16 Va. Admin. Code § 30-80-80 - Termination and withdrawal
A. The
commission may revoke the privilege of self-insurance. Reasons for revocation
include, but are not limited to, the following:
1. Deteriorating financial condition.
a. Seriously deteriorating financial
condition, as evidenced by poor financial indicators, negative net worth, or
sequential net losses, may result either in termination of the Certificate of
Self-Insurance under
16VAC30-80-80 B or
a requirement to increase the bond and/or
excess coverage amounts.
b.
Moderately deteriorating financial condition, as evidenced by poor financial
indicators, low net worth, or a net loss, may result in a requirement to
increase bond and/or excess coverage amounts.
2. Deteriorating accident and claims
situation.
a. Substantial increase in number
or cost of claims may result in termination of the Certificate of
Self-Insurance or a requirement to increase the bond and/or excess coverage
amounts.
b. Moderate increase in
number or cost of claims may result in a requirement to increase bond and/or
excess coverage amounts.
3. Failure to provide required
reports.
4. Failure to respond to
commission requests for information within 30 days.
5. Provision of inaccurate or misleading
information to the commission regarding financial condition, claims experience,
or claims management.
6. Failure to
manage claims according to Virginia requirements.
7. Failure to maintain bond and excess
coverage at the levels required or approved by the commission, subject to the
reporting requirements in
16VAC30-80-70 D.
B. In the case of
termination, the commission will provide at least 30 days advance notice of the
termination, as required by §
65.2-808 of the Act. The
commission will also specify the reason for the termination.
C. The commission will schedule a hearing at
which the self-insurer may present evidence as to why the privilege of
self-insurance should not be revoked.
D. Self-insurers may surrender their
Certificate of Self-Insurance by sending a notice of intent to withdraw by
certified mail to "Self-Insurance Program," Virginia Workers' Compensation
Commission, 333 East Franklin Street, Richmond VA 23219. Withdrawal shall not
be effective until approved by the commission on the basis of proof of
alternate commercial coverage, or cessation of all Virginia operations for
which workers' compensation coverage is required.
Notes
Statutory Authority
§§ 65.2-201 and 65.2-801 of the Code of Virginia.
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