{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/65.2-801.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/65.2-801.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/65.2-801.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/65.2-801.html"}],"law_id":60093,"edition_id":1,"section_id":60093,"structure_id":13374,"section_number":"65.2-801","catch_line":"Insurance or proof of financial ability to pay required","history":"Code 1950, \u00a7 65-100; 1968, c. 660, \u00a7 65.1-104.1; 1973, c. 173; 1979, c. 463; 1991, c. 355; 1992, c. 816; 1996, c. 181; 2000, cc. 624, 718; 2004, cc. 44, 173; 2006, c. 265; 2009, cc. 285, 336.","full_text":"A\n\nEvery employer subject to this title shall secure his liability thereunder by one of the following methods:1\n\nInsuring and keeping insured his liability in an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth;2\n\nReceiving a certificate pursuant to § 65.2-808 from the Workers’ Compensation Commission authorizing such employer to be an individual self-insurer;3\n\nBeing a member in good standing of a group self-insurance association licensed by the State Corporation Commission;4\n\nBeing a member in good standing of a local government group self-insurance pool licensed by the State Corporation Commission pursuant to § 15.2-2706 to offer workers’ compensation coverage; or5\n\nEntering into an agreement with a professional employer organization for professional employer services which includes voluntary market workers’ compensation insurance for coemployees of the professional employer organization and the client company procured from an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth. A professional employer organization may obtain voluntary market workers’ compensation insurance in its own name for all coemployees which it shares or which are assigned or allocated to it pursuant to the agreement between the professional employer organization and the client company. The client company shall maintain separate voluntary market workers’ compensation insurance insuring any and all employees of the client company not insured through the policy obtained by the professional employer organization.B\n\nAn employer who satisfies the requirements of this section shall be certified by the Workers’ Compensation Commission as an individual self-insurer and permitted to pay direct the compensation in the amount and manner and when due as provided for in this title. The Commission shall not certify an employer as a self-insurer unless it receives in such form as it requires satisfactory proof of the solvency of such employer, the financial ability of the employer to meet his obligations and the ability of the employer to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title. The Commission shall establish reasonable requirements and standards for approval of an employer as a self-insurer including, without limitation, the quality and amount of security deposits, bonds or indemnity, the amount of advance payments and reserves required, the investment of such funds, and the form and content of financial information to be submitted by the employer and the frequency of such submissions. For the purposes of any debt\/equity ratio (total liabilities to net worth) minimum standard, a ratio of less than 2.2:1 shall be deemed satisfactory. The Commission shall, after notice and hearing, embody such requirements and standards and such other requirements as may be reasonably necessary for the purposes of this section in regulations. The Bureau of Insurance of the State Corporation Commission shall, at the request of the Commission, assist the Commission in establishing the reasonable requirements and standards for approval and certification of an employer as a self-insurer. The Workers’ Compensation Commission may in its discretion require the deposit of a financial instrument of a specified amount from an entity approved by the Workers’ Compensation Commission to secure the payment of compensation liabilities as they are incurred. The form of the instrument to be deposited shall be selected by the employer from the following list of acceptable financial instruments and may include any combination thereof so long as the amount specified by the Workers’ Compensation Commission is deposited and the actual value thereof maintained: corporate surety bonds, certificates of deposit, United States government obligations, letters of credit, and cash.C\n\nThe State Treasurer shall be the custodian of securities deposited by the employer under the requirements of this section, or under § 65.2-802, and for such services he shall receive a compensation of one-tenth of one percent per year of the amount