{"data":{"id":"us-va/14vac5-370-130","jurisdiction":"us-va","citation":"14VAC5-370-130","heading":"Servicing of association","body":"A service agent for a licensed workers' compensation group self-insurance association shall apply and shall be subject to the approval of the  commission before entering into a contract with an association and shall satisfy the  commission that it has adequate facilities and competent personnel to fulfill its obligations to the association and this chapter.\n\nA service agent shall maintain a resident agent in this Commonwealth and that agent shall be authorized to act for the service agent on any and all matters covered by the Act and the  rules and  regulations of the  commission.\n\nA service agent shall provide to the commission the address in this Commonwealth where the books and records of the association will be maintained at all times.\n\nA service agent shall file with the  commission copies of all contracts entered into with the association as they relate to the services to be performed. These contracts shall provide for services necessary to fulfill the employer's obligations under the Act and the  rules and  regulations of the  commission. In addition, any service contract or letter of intent must state that the servicing organization agrees to handle all claims incurred during the contract period to their conclusion without further remuneration unless approval to transfer them is obtained from the  commission prior to such transfer.\n\nThe service organization shall furnish a fidelity bond covering its employees, with the association as obligee, in an amount sufficient to protect all monies placed in the claims fund. However, if the bond required of the administrator also covers the monies in the claims fund, a separate bond shall not be required of the servicing organization with respect to the claims fund.\n\nUpon satisfactory compliance with the above provisions, a certificate of approval as a recognized and authorized service agent shall be issued to the applicant. Failure to comply with any of the foregoing rules 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 reasons for withdrawal and providing the service agent an opportunity to introduce evidence and be heard. If, after a hearing, which may be formal or informal, the service agent's certificate of approval is revoked this revocation 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 interest of the association, its members and their employees.\n\nEach individual, partnership, or corporation approved to act as a service agent for an association shall file with the  commission an annual statement, in a form acceptable to the  commission, of its financial condition within four months of the completion of its fiscal year.","path":["Title 14. Insurance","Agency 5. State Corporation Commission, Bureau of Insurance","Chapter 370. Rules Governing Group Self-Insurers of Liability under the Virginia Workers' Compensation Act"],"source_url":"https://law.lis.virginia.gov/admincode/title14/agency5/chapter370/section130/","current_through":"2026 Regular Session (effective July 1, 2026)","vintage":"","retrieved_at":"2026-09-14T04:52:00Z","sha256":"936a6c4ab00955f2943f31c4c46c27e944d5724717a8ad55db838a27099c481d","source_id":"us-va-vac","stale":false,"prev":"us-va/14vac5-370-120","next":"us-va/14vac5-370-140"},"notice":"GroundRules: Original legal text. Not legal advice."}