15.2-2705 - Required provisions in contract; election of governing authority; financial plan; management plan. - Virginia Statutes

§ 15.2-2705. Required provisions in contract; election of governingauthority; financial plan; management plan.

Any intergovernmental contract entered into pursuant to this chapter for thepurpose of establishing a group self-insurance pool shall provide:

1. For election by pool members of a governing authority for the pool, whichmay be a board of directors, a majority of whom shall be elected or appointedofficials of pool members.

2. A financial plan setting forth in general terms:

a. The insurance coverages to be offered by the group self-insurance pool,applicable deductible levels, and the maximum level of claims which the poolwill self-insure;

b. The amount of cash reserves to be set aside for the payment of claims;

c. The amount of insurance to be purchased by the pool to provide coverageover and above the claims which are not to be satisfied directly from thepool's resources; and

d. The amount, if any, of aggregate excess insurance coverage to be purchasedand maintained in the event that the group self-insurance pool's resourcesare exhausted in a given fiscal period.

3. A plan of management which provides for all of the following:

a. The means of establishing the governing authority of the pool;

b. The responsibility of the governing authority for fixing contributions tothe pool, maintaining reserves, levying and collecting assessments fordeficiencies, disposing of surpluses, and administration of the pool in theevent of termination or insolvency;

c. The basis upon which new members may be admitted to, and existing membersmay leave, the pool;

d. The identification of funds and reserves by exposure areas; and

e. Such other provisions as are necessary or desirable for the operation ofthe pool.

(1986, cc. 520, 556, § 15.1-503.4:5; 1997, c. 587.)