                                 CODE OF VIRGINIA

REQUIRED PROVISIONS IN CONTRACT; ELECTION OF GOVERNING AUTHORITY; FINANCIAL
PLAN; MANAGEMENT PLAN (§ 15.2-2705)

Any intergovernmental contract entered into pursuant to this chapter for the
purpose of establishing a group self-insurance pool shall provide:

1. For election by pool members of a governing authority for the pool, which may
be a board of directors, a majority of whom shall be elected or appointed
officials of pool members.

2. A financial plan setting forth in general terms:
			a. The insurance coverages to be offered by the group self-insurance pool,
applicable deductible levels, and the maximum level of claims which the pool
will self-insure;
			b. The amount of cash reserves to be set aside for the payment of claims;
			c. The amount of insurance to be purchased by the pool to provide coverage
over and above the claims which are not to be satisfied directly from the
pool&#8217;s resources; and
			d. The amount, if any, of aggregate excess insurance coverage to be purchased
and maintained in the event that the group self-insurance pool&#8217;s resources
are exhausted in a given fiscal period.

3. A plan of management which provides for all of the following:
			a. The means of establishing the governing authority of the pool;
			b. The responsibility of the governing authority for fixing contributions to
the pool, maintaining reserves, levying and collecting assessments for
deficiencies, disposing of surpluses, and administration of the pool in the
event of termination or insolvency;
			c. The basis upon which new members may be admitted to, and existing members
may leave, the pool;
			d. The identification of funds and reserves by exposure areas; and
			e. Such other provisions as are necessary or desirable for the operation of
the pool.

HISTORY: 1986, cc. 520, 556, § 15.1-503.4:5; 1997, c. 587.