{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-1517.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-1517.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-1517.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-1517.1.html"}],"law_id":85627,"edition_id":1,"section_id":85627,"structure_id":15486,"section_number":"15.2-1517.1","catch_line":"Formation of not-for-profit benefits consortium","history":"2015, c. 136.","full_text":"A\n\nAs used in this section:\n\t\t\t“Benefits consortium” means a nonstock corporation formed pursuant to subsection B.\n\t\t\t“Benefits plan” means a plan adopted by the board of directors of a benefits consortium to provide health and welfare benefits to employees of localities that are members of the benefits consortium and their dependents.\n\t\t\t“Employee welfare benefit plan” has the meaning set forth in § 3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1).\n\t\t\t“Locality” means any city or county or the school board with authority over public schools within the boundaries of a city or county.B\n\nNotwithstanding any provision of law to the contrary, the governing bodies of three or more localities that as of December 31, 2014, comprised the membership of a multiple employer welfare arrangement may form a not-for-profit benefits consortium for the purpose of establishing a self-funded employee welfare benefits plan by acting as incorporators of a nonstock corporation pursuant to the Virginia Nonstock Corporation Act (\u00a7 13.1-801 et seq.). In addition to provisions required or permitted by the Virginia Nonstock Corporation Act, the organizational documents of the benefits consortium shall:1\n\nLimit membership in the benefits consortium to localities;2\n\nSet forth the name and address of each of the initial members of the corporation;3\n\nSet forth requirements for the admission of additional localities to the corporation;4\n\nSet forth the procedure for admission of additional localities to the corporation;5\n\nRequire that each initial member of the corporation and each additional locality admitted to membership agree to remain a member of the benefits consortium for a period of at least five years from the date the consortium begins operations or the date of the additional locality’s admission to membership, as the case may be;6\n\nProvide that the number of directors of the corporation shall be equal to the number of members;7\n\nProvide that the board of directors shall have exclusive fiscal control over and be responsible for the operation of the benefits plan and shall govern the benefits consortium in accordance with applicable law;8\n\nVest in the board of directors the power to make and collect special assessments against members and, if any assessment is not timely paid, to enforce collection of same in the name of the corporation;9\n\nState the purposes of the benefits consortium, including the types of risks to be shared by its members;10\n\nProvide that each member shall be contractually liable for its allocated share of the liabilities of the benefits consortium as determined by the board of directors;11\n\nRequire that the benefits consortium purchase and maintain (i) a bond that satisfies the requirements of applicable law, (ii) fiduciary liability insurance, and (iii) a policy or policies of excess insurance with a retention level determined in accordance with sound actuarial principles from an insurer licensed to transact the business of insurance in the Commonwealth;12\n\nRequire that the benefits consortium be audited annually by an independent certified public accountant engaged by the board of directors; and13\n\nNot include in the name of the corporation the words “insurance,” “insurer,” “underwriter,” “mutual,” or any other word or term or combination of words or terms that is uniquely descriptive of an insurance company or insurance business unless the context of the remaining words or terms clearly indicates that the corporation is not an insurance company and is not carrying on the business of insurance.C\n\nA benefits consortium shall establish and maintain reserves determined in accordance with sound actuarial principles. Capital may be maintained in the form of an irrevocable letter of credit issued to the benefits consortium by a state or national bank authorized to engage in the banking business in the Commonwealth.D\n\nA benefits consortium may create a self-funded trust through which the members provide for their employees and their dependents any benefit that a member that is a locality is authorized to provide under an accident and health insurance program authorized by § 15.2-1517.E\n\nExcept to the extent specifically provided in this section, a benefits consortium organized under and operated in conformity with this section, so long as it remains in good standing under the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.) and otherwise meets the requirements set forth in this section, shall be exempt from all state taxation, and shall not otherwise be subject to the provisions of Title 38.2, including regulation as a multiple employer welfare arrangement.","order_by":null,"text":{"0":{"id":306708,"text":"As used in this section:\n\t\t\t“Benefits consortium” means a nonstock corporation formed pursuant to subsection B.