                                 CODE OF VIRGINIA

AGREEMENTS FOR EQUITABLE APPORTIONMENT OF INSURANCE; REASONABLE PERFORMANCE
STANDARDS; VIRGINIA WORKERS&#8217; COMPENSATION INSURANCE PLAN (§ 38.2-2015)

A. Agreements among insurers may be made for the equitable apportionment among
them of insurance that may be afforded applicants who are in good faith entitled
to insurance but who are unable to procure it through ordinary methods. Insurers
may agree among themselves on the use of reasonable rate modifications for the
insurance. The agreements and rate modifications shall be subject to the
approval of the Commission.

B. The Commission may require that the agreements contain reasonable performance
standards for insurers or agents, or both, with respect to insurance afforded
such applicants. The performance standards may contain, but shall not be limited
to: (i) original applications, (ii) premium payments, (iii) policy issuance,
(iv) policy changes, (v) return premium, (vi) return commission and (vii)
administrative procedures for monitoring compliance with the standards.

C. The Commission may approve policy forms and endorsements for use by such
insurers with respect to insurance afforded such applicants.

D. All licensed insurers writing workers&#8217; compensation insurance in the
Commonwealth shall participate in the Virginia Workers&#8217; Compensation
Insurance Plan, which shall provide for the equitable apportionment among the
participants of insurance that may be afforded applicants who are in good faith
entitled to but who are unable to procure such insurance through ordinary
methods. Notwithstanding any other provision of law, insurers and rate service
organizations participating in the Virginia Workers&#8217; Compensation
Insurance Plan may, in connection with such participation, act in cooperation
with each other in the making of rates, rating systems, policy forms,
underwriting rules, surveys, inspections, investigations, the furnishing of
statistical or other information on losses and expenses, or the conduct of
research. The rates and supplementary rate information to be used by such plan
shall be approved by the Commission. Such rates shall reflect residual market
experience to the extent actuarially appropriate and shall be set so that the
amount received in premiums, together with reasonable investment income earned
on those premiums, is reasonably expected to be sufficient to pay claims and
losses incurred and reasonable operating expenses of the servicing insurers.

HISTORY: Code 1950, § 38-250; 1952, c. 317, § 38.1-264; 1964, c. 596; 1966, c.
299; 1980, c. 112; 1986, c. 562; 1993, c. 985.