Source: https://law.lis.virginia.gov/admincodeexpand/title14/agency5/chapter360/
Timestamp: 2020-01-27 22:30:07
Document Index: 464158391

Matched Legal Cases: ['§ 2', '§ 3', '§ 4', '§ 5', '§ 38', '§ 2', '§ 2', '§ 38', '§ 6', '§ 38']

Derived from Regulation 30, Case No. INS870057, § 2, eff. September 1, 1987; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.
Derived from Regulation 30, Case No. INS870057, § 3, eff. September 1, 1987; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.
A. Two or more political subdivisions may be licensed by the commission as a group self-insurance pool for the purpose of entering into agreements to pool their liabilities under the Act. The application for a license shall be made on a form prescribed by the commission and shall contain answers to all questions and shall be verified by the oath or affidavit of at least one member of the board of the pool, and the administrator.
B. The commission may disapprove an application for the formation of a group self-insurance pool and may suspend or withdraw approval whenever it finds that applicant or pool:
C. If after review of the pool's application and other additional information required by this chapter, the commission is satisfied that the pool's financial condition and method of operation are such that the pool may reasonably be expected to meet the obligations which it has undertaken, and has fully disclosed to its members or potential members the coverages and obligations of membership in the plan, then the commission shall issue a license to the pool. The commission shall act on the application as promptly as practical under the existing circumstances.
D. If the commission rejects the pool's application, notice shall be served personally, or by certified or registered mail, upon all interested parties stating the reason for the rejection. The pool shall be provided an opportunity to introduce evidence and be heard in a hearing convened within a timely manner. Such hearing may be formal or informal.
Derived from Regulation 30, Case No. INS870057, § 4, eff. September 1, 1987; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.
A. An application submitted by a pool shall be accompanied by the following items which shall be subject to the approval of the commission:
2. A copy of the bylaws or the governing rules of the proposed pool which may be included as part of the documents provided pursuant to subdivision 1 of this subsection.
Such items may be contained in other documents submitted to the commission in lieu of inclusion in a financial plan.
6. A copy of a plan of management which provides for all of the following:
7. Designation of the initial or interim board and the administrator, together with pertinent biographical information for each member of the board and for the administrator or the principal officers of the corporation serving as administrator. This information is to be submitted on a form prescribed by the commission.
8. The address in this Commonwealth where the books and records of the pool will be maintained at all times.
9. Information showing that the pool has, within its own organization or by contract with an approved service agent, ample facilities and competent personnel to service its program with respect to underwriting matters, compilation of statistics, loss prevention, safety engineering and claims adjusting. Copies of all executed service agreements shall be filed with the commission.
10. A confirmation of a fidelity bond covering the administrator and its employees in a form and amount acceptable to the commission.
11. A projection of administrative expenses for the first year of operation in an amount and as a percentage of the estimated annual contributions.
12. Proof of payment of contributions by members of at least 25% of its estimated first year's contribution into a designated depository. This amount shall not be less than $250,000.
B. An application submitted by a group self-insurance pool shall be accompanied by a composite listing of the estimated annual gross contributions to be developed by each organizing member of the pool individually and in the aggregate for the pool. The aggregate amount of annual contributions must be at least $ 1 million unless otherwise approved by the commission.
C. Any subsequent revisions to items submitted under the provisions of 14VAC5-360-30 and 14VAC5-360-40 shall be filed with and subject to approval by the commission.
Derived from Regulation 30, Case No. INS870057, § 5, eff. September 1, 1987; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.
The board of a pool may, in its discretion, invest funds in any type of investments authorized by §§ 38.2-1415, 38.2-1418, 38.2-1419, 38.2-1421, and 38.2-1432 of the Code of Virginia. Investments may also include (i) investments allowed by § 2.2-4500 of the Code of Virginia (legal investments for public sinking funds) and § 2.2-4501 of the Code of Virginia (legal investments for other public funds), (ii) securities issued by states, other than Virginia, and their municipalities or political subdivisions rated A or better by Moody's Investors Services, Inc., or Standard and Poor's, Inc., (iii) revenue bonds rated Aa (AA) or better by Moody's Investors Services, Inc., or Standard and Poor's, Inc. that are bonds issued by municipalities or political subdivisions of this Commonwealth or any other state, (iv) securities issued by the Federal Home Loan Banks, and (v) securities issued by the Federal Intermediate Credit Banks. Other investments may be made subject to the approval of the commission. All such investments shall be authorized or approved by the board in the manner contemplated by the provisions of § 38.2-1408 of the Code of Virginia.