\n\t\t\t“Benefits plan” means a plan adopted by the board of directors of a benefits consortium to provide health and welfare benefits to employees of localities that are members of the benefits consortium and their dependents.\n\t\t\t“Employee welfare benefit plan” has the meaning set forth in § 3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1).\n\t\t\t“Locality” means any city or county or the school board with authority over public schools within the boundaries of a city or county.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":306709,"text":"Notwithstanding any provision of law to the contrary, the governing bodies of three or more localities that as of December 31, 2014, comprised the membership of a multiple employer welfare arrangement may form a not-for-profit benefits consortium for the purpose of establishing a self-funded employee welfare benefits plan by acting as incorporators of a nonstock corporation pursuant to the Virginia Nonstock Corporation Act (\u00a7 13.1-801 et seq.). In addition to provisions required or permitted by the Virginia Nonstock Corporation Act, the organizational documents of the benefits consortium shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":306710,"text":"Limit membership in the benefits consortium to localities;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":306711,"text":"Set forth the name and address of each of the initial members of the corporation;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":306712,"text":"Set forth requirements for the admission of additional localities to the corporation;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":306713,"text":"Set forth the procedure for admission of additional localities to the corporation;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":306714,"text":"Require that each initial member of the corporation and each additional locality admitted to membership agree to remain a member of the benefits consortium for a period of at least five years from the date the consortium begins operations or the date of the additional locality’s admission to membership, as the case may be;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":306715,"text":"Provide that the number of directors of the corporation shall be equal to the number of members;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":306716,"text":"Provide that the board of directors shall have exclusive fiscal control over and be responsible for the operation of the benefits plan and shall govern the benefits consortium in accordance with applicable law;","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"9":{"id":306717,"text":"Vest in the board of directors the power to make and collect special assessments against members and, if any assessment is not timely paid, to enforce collection of same in the name of the corporation;","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"B9"},"10":{"id":306718,"text":"State the purposes of the benefits consortium, including the types of risks to be shared by its members;","type":"section","prefixes":["B","9"],"prefix":"9","entire_prefix":"B9","prefix_anchor":"B9","level":2,"prior_prefix":"B8","next_prefix":"B10"},"11":{"id":306719,"text":"Provide that each member shall be contractually liable for its allocated share of the liabilities of the benefits consortium as determined by the board of directors;","type":"section","prefixes":["B","10"],"prefix":"10","entire_prefix":"B10","prefix_anchor":"B10","level":2,"prior_prefix":"B9","next_prefix":"B11"},"12":{"id":306720,"text":"Require that the benefits consortium purchase and maintain (i) a bond that satisfies the requirements of applicable law, (ii) fiduciary liability insurance, and (iii) a policy or policies of excess insurance with a retention level determined in accordance with sound actuarial principles from an insurer licensed to transact the business of insurance in the Commonwealth;","type":"section","prefixes":["B","11"],"prefix":"11","entire_prefix":"B11","prefix_anchor":"B11","level":2,"prior_prefix":"B10","next_prefix":"B12"},"13":{"id":306721,"text":"Require that the benefits consortium be audited annually by an independent certified public accountant engaged by the board of directors; and","type":"section","prefixes":["B","12"],"prefix":"12","entire_prefix":"B12","prefix_anchor":"B12","level":2,"prior_prefix":"B11","next_prefix":"B13"},"14":{"id":306722,"text":"Not include in the name of the corporation the words “insurance,” “insurer,” “underwriter,” “mutual,” or any other word or term or combination of words or terms that is uniquely descriptive of an insurance company or insurance business unless the context of the remaining words or terms clearly indicates that the corporation is not an insurance company and is not carrying on the business of insurance.","type":"section","prefixes":["B","13"],"prefix":"13","entire_prefix":"B13","prefix_anchor":"B13","level":2,"prior_prefix":"B12","next_prefix":"C"},"15":{"id":306723,"text":"A benefits consortium shall establish and maintain reserves determined in accordance with sound actuarial principles. Capital may be maintained in the form of an irrevocable letter of credit issued to the benefits consortium by a state or national bank authorized to engage in the banking business in the Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B13","next_prefix":"D"},"16":{"id":306724,"text":"A benefits consortium may create a self-funded trust through which the members provide for their employees and their dependents any benefit that a member that is a locality is authorized to provide under an accident and health insurance program authorized by § 15.2-1517.