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. 41, No. 3, September 23, 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:
2. If the contract or policy contains any type of commutation clause, it shall provide in substance:
3. In the event any commutation is effected, the commission shall have the right to direct that this sum either:
4. No more than one association, which shall be defined as the named insured, shall be covered by any contract or policy of excess liability insurance. Any reinsurance contract issued on any contract or policy of excess liability shall contain a clause providing that, (i) the reinsurance is written expressly for, and for the protection of, the named insured, and (ii) in the event of the aggregate and/or specific excess underwriter's going into liquidation or being otherwise unable to pay to the named insured, the reinsurer of the aggregate and/or specific excess underwriter will pay benefits as may be due under the terms of the reinsurance contract directly to the named insured;
5. Copies of the complete contracts or policies of excess liability insurance, complete with all endorsements thereto, shall be filed with the commission.
The commission may release the association from the excess insurance requirement if the contingency reserve established by the association is in an amount determined by the commission to be adequate.
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.