{"data":{"id":"us-ky/krs-304.36-090","jurisdiction":"us-ky","citation":"KRS 304.36-090","heading":"Plan of operation.","body":"(1) (a) The association shall submit to the commissioner a plan of operation and any\namendments thereto necessary or suitable to assure the fair, reasonable, and\nequitable administration of the association. The plan of operation and any\namendments thereto shall be come effective upon approval in writing by the\ncommissioner.\n(b) If the association fails to submit a suitable plan of operation within ninety (90)\ndays following June 16, 1972, or if at any time thereafter the association fails\nto submit suitable amendmen ts to the plan, the commissioner shall, after\nnotice and hearing, adopt and promulgate such reasonable rules as are\nnecessary or advisable to effectuate the provisions of this subtitle. Such rules\nshall continue in force until modified by the commissioner or superseded by a\nplan submitted by the association and approved by the commissioner.\n(2) All member insurers shall comply with the plan of operation.\n(3) The plan of operation shall:\n(a) Establish the procedures whereby all the powers and duties of the a ssociation\nunder KRS 304.36-080 will be performed;\n(b) Establish procedures for handling assets of the association;\n(c) Establish the amount and method of reimbursing members of the board of\ndirectors under KRS 304.36-070;\n(d) Establish procedures by which  claims may be filed with the association and\nestablish acceptable forms of proof of covered claims. Notice of claims to the\nreceiver or liquidator of the insolvent insurer shall be deemed notice to the\nassociation or its agent, and a list of such claims s hall be periodically\nsubmitted to the association or similar organization in another state by the\nreceiver or liquidator;\n(e) Establish regular places and times for meetings of the board of directors;\n(f) Establish procedures for records to be kept of all financial transactions of the\nassociation, its agents, and the board of directors;\n(g) Provide that any member insurer aggrieved by any final action or decision of\nthe association may appeal to the commissioner within thirty (30) days after\nthe action or decision;\n(h) Establish the procedures whereby selections for the board of directors will be\nsubmitted to the commissioner; and\n(i) Contain additional provisions necessary or proper for the execution of the\npowers and duties of the association.\n(4) The plan of operation may provide that any or all powers and duties of the\nassociation, except those under KRS 304.36 -080(1)(d) and (2)(c), are delegated to a\ncorporation, association, or other organization which performs or will perform\nfunctions similar to those of this association, or its equivalent, in two (2) or more\nstates. Such a corporation, association, or organization shall be reimbursed as a\nservicing facility would be reimbursed and shall be paid for its performance of any\nother functions of the  association. A delegation under this subsection shall take\neffect only with the approval of both the board of directors and the commissioner,\nand may be made only to a corporation, association, or organization which extends\nprotection not substantially le ss favorable and effective than that provided by this\nsubtitle.\n(5) The plan of operation may establish procedures by which claims may be filed with\nthe association and establish acceptable forms of proof of covered claims. Notice of\nclaims to the receiver or liquidator of the insolvent insurer shall be deemed notice to\nthe association or its agent, and a list of claims shall be periodically submitted to the\nassociation or similar organization in another state by the receiver or liquidator.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29921","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"20667bae0212243813c179771b696aee38c0abd0f1ed7fc0a386099ec5ea84e6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.36-085","next":"us-ky/krs-304.36-100"},"notice":"GroundRules: Original legal text. Not legal advice."}