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"17":{"id":306725,"text":"Except to the extent specifically provided in this section, a benefits consortium organized under and operated in conformity with this section, so long as it remains in good standing under the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.) and otherwise meets the requirements set forth in this section, shall be exempt from all state taxation, and shall not otherwise be subject to the provisions of Title 38.2, including regulation as a multiple employer welfare arrangement.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":15486,"edition_id":1,"name":"Insurance and Legal Defense","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":12734,"metadata":{},"date_created":"2026-06-26 03:55:26","date_modified":"2026-06-26 03:55:26","permalink":{"id":153149,"object_type":"structure","relational_id":15486,"identifier":"3","token":"15.2\/II\/15\/3","url":"\/15.2\/II\/15\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12734,"edition_id":1,"name":"Local Government Personnel, Qualification for Office, Bonds, Dual Office Holding and Certain Local Government Officers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":153003,"object_type":"structure","relational_id":12734,"identifier":"15","token":"15.2\/II\/15","url":"\/15.2\/II\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12733,"edition_id":1,"name":"Powers of Local Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12720,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":152369,"object_type":"structure","relational_id":12733,"identifier":"II","token":"15.2\/II","url":"\/15.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12720,"edition_id":1,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":151279,"object_type":"structure","relational_id":12720,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":82043,"structure_id":15486,"section_number":"15.2-1517","catch_line":"Insurance for employees and retired employees of localities and other local governmental entities; participation by certain volunteers","url":"\/15.2-1517\/","token":"15.2\/II\/15\/3\/15.2-1517","metadata":false},{"id":85627,"structure_id":15486,"section_number":"15.2-1517.1","catch_line":"Formation of not-for-profit benefits consortium","url":"\/15.2-1517.1\/","token":"15.2\/II\/15\/3\/15.2-1517.1","metadata":false},{"id":77587,"structure_id":15486,"section_number":"15.2-1518","catch_line":"Liability insurance for officers, employees and volunteers of local government and members of its boards and commissions and constitutional officers","url":"\/15.2-1518\/","token":"15.2\/II\/15\/3\/15.2-1518","metadata":false},{"id":59005,"structure_id":15486,"section_number":"15.2-1519","catch_line":"Liability insurance for employees of local departments and boards of welfare and social services; legal representation","url":"\/15.2-1519\/","token":"15.2\/II\/15\/3\/15.2-1519","metadata":false},{"id":66361,"structure_id":15486,"section_number":"15.2-1520","catch_line":"Employment of counsel to defend localities and political subdivisions, governing bodies, officers or employees in certain proceedings; costs and expenses of such proceedings","url":"\/15.2-1520\/","token":"15.2\/II\/15\/3\/15.2-1520","metadata":false},{"id":61116,"structure_id":15486,"section_number":"15.2-1521","catch_line":"Providing legal fees and expenses for officer or employee of county, city or town in certain proceedings","url":"\/15.2-1521\/","token":"15.2\/II\/15\/3\/15.2-1521","metadata":false}],"previous_section":{"id":82043,"structure_id":15486,"section_number":"15.2-1517","catch_line":"Insurance for employees and retired employees of localities and other local governmental entities; participation by certain volunteers","url":"\/15.2-1517\/","token":"15.2\/II\/15\/3\/15.2-1517","metadata":false},"next_section":{"id":77587,"structure_id":15486,"section_number":"15.2-1518","catch_line":"Liability insurance for officers, employees and volunteers of local government and members of its boards and commissions and constitutional officers","url":"\/15.2-1518\/","token":"15.2\/II\/15\/3\/15.2-1518","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-1517.1\/","history_text":"

