reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Section 14VAC5-345-30 - General standards

Current through Register Vol. 40, No. 24, July 15, 2024
A. An
				insurer may utilize rate capping to stabilize insurance rates charged to (i)
				its renewal policies; (ii) policies acquired from another insurer pursuant to a
				written agreement of acquisition, merger, or sale that transfers all or part of
				the other insurer's book of business; or (iii) policies acquired by an agent
				book of transfer.
B. A rate
				stabilization plan shall be unambiguous and applied uniformly and fairly to all
				renewal policies affected by such plan.
C. A rate stabilization plan may cap
				increases in premium only or increases and decreases in premium, but not
				decreases only. Caps on increases and decreases are not required to be
				equivalent.
D. A rate stabilization
				plan is expected to result in individual policy premiums converging with the
				insurer's uncapped rates. A rate stabilization plan shall achieve this result
				within five years unless the insurer initially requests a shorter period or
				justifies a longer period in the rate stabilization plan filing.
E. A rate stabilization rule may be amended
				within the original rate stabilization plan period.
F. A rate stabilization rule may be filed in
				conjunction with a routine rate filing or as a separate rule filing.
G. In each rate filing subsequent to the
				implementation of a rate stabilization plan, the insurer shall demonstrate that
				the actuarial indication does not redundantly measure rate need by
				demonstrating that premiums at current rate level underlying the actuarial
				indication are on an uncapped basis.
H. An insurer may file a rate level change or
				modify rating factors or other supplementary rate information while a rate
				stabilization plan is in effect. The insurer shall explain whether:
1. The existing rate stabilization plan will
				continue to apply for the filed duration; or
2. The rate stabilization plan will be
				amended.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Section 14VAC5-345-40 - Filing requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. A
				rate stabilization rule shall be filed as supplementary rate information in
				accordance with the provisions of § 38.2-1906 of the Code of
				Virginia.
B. A rate stabilization
				rule shall detail the application of the rate stabilization plan. This rule
				shall be clear and shall specify:
1. The
				source of the renewals subject to the rate stabilization plan;
2. The process to be used for the rate
				stabilization, including an example to illustrate the process;
3. The amount of the rate increase or
				increase and decrease to be limited;
4. Whether the rate stabilization plan is
				designed to converge with uncapped rates in subsequent rate filings;
5. The effect, if any, of the rate
				stabilization rule on any midterm changes;
6. Any limitations on tier movement that will
				be utilized for rate stabilization;
7. The commencement date of the rate
				stabilization plan;
8. The duration
				of the rate stabilization plan; and
9. The expiration date of the rate
				stabilization plan.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Section 14VAC5-345-50 - Prohibited actions

Current through Register Vol. 40, No. 24, July 15, 2024
A. A
				rate stabilization rule shall not apply to any changes impacting an
				individual's premium other than insurer initiated rate increases or
				decreases.
B. A rate stabilization
				rule shall not apply to any decrease as a result of the application of the
				provisions of § 38.2-1904 D of the Code of Virginia.
C. A rate stabilization plan shall not be
				designed to generate more total revenue than would otherwise be generated in
				the absence of the plan, resulting in an undue benefit to the
				insurer.
D. A rate stabilization
				rule shall not apply to any decrease as a result of the application of the
				provisions of §§ 38.2-2126 (property) and 38.2-2234 (personal auto)
				of the Code of Virginia.
E. A rate
				stabilization plan shall not apply for an undefined or unlimited period of
				time.
F. No more than one rate
				stabilization plan shall apply to any one policy at any given time.
G. A rate stabilization plan shall not be
				used to control increases or decreases in rates or premiums based on predicted
				price elasticity of demand on individual policyholders.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Section 14VAC5-345-60 - Certification

Current through Register Vol. 40, No. 24, July 15, 2024
A. In any filing
				proposing a rate stabilization plan, the insurer shall complete, certify, and
				include the Rate Stabilization Plan Certification (Form 345-A).
B. In any rate filing made subsequent to the
				implementation of a rate stabilization plan where historical premiums have been
				capped (whether increases or decreases), the insurer's actuary shall provide a
				signed statement certifying that the actuarial indication does not redundantly
				measure rate need.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Section 14VAC5-345-70 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or its application to any
				  person or circumstance is for any reason held to be invalid by a court, the
				  remainder of this chapter and the application of the provisions to other
				  persons or circumstances shall not be affected.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 345 - RULES GOVERNING RATE STABILIZATION IN PROPERTY AND CASUALTY INSURANCE › Form - FORMS (14VAC5-345)

