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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
11/21/2024

14VAC5-385-20. Definitions.

A. The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Aboveground storage tank" or "AST" means any one or combination of tanks, including pipes, used to contain an accumulation of oil at atmospheric pressure, and the volume of which, including the volume of the pipes, is more than 90% above the surface of the ground. This term does not include line pipe and breakout tanks of an interstate pipeline regulated under the federal Accountable Pipeline Safety and Partnership Act of 1996 (49 USC § 60101 et seq.).

"Administrator" means the individual, partnership, corporation or other entity authorized to serve as a representative of a pool and its members in carrying out the policies of the board and managing the pool's activities.

"Commission" means the State Corporation Commission.

"Contribution" means the amount of payments required of each member in order to fund the pool's obligations under the pool plan.

"Facility" means any development or installation within the Commonwealth that deals in, stores or handles oil, and includes an aboveground storage tank or pipeline.

"Group self-insurance pool" or "pool" means a pool organized by two or more operators of facilities for the purpose of forming a group self-insurance pool in order to demonstrate financial responsibility as required by § 62.1-44.34:16 of the Code of Virginia.

"Insolvent" means (i) the condition of a pool that has liabilities in excess of assets; or (ii) the inability of a pool to pay its obligations as they become due in the usual course of business.

"Member" means an operator of a facility that has entered into a member agreement and thereby becomes a member of a group self-insurance pool.

"Member agreement" means the written agreement executed between each member and the pool, which sets forth the conditions of membership in the pool, the obligations, if any, of each member to the other members, and the terms, coverages, limits, and deductibles of the pool plan.

"Members' supervisory board" or "board" means the governing authority of the pool selected by the members to be responsible for determining 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.

"Pool plan" means the plan of self-insurance offered by the pool to its members as specifically designated in the member agreement.

"Service agent" means any individual, partnership, corporation or other entity that may provide any or all of the insurance services including, but not limited to, claim adjustment, safety engineering, compilation of statistics, the preparation of contribution payments, loss reports, and other required self-insurance reports, and the administration of a claims fund. A service agent may invest contributions for the benefit of members as directed by the board.

"Service agreement" means the written agreement executed between the pool and a service agent, which sets forth the terms of the insurance services to be provided by a service agent to the pool.

B. All terms used in this chapter that are not defined in this section but are defined in 9VAC25-640-10 shall be given the definitions contained in 9VAC25-640-10.

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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