(a) The Authority shall adopt a Plan of Operation and may amend such Plan from time to time as is necessary to assure the fair, reasonable, and equitable provision of windstorm and earthquake property insurance and the operation of the Authority. The Plan of Operation and any amendments thereto shall be reviewed by the Commissioner of Insurance and may be disapproved in whole or in part, at anytime, by the Commissioner. A previously approved Plan, or any part thereof, may be subsequently disapproved by the Commissioner for good reason. The Commissioner shall state any disapproval in writing together with his reasons therefor. Nothing in this chapter shall be construed as diminishing the regulatory authority of the Commissioner under Title 22 of this code.
(b) The Plan of Operation shall, in addition to any other requirements of law:
(1) establish procedures for performance of all the powers and duties of the Authority;
(2) provide a method for notifying all owners of residential property located in the Territory of the Virgin Islands of the purposes of the Authority and the requirements for coverage of eligible property;
(3) provide for and adopt all necessary forms, including insurance policies to be issued by and on behalf of the Authority, for use by the Authority and servicing facilities;
(4) establish reasonable rates, subject to the review provided herein, to be charged for insurance provided by the Authority so that the total premium income from all policies of windstorm and earthquake property insurance, when combined with investment income, shall be sufficient to pay all expenses for operating the Authority (including, but not limited to, processing applications, conducting inspections, issuing and servicing policies and policyholders, paying commissions, paying servicing facilities for expenses, and paying any debt incurred by the Authority), and payment of valid claims;
(5) provide for the promulgation of a Manual of Rules and Rates, and rating and classification plans, which shall include deductibles, limits of coverage, and rules for classification of risks and rate modifications based on the exposure insured as determined by regulation, and to maintain the solvency of the Authority;
(6) establish reasonable eligibility standards with respect to the insurability of any eligible property. Such eligibility standards may include a requirement that the property is insured by an underlying policy of property insurance and such other requirements as may be established by the Authority;
(7) establish procedures for receiving and servicing applications to the Authority;
(8) establishing procedures for processing and maintaining all records of the Authority, including all financial transactions of the Authority, its agents, its employees, its Board and all transactions with any servicing facility;
(9) establish procedures for the collection and remittance of premiums;
(10) establish the commission to be paid to agents authorized to write windstorm and earthquake property insurance on behalf of the Authority;
(11) establish procedures for the payment of valid claims;
(12) provide for obtaining services of an independent certified public accountant to perform an audit of the Authority;
(13) provide for obtaining the services of an outside independent actuary to perform and submit a year-end valuation of the Authority's reserves and surplus accounts;
(14) establish procedures for reinsuring risks written through the Authority; and
(15) provide for the appointment of a manager for the Authority.
(c) If the Authority fails to adopt a Plan of Operation, or fails to amend an existing Plan of Operation, the Insurance Commissioner may, by rule, adopt a Plan of Operation or an amendment to a Plan of Operation to insure the purposes of this chapter are carried out. Any Plan of Operation, or amendment, adopted by rule of the Insurance Commissioner, shall continue in full force and effect until superseded by a Plan of Operation, or amendment, adopted by the Board of Directors and approved by the Insurance Commissioner, or until superseded by a subsequent Plan of Operation, or amendment, adopted by rule of the Insurance Commissioner.