                                 CODE OF VIRGINIA

GROUP SELF-INSURANCE POOLS AUTHORIZED (§ 15.2-2703)

A. Any political subdivision of this Commonwealth may, by contract with one or
more political subdivisions of this Commonwealth or of another state, form a
group self-insurance pool to provide for joint or cooperative action relative to
their financial and administrative resources for the purpose of providing to the
participating political subdivisions risk management services as well as
insurance coverage for pool members and employees of pool members, for acts or
omissions arising out of the scope of their employment, including any or all of
the following:

   1. Casualty insurance, including workers&#8217; compensation under Title 65.2,
   employers&#8217; liability, general, professional and public officials
   liability coverage;

   2. Property insurance, including marine insurance and inland marine and
   transportation insurance coverage;

   3. Group life, accident and health coverages including hospital, medical,
   surgical and dental benefits to the employees of member political subdivisions
   and their dependents;

   4. Automobile insurance, including motor vehicle liability insurance coverage
   and collision and security for motor vehicles owned or operated, as required
   by Title 46.2, and protection against other liability and loss associated with
   the ownership and use of motor vehicles;

   5. Surety and fidelity insurance coverage; and

   6. Umbrella and excess insurance coverages.

B. A group self-insurance pool may also provide all insurance coverages
authorized by this section to (i) any separate corporation established by one or
more counties, cities, towns, or school boards, as permitted by law, that is
supported wholly or principally by local public funds or utilize federal funds
for local community housing projects and (ii) other corporations recognized
under &#xA7; 501(c)(3) or 501(c)(4) of the Internal Revenue Code that are
supported wholly or principally by local public funds or utilize federal funds
for local community housing projects and that are recognized by a political
subdivision and authorized by law to perform a government function.

C. A group self-insurance pool may obtain excess insurance or reinsurance of
risks, and may cede and sell the risks for coverages set forth in this section.

D. Member political subdivisions that join together for the purpose of pooling
their workers&#8217; compensation liabilities pursuant to Title 65.2 shall
execute a written agreement, which has been approved by the State Corporation
Commission under which each member agrees to be jointly and severally liable for
the other members that are also party to such agreement. In addition to the
rights the pool may have under such agreements, in the event of failure of the
pool to enforce such rights after reasonable notice to the pool, the State
Corporation Commission shall have the right independently to enforce on behalf
of the pool 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 attorney
fees. However, no such agreement to be jointly and severally liable, nor
membership in a group self-insurance pool as defined in this section, shall
relieve an employer of the liabilities imposed under Title 65.2 with respect to
its employees. Members of a group self-insurance pool created pursuant to this
title and licensed by the State Corporation Commission shall not be jointly and
severally liable for unpaid contributions or assessments for any line of
business other than workers&#8217; compensation offered by the group
self-insurance pool.

E. Subject to the approval of the State Corporation Commission and with such
conditions as such Commission may require, a group self-insurance association
formed pursuant to &#xA7; 65.2-802, consisting solely of political subdivisions,
may merge with a group self-insurance pool if the group self-insurance pool
assumes in full all obligations of such group self-insurance association
originally licensed pursuant to &#xA7; 65.2-802.

HISTORY: 1986, cc. 520, 556, § 15.1-503.4:3; 1997, c. 587; 2009, cc. 285, 336;
2022, c. 439.