Current through Register Vol. 40, No. 24, July 15, 2024
Rate
				  Stabilization Plan Certification, Form 345-A, (eff.
				  9/2016)
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
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 14VAC5-360-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth rules, forms and
				  procedural requirements that the commission deems necessary for the approval
				  and monitoring of pools created pursuant to Local Government Group
				  Self-Insurance Pools, Chapter 27 (§ 15.2-2700 et seq.) of Title 15.2 of
				  the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
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 14VAC5-360-30 - Application for license as group self-insurance pool; requirements; approval; review

Current through Register Vol. 40, No. 24, July 15, 2024
A. Two
				or more political subdivisions may be licensed by the commission as a group
				self-insurance pool for the purpose of entering into agreements to pool their
				liabilities under the Act. The application for a license shall be made on a
				form prescribed by the commission and shall contain answers to all questions
				and shall be verified by the oath or affidavit of at least one member of the
				board of the pool, and the administrator.
B. The commission may disapprove an
				application for the formation of a group self-insurance pool and may suspend or
				withdraw approval whenever it finds that applicant or pool:
1. Has refused to submit its books, papers,
				accounts, or affairs to the reasonable inspection of the commission or its
				representative;
2. Has refused, or
				its officers or agents have refused, to furnish satisfactory evidence of its
				financial and business standing or solvency;
3. Is insolvent, or is in such condition that
				its further transaction of business in this Commonwealth is hazardous to its
				members and creditors in this Commonwealth, and to the public;
4. Has refused or neglected to pay a valid
				final judgment against it within 60 days after its rendition;
5. Has violated any law of this Commonwealth
				or has violated or exceeded the powers granted by its members;
6. Has failed to pay any fees, taxes or
				charges imposed in this Commonwealth within 60 days after they are due and
				payable, or within 60 days after final disposition of any legal contest with
				respect to liability therefor; or
7. Has been found insolvent by a court of any
				other state, or by the insurance commissioner or other proper officer or agency
				of any other state, and has been prohibited from doing business in such
				state.
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 14VAC5-360-45 - Security deposit requirement

Current through Register Vol. 40, No. 24, July 15, 2024
Each pool licensed by the commission to offer workers
				  compensation shall maintain with the State Treasurer a security deposit of
				  acceptable securities in an amount of $250,000 for the first plan year, or such
				  other amount as the commission prescribes, and for succeeding plan years such
				  amount as the commission deems reasonable taking into account the financial
				  condition of the association and any excess insurance carried by the
				  association. The commission may, from time to time, increase, release, or
				  reduce the security deposit or surety bond requirement. The security deposit
				  shall be subject to the provisions of Article 7 (§ 38.2-1045 et seq.) of
				  Chapter 10 of Title 38.2 of the Code of Virginia.
For the purposes of this chapter, acceptable securities shall
				  be (i) investments allowed by § 2.2-4500 of the Code of Virginia (legal
				  investments for public sinking funds) and § 2.2-4501 of the Code of
				  Virginia (legal investments for other public funds); (ii) securities issued by
				  states, other than Virginia, and their municipalities or political subdivisions
				  rated A or better by Moody's Investors Services, Inc., or Standard and Poor's,
				  Inc.; (iii) revenue bonds rated Aa (AA) or better by Moody's Investors
				  Services, Inc., or Standard and Poor's, Inc. that are bonds issued by
				  municipalities or political subdivisions of this Commonwealth or any other
				  state; (iv) securities issued by the Federal Home Loan Banks; and (v)
				  securities issued by the Federal Intermediate Credit Banks.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-50 - Investments