This law was first created in 2015. The record of its establishment is cataloged in chapter 136<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":76305,"section_number":"13.1-801","catch_line":"Short title","order_by":null,"url":"\/13.1-801\/"}],"permalink":{"id":153155,"object_type":"law","relational_id":85627,"identifier":"15.2-1517.1","token":"15.2\/II\/15\/3\/15.2-1517.1","url":"\/15.2-1517.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-1517.1\/","token":"15.2\/II\/15\/3\/15.2-1517.1","dublin_core":{"Title":"Formation of not-for-profit benefits consortium","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-1517.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Benefits consortium<\/span>” means a nonstock corporation formed pursuant to subsection B.\n\t\t\t“Benefits plan<\/span>” means a plan adopted by the board of directors of a benefits consortium<\/span> to provide health and welfare benefits to employees of localities that are members of the benefits consortium<\/span> and their dependents.\n\t\t\t“Employee welfare benefit plan” has the meaning set forth in § 3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1).\n\t\t\t“Locality<\/span>” means any city<\/span> or county<\/span> or the school board with authority over public schools within the boundaries of a city<\/span> or county<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any provision of law<\/span> to the contrary, the governing bodies of three or more localities that as of December 31, 2014, comprised the membership of a multiple employer welfare arrangement may form a not-for-profit benefits consortium<\/span> for the purpose of establishing a self-funded employee welfare benefits plan<\/span> by acting as incorporators of a nonstock corporation pursuant to the Virginia Nonstock Corporation Act (\u00a7 13.1-801<\/a> et seq.). In addition to provisions required or permitted by the Virginia Nonstock Corporation Act, the organizational documents of the benefits consortium<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Limit membership in the benefits consortium<\/span> to localities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Set forth the name and address of each of the initial members of the corporation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Set forth requirements for the admission of additional localities to the corporation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Set forth the procedure for admission of additional localities to the corporation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Require that each initial member of the corporation and each additional locality<\/span> admitted to membership agree to remain a member of the benefits consortium<\/span> for a period of at least five years from the date the consortium begins operations or the date of the additional locality<\/span>’s admission to membership, as the case may be; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Provide that the number of directors of the corporation shall be equal to the number of members; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Provide that the board of directors shall have exclusive fiscal control over and be responsible for the operation of the benefits plan<\/span> and shall govern the benefits consortium<\/span> in accordance with applicable law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Vest in the board of directors the power to make and collect special assessments against members and, if any assessment is not timely paid, to enforce collection of same in the name of the corporation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> State the purposes of the benefits consortium<\/span>, including the types of risks to be shared by its members; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Provide that each member shall be contractually liable for its allocated share of the liabilities of the benefits consortium<\/span> as determined by the board of directors; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Require that the benefits consortium<\/span> purchase and maintain (i) a bond<\/span> that satisfies the requirements of applicable law<\/span>, (ii) fiduciary liability insurance, and (iii) a policy or policies of excess insurance with a retention level determined in accordance with sound actuarial principles from an insurer licensed to transact the business of insurance in the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> Require that the benefits consortium<\/span> be audited annually by an independent certified public accountant engaged by the board of directors; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> Not include in the name of the corporation the words “insurance,” “insurer,” “underwriter,” “mutual,” or any other word or term or combination of words or terms that is uniquely descriptive of an insurance company or insurance business unless the context of the remaining words or terms clearly indicates that the corporation is not an insurance company and is not carrying on the business of insurance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A benefits consortium<\/span> shall establish and maintain reserves determined in accordance with sound actuarial principles. Capital may be maintained in the form of an irrevocable letter of credit issued to the benefits consortium<\/span> by a state or national bank authorized to engage in the banking business in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A benefits consortium<\/span> may create a self-funded trust through which the members provide for their employees and their dependents any benefit that a member that is a locality<\/span> is authorized to provide under an accident and health insurance program authorized by § 15.2-1517<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Except to the extent specifically provided in this section, a benefits consortium<\/span> organized under and operated in conformity with this section, so long as it remains in good standing under the Virginia Nonstock Corporation Act (§ 13.1-801<\/a> et seq.) and otherwise meets the requirements set forth in this section, shall be exempt from all state taxation, and shall not otherwise be subject to the provisions of Title 38.2, including regulation as a multiple employer welfare arrangement. