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 14VAC5-360-90 - Contribution requirements

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. For the purpose of
				funding the workers' compensation liability of a pool, the members shall make
				contributions to the pool based on annual payrolls for all employees of each
				member using rates and stock or nonstock discounts as adopted by the board and
				approved by the commission. The rates to be used are those in effect as of the
				inception of each pool's fiscal year. A plan that allows for consideration of
				past experience in developing a factor to be applied to a member's contribution
				may be used provided this plan has been approved by the commission.
Nothing contained herein shall be construed to prevent a pool
				  from filing with the commission its own rates or a deviation from these rates
				  or an alternative method of determining contributions that may be used upon
				  approval by the commission.
C. At the effective date of a pool's license,
				$250,000 shall have been paid into a designated depository. The balance of the
				first year's contributions shall be paid no later than the end of the ninth
				month of the pool's fiscal year, either in quarterly or monthly installments at
				the discretion of the board. For each subsequent year of operation of the pool,
				the payment schedule shall provide for annual or periodic payments in intervals
				no more frequently than once a month, at the discretion of the board.
D. Each pool shall file with the commission
				the basis for establishing the annual contributions 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. This subsection shall not apply to a pool's workers'
				compensation business.
E. The total
				amount of each member's annual contribution to the pool shall be certified by
				the board to the governing body of each member at least one month prior to the
				beginning of the next fiscal year, if practical.
F. 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.
1. The pool may assess
				each participating member an additional proportionate amount, as provided in
				the pool's member agreement or as provided in the pool's plan filed with the
				commission to correct a deficit condition.
2. 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.