Derived from Regulation 30, Case No. INS870057, § 6, eff. September 1, 1987; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.
14VAC5-360-60. Filing of reports; examination by commission.
A. Each pool shall file annually with the commission and with the members of the pool within six months after the end of the pool's fiscal year, audited financial reports for the most recently completed fiscal year certified by an independent certified public accountant. The financial report shall be considered filed on the date the report was sent by mail as shown by the postmark. If the pool fails to file such audited financial reports, the commission may perform the audit and the pool shall reimburse the commission for such cost.
1. The audited financial report shall contain a report in detail of the pool's assets, outstanding liabilities, including the amount of claims paid to date and current reserves for losses, revenues and disbursements during the year, the investments of the pool's assets and all other information which the commission may deem necessary to secure a full and accurate knowledge of the financial affairs and condition of the pool. The working papers of the certified public accountant and other records pertaining to the preparation of the audited financial reports may be reviewed by the commission.
2. The audited financial report shall be signed on behalf of the pool by two duly authorized officers or a duly authorized officer and the administrator.
3. The commission shall also devise a uniform accounting system to be used by the pool.
4. In addition to the annual audited financial report, the commission may require any pool to file additional financial information, including interim financial reports and additional reports, exhibits or statements considered necessary to secure complete information concerning the condition, solvency, experience, transactions or affairs of the pool. The commission shall establish reasonable deadlines for filing these additional reports, exhibits or statements and may require verification as the commission shall designate.
B. The pool must retain and have available for examination by the commission:
D. The commission may examine the affairs, transactions, accounts, records, and assets of the pool as often as it deems necessary. The manner and frequency in which the examination of financial condition shall be conducted and the release of any reports of financial condition shall be as provided in Article 4 (§ 38.2-1317 et seq.) of Chapter 13 of Title 38.2 of the Code of Virginia.
D. Each pool shall file with the commission the basis for establishing the annual contributions of its members. Such contributions must be based on reasonable assumptions and certified by an actuary or other person satisfactory to the commission as to the sufficiency of such contributions. This subsection shall not apply to a pool's workers' compensation business.
E. The total amount of each member's annual contribution to the pool shall be certified by the board to the governing body of each member at least one month prior to the beginning of the next fiscal year, if practical.
F. Each pool may levy upon its members an additional assessment whenever needed to supplement the pool's surplus to assure payment of its obligations. A member may be assessed for any fiscal year during which the member participated in the pool. Such assessment may be made after the end of the pool's fiscal year and after the member has discontinued membership in the pool.
1. The pool may assess each participating member an additional proportionate amount, as provided in the pool's member agreement or as provided in the pool's plan filed with the commission to correct a deficit condition.
2. The board shall submit to the commission a report of the causes of the pool's insufficiency, the assessments necessary to replenish it and the steps taken to prevent a recurrence of such circumstances.
Any surplus accumulated within a pool's fiscal year, as determined from the annual audited financial report, may be declared refundable by the board. No distribution of the surplus funds shall be made earlier than 12 months following the end of the pool's fiscal year for which a surplus was declared. Such distribution shall not be made until certified by an actuary and the plan has been filed with the commission.
Notwithstanding the foregoing paragraph, the commission may require, and shall permit upon application of the pool that does not write workers' compensation, an amount as the board may elect, of a pool's surplus accumulated within a fiscal year be allocated to a restricted surplus account at the end of that year. The restricted surplus is to be used at the direction of the pool's board subject to the approval of the commission.
A. A member who fails to make timely contribution payments as provided by the board may be terminated after 10 days written notice has been given to the member and the commission. A member can be terminated without cause after 30 days written notice has been given to the member.
14VAC5-360-150. Terms of license; voluntary dissolution of pool; mergers.
A. A pool's license shall remain in effect until terminated at the request of the board or revoked by the commission pursuant to 14VAC5-360-160.
C. Subject to the approval of the commission, a pool may merge with another local government group self-insurance pool if the resulting pool assumes in full all obligations of the merging pools. The commission may hold a hearing on the merger and shall do so if any party, including a member of either pool, so requests.
Penalties for failure to comply with this chapter may include (i) suspension or revocation of the pool's license as provided in 14VAC5-360-160, or (ii) a monetary fine of not more than $5,000, or (iii) both.