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 14VAC5-370-130 - Servicing of association

Current through Register Vol. 40, No. 24, July 15, 2024
A service agent for a licensed workers' compensation group
				  self-insurance association shall apply and shall be subject to the approval of
				  the commission before entering into a contract with an association and shall
				  satisfy the commission that it has adequate facilities and competent personnel
				  to fulfill its obligations to the association and this chapter.
A service agent shall maintain a resident agent in this
				  Commonwealth and that agent shall be authorized to act for the service agent on
				  any and all matters covered by the Act and the rules and regulations of the
				  commission.
A service agent shall provide to the commission the address
				  in this Commonwealth where the books and records of the association will be
				  maintained at all times.
A service agent shall file with the commission copies of all
				  contracts entered into with the association as they relate to the services to
				  be performed. These contracts shall provide for services necessary to fulfill
				  the employer's obligations under the Act and the rules and regulations of the
				  commission. In addition, any service contract or letter of intent must state
				  that the servicing organization agrees to handle all claims incurred during the
				  contract period to their conclusion without further remuneration unless
				  approval to transfer them is obtained from the commission prior to such
				  transfer.
The service organization shall furnish a fidelity bond
				  covering its employees, with the association as obligee, in an amount
				  sufficient to protect all monies placed in the claims fund. However, if the
				  bond required of the administrator also covers the monies in the claims fund, a
				  separate bond shall not be required of the servicing organization with respect
				  to the claims fund.
Upon satisfactory compliance with the above provisions, a
				  certificate of approval as a recognized and authorized service agent shall be
				  issued to the applicant. Failure to comply with any of the foregoing rules or
				  any order of the commission within the time prescribed shall be considered
				  justification for withdrawing the certificate of approval. The commission shall
				  give 10 days prior notice of such withdrawal. The notice shall be served
				  personally, or by certified or registered mail, upon all interested parties
				  setting forth the reasons for withdrawal and providing the service agent an
				  opportunity to introduce evidence and be heard. If, after a hearing, which may
				  be formal or informal, the service agent's certificate of approval is revoked
				  this revocation shall become effective 30 days after issuance of the
				  commission's order or within such shorter or longer period as the commission
				  may consider necessary to protect the interest of the association, its members
				  and their employees.
Each individual, partnership, or corporation approved to act
				  as a service agent for an association shall file with the commission an annual
				  statement, in a form acceptable to the commission, of its financial condition
				  within four months of the completion of its fiscal year.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.