                                 CODE OF VIRGINIA

PLAN OF OPERATION (§ 38.2-2804)

A. Within forty-five days of the date the Commission makes a determination to
activate a joint underwriting association pursuant to subsection A of &#xA7;
38.2-2801, the directors of the association shall submit to the Commission for
review a proposed plan of operation consistent with this chapter.

B. The plan of operation shall provide for economic, fair and nondiscriminatory
administration and for the prompt and efficient provision of medical malpractice
insurance. The plan shall contain other provisions including (i) preliminary
assessment of all members for initial expenses necessary to commence operations,
(ii) establishment of necessary facilities, (iii) management of the association,
(iv) assessment of members to defray losses and expenses, (v) reasonable and
objective minimum underwriting standards developed in consultation with the
medical and hospital advisory committees provided for in &#xA7; 38.2-2805, (vi)
acceptance and cession of reinsurance, (vii) appointment of servicing carriers
or other servicing arrangements, (viii) the establishment of premium payment
plans, (ix) procedures for determining amounts of insurance to be provided by
the association, (x) procedures for the recoupment of preliminary assessments
and other assessments of members as authorized by this chapter, and (xi) any
other matters necessary for the efficient and equitable operation and
termination of the association.

C. 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.

D. Amendments to the plan of operation may be made by the directors of the
association, subject to the approval of the Commission.

HISTORY: 1976, c. 85, § 38.1-778; 1980, c. 286; 1986, c. 562; 1987, c. 554;
1988, c. 341.