                                 CODE OF VIRGINIA

ACTUARIAL INVESTIGATION, VALUATIONS, GAIN/LOSS ANALYSIS; NOTICE IF ASSESSMENTS
PROVE INSUFFICIENT (§ 38.2-5021)

A. The Bureau of Insurance of the State Corporation Commission shall undertake
an actuarial investigation of the requirements of the Fund based on the
Fund&#8217;s experience in the first year of operation, including without
limitation the assets and liabilities of the Fund. Pursuant to such
investigation, the State Corporation Commission shall establish the rate of
contribution of the entities listed in subsection E of &#xA7; 38.2-5020 for the
tax year beginning January 1, 1989.
			Following the initial valuation, the State Corporation Commission shall cause
an actuarial valuation to be made of the assets and liabilities of the Fund no
less frequently than biennially. Pursuant to the results of such valuations, the
State Corporation Commission shall prepare a statement as to the contribution
rate applicable to contributors listed in subsection E of &#xA7; 38.2-5020.
However, at no time shall the rate be greater than one quarter of one percent of
net direct premiums written.
			In conducting the actuarial evaluation, a loss reserving methodology
consistent with the one employed by the Florida Birth-Related Neurological
Injury Compensation Association as of July 1, 2007, may be employed in order to
account for individual participant costs and injury characteristics to the
extent that the data are available to perform such methodology and the State
Corporation Commission&#8217;s actuary determines that such methodology is
actuarially appropriate.

B. In the event that the State Corporation Commission finds that the Fund cannot
be maintained on an actuarially sound basis subject to the maximum assessments
listed in &#xA7; 38.2-5020, the Commission shall promptly notify the Speaker of
the House of Delegates, the President of the Senate, the board of directors of
the Program, and the Virginia Workers&#8217; Compensation Commission.

HISTORY: 1987, c. 540; 1989, c. 523; 2008, cc. 267, 520.