of securities deposited with him, payable by or on behalf of such employers.","order_by":null,"text":{"0":{"id":219915,"text":"Every employer subject to this title shall secure his liability thereunder by one of the following methods:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":219916,"text":"Insuring and keeping insured his liability in an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":219917,"text":"Receiving a certificate pursuant to § 65.2-808 from the Workers’ Compensation Commission authorizing such employer to be an individual self-insurer;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":219918,"text":"Being a member in good standing of a group self-insurance association licensed by the State Corporation Commission;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":219919,"text":"Being a member in good standing of a local government group self-insurance pool licensed by the State Corporation Commission pursuant to § 15.2-2706 to offer workers’ compensation coverage; or","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":219920,"text":"Entering into an agreement with a professional employer organization for professional employer services which includes voluntary market workers’ compensation insurance for coemployees of the professional employer organization and the client company procured from an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth. A professional employer organization may obtain voluntary market workers’ compensation insurance in its own name for all coemployees which it shares or which are assigned or allocated to it pursuant to the agreement between the professional employer organization and the client company. The client company shall maintain separate voluntary market workers’ compensation insurance insuring any and all employees of the client company not insured through the policy obtained by the professional employer organization.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"B"},"6":{"id":219921,"text":"An employer who satisfies the requirements of this section shall be certified by the Workers’ Compensation Commission as an individual self-insurer and permitted to pay direct the compensation in the amount and manner and when due as provided for in this title. The Commission shall not certify an employer as a self-insurer unless it receives in such form as it requires satisfactory proof of the solvency of such employer, the financial ability of the employer to meet his obligations and the ability of the employer to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title. The Commission shall establish reasonable requirements and standards for approval of an employer as a self-insurer including, without limitation, the quality and amount of security deposits, bonds or indemnity, the amount of advance payments and reserves required, the investment of such funds, and the form and content of financial information to be submitted by the employer and the frequency of such submissions. For the purposes of any debt\/equity ratio (total liabilities to net worth) minimum standard, a ratio of less than 2.2:1 shall be deemed satisfactory. The Commission shall, after notice and hearing, embody such requirements and standards and such other requirements as may be reasonably necessary for the purposes of this section in regulations. The Bureau of Insurance of the State Corporation Commission shall, at the request of the Commission, assist the Commission in establishing the reasonable requirements and standards for approval and certification of an employer as a self-insurer. The Workers’ Compensation Commission may in its discretion require the deposit of a financial instrument of a specified amount from an entity approved by the Workers’ Compensation Commission to secure the payment of compensation liabilities as they are incurred. The form of the instrument to be deposited shall be selected by the employer from the following list of acceptable financial instruments and may include any combination thereof so long as the amount specified by the Workers’ Compensation Commission is deposited and the actual value thereof maintained: corporate surety bonds, certificates of deposit, United States government obligations, letters of credit, and cash.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A5","next_prefix":"C"},"7":{"id":219922,"text":"The State Treasurer shall be the custodian of securities deposited by the employer under the requirements of this section, or under § 65.2-802, and for such services he shall receive a compensation of one-tenth of one percent per year of the amount of securities deposited with him, payable by or on behalf of such employers.