Current through Register Vol. 41, No. 3, September 23, 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 of this subsection.
3. A copy of the forms used for the member
agreement and power of attorney, if any.
4. A copy of the forms used for the indemnity
agreement and power of attorney, if any.
5. A copy of a financial plan which sets
forth in general terms:
a. The insurance
coverages to be offered by the group self-insurance pool, applicable deductible
levels, and the maximum liability which the pool will retain;
b. The amount of reserves to be set aside for
the payment of claims;
c. The
amount, if any, of specific excess insurance to be purchased by the pool;
and
d. The amount, if any, of
aggregate excess insurance coverage to be purchased and maintained.
Such items may be contained in other documents submitted to
the commission in lieu of inclusion in a financial plan.
6. 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 contributions to the pool, maintaining reserves, 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;
d. The identification of reserves by exposure
areas; and
e. Such other provisions
as are necessary or desirable for the operation of the pool.
Such items may be contained in other documents in lieu of
inclusion in a plan of management.
7. 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
officers of the corporation serving as administrator. This information is to be
submitted on a form prescribed by the commission.
8. The address in this Commonwealth where the
books and records of the pool will be maintained at all times.
9. Information showing that the pool has,
within its own organization or by contract with an approved service agent,
ample 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.
10. A confirmation of a fidelity bond
covering the administrator and its employees in a form and amount acceptable to
the commission.
11. A projection of
administrative expenses for the first year of operation in an amount and as a
percentage of the estimated annual contributions.
12. Proof of payment of contributions by
members of at least 25% of its estimated first year's contribution into a
designated depository. This amount shall not be less than $250,000.
13. The application shall be accompanied by
any other information the commission requires.
B. An application submitted by a group
self-insurance pool shall be accompanied by a composite listing of the
estimated annual gross contributions to be developed by each organizing member
of the pool individually and in the aggregate for the pool. The aggregate
amount of annual contributions must be at least $ 1 million unless otherwise
approved by the commission.
C. Any
subsequent revisions to items submitted under the provisions of
14VAC5-360-30 and
14VAC5-360-40 shall be filed with
and subject to approval by the commission.
§§ 12.1-13 and 38.2-223 of the Code of
Virginia.
