                                 CODE OF VIRGINIA

ASSESSMENTS (§ 38.2-5020)

A. A physician who otherwise qualifies as a participating physician pursuant to
this chapter may become a participating physician in the Program for a
particular calendar year by paying an annual participating physician assessment
to the Program in the amount of $5,000 on or before December 1 of the previous
year, in the manner required by the plan of operation. Effective January 1,
2009, the total annual assessment shall be $5,600, and shall increase by $300
for the 2010 assessment and by $100 each year thereafter, to a maximum of $6,200
per year. The board may authorize a prorated participating physician or
participating hospital assessment for a particular year in its plan of
operation, but such prorated assessment shall not become effective until the
physician or hospital has given at least 30 days&#8217; notice to the Program of
the request for a prorated assessment.

B. Notwithstanding the provisions of subsection A, a participating hospital with
a residency training program accredited to the American Council for Graduate
Medical Education may pay an annual participating physician assessment to the
Program for residency positions in the hospital&#8217;s residency training
program, in the manner provided by the plan of operation. However, any resident
in a duly accredited family practice or obstetrics residency training program at
a participating hospital shall be considered a participating physician in the
Program and neither the resident nor the hospital shall be required to pay any
assessment for such participation. No resident shall become a participating
physician in the Program, however, until 30 days following notification by the
hospital to the Program of the name of the resident or residents filling the
particular position for which the annual participating physician assessment
payment, if required, has been made.

C. A hospital that otherwise qualifies as a participating hospital pursuant to
this chapter may become a participating hospital in the Program for a particular
year by paying an annual participating hospital assessment to the Program, on or
before December 1 of the previous year, amounting to $50 per live birth for the
prior year, as reported to the Department of Health in the Annual Survey of
Hospitals. Effective January 1, 2009, the annual participating hospital
assessment shall increase by $2.50 per live birth for the prior year, as
reported to the Department of Health in the Annual Survey of Hospitals, and
shall be increased at that rate each year thereafter to a maximum of $55 per
live birth so reported for the prior year. The participating hospital assessment
shall not exceed $150,000 for any participating hospital in any 12-month period
until January 1, 2005. Effective January 1, 2005, the maximum total annual
assessment shall be $160,000, and shall increase by $10,000 each year
thereafter, to a maximum of $200,000 in any 12-month period.

D. All licensed physicians practicing in the Commonwealth on September 30 of a
particular year, other than participating physicians, shall pay to the Program
an annual assessment of $250 for the following year, in the manner required by
the plan of operation until January 1, 2005. Effective January 1, 2005, the
total annual assessment shall be $260, and shall increase by $10 each year
thereafter to a maximum of $300 per year.
			Upon proper certification to the Program, the following physicians shall be
exempt from the payment of the annual assessment under this subsection:

   1. A physician who is employed by the Commonwealth or federal government and
   whose income from professional fees is less than an amount equal to 10 percent
   of the annual salary of the physician.

   2. A physician who is enrolled in a full-time graduate medical education
   program accredited by the American Council for Graduate Medical Education.

   3. A physician who has retired from active clinical practice.

   4. A physician whose active clinical practice is limited to the provision of
   services, voluntarily and without compensation, to any patient of any clinic
   which is organized in whole or in part for the delivery of health care
   services without charge as provided in &#xA7; 54.1-106.

E. Taking into account the assessments collected pursuant to subsections A
through D of this section, if required to maintain the Fund on an actuarially
sound basis, all insurance carriers licensed to write and engaged in writing
liability insurance in the Commonwealth of a particular year, shall pay into the
Fund an assessment for the following year, in an amount determined by the State
Corporation Commission pursuant to subsection A of § 38.2-5021, in the manner
required by the plan of operation. Liability insurance for the purposes of this
provision shall include the classes of insurance defined in §§ 38.2-117,
38.2-118, and 38.2-119 and the liability portions of the insurance defined in
§§ 38.2-124, 38.2-125, 38.2-130, 38.2-131, and 38.2-132.

   1. All annual assessments against liability insurance carriers shall be made
   on the basis of net direct premiums written for the business activity which
   forms the basis for each such entity&#8217;s inclusion as a funding source for
   the Program in the Commonwealth during the prior year ending December 31, as
   reported to the State Corporation Commission, and shall be in the proportion
   that the net direct premiums written by each on account of the business
   activity forming the basis for their inclusion in the Program bears to the
   aggregate net direct premiums for all such business activity written in this
   Commonwealth by all such entities. For purposes of this chapter &#8220;net
   direct premiums written&#8221; means gross direct premiums written in this
   Commonwealth on all policies of liability insurance less (i) all return
   premiums on the policy, (ii) dividends paid or credited to policyholders, and
   (iii) the unused or unabsorbed portions of premium deposits on liability
   insurance.

   2. The entities listed in this subsection shall not be individually liable for
   an annual assessment in excess of one quarter of one percent of that
   entity&#8217;s net direct premiums written.

   3. Liability insurance carriers shall be entitled to recover their initial and
   annual assessments through (i) a surcharge on future policies, (ii) a rate
   increase applicable prospectively, or (iii) a combination of the two, at the
   discretion of the State Corporation Commission.

F. On and after January 1, 1989, a participating physician covered under the
provisions of this section who has paid an annual assessment for a particular
calendar year to the Program and who retires from the practice of medicine
during that particular calendar year shall be entitled to a refund of a prorated
share of his or her annual assessment for the calendar year that corresponds to
the portion of the calendar year remaining following his or her retirement.

G. Whenever the State Corporation Commission determines the Fund is actuarially
sound in conjunction with actuarial investigations conducted pursuant to &#xA7;
38.2-5021, it shall enter an order suspending the assessment required under
subsection D. The annual assessment shall be reinstated whenever the State
Corporation Commission determines that such assessment is required to maintain
the Fund&#8217;s actuarial soundness.

HISTORY: 1987, c. 540; 1989, cc. 361, 463, 523; 1990, c. 498; 1991, c. 486;
1992, cc. 414, 767; 1994, c. 872; 2004, cc. 896, 931; 2008, cc. 267, 520.