Louisiana Revised Statutes 22:2089 – Plan of operation
Terms Used In Louisiana Revised Statutes 22:2089
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Louisiana Life and Health Insurance Guaranty Association created by Louisiana Revised Statutes 22:2084
- Commissioner: means the commissioner of insurance. See Louisiana Revised Statutes 22:2084
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member insurer: means any insurer or health maintenance organization licensed or which holds a certificate of authority to transact in this state any kind of insurance or health maintenance organization business for which coverage is provided by Louisiana Revised Statutes 22:2084
A.(1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective either upon the commissioner’s written approval or thirty days after submission if he has not disapproved it.
(2) If at any time the association fails to submit suitable amendments to the plan, the commissioner shall, in accordance with the Administrative Procedure Act, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this Part. The rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.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 Part:
(1) Establish procedures for handling the assets and liabilities of the association.
(2) Establish the amount and method of reimbursing members of the board of directors under La. Rev. Stat. 22:2086.
(3) Establish regular places and times for meetings, including telephone conference calls, of the board of directors.
(4) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors.
(5) Establish the procedures whereby selections for the board of directors shall be made and submitted to the commissioner.
(6) Establish any additional procedures for assessments pursuant to La. Rev. Stat. 22:2088.
(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(8) Establish procedures by which a director may be removed for cause, including but not limited to the case where the director of a member insurer becomes impaired or insolvent.
(9) Require the board of directors to establish policy and procedures for addressing conflicts of interest.
D. The plan of operation may provide that any or all powers and duties of the association, except those under La. Rev. Stat. 22:2087(M)(3) are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Any corporation, association, or organization which undertakes this function shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this Subsection shall take effect only with the prior approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this Part.
Acts 1991, No. 998, §1, eff. Sept. 30, 1991; Redesignated from La. Rev. Stat. 22:1395.9 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 258, §1; Acts 2012, No. 271, §1; Acts 2022, No. 185, §1.