Marvin Mandel, Governor                          1537

assure the fair, reasonable, and equitable administration of the Asso-
ciation. The plan of operation and any amendments thereto shall
become effective upon approval in writing by the Commissioner.

(b) If the Association fails to submit a suitable plan of operation
within 180 days following the effective date of this Act, or if at any
time thereafter the Association fails to submit suitable amendments
to the plan, the Commissioner shall, after notice and hearing, adopt
and promulgate such reasonable rules as are necessary or advisable
to effectuate the provisions of this Act. Such rules shall continue in
force until modified by the Commissioner or superseded by a plan
submitted by the Association and approved by the Commissioner.

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

(3)    The plan of operation shall, in addition to requirements
enumerated elsewhere in this Act,

(a)    Establish procedures for handling the assets of the Asso-
ciation.

(b)    Establish the amount and method of reimbursing members
of the board of directors under Section 510.

(c)    Establish regular places and times for meetings of the board
of directors.

(d)    Establish procedures for records to be kept of all financial
transactions of the Association, its agents, and the board of directors.

(e)    Establish the procedures whereby selections for the board
of directors will be made and submitted to the Commissioner.

(f)    Establish any additional procedures for assessments under
Section 512.

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

(4) The plan of operation may provide that any or all powers
and duties of the Association, except those under Sections 511(11)
(c) and 512, 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 dele-
gation under this subsection shall take effect only with the approval
of both the board of directors and the Commissioner, and may be
made only to a corporation, association, or organization which ex-
tends protection not substantially less favorable and effective than
that provided by this Act.

514. Duties and Powers of the Commissioner.

In addition to the duties and powers enumerated elsewhere in the
Act,

(1) The Commissioner shall

(a) Notify the board of directors of the existence of an impaired
insurer not later than 3 days after a determination of impairment is
made or he receives notice of impairment.