{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2904.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2904.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2904.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2904.html"}],"law_id":62519,"edition_id":1,"section_id":62519,"structure_id":13381,"section_number":"38.2-2904","catch_line":"Plan of operation","history":"1988, cc. 769, 783.","full_text":"A\n\nWithin forty-five days after appointment of the members of the board, the directors of the Association shall submit to the Commission for review a proposed plan of operation consistent with this chapter.B\n\nThe plan of operation shall provide for economic, fair and nondiscriminatory administration and for the prompt and efficient provision of commercial liability insurance. The plan shall contain other provisions governing:1\n\nPreliminary assessment of all members for initial expenses necessary to commence operations;2\n\nEstablishment of necessary facilities;3\n\nManagement of the Association;4\n\nAssessment of members to defray losses and expenses;5\n\nReasonable and objective minimum underwriting standards;6\n\nAcceptance and cession of reinsurance;7\n\nAppointment of servicing carriers or other servicing arrangements;8\n\nThe establishment of premium payment plans;9\n\nProcedures for determining amounts of insurance to be provided by the Association;10\n\nProcedures for the recoupment of preliminary assessments and other assessments of members as authorized by this chapter; and11\n\nAny other matters necessary for the efficient and equitable operation and termination of the Association.C\n\nThe plan of operation shall be subject to approval by the Commission after consultation with the members of the Association and representatives of interested individuals and organizations. If the Commission disapproves all or any part of the proposed plan of operation, the directors shall within fifteen days submit for review an appropriate revised plan of operation. If the directors fail to do so, the Commission shall promulgate a plan of operation. The plan of operation approved or promulgated by the Commission shall become effective and operational upon order of the Commission.D\n\nAt any time after the Association is activated, and after investigation, notice, and hearing, the Commission may order the submission of a supplemental plan of operation if it finds that any line, subclassification or type of commercial liability insurance not covered by the existing plan of operation is not reasonably available according to the terms of subsection A of § 38.2-2901. Such supplemental plan of operation shall be submitted within forty-five days of the Commission’s order and shall be subject to all other provisions of this chapter governing the plan of operation.E\n\nAmendments to the plan of operation may be made by the directors of the Association, subject to the approval of the Commission.","order_by":null,"text":{"0":{"id":227979,"text":"Within forty-five days after appointment of the members of the board, the directors of the Association shall submit to the Commission for review a proposed plan of operation consistent with this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":227980,"text":"The plan of operation shall provide for economic, fair and nondiscriminatory administration and for the prompt and efficient provision of commercial liability insurance. The plan shall contain other provisions governing:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":227981,"text":"Preliminary assessment of all members for initial expenses necessary to commence operations;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":227982,"text":"Establishment of necessary facilities;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":227983,"text":"Management of the Association;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":227984,"text":"Assessment of members to defray losses and expenses;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":227985,"text":"Reasonable and objective minimum underwriting standards;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":227986,"text":"Acceptance and cession of reinsurance;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":227987,"text":"Appointment of servicing carriers or other servicing arrangements;","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"9":{"id":227988,"text":"The establishment of premium payment plans;","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"B9"},"10":{"id":227989,"text":"Procedures for determining amounts of insurance to be provided by the Association;","type":"section","prefixes":["B","9"],"prefix":"9","entire_prefix":"B9","prefix_anchor":"B9","level":2,"prior_prefix":"B8","next_prefix":"B10"},"11":{"id":227990,"text":"Procedures for the recoupment of preliminary assessments and other assessments of members as authorized by this chapter; and","type":"section","prefixes":["B","10"],"prefix":"10","entire_prefix":"B10","prefix_anchor":"B10","level":2,"prior_prefix":"B9","next_prefix":"B11"},"12":{"id":227991,"text":"Any other matters necessary for the efficient and equitable operation and termination of the Association.","type":"section","prefixes":["B","11"],"prefix":"11","entire_prefix":"B11","prefix_anchor":"B11","level":2,"prior_prefix":"B10","next_prefix":"C"},"13":{"id":227992,"text":"The plan of operation shall be subject to approval by the Commission after consultation with the members of the Association and representatives of interested individuals and organizations. If the Commission disapproves all or any part of the proposed plan of operation, the directors shall within fifteen days submit for review an appropriate revised plan of operation. If the directors fail to do so, the Commission shall promulgate a plan of operation. The plan of operation approved or promulgated by the Commission shall become effective and operational upon order of the Commission.