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFORMATION OF NOT-FOR-PROFIT BENEFITS CONSORTIUM (\u00a7 15.2-1517.1)\n\nA. As used in this section:\n\t\t\t“Benefits consortium” means a nonstock corporation formed\npursuant to subsection B.\n\t\t\t“Benefits plan” means a plan adopted by the board of directors of\na benefits consortium to provide health and welfare benefits to employees of\nlocalities that are members of the benefits consortium and their dependents.\n\t\t\t“Employee welfare benefit plan” has the meaning set forth in\n§ 3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C.\n§ 1002(1).\n\t\t\t“Locality” means any city or county or the school board with\nauthority over public schools within the boundaries of a city or county.\n\nB. Notwithstanding any provision of law to the contrary, the governing bodies of\nthree or more localities that as of December 31, 2014, comprised the membership\nof a multiple employer welfare arrangement may form a not-for-profit benefits\nconsortium for the purpose of establishing a self-funded employee welfare\nbenefits plan by acting as incorporators of a nonstock corporation pursuant to\nthe Virginia Nonstock Corporation Act (\u00a7 13.1-801 et seq.). In addition to\nprovisions required or permitted by the Virginia Nonstock Corporation Act, the\norganizational documents of the benefits consortium shall:\n\n 1. Limit membership in the benefits consortium to localities;\n\n 2. Set forth the name and address of each of the initial members of the\n corporation;\n\n 3. Set forth requirements for the admission of additional localities to the\n corporation;\n\n 4. Set forth the procedure for admission of additional localities to the\n corporation;\n\n 5. Require that each initial member of the corporation and each additional\n locality admitted to membership agree to remain a member of the benefits\n consortium for a period of at least five years from the date the consortium\n begins operations or the date of the additional locality’s admission to\n membership, as the case may be;\n\n 6. Provide that the number of directors of the corporation shall be equal to\n the number of members;\n\n 7. Provide that the board of directors shall have exclusive fiscal control\n over and be responsible for the operation of the benefits plan and shall\n govern the benefits consortium in accordance with applicable law;\n\n 8. Vest in the board of directors the power to make and collect special\n assessments against members and, if any assessment is not timely paid, to\n enforce collection of same in the name of the corporation;\n\n 9. State the purposes of the benefits consortium, including the types of risks\n to be shared by its members;\n\n 10. Provide that each member shall be contractually liable for its allocated\n share of the liabilities of the benefits consortium as determined by the board\n of directors;\n\n 11. Require that the benefits consortium purchase and maintain (i) a bond that\n satisfies the requirements of applicable law, (ii) fiduciary liability\n insurance, and (iii) a policy or policies of excess insurance with a retention\n level determined in accordance with sound actuarial principles from an insurer\n licensed to transact the business of insurance in the Commonwealth;\n\n 12. Require that the benefits consortium be audited annually by an independent\n certified public accountant engaged by the board of directors; and\n\n 13. Not include in the name of the corporation the words\n “insurance,” “insurer,” “underwriter,”\n “mutual,” or any other word or term or combination of words or\n terms that is uniquely descriptive of an insurance company or insurance\n business unless the context of the remaining words or terms clearly indicates\n that the corporation is not an insurance company and is not carrying on the\n business of insurance.\n\nC. A benefits consortium shall establish and maintain reserves determined in\naccordance with sound actuarial principles. Capital may be maintained in the\nform of an irrevocable letter of credit issued to the benefits consortium by a\nstate or national bank authorized to engage in the banking business in the\nCommonwealth.\n\nD. A benefits consortium may create a self-funded trust through which the\nmembers provide for their employees and their dependents any benefit that a\nmember that is a locality is authorized to provide under an accident and health\ninsurance program authorized by § 15.2-1517.\n\nE. Except to the extent specifically provided in this section, a benefits\nconsortium organized under and operated in conformity with this section, so long\nas it remains in good standing under the Virginia Nonstock Corporation Act\n(§ 13.1-801 et seq.) and otherwise meets the requirements set forth in this\nsection, shall be exempt from all state taxation, and shall not otherwise be\nsubject to the provisions of Title 38.2, including regulation as a multiple\nemployer welfare arrangement.\n\nHISTORY: 2015, c. 136.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}