{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/65.2-802.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/65.2-802.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/65.2-802.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/65.2-802.html"}],"law_id":85387,"edition_id":1,"section_id":85387,"structure_id":13374,"section_number":"65.2-802","catch_line":"Requirements for licensure as group self-insurance association; annual assessment","history":"1979, c. 463, \u00a7 65.1-104.2; 1988, c. 365; 1990, c. 306; 1991, c. 355; 1994, cc. 333, 408; 2023, c. 426.","full_text":"A\n\nTwo or more employers having a common interest may be licensed by the State Corporation Commission as a group self-insurance association and permitted to enter into agreements to pool their liabilities under this title. The members of any such group self-insurance association may also enter into agreements to pool their liabilities for workers’ compensation benefits which may arise under the laws of any other jurisdiction and other types of employers’ liabilities for the death or disablement of, or injury to, their employees. Benefits payable by any such association for such members’ liabilities under the laws of any other jurisdiction shall extend only to employees otherwise eligible for coverage under the provisions of this title.B\n\nThe State Corporation Commission shall not license a group self-insurance association or grant authorization for an employer to become a member of such group unless it receives in such form as it requires satisfactory proof of the solvency of any such employer, the financial ability of each to meet his obligations as a member, and the ability of the group to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title and as may be agreed upon with respect to other types of employers’ liabilities which may be authorized and provided hereunder.C\n\nMembers of a group shall execute a written agreement under which each agrees to jointly and severally assume and discharge any liability under this title of employers party to such agreement. Agreements among the members shall be subject to approval by the State Corporation Commission; however, no such agreement nor membership in a group self-insurance association shall relieve an employer of the liabilities imposed by this title with respect to his employees. In addition to the rights of the association under such agreements, in the event of failure of the association to enforce such rights after reasonable notice to the association, the State Corporation Commission shall have the right independently to enforce on behalf of the association the joint and several liability of its members under this title and the liability of members for any unpaid contributions and assessments. The State Corporation Commission shall be entitled to recover its expenses and attorneys’ fees.D\n\nAny person, firm, or corporation desiring to engage in the business of providing services for a group self-insurance association shall satisfy the State Corporation Commission of its ability to perform the services necessary to fulfill the employer’s obligations under this title before it undertakes to provide such services to any group self-insurance association. The State Corporation Commission may from time to time review and alter any decision approving an employer as a member of a group or its approval of a group or of an agency servicing a group. The State Corporation Commission may in its discretion require the deposit of an acceptable security, indemnity, or bond or the purchase of such excess insurance or the ceding of reinsurance on a specific or aggregate excess of loss basis as may be required by the circumstances.E\n\nThe State Corporation Commission may establish reasonable requirements and standards for the approval of a group self-insurance association and the administration of such associations including, without limitation, the quality, amount and accounting of security deposits, bonds, excess insurance and reinsurance, the membership in any group self-insurance association, the amount of advance payments and reserves required of group self-insurance associations, the investment of such funds, the form and content of financial information to be submitted by a group self-insurance association and the frequency of such submissions, and the terms of agreements between members of a group self-insurance association. The State Corporation Commission may, 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; however, any group self-insurance association entering into a reinsurance transaction pursuant to the provisions of this section shall be deemed an insurer for purposes of such transaction and shall be subject to Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13 of Title 38.2.F\n\nNotwithstanding any provision of this title to the contrary, each licensed group self-insurance association shall be assessed annually by the State Corporation Commission in like manner and amount to that provided by Chapter 4 (§ 38.2-400 et seq.) of Title 38.2 and shall pay such assessment in accordance with the aforesaid provisions of law; however, for the purposes of such assessment “direct gross premium income” of a licensed group self-insurance association shall be the aggregate of the amounts determined to be subject to the tax imposed by § 65.2-1006 on each employer member of such association.G\n\nNotwithstanding the provisions of § 49-25, neither the State Corporation Commission nor any other entity or person, as obligee under any surety bond required under this section or any regulation adopted hereunder, shall be required to institute suit against an association as a condition precedent to the surety’s performance under the bond.H\n\nSubject to approval of the State Corporation Commission, and with such conditions as the State Corporation Commission may require, two or more group self-insurance associations formed pursuant to this section may merge if the resulting group self-insurance association assumes in full all obligations of the merged group self-insurance associations originally licensed pursuant to this section.","order_by":null,"text":{"0":{"id":305881,"text":"Two or more employers having a common interest may be licensed by the State Corporation Commission as a group self-insurance association and permitted to enter into agreements to pool their liabilities under this title. The members of any such group self-insurance association may also enter into agreements to pool their liabilities for workers’ compensation benefits which may arise under the laws of any other jurisdiction and other types of employers’ liabilities for the death or disablement of, or injury to, their employees. Benefits payable by any such association for such members’ liabilities under the laws of any other jurisdiction shall extend only to employees otherwise eligible for coverage under the provisions of this title.