{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3552.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3552.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3552.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3552.html"}],"law_id":78302,"edition_id":1,"section_id":78302,"structure_id":16550,"section_number":"38.2-3552","catch_line":"Small employer health group cooperatives","history":"2006, c. 427.","full_text":"A\n\n1. Any person or persons may organize and maintain a small employer health group cooperative for the purpose of offering, providing, or facilitating the provision of coverage for health care services to its employer-members.2\n\nThe membership of the small employer health group cooperative shall consist only of small employers. To participate as an employer-member of a small employer health group cooperative, an employer shall be a small employer.3\n\nA person or persons organizing a small employer health group cooperative and the small employers who propose to become employer-members of such cooperative shall jointly execute a small employer health group cooperative agreement. Such agreement shall identify the duties, rights and obligations of the parties, and may include terms addressing (i) the length of time an employer-member shall be enrolled through the cooperative and (ii) the conditions under which an employer-member may withdraw from the cooperative. If a small employer health group cooperative opts to be deemed the policyholder under subdivision 1 a of subsection B of this section, the small employer health group cooperative agreement shall include provisions addressing the collection of funds from employer-members for the payment of all premiums due under the group health policy. Such provisions shall specifically address all rights and obligations of each employer-member within the cooperative when one or more employer-members fails to remit its respective share of any premium due. Such provisions shall also describe the circumstances under which the group health policy will lapse for nonpayment of premiums and shall identify the grace period requirements applicable to group accident and sickness insurance, pursuant to § 38.2-3527. Nothing in this subsection nor in the small employer health group cooperative agreement shall preclude or operate to prevent enforcement by the issuer of the provisions of the group health policy addressing the payment of premiums and termination of the policy due to nonpayment of premium.B\n\nA small employer health group cooperative shall be treated as, and given the same consideration and privileges as, a single entity for purposes of negotiating the terms, including premium rates, under which coverage may be issued or provided to the employer-members of the cooperative by a health insurance issuer proposing to issue a group health policy or policies for such purpose covering employer-members of the cooperative within the service area of the issuer, as follows:1\n\nAt the option of the small employer health group cooperative, the cooperative shall either:\n\t\t\t\ta. Be deemed the policyholder of such group health policy or policies covering its employer-members within the service area of the issuer; or\n\t\t\t\tb. Be deemed only a sponsoring entity facilitating the acquisition of separate group health policies for its employer-members within the service area of the issuer, which may be made available through the cooperative by the issuer at terms mutually agreed upon by the cooperative and the issuer; and2\n\nA small employer health group cooperative opting to be deemed the policyholder under subdivision 1 a of this subsection shall obtain authorization acceptable to the health insurance issuer from each of its employer-members to act on behalf of the employer-members in this capacity. Such authorization:\n\t\t\t\ta. Shall be included in the terms of the agreement referenced in subdivision 3 of subsection A;\n\t\t\t\tb. Shall identify the specific representatives of the cooperative who shall be permitted to enter into insurance contracts on behalf of the employer-members; and\n\t\t\t\tc. Shall specify the extent and limits of such authority.C\n\nTo the extent that the activities of the cooperative or its representatives constitute selling, soliciting, or negotiating contracts of insurance, as those terms are defined in § 38.2-1800, the provisions of Chapter 18 (§ 38.2-1800 et seq.) of this title shall apply.D\n\nTo the extent a small employer health group cooperative is a multiple employer welfare arrangement as that term is defined in regulations promulgated pursuant to § 38.2-3420, it shall be subject to all provisions of this title to the extent that such provisions are applicable to multiple employer welfare arrangements.","order_by":null,"text":{"0":{"id":280693,"text":"1. Any person or persons may organize and maintain a small employer health group cooperative for the purpose of offering, providing, or facilitating the provision of coverage for health care services to its employer-members.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":280694,"text":"The membership of the small employer health group cooperative shall consist only of small employers. To participate as an employer-member of a small employer health group cooperative, an employer shall be a small employer.