{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1921.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1921.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1921.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1921.1.html"}],"law_id":61464,"edition_id":1,"section_id":61464,"structure_id":13456,"section_number":"38.2-1921.1","catch_line":"Professional employer organization workers’ compensation rating","history":"2000, cc. 624, 718.","full_text":"A\n\nWhenever any professional employer organization enters into an agreement with a client company to provide professional employer services, the experience rating of the professional employer organization shall be used for voluntary market workers’ compensation insurance premium computation purposes with respect to such coemployees. In the event that the agreement between a client company and a professional employer organization is terminated, the coemployees shall become solely the employees of the former client company. If the coemployees have been covered as employees of the professional employer organization under a voluntary market workers’ compensation insurance policy for a period of three consecutive years or more, the workers’ compensation insurance premium applicable to the policy of the former client company shall be based upon the rating of the professional employer organization until the former client employer has developed sufficient experience to be rated on its own or no longer qualifies for experience rating. If the coemployees have been covered as employees of the professional employer organization for a period of less than three consecutive years, the workers’ compensation insurance premium applicable to the policy of the former client company shall be based upon the experience of the former client company which reflects its experience during the experience period specified by the approved experience rating plan, including, if available, experience incurred for coemployees under the professional employer services agreement.B\n\nInsurers may conduct periodic audits of any professional employer organization, including payrolls, operations and records as related to individual client company operations in order to ensure that the appropriate premium is charged for workers’ compensation insurance coverage. Such audits may include audits of the client company in order to verify payroll, losses and classifications, and inspections of the premises where the coemployees work.C\n\nA professional employer organization may aggregate its coemployees under a single employer plan for the purpose of providing employee benefits provided that the professional employer organization meets the regulatory licensure and filing requirements promulgated by the Commission for fully insured multiple employer welfare arrangements. The following information required to be filed shall be confidential and shall not be disclosed to the public: (i) all information related to the names and addresses of employers participating in the plan and (ii) all information pertaining to the adequacy of the plan’s level of reserves and contributions; however, nothing herein shall (i) prevent the Commission from using such information in any regulatory proceeding or (ii) be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization pursuant to an otherwise lawful subpoena issued by a court of competent jurisdiction.D\n\nThe Commission may promulgate regulations as it deems necessary for the administration of this section.","order_by":null,"text":{"0":{"id":224506,"text":"Whenever any professional employer organization enters into an agreement with a client company to provide professional employer services, the experience rating of the professional employer organization shall be used for voluntary market workers’ compensation insurance premium computation purposes with respect to such coemployees. In the event that the agreement between a client company and a professional employer organization is terminated, the coemployees shall become solely the employees of the former client company. If the coemployees have been covered as employees of the professional employer organization under a voluntary market workers’ compensation insurance policy for a period of three consecutive years or more, the workers’ compensation insurance premium applicable to the policy of the former client company shall be based upon the rating of the professional employer organization until the former client employer has developed sufficient experience to be rated on its own or no longer qualifies for experience rating. If the coemployees have been covered as employees of the professional employer organization for a period of less than three consecutive years, the workers’ compensation insurance premium applicable to the policy of the former client company shall be based upon the experience of the former client company which reflects its experience during the experience period specified by the approved experience rating plan, including, if available, experience incurred for coemployees under the professional employer services agreement.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":224507,"text":"Insurers may conduct periodic audits of any professional employer organization, including payrolls, operations and records as related to individual client company operations in order to ensure that the appropriate premium is charged for workers’ compensation insurance coverage. Such audits may include audits of the client company in order to verify payroll, losses and classifications, and inspections of the premises where the coemployees work.