16 Va. Admin. Code § 30-80-80

Current through Register Vol. 41, No. 8, December 2, 2024

Section 16VAC30-80-80 - 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.

16 Va. Admin. Code § 30-80-80

Derived from VR405-20-01 §8, eff. January 13, 1993; Amended, Virginia Register Volume 38, Issue 07, eff. 11/22/2021.

Statutory Authority

§§ 65.2-201 and 65.2-801 of the Code of Virginia.