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13374,"edition_id":1,"name":"Insurance and Self-Insurance","identifier":"8","label":"chapter","depth":2,"order_by":1,"parent_id":13199,"metadata":{},"date_created":"2026-06-26 03:44:44","date_modified":"2026-06-26 03:44:44","permalink":{"id":276659,"object_type":"structure","relational_id":13374,"identifier":"8","token":"65.2\/8","url":"\/65.2\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13199,"edition_id":1,"name":"Workers' Compensation","identifier":"65.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":276115,"object_type":"structure","relational_id":13199,"identifier":"65.2","token":"65.2","url":"\/65.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68174,"structure_id":13374,"section_number":"65.2-800","catch_line":"Duty to insure payment of compensation; effect of insurance","url":"\/65.2-800\/","token":"65.2\/8\/65.2-800","metadata":false},{"id":60093,"structure_id":13374,"section_number":"65.2-801","catch_line":"Insurance or proof of financial ability to pay required","url":"\/65.2-801\/","token":"65.2\/8\/65.2-801","metadata":false},{"id":85387,"structure_id":13374,"section_number":"65.2-802","catch_line":"Requirements for licensure as group self-insurance association; annual assessment","url":"\/65.2-802\/","token":"65.2\/8\/65.2-802","metadata":false},{"id":72917,"structure_id":13374,"section_number":"65.2-803","catch_line":"Administrator and service company affiliation prohibited; exception","url":"\/65.2-803\/","token":"65.2\/8\/65.2-803","metadata":false},{"id":62818,"structure_id":13374,"section_number":"65.2-803.1","catch_line":"Requirements for registration as professional employer organization; annual assessment","url":"\/65.2-803.1\/","token":"65.2\/8\/65.2-803.1","metadata":false},{"id":58097,"structure_id":13374,"section_number":"65.2-804","catch_line":"Evidence of compliance with title; notices of cancellation of insurance","url":"\/65.2-804\/","token":"65.2\/8\/65.2-804","metadata":false},{"id":83221,"structure_id":13374,"section_number":"65.2-805","catch_line":"Civil penalty for violation of \u00a7\u00a7 65.2-800, 65.2-803.1, and 65.2-804","url":"\/65.2-805\/","token":"65.2\/8\/65.2-805","metadata":false},{"id":72140,"structure_id":13374,"section_number":"65.2-806","catch_line":"Criminal penalties","url":"\/65.2-806\/","token":"65.2\/8\/65.2-806","metadata":false},{"id":54347,"structure_id":13374,"section_number":"65.2-807","catch_line":"Cost of insurance may not be deducted from wages","url":"\/65.2-807\/","token":"65.2\/8\/65.2-807","metadata":false},{"id":77557,"structure_id":13374,"section_number":"65.2-808","catch_line":"Self-insurance certificate","url":"\/65.2-808\/","token":"65.2\/8\/65.2-808","metadata":false},{"id":82374,"structure_id":13374,"section_number":"65.2-809","catch_line":"Constructive notice to, jurisdiction of, and awards, etc., binding upon insurer","url":"\/65.2-809\/","token":"65.2\/8\/65.2-809","metadata":false},{"id":68876,"structure_id":13374,"section_number":"65.2-810","catch_line":"How formal notice may be given","url":"\/65.2-810\/","token":"65.2\/8\/65.2-810","metadata":false},{"id":68761,"structure_id":13374,"section_number":"65.2-811","catch_line":"Liability of insurer","url":"\/65.2-811\/","token":"65.2\/8\/65.2-811","metadata":false},{"id":70340,"structure_id":13374,"section_number":"65.2-812","catch_line":"Subrogation of insurance carrier to employer's rights; compromise","url":"\/65.2-812\/","token":"65.2\/8\/65.2-812","metadata":false},{"id":74334,"structure_id":13374,"section_number":"65.2-813","catch_line":"Insurance deemed subject to title; approval of forms","url":"\/65.2-813\/","token":"65.2\/8\/65.2-813","metadata":false},{"id":67685,"structure_id":13374,"section_number":"65.2-813.1","catch_line":"Insurers offering policies with deductibles","url":"\/65.2-813.1\/","token":"65.2\/8\/65.2-813.1","metadata":false},{"id":81677,"structure_id":13374,"section_number":"65.2-813.2","catch_line":"Premium discounts; drug-free workplace programs","url":"\/65.2-813.2\/","token":"65.2\/8\/65.2-813.2","metadata":false},{"id":62332,"structure_id":13374,"section_number":"65.2-814","catch_line":"Insurer to furnish written evidence of coverage on request","url":"\/65.2-814\/","token":"65.2\/8\/65.2-814","metadata":false},{"id":59696,"structure_id":13374,"section_number":"65.2-815","catch_line":"Group self-insurance association required to furnish written evidence of membership","url":"\/65.2-815\/","token":"65.2\/8\/65.2-815","metadata":false},{"id":77993,"structure_id":13374,"section_number":"65.2-816","catch_line":"Title not applicable to