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":305882,"text":"The State Corporation Commission shall not license a group self-insurance association or grant authorization for an employer to become a member of such group unless it receives in such form as it requires satisfactory proof of the solvency of any such employer, the financial ability of each to meet his obligations as a member, and the ability of the group to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title and as may be agreed upon with respect to other types of employers’ liabilities which may be authorized and provided hereunder.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":305883,"text":"Members of a group shall execute a written agreement under which each agrees to jointly and severally assume and discharge any liability under this title of employers party to such agreement. Agreements among the members shall be subject to approval by the State Corporation Commission; however, no such agreement nor membership in a group self-insurance association shall relieve an employer of the liabilities imposed by this title with respect to his employees. In addition to the rights of the association under such agreements, in the event of failure of the association to enforce such rights after reasonable notice to the association, the State Corporation Commission shall have the right independently to enforce on behalf of the association the joint and several liability of its members under this title and the liability of members for any unpaid contributions and assessments. The State Corporation Commission shall be entitled to recover its expenses and attorneys’ fees.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":305884,"text":"Any person, firm, or corporation desiring to engage in the business of providing services for a group self-insurance association shall satisfy the State Corporation Commission of its ability to perform the services necessary to fulfill the employer’s obligations under this title before it undertakes to provide such services to any group self-insurance association. The State Corporation Commission may from time to time review and alter any decision approving an employer as a member of a group or its approval of a group or of an agency servicing a group. The State Corporation Commission may in its discretion require the deposit of an acceptable security, indemnity, or bond or the purchase of such excess insurance or the ceding of reinsurance on a specific or aggregate excess of loss basis as may be required by the circumstances.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":305885,"text":"The State Corporation Commission may establish reasonable requirements and standards for the approval of a group self-insurance association and the administration of such associations including, without limitation, the quality, amount and accounting of security deposits, bonds, excess insurance and reinsurance, the membership in any group self-insurance association, the amount of advance payments and reserves required of group self-insurance associations, the investment of such funds, the form and content of financial information to be submitted by a group self-insurance association and the frequency of such submissions, and the terms of agreements between members of a group self-insurance association. The State Corporation Commission may, 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; however, any group self-insurance association entering into a reinsurance transaction pursuant to the provisions of this section shall be deemed an insurer for purposes of such transaction and shall be subject to Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13 of Title 38.2.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":305886,"text":"Notwithstanding any provision of this title to the contrary, each licensed group self-insurance association shall be assessed annually by the State Corporation Commission in like manner and amount to that provided by Chapter 4 (§ 38.2-400 et seq.) of Title 38.2 and shall pay such assessment in accordance with the aforesaid provisions of law; however, for the purposes of such assessment “direct gross premium income” of a licensed group self-insurance association shall be the aggregate of the amounts determined to be subject to the tax imposed by § 65.2-1006 on each employer member of such association.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":305887,"text":"Notwithstanding the provisions of § 49-25, neither the State Corporation Commission nor any other entity or person, as obligee under any surety bond required under this section or any regulation adopted hereunder, shall be required to institute suit against an association as a condition precedent to the surety’s performance under the bond.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":305888,"text":"Subject to approval of the State Corporation Commission, and with such conditions as the State Corporation Commission may require, two or more group self-insurance associations formed pursuant to this section may merge if the resulting group self-insurance association assumes in full all obligations of the merged group self-insurance associations originally licensed pursuant to this section.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/65.2-802\/","history_text":"

