Code of the District of Columbia

§ 31–5407. Plan of operation.

(a)(1) The Association shall submit to the Mayor a plan of operation, and any subsequent amendments that are necessary or suitable, to assure the fair, reasonable, and equitable administration of the Association. The plan of operation, and any amendments, shall become effective 30 days following its submission to the Mayor, unless the Mayor has issued written disapproval of the plan within the 30 days.

(2) If the Association fails to submit a suitable plan of operation within 120 days following July 22, 1992, or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Mayor shall, after notice and hearing, adopt and promulgate reasonable rules as necessary or advisable to carry out the provisions of this chapter. These rules shall continue in force until modified by the Mayor or superseded by a plan submitted by the Association and approved by the Mayor.

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

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

(1) Establish procedures for handling the assets of the Association;

(2) Establish the amount and method of reimbursement of members of the Board of Directors under § 31-5404;

(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 nominations to the Board of Directors will be made and submitted to the Mayor for approval;

(6) Establish any additional procedures necessary for assessments under § 31-5406; and

(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the Association.

(d)(1) The plan of operation may provide that any or all powers and duties of the Association, except those under § 31-5405(q)(3) and § 31-5406, 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 2 or more states.

(2) Such a corporation, association, or organization 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.

(3) A delegation under this subsection shall take effect only with the approval of the Board of Directors and the Mayor, 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 chapter.


(July 22, 1992, D.C. Law 9-129, § 8, 39 DCR 4036.)

Prior Codifications

1981 Ed., § 35-1947.

Section References

This section is referenced in § 31-5403.