Current through Register Vol. 40, No. 24, July 15, 2024
The board of a pool may, in its discretion, invest funds in
				  any type of investments authorized by §§ 38.2-1415, 38.2-1418,
				  38.2-1419, 38.2-1421, and 38.2-1432 of the Code of Virginia. Investments may
				  also include (i) investments allowed by § 2.2-4500 of the Code of Virginia
				  (legal investments for public sinking funds) and § 2.2-4501 of the Code of
				  Virginia (legal investments for other public funds), (ii) securities issued by
				  states, other than Virginia, and their municipalities or political subdivisions
				  rated A or better by Moody's Investors Services, Inc., or Standard and Poor's,
				  Inc., (iii) revenue bonds rated Aa (AA) or better by Moody's Investors
				  Services, Inc., or Standard and Poor's, Inc. that are bonds issued by
				  municipalities or political subdivisions of this Commonwealth or any other
				  state, (iv) securities issued by the Federal Home Loan Banks, and (v)
				  securities issued by the Federal Intermediate Credit Banks. Other investments
				  may be made subject to the approval of the commission. All such investments
				  shall be authorized or approved by the board in the manner contemplated by the
				  provisions of § 38.2-1408 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-60 - Filing of reports; examination by commission

Current through Register Vol. 40, No. 24, July 15, 2024
A. Each pool shall file annually with the
				commission and with the members of the pool within six months after the end of
				the pool's fiscal year, audited financial reports for the most recently
				completed fiscal year certified by an independent certified public accountant.
				The financial report shall be considered filed on the date the report was sent
				by mail as shown by the postmark. If the pool fails to file such audited
				financial reports, the commission may perform the audit and the pool shall
				reimburse the commission for such cost.
1.
				The audited financial report shall contain a report in detail of the pool's
				assets, outstanding liabilities, including the amount of claims paid to date
				and current reserves for losses, revenues and disbursements during the year,
				the investments of the pool's assets and all other information which the
				commission may deem necessary to secure a full and accurate knowledge of the
				financial affairs and condition of the pool. The working papers of the
				certified public accountant and other records pertaining to the preparation of
				the audited financial reports may be reviewed by the commission.
2. The audited financial report shall be
				signed on behalf of the pool by two duly authorized officers or a duly
				authorized officer and the administrator.
3. The commission shall also devise a uniform
				accounting system to be used by the pool.
4. In addition to the annual audited
				financial report, the commission may require any pool to file additional
				financial information, including interim financial reports and additional
				reports, exhibits or statements considered necessary to secure complete
				information concerning the condition, solvency, experience, transactions or
				affairs of the pool. The commission shall establish reasonable deadlines for
				filing these additional reports, exhibits or statements and may require
				verification as the commission shall designate.
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 14VAC5-360-70 - Reserves

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every pool shall
				calculate the amount reasonably determined to be sufficient to provide for the
				payment of every loss or claim whether reported or unreported, arising on or
				prior to the date of any annual or other report and it shall maintain a reserve
				liability in an amount estimated in the aggregate to provide for the payment of
				all such losses or claims and any expenses related thereto.
B. Each pool shall maintain reserves equal to
				the unearned portion of the gross contribution or assessment, if any, on
				unexpired or unterminated risks.
C.
				Reserves for coverages based on life expectancy shall be computed according to
				tables of mortality and rates of interest prescribed in Title 38.2 of the Code
				of Virginia. The pool shall maintain an active life reserve for accident and
				health coverages which shall place a sound value on its liabilities under such
				risks and shall not be less in the aggregate than the pro rata gross unearned
				contributions for such coverages.
D. Every pool may receive credit for
				insurance or reinsurance recoverable from an insurance company licensed to
				transact such insurance in this Commonwealth, or any state of the United States
				or the District of Columbia and meeting the standards of solvency at least
				equal to those required in this Commonwealth. A pool may receive credit for
				insurance or reinsurance with any other insurer to the extent that funds are
				withheld as security for the payment of obligations thereunder if such funds
				are held subject to withdrawal by and are under the control of the pool. Such
				funds may include letters of credit subject to the approval of the commission.
				Credit may be received for insurance or reinsurance recoverable on the basis of
				an agreement entered into with individual unincorporated underwriters having a
				trusteed surplus of at least $100,000,000.
E. Credit may be received for insurance or
				reinsurance when the contract is:
1. Not
				cancellable or terminable for any reason except upon not less than 60 days
				written notice sent by registered or certified mail to (i) the pool and (ii)
				the commission;
2. Automatically
				renewable at the expiration of the policy period except upon 60 days written
				notice sent by registered or certified mail to (i) the pool, and (ii) the
				commission.
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 14VAC5-360-80 - Responsibilities of members' supervisory board

