Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 360 - RULES GOVERNING LOCAL GOVERNMENT GROUP SELF-INSURANCE POOLS › Section 14VAC5-360-40 - Application for license; additional requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. An application submitted by a pool shall
				be accompanied by the following items which shall be subject to the approval of
				the commission:
1. A copy of the articles of
				incorporation, constitution, or other instrument which sets forth the powers of
				the pool.
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.
3. A copy of the forms used for the member
				agreement and power of attorney, if any.
4. A copy of the forms used for the indemnity
				agreement and power of attorney, if any.
5. A copy of a financial plan which sets
				forth in general terms:
a. The insurance
				coverages to be offered by the group self-insurance pool, applicable deductible
				levels, and the maximum liability which the pool will retain;
b. The amount of reserves to be set aside for
				the payment of claims;
c. The
				amount, if any, of specific excess insurance to be purchased by the pool;
				and
d. The amount, if any, of
				aggregate excess insurance coverage to be purchased and maintained.
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:
a.
				The means of establishing the governing authority of the pool;
b. The responsibility of the governing
				authority for fixing contributions to the pool, maintaining reserves, levying
				and collecting assessments for deficiencies, disposing of surpluses, and
				administration of the pool in the event of termination or insolvency;
c. The basis upon which new members may be
				admitted to, and existing members may leave, the pool;
d. The identification of reserves by exposure
				areas; and
e. Such other provisions
				as are necessary or desirable for the operation of the pool.
Such items may be contained in other documents in lieu of
				  inclusion in a plan of management.
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.
13. The application shall be accompanied by
				any other information the commission requires.