14 Va. Admin. Code § 5-380-100

Current through Register Vol. 40, No. 22, June 17, 2024

Section 14VAC5-380-100 - Member agreement

A. Every member of a group self-insurance pool shall execute a member agreement which shall set forth the rights, privileges and obligations of the member, and the terms, coverages, limits, and deductible of the Plan. This agreement shall be subject to the approval of the Commission and shall provide for, in substance, the following:

1. Election by pool members of a governing authority for the pool, a majority of whom shall be pool members;

2. A requirement that the members' supervisory board designate and appoint an administrator empowered to accept service of process on behalf of the pool and authorized to act for and bind the pool and its members in all transactions relating to or arising out of the operation of the pool;

3. The right of substitution of the administrator and revocation of the power of attorney and rights thereunder;

4. A financial plan or plan of management which are further described in 14VAC5-380-40 A 4 and 5 of this chapter;

5. A management plan which is further described in 14VAC5-380-40 A 5 of this chapter;

6. A requirement that the pool, at the request of a member, provide without unreasonable delay, to any person designated by the member, proof of the coverages provided by the pool, including insurance or reinsurance, applicable deductible levels and the maximum liability which the pool will retain;

Such member agreement may also contain such other provisions not inconsistent with law or this chapter.

B. The first page of the member agreement shall include a summary that shall disclose:

1. In regard to coverage:

a. The coverages provided;

b. The period of the coverage;

c. The amount of the deductible, if any, per claim or in the aggregate; and

d. For each coverage, the maximum amount of coverage to be borne by the pool.

2. In regard to the contribution:

a. The contribution and dates payments are due;

b. The basis upon which each member's contribution is determined; and

c. Whether any additional assessments of the members may be made.

3. In regard to excess coverage of the pool:

a. A description of the excess coverage for the pool as to its coverage per occurrence, coverage per occurrence per person, if appropriate, and in the aggregate for each coverage offered; and

b. A statement that there is no excess coverage for the pool if the pool has not obtained such coverage.

C. The member agreement shall include a prominent disclosure notice that must be signed by the owner or a duly authorized officer or representative of the member. The disclosure notice shall use the following or substantially similar language:

An underground storage tank pool is not protected by any Virginia insurance guaranty association against default due to insolvency. In the event of insolvency, members and persons filing claims against members may be unable to collect any amount owed to them by the pool regardless of the terms of the member agreement. In the event the pool is unable to pay, a member may be liable for any and all unpaid claims against such member.

14 Va. Admin. Code § 5-380-100

Derived from Regulation 33, Case No. INS890261, § 11, eff. September 1, 1989.

Statutory Authority

§ 62.1-44.34:12 of the Code of Virginia.