Virginia Administrative Code › Title 16 - LABOR AND EMPLOYMENT › Agency 25 - SAFETY AND HEALTH CODES BOARD › Chapter 55 - FINANCIAL REQUIREMENTS FOR BOILER AND PRESSURE VESSEL CONTRACT FEE INSPECTORS › Section 16VAC25-55-20 - Financial requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. Current
				certified contract fee inspectors shall provide documentation of financial
				responsibility to the Chief Inspector for approval by June 20, 2007, in such
				form as required by the Chief Inspector.
Contract fee inspectors initially certified on or after March
				  21, 2007, shall provide such documentation to the Chief Inspector within 30
				  days following the issuance of the certification of the contract fee inspector.
				  The Chief Inspector may revoke a contract fee inspector's inspector
				  identification card as described in
				  16VAC25-50-70 for failure to
				  provide documentation of financial responsibility within the required
				  timeframe.
B. Financial
				responsibility of a contract fee inspector shall be demonstrated by maintenance
				of an instrument of insurance, guaranty, surety or by self-insurance,
				individually or in any combination thereof, for the purpose of compensation to
				third parties, for bodily injury and property damage resulting from, or
				directly relating to, an inspector's negligent inspection or recommendation for
				certification of a boiler or pressure vessel as follows:
1. An aggregate limit of $500,000 or more for
				any contract fee inspector or contract fee inspection agency with less than
				1.0% market share;
2. An aggregate
				limit of $1 million or more for any contract fee inspector or contract fee
				inspection agency from 1.0% up to and including 10% market share; and
3. An aggregate limit of $2 million or more
				for any contract fee inspector or contract fee inspection agency with more than
				10% market share.
Contract fee inspectors may be covered under an instrument or
				  instruments of insurance, guaranty, surety or the self-insurance of their
				  employer or a company on behalf of which they have a contractual arrangement to
				  provide boiler and pressure vessel inspections. To be acceptable as proof of
				  financial responsibility for inspections not conducted for the benefit of their
				  employer or company with which the inspector has a contractual arrangement,
				  such instrument, instruments or self-insurance must also cover the contract fee
				  inspector for such inspections. Where contract fee inspectors are not covered
				  for inspections conducted on their own behalf under the instrument of
				  insurance, guaranty, surety or self-insurance of their employer or company with
				  which they have a contractual arrangement, they must provide a separate
				  instrument that covers such inspections.
Contract fee inspectors who elect to self-insure for the full
				  amount of their financial responsibility under this regulation shall maintain
				  assets of an amount sufficient to cover the full minimum liability amount in
				  regulation for his level of market share and shall provide audited financial
				  statements showing total assets and liabilities.
Contract fee inspectors who elect to partially self-insure
				  shall maintain assets in an amount sufficient to cover the stated partial
				  liability amount and shall provide audited financial statements showing their
				  total assets and liabilities. Such assets shall be held in combination with an
				  instrument or instruments of insurance, guaranty, or surety to provide a total
				  amount sufficient to cover the minimum liability amount in regulation for his
				  level of market share. They shall provide copies of such documents to the Chief
				  Inspector.
Aggregate limits approved at such time shall remain in effect
				  until the occurrence of an event described in subsection E of this
				  section.