16 Va. Admin. Code § 30-80-40 - Review of applications
A.
Completed applications will be reviewed and a decision made within 90
days.
B. Applicants will be
notified that their application has been received, whether it is complete, what
materials will be needed, and when a decision can be expected.
C. Applicants may be required to provide
additional information in support of their applications. Such additional
information may include, but is not limited to, the following:
1. Updated information on financial
operations, including review of the applicant's financial records by commission
staff or their agents.
2.
Additional information on Virginia operations (precise manufacturing
procedures, exposure to industrial chemicals, potential occupational disease
exposures, loss control efforts).
3. Detailed information on accidents or
diseases, including review of the applicant's accident and safety records by
commission staff or their agents.
D. Applicants will be reviewed for their
financial solvency, efficiency, profitability, stability, and future prospects.
The review will be based on the materials submitted by the applicant and on
third-party analyses and ratings of the applicant's financial operations
(including ratings of its credit). Critical financial issues, indicators, and
ratios include, but are not limited to, those listed below. Analysis will be in
terms of the applicant's current situation, any trends over the past three
years, and comparison with other employers in the same or similar industries.
1. Net worth (tangible and
intangible).
2. Operating results
and working capital.
3. Nature and
proportion of assets and liabilities.
4. Level and nature of debt, and overall
relation of debt to equity.
5.
Independent credit ratings.
6.
Profitability in relation to sales, assets, and net worth.
E. Applicants will also be reviewed in terms
of their existing claims experience and their possible future exposure. To the
extent possible, the analysis will be based on comparisons with other employers
in the same or similar industries. Issues for review include, but are not
limited to, the following:
1. Total number of
accidents over the past three years compared to national and state
rates.
2. Number of lost-time
accidents over the past three years compared to national and state
rates.
3. Distribution of accidents
by type and severity, including amputations, fatalities, and total
incapacity.
4. Claims costs over
the past three years compared to national and state rates.
5. Particular hazards to the employee in
terms of both continuous and catastrophic exposures.
6. Any other indications of increase or
unpredictability in accidents, lost-time accidents, and aggregate or per-capita
claims costs.
F.
Applicants will also be reviewed in terms of their proposed management of
workers' compensation claims. Elements that will be considered include, but are
not limited to, the following:
1.
Demonstration of clear corporate responsibility for managing workers'
compensation claims, procedures, policies, and reserves.
2. Reasonableness of proposals for
maintaining excess coverage (proposed carrier, retention and limits for
specific coverage, retention and limits for aggregate coverage).
3. Feasibility of proposed plan for managing
claims (including specification of a third-party administrator or description
of in-house claims management operations).
4. Existence of loss control programs,
demonstrable effectiveness of such programs, and feasibility of any proposed
improvements to such programs.
Notes
Statutory Authority
§§ 65.2-201 and 65.2-801 of the Code of Virginia.
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