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 14VAC5-360-120 - Servicing of pool

Current through Register Vol. 40, No. 24, July 15, 2024
A. A
				service agent for a licensed group self-insurance pool shall apply for and
				shall be subject to the approval of the commission before entering into a
				contract with a pool and shall satisfy to the commission that it has adequate
				facilities and competent personnel to fulfill its obligations to the pool and
				this chapter.
B. 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
				service agreement. All books and records relating to the servicing of the pool
				shall be maintained in Virginia.
C.
				A service agent shall file with the commission copies of all contracts entered
				into with the pool as they relate to the services to be performed. The service
				contract must state that the service agent agrees to handle all claims covered
				by the service agreement incurred during the contract period to their
				conclusion without additional compensation unless an alternative compensation
				methodology is approved by the commission. Approval to transfer claims from one
				service agent to another must be obtained from the commission prior to such
				transfer.
D. The service agent
				shall furnish a fidelity bond covering its employees in an amount sufficient to
				protect all monies placed in the claims fund.
E. 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 interests of the pool, its
				members and their employees.
F.
				Each individual, partnership, corporation or other entity approved to act as a
				service agent for a pool may be required to file with the commission an annual
				statement of financial condition within four months of the completion of its
				fiscal year.
G. The pool may
				through its own personnel provide the services performed by a service agent
				upon approval by the commission.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.