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B11","next_prefix":"D"},"14":{"id":227993,"text":"At any time after the Association is activated, and after investigation, notice, and hearing, the Commission may order the submission of a supplemental plan of operation if it finds that any line, subclassification or type of commercial liability insurance not covered by the existing plan of operation is not reasonably available according to the terms of subsection A of § 38.2-2901. Such supplemental plan of operation shall be submitted within forty-five days of the Commission’s order and shall be subject to all other provisions of this chapter governing the plan of operation.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"15":{"id":227994,"text":"Amendments to the plan of operation may be made by the directors of the Association, subject to the approval of the Commission.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":13381,"edition_id":1,"name":"Commercial Liability Insurance Joint Underwriting Association","identifier":"29","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:45","date_modified":"2026-06-26 03:44:45","permalink":{"id":214141,"object_type":"structure","relational_id":13381,"identifier":"29","token":"38.2\/29","url":"\/38.2\/29\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67887,"structure_id":13381,"section_number":"38.2-2900","catch_line":"Definitions","url":"\/38.2-2900\/","token":"38.2\/29\/38.2-2900","metadata":false},{"id":86890,"structure_id":13381,"section_number":"38.2-2900.1","catch_line":"Market assistance plan","url":"\/38.2-2900.1\/","token":"38.2\/29\/38.2-2900.1","metadata":false},{"id":65411,"structure_id":13381,"section_number":"38.2-2901","catch_line":"Association activation; members; purpose; determinations by Commission; powers of Association","url":"\/38.2-2901\/","token":"38.2\/29\/38.2-2901","metadata":false},{"id":74095,"structure_id":13381,"section_number":"38.2-2902","catch_line":"Dissolution","url":"\/38.2-2902\/","token":"38.2\/29\/38.2-2902","metadata":false},{"id":54353,"structure_id":13381,"section_number":"38.2-2903","catch_line":"Directors","url":"\/38.2-2903\/","token":"38.2\/29\/38.2-2903","metadata":false},{"id":62519,"structure_id":13381,"section_number":"38.2-2904","catch_line":"Plan of operation","url":"\/38.2-2904\/","token":"38.2\/29\/38.2-2904","metadata":false},{"id":56099,"structure_id":13381,"section_number":"38.2-2905","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; group retrospective rating plan; examination of business of Association","url":"\/38.2-2905\/","token":"38.2\/29\/38.2-2905","metadata":false},{"id":69954,"structure_id":13381,"section_number":"38.2-2906","catch_line":"Stabilization reserve fund","url":"\/38.2-2906\/","token":"38.2\/29\/38.2-2906","metadata":false},{"id":64097,"structure_id":13381,"section_number":"38.2-2907","catch_line":"Participation in Association by insurers","url":"\/38.2-2907\/","token":"38.2\/29\/38.2-2907","metadata":false},{"id":69170,"structure_id":13381,"section_number":"38.2-2908","catch_line":"Review of actions or decisions of Association","url":"\/38.2-2908\/","token":"38.2\/29\/38.2-2908","metadata":false},{"id":66449,"structure_id":13381,"section_number":"38.2-2909","catch_line":"Annual statements","url":"\/38.2-2909\/","token":"38.2\/29\/38.2-2909","metadata":false},{"id":56213,"structure_id":13381,"section_number":"38.2-2910","catch_line":"Annual examination into affairs of Association","url":"\/38.2-2910\/","token":"38.2\/29\/38.2-2910","metadata":false},{"id":56451,"structure_id":13381,"section_number":"38.2-2911","catch_line":"Public officers or employees","url":"\/38.2-2911\/","token":"38.2\/29\/38.2-2911","metadata":false},{"id":77816,"structure_id":13381,"section_number":"38.2-2912","catch_line":"Commissions for placing and servicing risk with Association","url":"\/38.2-2912\/","token":"38.2\/29\/38.2-2912","metadata":false},{"id":76792,"structure_id":13381,"section_number":"38.2-2913","catch_line":"Liability","url":"\/38.2-2913\/","token":"38.2\/29\/38.2-2913","metadata":false}],"previous_section":{"id":54353,"structure_id":13381,"section_number":"38.2-2903","catch_line":"Directors","url":"\/38.2-2903\/","token":"38.2\/29\/38.2-2903","metadata":false},"next_section":{"id":56099,"structure_id":13381,"section_number":"38.2-2905","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; group retrospective rating plan; examination of business of Association","url":"\/38.2-2905\/","token":"38.2\/29\/38.2-2905","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2904\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapters 769 and 783 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":65411,"section_number":"38.2-2901","catch_line":"Association activation; members; purpose; determinations by Commission; powers of Association","order_by":null,"url":"\/38.2-2901\/"},{"id":69954,"section_number":"38.2-2906","catch_line":"Stabilization reserve fund","order_by":null,"url":"\/38.2-2906\/"}],"refers_to":[{"id":65411,"section_number":"38.2-2901","catch_line":"Association activation; members; purpose; determinations by Commission; powers of Association","order_by":null,"url":"\/38.2-2901\/"}],"permalink":{"id":214163,"object_type":"law","relational_id":62519,"identifier":"38.2-2904","token":"38.2\/29\/38.2-2904","url":"\/38.2-2904\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2904\/","token":"38.2\/29\/38.2-2904","dublin_core":{"Title":"Plan of operation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2904","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Within forty-five days after appointment of the members of the board, the directors of the Association<\/span> shall submit to the Commission<\/span> for review a proposed plan of operation consistent with