14 Va. Admin. Code § 5-370-120

Current through Register Vol. 41, No. 6, November 4, 2024

Section 14VAC5-370-120 - Indemnity agreement and power of attorney

Every member of a group self-insurance association shall execute an indemnity agreement and power of attorney which shall set forth the rights, privileges and obligations of the member and the association and the powers and duties of the administrator. The indemnity agreement and power of attorney shall be subject to the approval of the commission and shall contain in substance the following provisions:

1. An agreement under which each member agrees to assume and discharge, jointly and severally, any liability under the Act of any and all employers party to such agreement and which provides that, in addition to the rights of the association, in the event of failure of the association to enforce such rights after reasonable notice to the association, the commission shall have the right independently to enforce on behalf of the association the joint and several liability of its members under the Act and the liability of members for any unpaid contributions and assessments;

2. Provisions requiring that the members' supervisory board designate and appoint an administrator empowered to accept service of process on behalf of the association and authorized to act for and bind the association and members in all transactions relating to or arising out of the operation of the association; and

3. Provisions for the right of substitution of the administrator and revocation of the power of attorney and rights thereunder.

Such indemnity agreement may also contain such other provisions not inconsistent with law or this chapter.

14 Va. Admin. Code § 5-370-120

Derived from Regulation 16, Case No. INS870353, § 4, eff. May 1, 1988; amended, Virginia Register Volume 26, Issue 14, eff. March 1, 2010.

Statutory Authority

§§ 12.1-13 and 65.2-802 of the Code of Virginia.