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"A3"},"2":{"id":280695,"text":"A person or persons organizing a small employer health group cooperative and the small employers who propose to become employer-members of such cooperative shall jointly execute a small employer health group cooperative agreement. Such agreement shall identify the duties, rights and obligations of the parties, and may include terms addressing (i) the length of time an employer-member shall be enrolled through the cooperative and (ii) the conditions under which an employer-member may withdraw from the cooperative. If a small employer health group cooperative opts to be deemed the policyholder under subdivision 1 a of subsection B of this section, the small employer health group cooperative agreement shall include provisions addressing the collection of funds from employer-members for the payment of all premiums due under the group health policy. Such provisions shall specifically address all rights and obligations of each employer-member within the cooperative when one or more employer-members fails to remit its respective share of any premium due. Such provisions shall also describe the circumstances under which the group health policy will lapse for nonpayment of premiums and shall identify the grace period requirements applicable to group accident and sickness insurance, pursuant to § 38.2-3527. Nothing in this subsection nor in the small employer health group cooperative agreement shall preclude or operate to prevent enforcement by the issuer of the provisions of the group health policy addressing the payment of premiums and termination of the policy due to nonpayment of premium.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"3":{"id":280696,"text":"A small employer health group cooperative shall be treated as, and given the same consideration and privileges as, a single entity for purposes of negotiating the terms, including premium rates, under which coverage may be issued or provided to the employer-members of the cooperative by a health insurance issuer proposing to issue a group health policy or policies for such purpose covering employer-members of the cooperative within the service area of the issuer, as follows:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"4":{"id":280697,"text":"At the option of the small employer health group cooperative, the cooperative shall either:\n\t\t\t\ta. Be deemed the policyholder of such group health policy or policies covering its employer-members within the service area of the issuer; or\n\t\t\t\tb. Be deemed only a sponsoring entity facilitating the acquisition of separate group health policies for its employer-members within the service area of the issuer, which may be made available through the cooperative by the issuer at terms mutually agreed upon by the cooperative and the issuer; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"5":{"id":280698,"text":"A small employer health group cooperative opting to be deemed the policyholder under subdivision 1 a of this subsection shall obtain authorization acceptable to the health insurance issuer from each of its employer-members to act on behalf of the employer-members in this capacity. Such authorization:\n\t\t\t\ta. Shall be included in the terms of the agreement referenced in subdivision 3 of subsection A;\n\t\t\t\tb. Shall identify the specific representatives of the cooperative who shall be permitted to enter into insurance contracts on behalf of the employer-members; and\n\t\t\t\tc. Shall specify the extent and limits of such authority.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"6":{"id":280699,"text":"To the extent that the activities of the cooperative or its representatives constitute selling, soliciting, or negotiating contracts of insurance, as those terms are defined in § 38.2-1800, the provisions of Chapter 18 (§ 38.2-1800 et seq.) of this title shall apply.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"7":{"id":280700,"text":"To the extent a small employer health group cooperative is a multiple employer welfare arrangement as that term is defined in regulations promulgated pursuant to § 38.2-3420, it shall be subject to all provisions of this title to the extent that such provisions are applicable to multiple employer welfare arrangements.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":16550,"edition_id":1,"name":"Small Employer Health Insurance Pooling","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13348,"metadata":{},"date_created":"2026-06-26 04:23:49","date_modified":"2026-06-26 04:23:49","permalink":{"id":215915,"object_type":"structure","relational_id":16550,"identifier":"5","token":"38.2\/35\/5","url":"\/38.2\/35\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13348,"edition_id":1,"name":"Accident and Sickness Insurance Policies","identifier":"35","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:41","date_modified":"2026-06-26 03:44:41","permalink":{"id":215641,"object_type":"structure","relational_id":13348,"identifier":"35","token":"38.2\/35","url":"\/38.2\/35\/","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":76670,"structure_id":16550,"section_number":"38.2-3551","catch_line":"Definitions","url":"\/38.2-3551\/","token":"38.2\/35\/5\/38.2-3551","metadata":false},{"id":78302,"structure_id":16550,"section_number":"38.2-3552","catch_line":"Small employer health group cooperatives","url":"\/38.2-3552\/","token":"38.2\/35\/5\/38.2-3552","metadata":false},{"id":71043,"structure_id":16550,"section_number":"38.2-3553","catch_line":"Membership in a small employer health group cooperative","url":"\/38.2-3553\/","token":"38.2\/35\/5\/38.2-3553","metadata":false},{"id":83599,"structure_id":16550,"section_number":"38.2-3554","catch_line":"Provisions relating to health insurance issuers","url":"\/38.2-3554\/","token":"38.2\/35\/5\/38.2-3554","metadata":false},{"id":80804,"structure_id":16550,"section_number":"38.2-3555","catch_line":"Authority of the Commission","url":"\/38.2-3555\/","token":"38.2\/35\/5\/38.2-3555","metadata":false}],"previous_section":{"id":76670,"structure_id":16550,"section_number":"38.2-3551","catch_line":"Definitions","url":"\/38.2-3551\/","token":"38.2\/35\/5\/38.2-3551","metadata":false},"next_section":{"id":71043,"structure_id":16550,"section_number":"38.2-3553","catch_line":"Membership in a small employer health group cooperative","url":"\/38.2-3553\/","token":"38.2\/35\/5\/38.2-3553","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3552\/","history_text":"