Current through Register Vol. 40, No. 24, July 15, 2024
A. The members' supervisory board shall be
				responsible for holding and managing the assets of and directing the affairs of
				the pool and shall be elected in the manner prescribed by the pool's governing
				instruments. At least a majority of the board shall be members of the pool, but
				a board member shall not be an owner, officer or employee of any service agent,
				its parent or any of its affiliated companies, under contract with the
				pool.
B. The board shall fix
				contributions to the pool and supervise the finances of the pool and the pool's
				operations to the extent necessary to assure conformity with law, this chapter,
				the member agreement, and the pool's governing instruments.
C. The board shall take all necessary
				precautions to safeguard the assets of the pool, including, but not limited to,
				the following:
1. Doing all acts necessary to
				assure that each member continues to be able to fulfill the obligations of
				membership; and also reporting promptly to the commission any grounds or change
				in circumstances which may affect the pool's ability to meet its obligations
				such as withdrawal of a member;
2.
				Designating an administrator to administer the affairs of the pool, to carry
				out the policies established by the board and to provide day to day management
				of the pool. The administrator shall furnish a fidelity bond in an amount
				sufficient to protect the pool against the misappropriation or misuse of any
				monies or securities. Evidence of the bond shall be filed with the commission,
				said bond being one of the conditions required for licensing of the pool. The
				administrator shall not be an owner, officer or employee of any service agent,
				its parent or any of its affiliated companies, any of which are under contract
				with the pool;
3. Retaining control
				of all monies collected for the pool and the disbursement of such monies by the
				pool. All assets of the pool shall remain in the custody of the board or the
				authorized administrator. However, a claims fund for payment of benefits due
				and other related expenses may be established for the use of any authorized
				service agent; and
4. Actively
				collecting delinquent accounts resulting from any past due contributions by
				members. Any member of a pool who fails to make the required contributions
				after due notice may be declared ineligible for the self-insurance privilege
				until this past due account, including cost of collection, has been paid or
				adequately provided for.
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 14VAC5-360-100 - Distribution of surplus funds

Current through Register Vol. 40, No. 24, July 15, 2024
Any surplus accumulated within a pool's fiscal year, as
				  determined from the annual audited financial report, may be declared refundable
				  by the board. No distribution of the surplus funds shall be made earlier than
				  12 months following the end of the pool's fiscal year for which a surplus was
				  declared. Such distribution shall not be made until certified by an actuary and
				  the plan has been filed with the commission.
Surplus accumulated within a pool's fiscal year shall be used
				  exclusively for the benefit of those members belonging to the pool during that
				  year. The accounting for each pool's fiscal year shall be separate for each
				  year.
Notwithstanding the foregoing paragraph, the commission may
				  require, and shall permit upon application of the pool that does not write
				  workers' compensation, an amount as the board may elect, of a pool's surplus
				  accumulated within a fiscal year be allocated to a restricted surplus account
				  at the end of that year. The restricted surplus is to be used at the direction
				  of the pool's board subject to the approval of the commission.
However, for pools that have been merged into by a group
				  self-insurance association consisting solely of political subdivisions licensed
				  pursuant to § 65.2-802 of the Code of Virginia, the commission shall
				  require that 1.0% 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.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-110 - Member agreement

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Every member of a group self-insurance pool shall execute a member agreement
				which shall set forth the rights, privileges and obligations of the member, and
				the terms, coverages, limits, and deductibles of the plan. This agreement shall
				be subject to the approval of the commission and shall provide for, in
				substance, the following:
1. Election by pool
				members of a governing authority for the pool, a majority of whom shall be
				elected or appointed officials of pool members;
2. A requirement that the members'
				supervisory board designate and appoint an administrator empowered to accept
				service of process on behalf of the pool and authorized to act for and bind the
				pool and members in all transactions relating to or arising out of the
				operation of the pool;
3. The right
				of substitution of the administrator and revocation of the power of attorney
				and rights thereunder;
4. A
				financial plan or plan of risk management which is further described in
				14VAC5-360-40 A 5;
5. A management plan which is further
				described in
				14VAC5-360-40 A 6;
6. A requirement that the pool, at the
				request of a member, provide without unreasonable delay, to any person
				designated by the member, proof of the coverages provided by the pool,
				including any insurance or reinsurance, applicable deductible levels and the
				maximum liability which the pool will retain; and
7. For group life, accident and health
				coverages, a requirement that the pool provide to each covered pool member and
				to employees of pool members a certificate setting forth (i) the coverage,
				including any limitations, reductions and exclusions applicable to the coverage
				provided; (ii) to whom benefits are payable; and (iii) any family member or
				dependent's coverage.
Such member agreement may also contain such other provisions
				  not inconsistent with law or this chapter.
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 14VAC5-360-130 - Handling of pool deficit

