review an appropriate revised plan of operation or part thereof. If

the directors fail to do so, the commissioner shall promulgate a plan of operation or

part thereof, as the case may be. The plan of operation approved or promulgated by

the commissioner shall become effective upon order of the commissioner.

(4) Amendments to the plan of operation may be made by the directors of the

association, subject to the approval of the commissioner, or shall be made at the

direction of the commissioner.