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Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
Chapter 385. Rules Governing Aboveground Storage Tank and Pipeline Operators Group Self-Insurance Pools
11/24/2024

14VAC5-385-110. Servicing of pool.

A. A service agent for the 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 the commission that it has adequate facilities and competent personnel to fulfill its obligations to the pool and comply with this chapter.

B. A service agent shall maintain a resident agent in this Commonwealth and that agent shall be authorized to act for a service agent on any and all matters covered by the service agreement.

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 shall state that a service agent agrees to handle all claims covered by the service agreement incurred during the contract period to their conclusions without additional compensation unless approval to transfer them is obtained from the commission prior to such transfer.

D. A service agent shall furnish a fidelity bond covering its employees in an amount sufficient to protect all moneys for which he has a fiduciary responsibility.

E. Upon satisfactory compliance with the above provisions, a certificate of approval as a recognized and authorized service agent shall be issued to a service agent. Failure to comply with any of the provisions of this chapter 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 reason for withdrawal, and providing a service agent an opportunity to introduce evidence and be heard. If, after a hearing, which may be formal or informal, a service agent's certificate of approval is withdrawn, this withdrawal shall become effective 30 days after issuance of the commission's order or within such shorter or longer period as the commission may consider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, through its own personnel, may provide the services performed by a service agent upon approval by the commission.

Statutory Authority

§§ 12.1-13, 38.2-223, and 62.1-44.34:12 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 19, Issue 2, eff. October 1, 2002.

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