Texas Insurance Code 462.103 – Plan of Operation
(a) The association shall perform the association’s functions under a plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of the association. The plan of operation must:
(1) be submitted to and approved in writing by the commissioner;
(2) establish:
(A) procedures under which the powers and duties of the association are performed;
(B) procedures for handling assets of the association;
(C) the amount and method of reimbursing board members;
(D) acceptable forms of proof of covered claims;
(E) regular places and times for board meetings;
(F) procedures for records to be kept of each financial transaction of the association, the association’s agents, and the board; and
(G) procedures under which selections for the board are submitted to the commissioner;
(3) provide:
(A) for the establishment of a claims filing procedure that includes:
(i) notice by the association to claimants;
(ii) procedures for filing claims seeking recovery from the association; and
(iii) a procedure for appealing the denial of claims by the association; and
(B) that a member insurer aggrieved by a final action or decision of the association may appeal to the commissioner not later than the 30th day after the date of the action or decision; and
(4) contain additional provisions necessary or proper for the execution of the association’s powers and duties.
(b) The association shall submit to the commissioner any amendment to the plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of the association. The amendment takes effect on the commissioner’s written approval.
Terms Used In Texas Insurance Code 462.103
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- Rule: includes regulation. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) If the association does not submit a suitable amendment to the plan of operation, the commissioner after notice and hearing shall adopt reasonable rules as necessary or advisable to implement this chapter. A rule continues in effect until modified by the commissioner or superseded by an amendment submitted by the association and approved by the commissioner.
(d) Each member insurer shall comply with the plan of operation.