2023 Florida Statutes › Title XXXVII - Insurance › Chapter 631 - Insurer Insolvency; Guaranty of Payment › Part III - Life and Health Insurance Guaranty of Payments (Ss. 631.711-631.738) › 631.721 - Plan of operation.

631.721 Plan of operation.—
(1)(a) The association shall submit to the department a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The proposed plan of operation and any amendments thereto shall become effective upon approval in writing by the department.
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(b) If at any time the association fails to submit suitable amendments to the plan, the department shall, after notice and hearing, adopt such reasonable rules as are necessary to effectuate the provisions of this part. Such rules shall continue in force until modified by the department or superseded by a proposed plan submitted by the association and approved by the department.
(2) All member insurers shall comply with the approved plan of operation.
(3) The plan of operation shall, in addition to requirements enumerated elsewhere in this part:
(a) Establish procedures for handling the assets of the association.
(b) Establish the amount and method of reimbursing members of the board of directors under s. 631.716.
(c) Establish regular places and times for meetings of the board of directors.
(d) Establish procedures for keeping records of all financial transactions of the association, its agents, and the board of directors.
(e) Establish procedures whereby selections for the board of directors shall be made and submitted to the department.
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(f) Establish any additional procedures for assessments under s. 631.718, including procedures to share assessment information, including data, with and assist, as applicable, the board of directors of the Florida Health Maintenance Organization Consumer Assistance Plan with the administration, collection, and deposit of member health maintenance organization assessments for long-term care insurer impairments and insolvencies into the health account established under s. 631.715.
(g) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(h) Establish a procedure for removing a member of the board of directors when that member becomes an impaired or insolvent insurer.
(i) Require the board of directors to establish a policy and procedures for addressing conflicts of interest.
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(4) The plan of operation may provide that any or all powers and duties of the association, except those under ss. 631.717(13)(c) and 631.718, 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. 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. A delegation under this subsection shall take effect only with the approval of both the board of directors and the department 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.
History.—s. 10, ch. 79-189; s. 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 5, ch. 2019-83; s. 4, ch. 2021-109.
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Note.—Section 12, ch. 2019-83, provides that “[s]ection 631.738, Florida Statutes, as created by this act, and the amendments made to ss. 631.713, 631.717, 631.718, 631.721, 631.818, 631.819, and 631.820, Florida Statutes, by this act apply only to long-term care insurer impairment and insolvency assessments that result from an insurer being adjudged insolvent by a court of competent jurisdiction or being determined by the office to be impaired on or after [June 7, 2019].”