§431P-7  Plan of operation.  (a)  The fund shall adopt a plan of operation and a manual of rules and rates necessary or suitable to ensure both the solvency and the reasonable and equitable administration of the fund.  The adoption of or amendments to the plan of operation and manual of rules and rates shall not be subject to chapter 91, except that the policy forms for policies of hurricane property insurance shall be adopted pursuant to chapter 91.

     (b)  If the fund fails to adopt a plan of operation, or the fund fails to adopt amendments to the plan of operation, the commissioner shall adopt a plan of operation or make amendments necessary to carry out the purposes of this chapter.  Any plan of operation, or amendment, adopted by rule of the commissioner, shall continue in full force and effect until the rule is superseded by a plan of operation, or amendment, adopted by a majority vote of all members of the fund's board, and approved by the commissioner.

     (c)  The plan of operation:

     (1)  Shall establish procedures for performance of all powers and duties of the fund;

     (2)  Shall establish procedures for providing notice to all persons with interests insurable by the fund in the State of the type of insurance available from the fund if the fund offers insurance;

     (3)  Shall provide for and adopt all necessary forms, including insurance policies to be used by and on behalf of the fund, for use by the fund and servicing facilities;

     (4)  Shall adopt actuarially sound rates, based on reasonable assumptions relative to expectations of hurricane frequency and severity, to be charged for insurance provided by the fund, in accordance with article 14 of chapter 431;

     (5)  Shall publish manuals of rules, rates, and rating and classification plans, which shall address mandatory deductibles, limits of coverage, and the classification of risks and rate modifications based on the exposure of insureds, subject to the approval of the commissioner;

     (6)  Shall establish procedures for receiving and servicing applications to the fund;

     (7)  Shall establish procedures for processing and maintaining records of the fund relating to its financial transactions, its agents, its employees, its operations, and all transactions with any servicing facility;

     (8)  Shall establish procedures for the collection and remittance of the premiums and return of unearned premiums where applicable;

     (9)  Shall establish procedures for the payment of valid claims;

    (10)  Shall establish procedures for prorating available funds pursuant to section 431P-15;

    (11)  Shall establish procedures for obtaining reinsurance;

    (12)  Shall establish procedures to borrow funds;

    (13)  Shall develop a plan for the investment of moneys held by the fund;

    (14)  Shall require, prior to issuance or renewal of coverage, the applicant for condominium insurance coverage or renewal to:

          (A)  Cause to be completed an inspection of the applicable condominium; provided that the inspection shall be consistent with any inspection and reporting standards established by the board and incorporated into the plan of operation; and

          (B)  Satisfy any relevant requirements established by the board and incorporated into the plan of operation; and

    (15)  May prohibit coverage under this chapter for any high-rise condominium for which the fund or its servicing entities or any agents thereof have identified maintenance issues materially affecting the insurability of the high-rise condominium for hurricane property insurance. [L 1993, c 339, pt of §2; am L Sp 1995, c 17, §3; am L 2025, c 296, §13]