This law was first created in 1979. The record of its establishment is cataloged in chapter 463 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. Unfortunately, the 1979 \u201cActs\u201d aren\u2019t available online. It has been modified 5 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 1988, chapter 365; in 1990, chapter 306; in 1991, chapter 355; in 1994, chapters 333<\/a> and 408<\/a>; in 2023, chapter 426<\/a>.<\/p>","references":[{"id":81205,"section_number":"15.2-2703","catch_line":"Group self-insurance pools authorized","order_by":null,"url":"\/15.2-2703\/"},{"id":60093,"section_number":"65.2-801","catch_line":"Insurance or proof of financial ability to pay required","order_by":null,"url":"\/65.2-801\/"}],"refers_to":[{"id":80624,"section_number":"38.2-1316.1","catch_line":"Definitions","order_by":null,"url":"\/38.2-1316.1\/"},{"id":57860,"section_number":"38.2-400","catch_line":"Expense of administration of insurance laws borne by licensees; minimum contribution","order_by":null,"url":"\/38.2-400\/"},{"id":69561,"section_number":"49-25","catch_line":"Surety may require creditor to sue","order_by":null,"url":"\/49-25\/"},{"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\/"}],"permalink":{"id":276669,"object_type":"law","relational_id":85387,"identifier":"65.2-802","token":"65.2\/8\/65.2-802","url":"\/65.2-802\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/65.2-802\/","token":"65.2\/8\/65.2-802","dublin_core":{"Title":"Requirements for licensure as group self-insurance association; annual assessment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 65.2-802","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Two or more employers<\/span> having a common interest may be licensed by the State Corporation Commission<\/span> as a group self-insurance association and permitted to enter into agreements to pool their liabilities under this title. The members of any such group self-insurance association may also enter into agreements to pool their liabilities for workers’ compensation benefits which may arise under the laws<\/span> of any other jurisdiction<\/span> and other types of employers<\/span>’ liabilities for the death or disablement of, or injury<\/span> to, their employees. Benefits payable by any such association for such members’ liabilities under the laws<\/span> of any other jurisdiction<\/span> shall extend only to employees otherwise eligible for coverage under the provisions of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The State Corporation Commission<\/span> shall not license a group self-insurance association or grant authorization for an employer<\/span> to become a member of such group unless it receives in such form as it requires satisfactory proof of the solvency of any such employer<\/span>, the financial ability of each to meet his obligations as a member, and the ability of the group to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title and as may be agreed upon with respect to other types of employers<\/span>’ liabilities which may be authorized and provided hereunder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Members of a group shall execute a written agreement under which each agrees to jointly and severally assume and discharge any liability under this title of employers<\/span> party<\/span> to such agreement. Agreements among the members shall be subject to approval by the State Corporation Commission<\/span>; however, no such agreement nor membership in a group self-insurance association shall relieve an employer<\/span> of the liabilities imposed by this title with respect to his employees. In addition to the rights of the association under such agreements, in the event of failure of the association to enforce such rights after reasonable notice to the association, the State Corporation Commission<\/span> shall have the right independently to enforce on behalf of the association the joint and several liability of its members under this title and the liability of members for any unpaid contributions and assessments. The State Corporation Commission<\/span> shall be entitled to recover its expenses and attorneys’ fees. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any person, firm, or corporation desiring to engage in the business of providing services for a group self-insurance association shall satisfy the State Corporation Commission<\/span> of its ability to perform the services necessary to fulfill the employer<\/span>’s obligations under this title before it undertakes to provide such services to any group self-insurance association. The State Corporation Commission<\/span> may from time to time review and alter any decision approving an employer<\/span> as a member of a group or its approval of a group or of an agency servicing a group. The State Corporation Commission<\/span> may in its discretion require the deposit of an acceptable security, indemnity, or bond<\/span> or the purchase of such excess insurance or the ceding of reinsurance on a specific or aggregate excess of loss basis as may be required by the circumstances. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The State Corporation Commission<\/span> may establish reasonable requirements and standards for the approval of a group self-insurance association and the administration of such associations including, without limitation, the quality, amount and accounting of security deposits, bonds<\/span>, excess insurance and reinsurance, the membership in any group self-insurance association, the amount of advance payments and reserves required of group self-insurance associations, the investment of such funds, the form and content of financial information to be submitted by a group self-insurance association and the frequency of such submissions, and the terms of agreements between members of a group self-insurance association. The State Corporation Commission<\/span> may, 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; however, any group self-insurance association entering into a reinsurance transaction pursuant to the provisions of this section shall be deemed an insurer for purposes of such transaction and shall be subject to Article 3.1 (§ 38.2-1316.1<\/a> et seq.) of Chapter 13 of Title 38.2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Notwithstanding any provision of this title to the contrary, each licensed group self-insurance association shall be assessed annually by the State Corporation Commission<\/span> in like manner and amount to that provided by Chapter 4 (§ 38.2-400<\/a> et seq.) of Title 38.2 and shall pay such assessment in accordance with the aforesaid provisions of law<\/span>; however, for the purposes of such assessment “direct gross premium income” of a licensed group self-insurance association shall be the aggregate of the amounts determined to be subject to the tax imposed by § 65.2-1006<\/a> on each employer<\/span> member of such association. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Notwithstanding the provisions of § 49-25<\/a>, neither the State Corporation Commission<\/span> nor any other entity or person, as obligee under any surety<\/span> bond<\/span> required under this section or any regulation adopted hereunder, shall be required to institute suit against an association as a condition precedent<\/span> to the surety<\/span>’s performance under the bond<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Subject to approval of the State Corporation Commission<\/span>, and with such conditions as the State Corporation Commission<\/span> may require, two or more group self-insurance associations formed pursuant to this section may merge if the resulting group self-insurance association assumes in full all obligations of the merged group self-insurance associations originally licensed pursuant to this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREQUIREMENTS FOR LICENSURE AS GROUP SELF-INSURANCE ASSOCIATION; ANNUAL\nASSESSMENT (\u00a7 65.2-802)\n\nA. Two or more employers having a common interest may be licensed by the State\nCorporation Commission as a group self-insurance association and permitted to\nenter into agreements to pool their liabilities under this title. The members of\nany such group self-insurance association may also enter into agreements to pool\ntheir liabilities for workers’ compensation benefits which may arise under\nthe laws of any other jurisdiction and other types of employers’\nliabilities for the death or disablement of, or injury to, their employees.\nBenefits payable by any such association for such members’ liabilities\nunder the laws of any other jurisdiction shall extend only to employees\notherwise eligible for coverage under the provisions of this title.\n\nB. The State Corporation Commission shall not license a group self-insurance\nassociation or grant authorization for an employer to become a member of such\ngroup unless it receives in such form as it requires satisfactory proof of the\nsolvency of any such employer, the financial ability of each to meet his\nobligations as a member, and the ability of the group to pay or cause to be paid\nthe compensation in the amount and manner and when due as provided for in this\ntitle and as may be agreed upon with respect to other types of employers’\nliabilities which may be authorized and provided hereunder.\n\nC. Members of a group shall execute a written agreement under which each agrees\nto jointly and severally assume and discharge any liability under this title of\nemployers party to such agreement. Agreements among the members shall be subject\nto approval by the State Corporation Commission; however, no such agreement nor\nmembership in a group self-insurance association shall relieve an employer of\nthe liabilities imposed by this title with respect to his employees. In addition\nto the rights of the association under such agreements, in the event of failure\nof the association to enforce such rights after reasonable notice to the\nassociation, the State Corporation Commission shall have the right independently\nto enforce on behalf of the association the joint and several liability of its\nmembers under this title and the liability of members for any unpaid\ncontributions and assessments. The State Corporation Commission shall be\nentitled to recover its expenses and attorneys’ fees.\n\nD. Any person, firm, or corporation desiring to engage in the business of\nproviding services for a group self-insurance association shall satisfy the\nState Corporation Commission of its ability to perform the services necessary to\nfulfill the employer’s obligations under this title before it undertakes\nto provide such services to any group self-insurance association. The State\nCorporation Commission may from time to time review and alter any decision\napproving an employer as a member of a group or its approval of a group or of an\nagency servicing a group. The State Corporation Commission may in its discretion\nrequire the deposit of an acceptable security, indemnity, or bond or the\npurchase of such excess insurance or the ceding of reinsurance on a specific or\naggregate excess of loss basis as may be required by the circumstances.\n\nE. The State Corporation Commission may establish reasonable requirements and\nstandards for the approval of a group self-insurance association and the\nadministration of such associations including, without limitation, the quality,\namount and accounting of security deposits, bonds, excess insurance and\nreinsurance, the membership in any group self-insurance association, the amount\nof advance payments and reserves required of group self-insurance associations,\nthe investment of such funds, the form and content of financial information to\nbe submitted by a group self-insurance association and the frequency of such\nsubmissions, and the terms of agreements between members of a group\nself-insurance association. The State Corporation Commission may, after notice\nand hearing, embody such requirements and standards and such other requirements\nas may be reasonably necessary for the purposes of this section in regulations;\nhowever, any group self-insurance association entering into a reinsurance\ntransaction pursuant to the provisions of this section shall be deemed an\ninsurer for purposes of such transaction and shall be subject to Article 3.1\n(§ 38.2-1316.1 et seq.) of Chapter 13 of Title 38.2.\n\nF. Notwithstanding any provision of this title to the contrary, each licensed\ngroup self-insurance association shall be assessed annually by the State\nCorporation Commission in like manner and amount to that provided by Chapter 4\n(§ 38.2-400 et seq.) of Title 38.2 and shall pay such assessment in\naccordance with the aforesaid provisions of law; however, for the purposes of\nsuch assessment “direct gross premium income” of a licensed group\nself-insurance association shall be the aggregate of the amounts determined to\nbe subject to the tax imposed by § 65.2-1006 on each employer member of\nsuch association.\n\nG. Notwithstanding the provisions of § 49-25, neither the State Corporation\nCommission nor any other entity or person, as obligee under any surety bond\nrequired under this section or any regulation adopted hereunder, shall be\nrequired to institute suit against an association as a condition precedent to\nthe surety’s performance under the bond.\n\nH. Subject to approval of the State Corporation Commission, and with such\nconditions as the State Corporation Commission may require, two or more group\nself-insurance associations formed pursuant to this section may merge if the\nresulting group self-insurance association assumes in full all obligations of\nthe merged group self-insurance associations originally licensed pursuant to\nthis section.\n\nHISTORY: 1979, c. 463, \u00a7 65.1-104.2; 1988, c. 365; 1990, c. 306; 1991, c. 355;\n1994, cc. 333, 408; 2023, c. 426.","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}}