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":224508,"text":"A professional employer organization may aggregate its coemployees under a single employer plan for the purpose of providing employee benefits provided that the professional employer organization meets the regulatory licensure and filing requirements promulgated by the Commission for fully insured multiple employer welfare arrangements. The following information required to be filed shall be confidential and shall not be disclosed to the public: (i) all information related to the names and addresses of employers participating in the plan and (ii) all information pertaining to the adequacy of the plan’s level of reserves and contributions; however, nothing herein shall (i) prevent the Commission from using such information in any regulatory proceeding or (ii) be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization pursuant to an otherwise lawful subpoena issued by a court of competent jurisdiction.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":224509,"text":"The Commission may promulgate regulations as it deems necessary for the administration of this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13456,"edition_id":1,"name":"Regulation of Rates Generally","identifier":"19","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:55","date_modified":"2026-06-26 03:44:55","permalink":{"id":212945,"object_type":"structure","relational_id":13456,"identifier":"19","token":"38.2\/19","url":"\/38.2\/19\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","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":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66229,"structure_id":13456,"section_number":"38.2-1900","catch_line":"Purposes of chapter","url":"\/38.2-1900\/","token":"38.2\/19\/38.2-1900","metadata":false},{"id":57539,"structure_id":13456,"section_number":"38.2-1901","catch_line":"Definitions","url":"\/38.2-1901\/","token":"38.2\/19\/38.2-1901","metadata":false},{"id":74191,"structure_id":13456,"section_number":"38.2-1902","catch_line":"Scope of chapter","url":"\/38.2-1902\/","token":"38.2\/19\/38.2-1902","metadata":false},{"id":70651,"structure_id":13456,"section_number":"38.2-1903","catch_line":"Exemptions","url":"\/38.2-1903\/","token":"38.2\/19\/38.2-1903","metadata":false},{"id":86657,"structure_id":13456,"section_number":"38.2-1903.1","catch_line":"Exemptions of large commercial risks","url":"\/38.2-1903.1\/","token":"38.2\/19\/38.2-1903.1","metadata":false},{"id":68129,"structure_id":13456,"section_number":"38.2-1904","catch_line":"Rate standards","url":"\/38.2-1904\/","token":"38.2\/19\/38.2-1904","metadata":false},{"id":57802,"structure_id":13456,"section_number":"38.2-1905","catch_line":"Motor vehicle insurer not to charge points or increase premiums in certain instances","url":"\/38.2-1905\/","token":"38.2\/19\/38.2-1905","metadata":false},{"id":80697,"structure_id":13456,"section_number":"38.2-1905.1","catch_line":"Repealed","url":"\/38.2-1905.1\/","token":"38.2\/19\/38.2-1905.1","metadata":false},{"id":70804,"structure_id":13456,"section_number":"38.2-1906","catch_line":"Filing and use of rates","url":"\/38.2-1906\/","token":"38.2\/19\/38.2-1906","metadata":false},{"id":54809,"structure_id":13456,"section_number":"38.2-1906.1","catch_line":"Misquote of premium","url":"\/38.2-1906.1\/","token":"38.2\/19\/38.2-1906.1","metadata":false},{"id":67605,"structure_id":13456,"section_number":"38.2-1907","catch_line":"Filings open to inspection","url":"\/38.2-1907\/","token":"38.2\/19\/38.2-1907","metadata":false},{"id":61334,"structure_id":13456,"section_number":"38.2-1908","catch_line":"Rate making and delegation of filing obligation","url":"\/38.2-1908\/","token":"38.2\/19\/38.2-1908","metadata":false},{"id":76329,"structure_id":13456,"section_number":"38.2-1909","catch_line":"Review of rates by Commission","url":"\/38.2-1909\/","token":"38.2\/19\/38.2-1909","metadata":false},{"id":64325,"structure_id":13456,"section_number":"38.2-1910","catch_line":"Disapproval of rates","url":"\/38.2-1910\/","token":"38.2\/19\/38.2-1910","metadata":false},{"id":63878,"structure_id":13456,"section_number":"38.2-1911","catch_line":"Special restrictions on individual insurers","url":"\/38.2-1911\/","token":"38.2\/19\/38.2-1911","metadata":false},{"id":77322,"structure_id":13456,"section_number":"38.2-1912","catch_line":"Delayed effect of rates; certification of reinsurance with affiliated company","url":"\/38.2-1912\/","token":"38.2\/19\/38.2-1912","metadata":false},{"id":76016,"structure_id":13456,"section_number":"38.2-1912.1","catch_line":"Approval of prospective loss costs and supplementary rate information; \u00a7 38.2-119 rate filings","url":"\/38.2-1912.1\/","token":"38.2\/19\/38.2-1912.1","metadata":false},{"id":73514,"structure_id":13456,"section_number":"38.2-1913","catch_line":"Operation and control of rate service organizations","url":"\/38.2-1913\/","token":"38.2\/19\/38.2-1913","metadata":false},{"id":68776,"structure_id":13456,"section_number":"38.2-1914","catch_line":"Licensing of rate service organizations","url":"\/38.2-1914\/","token":"38.2\/19\/38.2-1914","metadata":false},{"id":77780,"structure_id":13456,"section_number":"38.2-1915","catch_line":"Joint underwriting or joint reinsurance organizations","url":"\/38.2-1915\/","token":"38.2\/19\/38.2-1915","metadata":false},{"id":82148,"structure_id":13456,"section_number":"38.2-1916","catch_line":"Certain conduct by insurers and rate service organizations prohibited","url":"\/38.2-1916\/","token":"38.2\/19\/38.2-1916","metadata":false},{"id":75759,"structure_id":13456,"section_number":"38.2-1916.1","catch_line":"Investigation