Current through Register Vol. 40, No. 24, July 15, 2024
If a group self-insurance pool is in a deficit condition, the
				  pool shall promptly file with the commission a financial plan to correct the
				  deficit condition. If the plan is found to be unacceptable by the commission
				  and written notice, thereof, is given to the governing authority of the pool,
				  delinquency proceedings may be commenced and conducted by the commission in
				  accordance with the provisions of Chapter 15 (§ 38.2-1500 et seq.) of
				  Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-140 - Termination of pool members

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				A member who fails to make timely contribution payments as provided by the
				board may be terminated after 10 days written notice has been given to the
				member and the commission. A member can be terminated without cause after 30
				days written notice has been given to the member.
B. For workers' compensation liability, no
				member agreement shall be cancelled or nonrenewed except on 30 days notice to
				the member and the Workers' Compensation Commission, unless the member has
				obtained other insurance and the Workers' Compensation Commission is notified
				of that fact by the insurer assuming the risk, or unless, in the event of
				cancellation, said cancellation is for nonpayment of contributions; then 10
				days notice shall be given the member and the Workers' Compensation
				Commission.
C. The pool shall
				remain liable for all claims applicable to the period during which the
				political subdivision was a member of the pool, including the period required
				for termination of membership.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-150 - Terms of license; voluntary dissolution of pool; mergers

Current through Register Vol. 40, No. 24, July 15, 2024
A. A pool's license
				shall remain in effect until terminated at the request of the board or revoked
				by the commission pursuant to
				14VAC5-360-160.
B. Before a pool can voluntarily dissolve, it
				must present a plan of dissolution to the commission for approval. Such a plan
				shall provide for the payment of all incurred losses and expenses of the fund
				and its members, including all incurred but not reported losses, as certified
				by an actuary, to the extent of the pool's assets. No assets of the pool may be
				used for any other purpose until payment of all such losses and expenses is
				provided for.
C. Subject to the
				approval of the commission, a pool may merge with another local government
				group self-insurance pool if the resulting pool assumes in full all obligations
				of the merging pools. The commission may hold a hearing on the merger and shall
				do so if any party, including a member of either pool, so requests.
D. Subject to the approval of the commission,
				a group self-insurance association consisting solely of political subdivisions
				licensed pursuant to § 65.2-802 of the Code of Virginia may merge with a
				pool pursuant to § 15.2-2703 of the Code of Virginia if the resulting pool
				assumes in full all obligations of the group self-insurance association. The
				commission may hold a hearing on the merger and shall do so if any party,
				including a member of the group self-insurance association or pool, so
				requests.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-160 - Revocation or suspension of self-insurance license

Current through Register Vol. 40, No. 24, July 15, 2024
A. The commission may suspend or withdraw a
				pool's license as provided for in
				14VAC5-360-30 B.
B. The commission shall give 10 days prior
				notice to a pool of the proposed suspension or revocation. The notice shall be
				served personally, or by certified or registered mail, upon all interested
				parties and shall state the reasons for the proposed suspension or revocation
				and provide the pool with an opportunity to introduce evidence and be heard. If
				after a hearing, which may be formal or informal, the pool's license is
				suspended or revoked, such action shall become effective 30 days after the
				commission's order is issued.
C.
				Any suspension may be terminated by the commission upon proof by the pool that
				the original reasons for suspension have been satisfactorily corrected, and
				that the pool continues to meet all other requirements for a license.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-170 - Application of Unfair Trade Practices Act; Insurance Information and Privacy Protection Act

Current through Register Vol. 40, No. 24, July 15, 2024
A group self-insurance pool shall be subject to the
				  provisions of Chapter 5 (§ 38.2-500 et seq.), Unfair Trade Practices, and
				  Chapter 6 (§ 38.2-600 et seq.), Insurance Information and Privacy
				  Protection, of Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
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 14VAC5-360-180 - Penalties

