CODE OF VIRGINIA

STATE CORPORATION COMMISSION APPROVAL REQUIRED (§ 15.2-2706)

The formation and operation of a group self-insurance pool under this section
shall be subject to approval by the State Corporation Commission which may,
after notice and hearing, establish reasonable requirements and regulations for
the approval and monitoring of such pools, including prior approval of pool
administrators and provisions for periodic examinations of financial
condition.The Commission may disapprove an application for the formation of a
group self-insurance pool, and may suspend or withdraw such approval whenever it
finds that such applicant or pool:

   1.  Has refused to submit its books, papers, accounts, or affairs to the
   reasonable inspection of the Commission or its representative;

   2.  Has refused, or its officers or agents have refused, to furnish
   satisfactory evidence of its financial and business standing or solvency;

   3.  Is insolvent, or is in such condition that its further transaction of
   business in the Commonwealth is hazardous to its members and creditors in the
   Commonwealth, and to the public;

   4.  Has refused or neglected to pay a valid final judgment against it within
   sixty days after its rendition;

   5.  Has violated any law of the Commonwealth or has violated or exceeded the
   powers granted by its members;

   6.  Has failed to pay any fees, taxes or charges imposed in the Commonwealth
   within sixty days after they are due and payable, or within sixty days after
   final disposition or any legal contest with respect to liability therefor; or

   7.  Has been found insolvent by a court of any other state, or by the
   Insurance Commissioner or other proper officer or agency of any other state,
   and has been prohibited from doing business in such state.

HISTORY: 1986, cc. 520, 556, § 15.1-503.4:6; 1997, c. 587.