(a) The Association shall adopt and implement a fair and reasonable Method, consistent with Insurance Code Section 10094.2 and this article, that allows eligible insurers whole or partial relief from participation in the Association. Under the Method, an insurer shall be eligible for relief in proportion to the insurer's total premium writings in the following categories, but credit for premium writings in these categories need not be equally weighted:

(b) The Method shall require insurers to apply for any credits granted under Insurance Code Section 10094.2 or this article. The Method shall require applicant insurers to report their voluntary premium writings in each of the categories specified in sub-paragraph (a) to the Association separately in an annual report by a specified date and shall establish binding rules regarding the treatment of late reports.

(c) The Association shall submit a proposed Method to the Commissioner within 90 days of the effective date of this regulation. The Association may submit proposed changes to the Method to the Commissioner at any time. The Method, as well as any proposed changes, must be approved by the Commissioner. Concurrent with any submission, under this subsection, the Association shall notify its member companies of the submission and make the text of the submission available to them.

(d) Within 30 days after the Commissioner notifies the Association that he or she has approved the Method or that he or she requires any change to the Method, the Association shall notify all participating insurers of the approval or change by mail. The Method and changes shall become effective 30 days after the Association mails notification to all participating insurers or on a date specified by the Commissioner, whichever is later. The Commissioner may relieve the Association of the requirement of notifying insurers of any change to the Method if the Commissioner views the change as non-substantive or de minimus. If the Commissioner relieves the Association of the requirement of notifying insurers of a change to the Method, the change shall become effective 30 days after the Commissioner notifies the Association of approval of the change.

(e) If the Association fails to submit a Method to the Commissioner as required by this article, the Commissioner may promulgate another method as he or she may deem necessary to carry out the purpose of Section 10094.2.

(f) If the Commissioner disapproves, withdraws or revokes his or her approval of the Method, the Association shall, within 90 days from the date of the disapproval, withdrawal or revocation, submit to the Commissioner for review an appropriately revised proposed Method, and if the Association fails to do so, the Commissioner may promulgate another method as he or she may deem necessary to carry out the purpose of Insurance Code Section 10094.2.