                                 CODE OF VIRGINIA

FINANCIAL RESPONSIBILITY REQUIREMENTS FOR CONTRACT FEE INSPECTORS (§
40.1-51.9:2)

A. Contract fee inspectors inspecting or certifying regulated boilers or
pressure vessels in the Commonwealth shall maintain evidence of their financial
responsibility, including compensation to third parties, for bodily injury and
property damage resulting from, or directly relating to, an inspector&#8217;s
negligent inspection or recommendation for certification of a boiler or pressure
vessel.

B. Documentation of financial responsibility, including documentation of
insurance or bond, shall be provided to the Chief Inspector within thirty days
after certification of the inspector. The Chief Inspector may revoke an
inspector&#8217;s certification for failure to provide documentation of
financial responsibility in a timely fashion.

C. The Safety and Health Codes Board is authorized to promulgate regulations
requiring contract fee inspectors, as a condition of their doing business in the
Commonwealth, to demonstrate financial responsibility sufficient to comply with
the requirements of this chapter. Regulations governing the amount of any
financial responsibility required by the contract fee inspector shall take into
consideration the type, capacity and number of boilers or pressure vessels
inspected or certified.

D. Financial responsibility may be demonstrated by self-insurance, insurance,
guaranty or surety, or any other method approved by the Board, or any
combination thereof, under the terms the Board may prescribe. A contract fee
inspector whose financial responsibility is accepted by the Board under this
subsection shall notify the Chief Inspector at least thirty days before the
effective date of the change, expiration, or cancellation of any instrument of
insurance, guaranty or surety.

E. Acceptance of proof of financial responsibility shall expire on the effective
date of any change in the inspector&#8217;s instrument of insurance, guaranty or
surety, or the expiration date of the inspector&#8217;s certification.
Application for renewal of acceptance of proof of financial responsibility shall
be filed thirty days before the date of expiration.

F. The Chief Inspector, after notice and opportunity for hearing, may revoke his
acceptance of evidence of financial responsibility if he determines that
acceptance has been procured by fraud or misrepresentation, or a change in
circumstances has occurred that would warrant denial of acceptance of evidence
of financial responsibility under this section or the requirements established
by the Board pursuant to this section.

G. It is not a defense to any action brought for failure to comply with the
requirement to provide acceptable evidence of financial responsibility that the
person charged believed in good faith that the owner or operator of an inspected
boiler or pressure vessel possessed evidence of financial responsibility
accepted by the Chief Inspector or the Board.

HISTORY: 1996, c. 294.