Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 370 - RULES GOVERNING GROUP SELF-INSURERS OF LIABILITY UNDER THE VIRGINIA WORKERS' COMPENSATION ACT › Section 14VAC5-370-100 - Responsibilities of members' supervisory board

Current through Register Vol. 40, No. 24, July 15, 2024
The members' supervisory board shall be responsible for
				  holding and managing the assets and directing the affairs of the association
				  and shall be elected in the manner prescribed by the association's governing
				  instruments. At least 3/4 of the board must be members of the association, but
				  a supervisory board member shall not be an owner, officer or employee of any
				  service organization, its parent or any of its affiliated companies, under
				  contract with the association. The board shall supervise the finances of the
				  association and the association's operations to the extent necessary to assure
				  conformity with law, this chapter, the members' indemnity agreement and power
				  of attorney, and the association's governing instruments. The members'
				  supervisory board shall take all necessary precautions to safeguard the assets
				  of the association, including, but not limited to, the following:
1. Monitoring the financial condition of each
				member of the association (unless proof of financial condition is not required
				under 14VAC5-370-40 A 3), and doing all
				other acts necessary to assure that each member continues to be able to fulfill
				the obligations of membership; and also reporting promptly to the commission
				any grounds for believing that a change in any member's financial condition,
				withdrawal of a member, or any other circumstances affecting the association's
				ability to meet its obligations;
2.
				Designating an administrator to administer the affairs of the association, who
				shall furnish a fidelity bond with the association as obligee, in an amount
				sufficient to protect the association against the misappropriation or misuse of
				any monies or securities. The amount of the bond shall be determined by the
				commission and evidence of the bond shall be filed with the commission, said
				bond being one of the conditions required for licensing of the association. The
				administrator shall not be an owner, officer or employee of any service agent,
				its parent or any of its affiliated companies, any of which are under contract
				with the association;
3. Retaining
				control of all monies collected for the association and the disbursement of
				such monies by the association. All assets of the association shall remain in
				the custody of the board or the authorized administrator. However, a claims
				fund for payment of benefits due and other related expenses may be established
				for the use of any authorized service agent;
4. Active efforts to collect delinquent
				accounts resulting from any past due contributions by members. The board shall
				terminate in the manner provided by § 65.2-804B of the Code of Virginia
				any member delinquent for more than 30 days in the payment of any subscription
				charge or assessment billed to such member;
5. The members' supervisory board or the
				administrator shall not use any of the monies collected for any purpose
				unrelated to securing the members' liability under the Act. Further, they shall
				be prohibited from borrowing any monies from the association or in the name of
				the association without advising the commission of the nature and purpose of
				the loan and obtaining commission approval;
6. The members' supervisory board shall
				assure that the office of the administrator of the association and all
				pertinent records necessary to verify the accuracy and completeness of all
				reports submitted to the commission are maintained within this
				Commonwealth;
7. The members'
				supervisory board shall assure that payroll verifications of all members of the
				associations are completed within 180 days after the close of a plan year and
				the board shall require that efforts are made to collect any additional amounts
				due within 30 days of the completion of each audit; and
8. The members' supervisory board may adopt
				its own rules and procedures as considered necessary for the operation of the
				association provided these rules and procedures are not inconsistent with
				§ 65.2-802 of the Code of Virginia and this chapter.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.