by Attorney General of suspected violations; investigative demand to witnesses; access to business records, etc.; penalties","url":"\/38.2-1916.1\/","token":"38.2\/19\/38.2-1916.1","metadata":false},{"id":54431,"structure_id":13456,"section_number":"38.2-1916.2","catch_line":"Penalties; injunctive relief; restitution","url":"\/38.2-1916.2\/","token":"38.2\/19\/38.2-1916.2","metadata":false},{"id":64311,"structure_id":13456,"section_number":"38.2-1917","catch_line":"Injunctive relief","url":"\/38.2-1917\/","token":"38.2\/19\/38.2-1917","metadata":false},{"id":64825,"structure_id":13456,"section_number":"38.2-1918","catch_line":"Agreements for equitable apportionment of insurance","url":"\/38.2-1918\/","token":"38.2\/19\/38.2-1918","metadata":false},{"id":62231,"structure_id":13456,"section_number":"38.2-1919","catch_line":"Collection of experience data; uniformity; compilations available to insurers and rate service organizations","url":"\/38.2-1919\/","token":"38.2\/19\/38.2-1919","metadata":false},{"id":72323,"structure_id":13456,"section_number":"38.2-1919.1","catch_line":"Interchange of rating data and information","url":"\/38.2-1919.1\/","token":"38.2\/19\/38.2-1919.1","metadata":false},{"id":60173,"structure_id":13456,"section_number":"38.2-1920","catch_line":"Excess rate for a specific risk","url":"\/38.2-1920\/","token":"38.2\/19\/38.2-1920","metadata":false},{"id":81510,"structure_id":13456,"section_number":"38.2-1921","catch_line":"Combination policies","url":"\/38.2-1921\/","token":"38.2\/19\/38.2-1921","metadata":false},{"id":61464,"structure_id":13456,"section_number":"38.2-1921.1","catch_line":"Professional employer organization workers' compensation rating","url":"\/38.2-1921.1\/","token":"38.2\/19\/38.2-1921.1","metadata":false},{"id":54416,"structure_id":13456,"section_number":"38.2-1922","catch_line":"No rule prohibiting or regulating payment of dividends, etc., to be adopted","url":"\/38.2-1922\/","token":"38.2\/19\/38.2-1922","metadata":false},{"id":73419,"structure_id":13456,"section_number":"38.2-1923","catch_line":"Person aggrieved by application of rating system to be heard; appeal to Commission","url":"\/38.2-1923\/","token":"38.2\/19\/38.2-1923","metadata":false},{"id":56103,"structure_id":13456,"section_number":"38.2-1924","catch_line":"Cooperation among rate service organizations, or among rate service organizations and insurers, authorized; review by Commission","url":"\/38.2-1924\/","token":"38.2\/19\/38.2-1924","metadata":false},{"id":77979,"structure_id":13456,"section_number":"38.2-1925","catch_line":"Examination of rate service organizations and joint underwriting and joint reinsurance organizations","url":"\/38.2-1925\/","token":"38.2\/19\/38.2-1925","metadata":false},{"id":67284,"structure_id":13456,"section_number":"38.2-1926","catch_line":"Action of Commission upon request for hearing on order or decision made without a hearing","url":"\/38.2-1926\/","token":"38.2\/19\/38.2-1926","metadata":false},{"id":62597,"structure_id":13456,"section_number":"38.2-1927","catch_line":"Withholding information; giving false or misleading information","url":"\/38.2-1927\/","token":"38.2\/19\/38.2-1927","metadata":false},{"id":73884,"structure_id":13456,"section_number":"38.2-1928","catch_line":"Violations of chapter","url":"\/38.2-1928\/","token":"38.2\/19\/38.2-1928","metadata":false}],"previous_section":{"id":81510,"structure_id":13456,"section_number":"38.2-1921","catch_line":"Combination policies","url":"\/38.2-1921\/","token":"38.2\/19\/38.2-1921","metadata":false},"next_section":{"id":54416,"structure_id":13456,"section_number":"38.2-1922","catch_line":"No rule prohibiting or regulating payment of dividends, etc., to be adopted","url":"\/38.2-1922\/","token":"38.2\/19\/38.2-1922","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1921.1\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapters 624<\/a> and 718<\/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":false,"permalink":{"id":213063,"object_type":"law","relational_id":61464,"identifier":"38.2-1921.1","token":"38.2\/19\/38.2-1921.1","url":"\/38.2-1921.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1921.1\/","token":"38.2\/19\/38.2-1921.1","dublin_core":{"Title":"Professional employer organization workers’ compensation rating","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1921.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Whenever any professional employer organization enters into an agreement with a client company<\/span> to provide professional employer services<\/span>, the experience rating<\/span> of the professional employer organization shall be used for voluntary market workers’ compensation insurance<\/span> premium computation purposes with respect to such coemployees. In the event that the agreement between a client company<\/span> and a professional employer organization is terminated, the coemployees shall become solely the employees of the former client company<\/span>. If the coemployees have been covered as employees of the professional employer organization under a voluntary market workers’ compensation insurance<\/span> policy for a period of three consecutive years or more, the workers’ compensation insurance<\/span> premium applicable to the policy of the former client company<\/span> shall be based upon the rating of the professional employer organization until the former client employer has developed sufficient experience to be rated on its own or no longer qualifies for experience rating<\/span>. If the coemployees have