This law was first created in 2006. The record of its establishment is cataloged in chapter 427<\/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":[{"id":83599,"section_number":"38.2-3554","catch_line":"Provisions relating to health insurance issuers","order_by":null,"url":"\/38.2-3554\/"}],"refers_to":[{"id":67482,"section_number":"38.2-1800","catch_line":"Definitions","order_by":null,"url":"\/38.2-1800\/"},{"id":64087,"section_number":"38.2-3420","catch_line":"Authority and jurisdiction of Commission; exception","order_by":null,"url":"\/38.2-3420\/"},{"id":66611,"section_number":"38.2-3527","catch_line":"Grace period","order_by":null,"url":"\/38.2-3527\/"}],"permalink":{"id":215921,"object_type":"law","relational_id":78302,"identifier":"38.2-3552","token":"38.2\/35\/5\/38.2-3552","url":"\/38.2-3552\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3552\/","token":"38.2\/35\/5\/38.2-3552","dublin_core":{"Title":"Small employer health group cooperatives","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3552","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. Any person<\/span> or persons<\/span> may organize and maintain a small employer health group cooperative for the purpose of offering, providing, or facilitating the provision of coverage for health care services to its employer-members. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The membership of the small employer health group cooperative shall consist only of small employers. To participate as an employer-member of a small employer health group cooperative, an employer shall be a small employer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A person<\/span> or persons<\/span> organizing a small employer health group cooperative and the small employers who propose to become employer-members of such cooperative shall jointly execute a small employer health group cooperative agreement. Such agreement shall identify the duties, rights and obligations of the parties, and may include terms addressing (i) the length of time an employer-member shall be enrolled through the cooperative and (ii) the conditions under which an employer-member may withdraw from the cooperative. If a small employer health group cooperative opts to be deemed the policyholder under subdivision 1 a of subsection B of this section, the small employer health group cooperative agreement shall include provisions addressing the collection of funds from employer-members for the payment of all premiums due under the group health policy. Such provisions shall specifically address all rights and obligations of each employer-member within the cooperative when one or more employer-members fails to remit its respective share of any premium due. Such provisions shall also describe the circumstances under which the group health policy will lapse for nonpayment of premiums and shall identify the grace period requirements applicable to group accident and sickness insurance<\/span>, pursuant to § 38.2-3527<\/a>. Nothing in this subsection nor in the small employer health group cooperative agreement shall preclude or operate to prevent enforcement by the issuer of the provisions of the group health policy addressing the payment of premiums and termination of the policy due to nonpayment of premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A small employer health group cooperative shall be treated as, and given the same consideration and privileges<\/span> as, a single entity for purposes of negotiating the terms, including premium rates<\/span><\/span>, under which coverage may be issued or provided to the employer-members of the cooperative by a health insurance<\/span> issuer proposing to issue<\/span> a group health policy or policies for such purpose covering employer-members of the cooperative within the service area of the issuer, as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> At the option of the small employer health group cooperative, the cooperative shall either:\n\t\t\t\ta. Be deemed the policyholder of such group health policy or policies covering its employer-members within the service area of the issuer; or\n\t\t\t\tb. Be deemed only a sponsoring entity facilitating the acquisition of separate group health policies for its employer-members within the service area of the issuer, which may be made available through the cooperative by the issuer at terms mutually agreed upon by the cooperative and the issuer; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A small employer health group cooperative opting to be deemed the policyholder under subdivision 1 a of this subsection shall obtain authorization acceptable to the health insurance issuer from each of its employer-members to act on behalf of the employer-members in this capacity. Such authorization:\n\t\t\t\ta. Shall be included in the terms of the agreement referenced in subdivision 3 of subsection A;\n\t\t\t\tb. Shall identify the specific representatives of the cooperative who shall be permitted to enter into insurance contracts<\/span> on behalf of the employer-members; and\n\t\t\t\tc. Shall specify the extent and limits of such authority. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> To the extent that the activities of the cooperative or its representatives constitute selling, soliciting, or negotiating contracts of insurance, as those terms are defined in § 38.2-1800<\/a>, the provisions of Chapter 18 (§ 38.2-1800<\/a> et seq.) of this title shall apply. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> To the extent a small employer health group cooperative is a multiple employer welfare arrangement as that term is defined in regulations promulgated pursuant to § 38.2-3420<\/a>, it shall be subject to all provisions of this title to the extent that such provisions are applicable to multiple employer welfare arrangements. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSMALL EMPLOYER HEALTH GROUP COOPERATIVES (\u00a7 38.2-3552)\n\nA. 1. Any person or persons may organize and maintain a small employer health\ngroup cooperative for the purpose of offering, providing, or facilitating the\nprovision of coverage for health care services to its employer-members.\n\n 2. The membership of the small employer health group cooperative shall consist\n only of small employers. To participate as an employer-member of a small\n employer health group cooperative, an employer shall be a small employer.\n\n 3. A person or persons organizing a small employer health group cooperative\n and the small employers who propose to become employer-members of such\n cooperative shall jointly execute a small employer health group cooperative\n agreement. Such agreement shall identify the duties, rights and obligations of\n the parties, and may include terms addressing (i) the length of time an\n employer-member shall be enrolled through the cooperative and (ii) the\n conditions under which an employer-member may withdraw from the cooperative.\n If a small employer health group cooperative opts to be deemed the\n policyholder under subdivision 1 a of subsection B of this section, the small\n employer health group cooperative agreement shall include provisions\n addressing the collection of funds from employer-members for the payment of\n all premiums due under the group health policy. Such provisions shall\n specifically address all rights and obligations of each employer-member within\n the cooperative when one or more employer-members fails to remit its\n respective share of any premium due. Such provisions shall also describe the\n circumstances under which the group health policy will lapse for nonpayment of\n premiums and shall identify the grace period requirements applicable to group\n accident and sickness insurance, pursuant to § 38.2-3527. Nothing in this\n subsection nor in the small employer health group cooperative agreement shall\n preclude or operate to prevent enforcement by the issuer of the provisions of\n the group health policy addressing the payment of premiums and termination of\n the policy due to nonpayment of premium.\n\nB. A small employer health group cooperative shall be treated as, and given the\nsame consideration and privileges as, a single entity for purposes of\nnegotiating the terms, including premium rates, under which coverage may be\nissued or provided to the employer-members of the cooperative by a health\ninsurance issuer proposing to issue a group health policy or policies for such\npurpose covering employer-members of the cooperative within the service area of\nthe issuer, as follows:\n\n 1. At the option of the small employer health group cooperative, the\n cooperative shall either:\n \t\t\t\ta. Be deemed the policyholder of such group health policy or policies\n covering its employer-members within the service area of the issuer; or\n \t\t\t\tb. Be deemed only a sponsoring entity facilitating the acquisition of\n separate group health policies for its employer-members within the service\n area of the issuer, which may be made available through the cooperative by the\n issuer at terms mutually agreed upon by the cooperative and the issuer; and\n\n 2. A small employer health group cooperative opting to be deemed the\n policyholder under subdivision 1 a of this subsection shall obtain\n authorization acceptable to the health insurance issuer from each of its\n employer-members to act on behalf of the employer-members in this capacity.\n Such authorization:\n \t\t\t\ta. Shall be included in the terms of the agreement referenced in\n subdivision 3 of subsection A;\n \t\t\t\tb. Shall identify the specific representatives of the cooperative who\n shall be permitted to enter into insurance contracts on behalf of the\n employer-members; and\n \t\t\t\tc. Shall specify the extent and limits of such authority.\n\nC. To the extent that the activities of the cooperative or its representatives\nconstitute selling, soliciting, or negotiating contracts of insurance, as those\nterms are defined in § 38.2-1800, the provisions of Chapter 18 (§\n38.2-1800 et seq.) of this title shall apply.\n\nD. To the extent a small employer health group cooperative is a multiple\nemployer welfare arrangement as that term is defined in regulations promulgated\npursuant to § 38.2-3420, it shall be subject to all provisions of this\ntitle to the extent that such provisions are applicable to multiple employer\nwelfare arrangements.\n\nHISTORY: 2006, c. 427.","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}}