boiler, etc., insurance","url":"\/65.2-816\/","token":"65.2\/8\/65.2-816","metadata":false},{"id":57348,"structure_id":13374,"section_number":"65.2-817","catch_line":"Rates; cooperation between State Corporation Commission and Workers' Compensation Commission","url":"\/65.2-817\/","token":"65.2\/8\/65.2-817","metadata":false},{"id":80112,"structure_id":13374,"section_number":"65.2-818","catch_line":"Minimum standards of service for insurers","url":"\/65.2-818\/","token":"65.2\/8\/65.2-818","metadata":false},{"id":70096,"structure_id":13374,"section_number":"65.2-819","catch_line":"Penalty for violation of certain provisions","url":"\/65.2-819\/","token":"65.2\/8\/65.2-819","metadata":false},{"id":80066,"structure_id":13374,"section_number":"65.2-820","catch_line":"Application to State Corporation Commission for assignment of risk; insurer assigned risk to issue policy","url":"\/65.2-820\/","token":"65.2\/8\/65.2-820","metadata":false},{"id":57462,"structure_id":13374,"section_number":"65.2-821","catch_line":"State Corporation Commission to make rules and regulations, and establish rating schedules and rates","url":"\/65.2-821\/","token":"65.2\/8\/65.2-821","metadata":false},{"id":68923,"structure_id":13374,"section_number":"65.2-821.1","catch_line":"Payment and reimbursement practices; prohibitions","url":"\/65.2-821.1\/","token":"65.2\/8\/65.2-821.1","metadata":false},{"id":65060,"structure_id":13374,"section_number":"65.2-822","catch_line":"Action by State Corporation Commission upon application","url":"\/65.2-822\/","token":"65.2\/8\/65.2-822","metadata":false},{"id":79323,"structure_id":13374,"section_number":"65.2-823","catch_line":"Information filed with State Corporation Commission by insurance carrier to be confidential; exception","url":"\/65.2-823\/","token":"65.2\/8\/65.2-823","metadata":false},{"id":71179,"structure_id":13374,"section_number":"65.2-824","catch_line":"Disclosures not required of State Corporation Commission; liability for acts or omissions","url":"\/65.2-824\/","token":"65.2\/8\/65.2-824","metadata":false}],"previous_section":{"id":68174,"structure_id":13374,"section_number":"65.2-800","catch_line":"Duty to insure payment of compensation; effect of insurance","url":"\/65.2-800\/","token":"65.2\/8\/65.2-800","metadata":false},"next_section":{"id":85387,"structure_id":13374,"section_number":"65.2-802","catch_line":"Requirements for licensure as group self-insurance association; annual assessment","url":"\/65.2-802\/","token":"65.2\/8\/65.2-802","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/65.2-801\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 10 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1968, chapter 660; in 1973, chapter 173; in 1979, chapter 463; in 1991, chapter 355; in 1992, chapter 816; in 1996, chapter 181<\/a>; in 2000, chapters 624<\/a> and 718<\/a>; in 2004, chapters 44<\/a> and 173<\/a>; in 2006, chapter 265<\/a>; in 2009, chapters 285<\/a> and 336<\/a>.<\/p>","references":[{"id":83039,"section_number":"65.2-1006","catch_line":"Payroll reports of self-insurers and tax thereon; withholding or providing false or misleading information","order_by":null,"url":"\/65.2-1006\/"},{"id":72239,"section_number":"65.2-1202","catch_line":"Defense of claims against fund by Attorney General","order_by":null,"url":"\/65.2-1202\/"},{"id":69577,"section_number":"65.2-1203","catch_line":"Awards","order_by":null,"url":"\/65.2-1203\/"},{"id":58097,"section_number":"65.2-804","catch_line":"Evidence of compliance with title; notices of cancellation of insurance","order_by":null,"url":"\/65.2-804\/"},{"id":54347,"section_number":"65.2-807","catch_line":"Cost of insurance may not be deducted from wages","order_by":null,"url":"\/65.2-807\/"},{"id":77557,"section_number":"65.2-808","catch_line":"Self-insurance certificate","order_by":null,"url":"\/65.2-808\/"}],"refers_to":[{"id":72261,"section_number":"15.2-2706","catch_line":"State Corporation Commission approval required","order_by":null,"url":"\/15.2-2706\/"},{"id":85387,"section_number":"65.2-802","catch_line":"Requirements for licensure as group self-insurance association; annual assessment","order_by":null,"url":"\/65.2-802\/"},{"id":77557,"section_number":"65.2-808","catch_line":"Self-insurance certificate","order_by":null,"url":"\/65.2-808\/"}],"permalink":{"id":276665,"object_type":"law","relational_id":60093,"identifier":"65.2-801","token":"65.2\/8\/65.2-801","url":"\/65.2-801\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/65.2-801\/","token":"65.2\/8\/65.2-801","dublin_core":{"Title":"Insurance or proof of financial ability to pay required","Type":"Text","Format":"text\/html","Identifier":"\u00a7 65.2-801","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every employer<\/span> subject to this