65.2-803 - Administrator and service company affiliation prohibited; exception. - Virginia Statutes

§ 65.2-803. Administrator and service company affiliation prohibited;exception.

A. No person, firm or corporation, which is engaged as an administrator for agroup self-insurance association, shall be an employee, officer or directorof, or have a direct or indirect financial interest in any person, firm orcorporation which is engaged in the business of providing services for agroup self-insurance association as a service company.

B. No person, firm or corporation, which is engaged in the business ofproviding services for a group self-insurance association as a servicecompany, shall be an employee, officer or director of, or have a direct orindirect financial interest in, any person, firm or corporation which isengaged as an administrator for a group self-insurance association.

C. For purposes of this section, the term "firm" or "corporation" shallinclude any officer, director, or employee of any such firm or corporation.

D. This section shall not be construed to affect any contract, or extensionsor renewals thereof, for services as an administrator or service companyentered into by a group self-insurance association and effective prior toJanuary 1, 1989.

(1989, c. 662, § 65.1-104.3; 1991, c. 355.)