Current through Register Vol. 40, No. 24, July 15, 2024
Penalties for failure to comply with this chapter may include
				  (i) suspension or revocation of the pool's license as provided in
				  14VAC5-360-160, or (ii) a monetary
				  fine of not more than $5,000, or (iii) both.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-360-190 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
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 14VAC5-370-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth rules, forms and
				  procedural requirements that the commission deems necessary to carry out the
				  provisions of § 65.2-802 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-30 - Application for license as group self-insurance association requirements; approval; review

Current through Register Vol. 40, No. 24, July 15, 2024
Two or more employers having a common interest may be
				  licensed by the commission as a group self-insurance association for the
				  purpose of entering into agreements to pool their liabilities under the Act.
				  The application for a license shall be made on the form prescribed by the
				  commission and shall contain answers to all questions and shall be verified by
				  the oath or affidavit of at least one member of the board of the association
				  and the administrator.
If, after review of the association's application as well as
				  the additional information required by
				  14VAC5-370-40, the commission is
				  satisfied that it has satisfactory proof of (i) the solvency of each member of
				  the association, (ii) the financial ability of each employer to meet its
				  obligations as a member and (iii) the ability of the association to pay or
				  cause to be paid the compensation in the amount and manner and when due as
				  provided for in the Act, the commission may issue a license to the
				  association.
The license may be revoked if the association fails to comply
				  with all conditions and requirements set forth in this chapter and the
				  Act.
Continuance of the license will require that the association
				  maintain and produce on request by the commission evidence of continuing
				  compliance with any requirements imposed under
				  14VAC5-370-60.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-50 - Approval of members of association

Current through Register Vol. 40, No. 24, July 15, 2024
Application for membership in an association shall be made on
				  a form approved by the commission. The application shall include (i)
				  acknowledgement of the execution of the indemnity agreement and power of
				  attorney required by 14VAC5-370-120,(ii) the applicant's current financial
				  report on a form approved by the commission demonstrating the solvency of the
				  applicant and its financial ability to meet its obligations as a member and
				  (iii) the approval by or on behalf of the board of the applicant's membership.
				  A copy of the completed application shall be filed with the commission by the
				  board within seven days after the effective date of coverage whereupon the
				  commission shall be deemed to have granted authorization for the applicant to
				  become a member of the association as of such effective date. The commission
				  may, after notice to an association, require that applications for membership
				  in such association be approved by the commission before the applicant may
				  become a member of the association. The association shall at all times have in
				  its possession, in a form acceptable to the commission, a current financial
				  report for each member. The requirement for having a current financial report
				  as a condition of membership or otherwise shall not apply to governmental
				  entities which are not required by law to have an annual audit
				  performed.
The commission may, at any time, withdraw approval of any
				  member after giving proper notice if the commission determines that the member
				  is not in compliance with this chapter. Prior to withdrawal of approval by the
				  commission or any revocation or termination by the association, the member will
				  be considered to be a member in good standing with the association. Any member
				  who cannot demonstrate its solvency and its financial ability to meet its
				  obligations as a member shall be removed from membership in the association by
				  the board.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-70 - Investment

Current through Register Vol. 40, No. 24, July 15, 2024
The board of an association may, in its discretion, invest
				  funds in any type of investments authorized by §§ 38.2-1415,
				  38.2-1418, 38.2-1419, 38.2-1421, 38.2-1432 of the Code of Virginia and
				  14VAC5-370-60. Other investments
				  may be made subject to the approval of the commission. All such investments
				  shall be authorized or approved by the board in the manner contemplated by the
				  provisions of § 38.2-1408 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-80 - Filing of reports

Current through Register Vol. 40, No. 24, July 15, 2024
Each association shall file annually with the commission on
				  or before March 1, of each year an annual statement showing its financial
				  operations and condition for the most recently completed calendar year. The
				  commission, for good cause, may extend the time for filing the annual statement
				  by not more than 60 days. In addition, each association shall furnish a copy of
				  an audited report of its financial operations and conditions prepared by an
				  independent certified public accountant within six months of the end of the
				  association's fiscal period.
The annual statement shall contain a report in detail of the
				  association's assets, liabilities, revenues and disbursements during the year,
				  and all other information which the commission may deem necessary to secure a
				  full and accurate knowledge of the financial affairs and condition of the
				  association.
The commission may prescribe the form of the annual statement
				  and of any necessary schedules and exhibits. In addition to the annual
				  statement, the commission may require any association to file timely additional
				  financial information, including interim financial reports.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-90 - Contracts for excess insurance

