(1) On or before July 1, 2024, the board shall establish and submit to the commissioner a plan of operation for the FAIR plan, which plan of operation satisfies this part 18. The plan of operation and any amendments to the plan of operation become effective upon written approval by the commissioner. (2) With regard to the FAIR plan, the plan of operation must provide for: (a) The lines of insurance coverages to be written; (b) Coverage limits not to exceed seven hundred fifty thousand dollars for property and five million dollars for commercial property owners; (c) The policy forms to be used; (d) The perils to be covered; (e) The establishment of reasonable underwriting standards to determine the eligibility of a risk, including mitigation requirements and property inspections; (f) The compensation and commissions to be paid to licensed producers offering the FAIR plan; (g) The time frames for fees to be collected from member insurers; (h) Assessments against member insurers in the proportion that the premiums received on property and commercial property insurance lines in this state by each assessed member insurer for the three most recent calendar years for which information is available bears to premiums received on property and commercial property insurance lines in this state for such calendar years by all assessed member insurers; (i) The administration of the plan of operation by the board, including any servicing agreements the board may enter into to support the operations of the FAIR plan association; and (j) Any other matter necessary or convenient for the purpose of assuring fair access to a FAIR plan. (3) If the board fails to submit a suitable plan of operation that satisfies this part 18 by July 1, 2024, or fails to timely submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt reasonable rules that are necessary to effectuate the provisions of this part 18. If the board subsequently submits a suitable plan of operation or suitable amendments, the commissioner shall promulgate rules allowing the plan of operation or amendments to supersede the former rules. (4) (a) If the commissioner determines that an approved plan of operation is insufficient to satisfy the requirements of this part 18, the commissioner shall provide at least thirty days' notice to the board of the commissioner's intent to revoke approval of all or part of the plan of operation. Within thirty days after the commissioner's notice of intent to revoke the plan of operation, the board may submit a revised plan of operation or revised part of the plan of operation for the commissioner's review and approval. (b) If the board fails to submit a revised plan of operation within thirty days after the notice provided pursuant to subsection (4)(a) of this section, the commissioner may make specific changes to the existing plan of operation so that the plan satisfies the requirements of this part 18. The commissioner's changes to the plan of operation do not affect the validity of any policies executed before the date of the change. (c) If the board subsequently submits a suitable plan of operation to satisfy the requirements of this part 18, that plan of operation or amendments supersedes the commissioner's changes.
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