title shall secure his liability thereunder by one of the following methods: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Insuring and keeping insured his liability in an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Receiving a certificate pursuant to § 65.2-808<\/a> from the Workers’ Compensation Commission<\/span> authorizing such employer<\/span> to be an individual self-insurer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Being a member in good standing of a group self-insurance association licensed by the State Corporation Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Being a member in good standing of a local government group self-insurance pool licensed by the State Corporation Commission<\/span> pursuant to § 15.2-2706<\/a> to offer workers’ compensation coverage; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Entering into an agreement with a professional employer organization<\/span> for professional employer services<\/span> which includes voluntary market workers’ compensation insurance for coemployees<\/span> of the professional employer organization<\/span> and the client company<\/span> procured from an insurer authorized to transact the business of workers’ compensation insurance in this Commonwealth. A professional employer organization<\/span> may obtain voluntary market workers’ compensation insurance in its own name for all coemployees<\/span> which it shares or which are assigned or allocated to it pursuant to the agreement between the professional employer organization<\/span> and the client company<\/span>. The client company<\/span> shall maintain separate voluntary market workers’ compensation insurance insuring any and all employees of the client company<\/span> not insured through the policy obtained by the professional employer organization<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> An employer who satisfies the requirements of this section shall be certified by the Workers’ Compensation Commission<\/span> as an individual self-insurer and permitted to pay direct the compensation in the amount and manner and when due as provided for in this title. The Commission<\/span> shall not certify an employer as a self-insurer unless it receives in such form as it requires satisfactory proof of the solvency of such employer, the financial ability of the employer to meet his obligations and the ability of the employer to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title. The Commission<\/span> shall establish reasonable requirements and standards for approval of an employer as a self-insurer including, without limitation, the quality and amount of security deposits, bonds<\/span> or indemnity, the amount of advance payments and reserves required, the investment of such funds, and the form and content of financial information to be submitted by the employer and the frequency of such submissions. For the purposes of any debt\/equity<\/span> ratio (total liabilities to net worth) minimum standard, a ratio of less than 2.2:1 shall be deemed satisfactory. The Commission<\/span> shall, after notice and hearing<\/span>, embody such requirements and standards and such other requirements as may be reasonably necessary for the purposes of this section in regulations. The Bureau of Insurance of the State Corporation Commission<\/span> shall, at the request of the Commission<\/span>, assist the Commission<\/span> in establishing the reasonable requirements and standards for approval and certification of an employer as a self-insurer. The Workers’ Compensation Commission<\/span> may in its discretion require the deposit of a financial instrument of a specified amount from an entity approved by the Workers’ Compensation Commission<\/span> to secure the payment of compensation liabilities as they are incurred. The form of the instrument to be deposited shall be selected by the employer from the following list of acceptable financial instruments and may include any combination thereof so long as the amount specified by the Workers’ Compensation Commission<\/span> is deposited and the actual value thereof maintained: corporate surety<\/span> bonds<\/span>, certificates of deposit, United States government obligations, letters of credit, and cash. