Section 20. Requirements for individual self-insurance

A. Individual self-insurance for workers' compensation in Virginia is governed by Chapter 8 (§ 65.2-800 et seq.) of Title 65.2 of the Code of Virginia. Section 65.2-801 of the Code of Virginia specifies that the Virginia Workers' Compensation Commission shall establish requirements and standards for assessing and certifying that a self-insurer is solvent, capable of meeting its existing financial obligations, and able to pay all compensation that is due to its employees. Section 65.2-808 specifies that the commission shall issue a certificate of self-insurance to those employers it approves for self-insurance, and has the right to revoke that certificate upon 30 days' notice and hearing.

B. Currently approved individual self-insurers in Virginia shall not be subject to 16VAC30-80-30, 16VAC30-80-40, and 16VAC30-80-50 of this chapter, which apply to the initial submission and review of applications. Currently approved self-insurers shall, however, be subject to all aspects of the regulations that apply after initial application and review. This shall include all requirements regarding bonds (including increases in bonds) contained in 16VAC30-80-60, all reporting requirements in 16VAC30-80-70, termination and withdrawal procedures in 16VAC30-80-80, and assessment requirements in 16VAC30-80-100. However, currently approved self-insurers shall have until January 1, 1994, to comply with the advance notification requirements regarding excess coverage that are contained in 16VAC30-80-70 D.

C. Applicants that are governmental entities must apply and be certified as individual self-insurers. However, under 16VAC30-50-90 of the commission such public entities are required to provide neither proof of financial solvency nor any bond or security to guarantee payment of claims. The application and reporting requirements are therefore different, and more limited, for public self-insurers than they are for private self-insurers. Requirements for public employers are provided in 16VAC30-80-90 of this chapter. Public self-insurers are also subject to 16VAC30-80-100 (Assessments).

D. This chapter does not govern any aspect of the application, approval, or regulation of group self-insurance under § 65.2-802 of the Code of Virginia. Group self-insurance is regulated by Insurance Regulation No. 16, adopted by order of the State Corporation Commission on January 17, 1985. Group self-insurers are, however, subject to the assessment provisions of 16VAC30-80-100 of this chapter.

E. This chapter may be amended by the commission subject to a 30-day period for public comment, and a separate 60-day period from notification until implementation.

Historical Notes

Derived from VR405-20-01 § 2, eff. January 13, 1993.

Statutory Authority

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