Current through Register Vol. 40, No. 24, July 15, 2024
Specific and aggregate excess insurance may be required as a
				  condition for licensing a group self-insurance association and shall be subject
				  to the following requirements:
1. No
				contract or policy of excess liability insurance shall be recognized by the
				commission in considering the ability of an applicant to fulfill its financial
				obligations under the Act unless this contract or policy:
a. Is issued by an insurer licensed or
				approved by the commission. However, the commission at its discretion may allow
				this insurance to be placed with an approved surplus lines insurer;
b. Is not cancellable or terminable for any
				reason except upon 60 days written notice sent by registered or certified mail
				to:
(1) The association; and
(2) The commission.
c. Is automatically renewable at the
				expiration of the policy period except upon 60 days written notice sent, by
				registered or certified mail to:
(1) The
				association; and
(2) The
				commission.
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 14VAC5-370-110 - Advance contribution requirements and distribution of surplus funds

Current through Register Vol. 40, No. 24, July 15, 2024
A.
1. For the purpose of funding the liability
				of the association, the members shall make contributions to the association
				based on annual payrolls for all employees of each member, except for executive
				officers where the payroll is to be limited to a maximum of $300 per week,
				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 association's fiscal year. A plan which 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 an
				  association from filing with the commission its own rates or a deviation from
				  these rates or an alternative method of determining contributions which may be
				  used upon approval by the commission.
2. At the effective date of the license of an
				association, at least 25% of the first year's estimated annual contribution
				payable by each member of the association shall have been paid into a
				designated depository. The balance of the first year's annual contributions
				shall be paid no later than the end of the ninth month of the association year.
				For each subsequent year of operation of the association, the payment schedule
				shall provide an advance payment of at least 15% of the estimated annual
				contribution with the balance payable not later than the end of the tenth
				month. At no time shall the member's combined payments be less than the total
				earned estimated annual contribution due at that time.
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 14VAC5-370-120 - Indemnity agreement and power of attorney

Current through Register Vol. 40, No. 24, July 15, 2024
Every member of a group self-insurance association shall
				  execute an indemnity agreement and power of attorney which shall set forth the
				  rights, privileges and obligations of the member and the association and the
				  powers and duties of the administrator. The indemnity agreement and power of
				  attorney shall be subject to the approval of the commission and shall contain
				  in substance the following provisions:
1. An agreement under which each member
				agrees to assume and discharge, jointly and severally, any liability under the
				Act of any and all employers party to such agreement and which provides that,
				in addition to the rights of the association, in the event of failure of the
				association to enforce such rights after reasonable notice to the association,
				the commission shall have the right independently to enforce on behalf of the
				association the joint and several liability of its members under the Act and
				the liability of members for any unpaid contributions and
				assessments;
2. Provisions
				requiring that the members' supervisory board designate and appoint an
				administrator empowered to accept service of process on behalf of the
				association and authorized to act for and bind the association and members in
				all transactions relating to or arising out of the operation of the
				association; and
3. Provisions for
				the right of substitution of the administrator and revocation of the power of
				attorney and rights thereunder.
Such indemnity agreement may also contain such other
				  provisions not inconsistent with law or this chapter.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-140 - Termination of members of association

Current through Register Vol. 40, No. 24, July 15, 2024
No member of an association may be terminated unless at least
				  30 days written notice has been given to the member, the commission, and the
				  Virginia Workers' Compensation Commission, except as provided in §
				  65.2-804 of the Code of Virginia.
The association shall remain liable for all claims applicable
				  to the period during which an employer was a member of an association,
				  including the 30 day period required for termination of membership or for a
				  lesser period as provided by § 65.2-804 of the Code of
				  Virginia.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.
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 14VAC5-370-145 - Mergers

Current through Register Vol. 40, No. 24, July 15, 2024
Subject to the approval of the commission, an association
				  consisting solely of political subdivisions may merge with a local government
				  group self-insurance pool pursuant to § 15.2-2703 of the Code of Virginia
				  if the resulting pool assumes in full all obligations of the association. The
				  commission may hold a hearing on the merger and shall do so if any party,
				  including a member of the association or local government group self-insurance
				  pool, so requests.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.