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The State Treasurer shall be the custodian of securities deposited by the employer under the requirements of this section, or under § 65.2-802<\/a>, and for such services he shall receive a compensation of one-tenth of one percent per year of the amount of securities deposited with him, payable by or on behalf of such employers<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURANCE OR PROOF OF FINANCIAL ABILITY TO PAY REQUIRED (\u00a7 65.2-801)\n\nA. Every employer subject to this title shall secure his liability thereunder by\none of the following methods:\n\n 1. Insuring and keeping insured his liability in an insurer authorized to\n transact the business of workers’ compensation insurance in this\n Commonwealth;\n\n 2. Receiving a certificate pursuant to § 65.2-808 from the Workers’\n Compensation Commission authorizing such employer to be an individual\n self-insurer;\n\n 3. Being a member in good standing of a group self-insurance association\n licensed by the State Corporation Commission;\n\n 4. Being a member in good standing of a local government group self-insurance\n pool licensed by the State Corporation Commission pursuant to § 15.2-2706\n to offer workers’ compensation coverage; or\n\n 5. Entering into an agreement with a professional employer organization for\n professional employer services which includes voluntary market workers’\n compensation insurance for coemployees of the professional employer\n organization and the client company procured from an insurer authorized to\n transact the business of workers’ compensation insurance in this\n Commonwealth. A professional employer organization may obtain voluntary market\n workers’ compensation insurance in its own name for all coemployees\n which it shares or which are assigned or allocated to it pursuant to the\n agreement between the professional employer organization and the client\n company. The client company shall maintain separate voluntary market\n workers’ compensation insurance insuring any and all employees of the\n client company not insured through the policy obtained by the professional\n employer organization.\n\nB. An employer who satisfies the requirements of this section shall be certified\nby the Workers’ Compensation Commission as an individual self-insurer and\npermitted to pay direct the compensation in the amount and manner and when due\nas provided for in this title. The Commission shall not certify an employer as a\nself-insurer unless it receives in such form as it requires satisfactory proof\nof the solvency of such employer, the financial ability of the employer to meet\nhis obligations and the ability of the employer to pay or cause to be paid the\ncompensation in the amount and manner and when due as provided for in this\ntitle. The Commission shall establish reasonable requirements and standards for\napproval of an employer as a self-insurer including, without limitation, the\nquality and amount of security deposits, bonds or indemnity, the amount of\nadvance payments and reserves required, the investment of such funds, and the\nform and content of financial information to be submitted by the employer and\nthe frequency of such submissions. For the purposes of any debt\/equity ratio\n(total liabilities to net worth) minimum standard, a ratio of less than 2.2:1\nshall be deemed satisfactory. The Commission shall, after notice and hearing,\nembody such requirements and standards and such other requirements as may be\nreasonably necessary for the purposes of this section in regulations. The Bureau\nof Insurance of the State Corporation Commission shall, at the request of the\nCommission, assist the Commission in establishing the reasonable requirements\nand standards for approval and certification of an employer as a self-insurer.\nThe Workers’ Compensation Commission may in its discretion require the\ndeposit of a financial instrument of a specified amount from an entity approved\nby the Workers’ Compensation Commission to secure the payment of\ncompensation liabilities as they are incurred. The form of the instrument to be\ndeposited shall be selected by the employer from the following list of\nacceptable financial instruments and may include any combination thereof so long\nas the amount specified by the Workers’ Compensation Commission is\ndeposited and the actual value thereof maintained: corporate surety bonds,\ncertificates of deposit, United States government obligations, letters of\ncredit, and cash.\n\nC. The State Treasurer shall be the custodian of securities deposited by the\nemployer under the requirements of this section, or under § 65.2-802, and\nfor such services he shall receive a compensation of one-tenth of one percent\nper year of the amount of securities deposited with him, payable by or on behalf\nof such employers.\n\nHISTORY: Code 1950, \u00a7 65-100; 1968, c. 660, \u00a7 65.1-104.1; 1973, c. 173; 1979,\nc. 463; 1991, c. 355; 1992, c. 816; 1996, c. 181; 2000, cc. 624, 718; 2004, cc.\n44, 173; 2006, c. 265; 2009, cc. 285, 336.","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}}