been covered as employees of the professional employer organization for a period of less than three consecutive years, the workers’ compensation insurance<\/span> premium applicable to the policy of the former client company<\/span> shall be based upon the experience of the former client company<\/span> which reflects its experience during the experience period specified by the approved experience rating<\/span> plan, including, if available, experience incurred for coemployees under the professional employer services<\/span> agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Insurers<\/span> may conduct periodic audits of any professional employer organization, including payrolls, operations and records as related to individual client company<\/span> operations in order<\/span> to ensure that the appropriate premium is charged for workers’ compensation insurance<\/span> coverage. Such audits may include audits of the client company<\/span> in order<\/span> to verify payroll, losses and classifications<\/span>, and inspections of the premises where the coemployees work. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A professional employer organization may aggregate its coemployees under a single employer plan for the purpose of providing employee benefits provided that the professional employer organization meets the regulatory licensure and filing requirements promulgated by the Commission<\/span> for fully insured multiple employer welfare arrangements. The following information required to be filed shall be confidential and shall not be disclosed to the public: (i) all information related to the names and addresses of employers participating in the plan and (ii) all information pertaining to the adequacy of the plan’s level of reserves and contributions; however, nothing herein shall (i) prevent the Commission<\/span> from using such information in any regulatory proceeding or (ii) be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization pursuant to an otherwise lawful subpoena<\/span> issued by a court<\/span> of competent jurisdiction<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission<\/span> may promulgate regulations as it deems necessary for the administration of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROFESSIONAL EMPLOYER ORGANIZATION WORKERS’ COMPENSATION RATING (\u00a7\n38.2-1921.1)\n\nA. Whenever any professional employer organization enters into an agreement with\na client company to provide professional employer services, the experience\nrating of the professional employer organization shall be used for voluntary\nmarket workers’ compensation insurance premium computation purposes with\nrespect to such coemployees. In the event that the agreement between a client\ncompany and a professional employer organization is terminated, the coemployees\nshall become solely the employees of the former client company. If the\ncoemployees have been covered as employees of the professional employer\norganization under a voluntary market workers’ compensation insurance\npolicy for a period of three consecutive years or more, the workers’\ncompensation insurance premium applicable to the policy of the former client\ncompany shall be based upon the rating of the professional employer organization\nuntil the former client employer has developed sufficient experience to be rated\non its own or no longer qualifies for experience rating. If the coemployees have\nbeen covered as employees of the professional employer organization for a period\nof less than three consecutive years, the workers’ compensation insurance\npremium applicable to the policy of the former client company shall be based\nupon the experience of the former client company which reflects its experience\nduring the experience period specified by the approved experience rating plan,\nincluding, if available, experience incurred for coemployees under the\nprofessional employer services agreement.\n\nB. Insurers may conduct periodic audits of any professional employer\norganization, including payrolls, operations and records as related to\nindividual client company operations in order to ensure that the appropriate\npremium is charged for workers’ compensation insurance coverage. Such\naudits may include audits of the client company in order to verify payroll,\nlosses and classifications, and inspections of the premises where the\ncoemployees work.\n\nC. A professional employer organization may aggregate its coemployees under a\nsingle employer plan for the purpose of providing employee benefits provided\nthat the professional employer organization meets the regulatory licensure and\nfiling requirements promulgated by the Commission for fully insured multiple\nemployer welfare arrangements. The following information required to be filed\nshall be confidential and shall not be disclosed to the public: (i) all\ninformation related to the names and addresses of employers participating in the\nplan and (ii) all information pertaining to the adequacy of the plan’s\nlevel of reserves and contributions; however, nothing herein shall (i) prevent\nthe Commission from using such information in any regulatory proceeding or (ii)\nbe interpreted to prohibit or limit the production of documents containing such\ninformation from the professional employer organization pursuant to an otherwise\nlawful subpoena issued by a court of competent jurisdiction.\n\nD. The Commission may promulgate regulations as it deems necessary for the\nadministration of this section.\n\nHISTORY: 2000, cc. 624, 718.","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}}