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 14VAC5-380-40 - 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 above.
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 which 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 fixing and collecting contributions to the pool, holding and
				investing assets, maintaining reserves, paying claims, 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. This shall include the
				requirement that each member must, as a condition for initial and continued
				coverage, submit a financial statement in good form to the pool;
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(s) 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 surety 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.