14 Va. Admin. Code § 5-370-130
A service agent for a licensed workers' compensation group self-insurance association shall apply and shall be subject to the approval of the commission before entering into a contract with an association and shall satisfy the commission that it has adequate facilities and competent personnel to fulfill its obligations to the association and this chapter.
A service agent shall maintain a resident agent in this Commonwealth and that agent shall be authorized to act for the service agent on any and all matters covered by the Act and the rules and regulations of the commission.
A service agent shall provide to the commission the address in this Commonwealth where the books and records of the association will be maintained at all times.
A service agent shall file with the commission copies of all contracts entered into with the association as they relate to the services to be performed. These contracts shall provide for services necessary to fulfill the employer's obligations under the Act and the rules and regulations of the commission. In addition, any service contract or letter of intent must state that the servicing organization agrees to handle all claims incurred during the contract period to their conclusion without further remuneration unless approval to transfer them is obtained from the commission prior to such transfer.
The service organization shall furnish a fidelity bond covering its employees, with the association as obligee, in an amount sufficient to protect all monies placed in the claims fund. However, if the bond required of the administrator also covers the monies in the claims fund, a separate bond shall not be required of the servicing organization with respect to the claims fund.
Upon satisfactory compliance with the above provisions, a certificate of approval as a recognized and authorized service agent shall be issued to the applicant. Failure to comply with any of the foregoing rules or any order of the commission within the time prescribed shall be considered justification for withdrawing the certificate of approval. The commission shall give 10 days prior notice of such withdrawal. The notice shall be served personally, or by certified or registered mail, upon all interested parties setting forth the reasons for withdrawal and providing the service agent an opportunity to introduce evidence and be heard. If, after a hearing, which may be formal or informal, the service agent's certificate of approval is revoked this revocation shall become effective 30 days after issuance of the commission's order or within such shorter or longer period as the commission may consider necessary to protect the interest of the association, its members and their employees.
Each individual, partnership, or corporation approved to act as a service agent for an association shall file with the commission an annual statement, in a form acceptable to the commission, of its financial condition within four months of the completion of its fiscal year.
14 Va. Admin. Code § 5-370-130
Statutory Authority
§§ 12.1-13 and 65.2-802 of the Code of Virginia.