Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 380 - RULES GOVERNING UNDERGROUND STORAGE TANK OWNERS AND OPERATORS GROUP SELF-INSURANCE POOLS › Section 14VAC5-380-90 - Contribution requirements and distribution of surplus funds

Current through Register Vol. 40, No. 24, July 15, 2024
A. For the purpose of funding the liability
				of a pool the members shall make contributions to the pool in the manner
				prescribed in the member agreement.
B. At the effective date of the license of
				the pool and for each subsequent year of operation, at least 25% of the
				estimated annual contribution payable by each member of the pool shall have
				been paid into a designated depository. The balance of the annual contribution
				shall be paid no later than the end of the ninth month of the pool year. At no
				time shall the members' combined payments be less than the total earned
				estimated annual contribution due at that time.
Any surplus assets (i.e. those assets in excess of the
				  amount necessary to fulfill all obligations under the Act and this chapter)
				  accumulated within a pool year may be declared refundable by the board. The
				  board shall establish the plan and the dates for payment of these excess
				  assets. Payment of this surplus shall not be made until approved by the
				  Commission. Surplus assets accumulated within a pool year will be used
				  exclusively for the benefit of those members belonging to the pool during that
				  pool year. The accounting of the surplus for each pool year will provide for a
				  separate itemization of the surplus for each pool year. The surplus assets of
				  one pool year shall not be used to offset the deficiencies of other pool
				  years.
However, the Commission shall require that 3.0% or more of a
				  pool's earned contributions for each fiscal accounting period be allocated to a
				  contingency reserve. The contingency reserve is to be used at the direction of
				  the pool's board subject to the approval of the Commission. When the Commission
				  is satisfied that the contingency reserve is adequate for the needs of the
				  pool, adjustments may be made by the Commission as necessary to the contingency
				  reserve or to contributions to the contingency reserve to maintain it at an
				  established amount.
C. At
				the time of application each pool shall file with the Commission the basis for
				establishing the annual contribution of its members. Such contributions must be
				based on reasonable assumptions and certified by an actuary or other person
				satisfactory to the Commission as to the sufficiency of such contributions. Any
				changes in annual contribution shall be filed in accordance with
				14VAC5-380-40 C.
D. Each pool may levy upon its members an
				additional assessment whenever needed to supplement the pool's surplus to
				assure payment of its obligations. A member may be assessed for any fiscal year
				during which the member participated in the pool. Such assessment may be made
				after the end of the pool's fiscal year and after the member has discontinued
				membership in the pool.
E. The
				board shall submit to the Commission a report of the causes of the pool's
				insufficiency, the assessments necessary to replenish it and the steps taken to
				prevent a recurrence of such circumstances. The report shall be submitted
				within 30 days of any assessment.
Statutory Authority
§ 62.1-44.34:12 of the Code of Virginia.