Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 385 - RULES GOVERNING ABOVEGROUND STORAGE TANK AND PIPELINE OPERATORS GROUP SELF-INSURANCE POOLS › Section 14VAC5-385-40 - 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
				to be used for the member agreement and power of attorney, if any.
4. A copy of a financial plan, which sets
				forth in specific terms:
a. The insurance
				coverages to be offered by the group self-insurance pool, applicable deductible
				levels, and the maximum level of claims that the pool will
				self-insure;
b. The amount of
				reserves to be set aside for the payment of claims and the methods used to
				determine their sufficiency; funds and reserves should be identified by
				exposure areas;
c. A confirmation
				of excess insurance, if any, issued by a licensed insurer in an amount
				acceptable to the commission. However, the commission at its discretion may
				allow this insurance to be placed with an approved surplus lines insurer;
				and
d. A confirmation of aggregate
				excess insurance, if any, issued by a licensed insurer in an amount acceptable
				to the commission. However, the commission at its discretion may allow this
				insurance to be placed with an approved surplus lines insurer.
5. 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 determining and collecting contributions to the pool, holding and
				investing assets, maintaining reserves, paying claims, levying and collecting
				assessments for deficiencies, disposing of surpluses, and the 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. This shall include the
				requirement that each member, as a condition for initial and continued
				coverage, submit a financial statement in a form acceptable to the commission,
				which demonstrates the solvency of the prospective member and its ability to
				meet its financial obligations; and
d. Such other items as are necessary or
				desirable for the operation of the pool.
6. 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 officer
				or officers of the corporation serving as administrator. This information is to
				be submitted in a form acceptable to the commission.
7. The address in this Commonwealth where the
				books and records of the pool will be maintained at all times.
8. Information showing that the pool has,
				within its own organization or by contract with an approved service agent,
				sufficient 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.
9. A confirmation of a fidelity bond covering
				the administrator and its employees in a form and amount acceptable to the
				commission.
10. A projection of
				administrative expenses for the first year of operation as a total dollar
				amount and as a percentage of the estimated annual contributions.
11. Proof of net worth of the pool of at
				least $100,000.