this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The plan of operation shall provide for economic, fair and nondiscriminatory administration and for the prompt and efficient provision of commercial liability insurance<\/span>. The plan shall contain other provisions governing: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Preliminary assessment of all members for initial expenses necessary to commence operations; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Establishment of necessary facilities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Management of the Association<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Assessment of members to defray losses and expenses; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Reasonable and objective minimum underwriting standards; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Acceptance and cession of reinsurance; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Appointment of servicing carriers or other servicing arrangements; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The establishment of premium payment plans; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Procedures for determining amounts of insurance to be provided by the Association<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Procedures for the recoupment of preliminary assessments and other assessments of members as authorized by this chapter; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Any other matters necessary for the efficient and equitable<\/span> operation and termination of the Association<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The plan of operation shall be subject to approval by the Commission<\/span> after consultation with the members of the Association<\/span> and representatives of interested individuals and organizations. If the Commission<\/span> disapproves all or any part of the proposed plan of operation, the directors shall within fifteen days submit for review an appropriate revised plan of operation. If the directors fail to do so, the Commission<\/span> shall promulgate a plan of operation. The plan of operation approved or promulgated by the Commission<\/span> shall become effective and operational upon order<\/span> of the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> At any time after the Association<\/span> is activated, and after investigation, notice, and hearing<\/span>, the Commission<\/span> may order<\/span> the submission of a supplemental plan of operation if it finds that any line, subclassification or type of commercial liability insurance<\/span> not covered by the existing plan of operation is not reasonably available according to the terms of subsection A of § 38.2-2901<\/a>. Such supplemental plan of operation shall be submitted within forty-five days of the Commission<\/span>’s order<\/span> and shall be subject to all other provisions of this chapter governing the plan of operation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Amendments to the plan of operation may be made by the directors of the Association<\/span>, subject to the approval of the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPLAN OF OPERATION (\u00a7 38.2-2904)\n\nA. Within forty-five days after appointment of the members of the board, the\ndirectors of the Association shall submit to the Commission for review a\nproposed plan of operation consistent with this chapter.\n\nB. The plan of operation shall provide for economic, fair and nondiscriminatory\nadministration and for the prompt and efficient provision of commercial\nliability insurance. The plan shall contain other provisions governing:\n\n 1. Preliminary assessment of all members for initial expenses necessary to\n commence operations;\n\n 2. Establishment of necessary facilities;\n\n 3. Management of the Association;\n\n 4. Assessment of members to defray losses and expenses;\n\n 5. Reasonable and objective minimum underwriting standards;\n\n 6. Acceptance and cession of reinsurance;\n\n 7. Appointment of servicing carriers or other servicing arrangements;\n\n 8. The establishment of premium payment plans;\n\n 9. Procedures for determining amounts of insurance to be provided by the\n Association;\n\n 10. Procedures for the recoupment of preliminary assessments and other\n assessments of members as authorized by this chapter; and\n\n 11. Any other matters necessary for the efficient and equitable operation and\n termination of the Association.\n\nC. The plan of operation shall be subject to approval by the Commission after\nconsultation with the members of the Association and representatives of\ninterested individuals and organizations. If the Commission disapproves all or\nany part of the proposed plan of operation, the directors shall within fifteen\ndays submit for review an appropriate revised plan of operation. If the\ndirectors fail to do so, the Commission shall promulgate a plan of operation.\nThe plan of operation approved or promulgated by the Commission shall become\neffective and operational upon order of the Commission.\n\nD. At any time after the Association is activated, and after investigation,\nnotice, and hearing, the Commission may order the submission of a supplemental\nplan of operation if it finds that any line, subclassification or type of\ncommercial liability insurance not covered by the existing plan of operation is\nnot reasonably available according to the terms of subsection A of §\n38.2-2901. Such supplemental plan of operation shall be submitted within\nforty-five days of the Commission’s order and shall be subject to all\nother provisions of this chapter governing the plan of operation.\n\nE. Amendments to the plan of operation may be made by the directors of the\nAssociation, subject to the approval of the Commission.\n\nHISTORY: 1988, cc. 769, 783.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}