§ 38.2-2801. Association activation; members; purpose; determinations byCommission; powers of association.
A. The Commission shall activate a joint underwriting association if, afterinvestigation, notice, and hearing, it finds that medical malpracticeinsurance cannot be made reasonably available in the voluntary market for asignificant number of any class, type, or group of providers of health care.The association shall consist of all insurers licensed to write and engagedin writing liability insurance within this Commonwealth on a direct basisexcept those exempted from rate regulation by subsection C of § 38.2-1902.Each such insurer shall be a member of the association as a condition of itslicense to write liability insurance in this Commonwealth.
B. The purpose of the association shall be to provide a market for medicalmalpractice insurance on a self-supporting basis without subsidy from itsmembers.
C. 1. The association shall not commence underwriting operations for anyclass, type or group of providers of health care until it is activated by theCommission. At the direction of the Commission, the association shallcommence operations in accordance with the provisions of this chapter.
2. If the Commission determines at any time that medical malpracticeinsurance can be made reasonably available in the voluntary market for anyclass, type or group of providers of health care, the association shall, atthe direction of the Commission, cease its underwriting operations for thatclass, type or group of providers of health care.
D. The Commission shall also determine after investigation and a hearingwhether the association shall be the exclusive source of medical malpracticeinsurance for any class, type or group of providers of health care and thetype of policy or policies that shall be issued to any class, type or groupof providers of health care. If the Commission determines that a claims-madepolicy will be issued to any class, type or group of providers of healthcare, the Commission shall also provide for the guaranteed availability ofinsurance that covers claims that (i) result from incidents occurring duringperiods when the basic claims-made policies are in force, and (ii) arereported after the expiration of the basic claims-made policies. TheCommission may from time to time after an investigation and hearing reexamineand reconsider any determination made pursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2804, the association shall have the power on behalf of its members to:(i) issue, or cause to be issued, policies of medical malpractice insuranceto applicants, including incidental coverages, subject to limits as specifiedin the plan of operation but not to exceed $2 million for each claimant underany one policy and $6 million for all claimants under one policy in any oneyear; (ii) underwrite the insurance and adjust and pay losses on theinsurance; (iii) appoint a service company or companies to perform thefunctions enumerated in this subsection; (iv) assume reinsurance from itsmembers; and (v) reinsure its risks in whole or in part.
(1976, c. 85, § 38.1-776; 1980, c. 286, § 38.1-776.2; 1986, c. 562; 2003, cc.488, 1026.)
§ 38.2-2801. Association activation; members; purpose; determinations byCommission; powers of association.
A. The Commission shall activate a joint underwriting association if, afterinvestigation, notice, and hearing, it finds that medical malpracticeinsurance cannot be made reasonably available in the voluntary market for asignificant number of any class, type, or group of providers of health care.The association shall consist of all insurers licensed to write and engagedin writing liability insurance within this Commonwealth on a direct basisexcept those exempted from rate regulation by subsection C of § 38.2-1902.Each such insurer shall be a member of the association as a condition of itslicense to write liability insurance in this Commonwealth.
B. The purpose of the association shall be to provide a market for medicalmalpractice insurance on a self-supporting basis without subsidy from itsmembers.
C. 1. The association shall not commence underwriting operations for anyclass, type or group of providers of health care until it is activated by theCommission. At the direction of the Commission, the association shallcommence operations in accordance with the provisions of this chapter.
2. If the Commission determines at any time that medical malpracticeinsurance can be made reasonably available in the voluntary market for anyclass, type or group of providers of health care, the association shall, atthe direction of the Commission, cease its underwriting operations for thatclass, type or group of providers of health care.
D. The Commission shall also determine after investigation and a hearingwhether the association shall be the exclusive source of medical malpracticeinsurance for any class, type or group of providers of health care and thetype of policy or policies that shall be issued to any class, type or groupof providers of health care. If the Commission determines that a claims-madepolicy will be issued to any class, type or group of providers of healthcare, the Commission shall also provide for the guaranteed availability ofinsurance that covers claims that (i) result from incidents occurring duringperiods when the basic claims-made policies are in force, and (ii) arereported after the expiration of the basic claims-made policies. TheCommission may from time to time after an investigation and hearing reexamineand reconsider any determination made pursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2804, the association shall have the power on behalf of its members to:(i) issue, or cause to be issued, policies of medical malpractice insuranceto applicants, including incidental coverages, subject to limits as specifiedin the plan of operation but not to exceed $2 million for each claimant underany one policy and $6 million for all claimants under one policy in any oneyear; (ii) underwrite the insurance and adjust and pay losses on theinsurance; (iii) appoint a service company or companies to perform thefunctions enumerated in this subsection; (iv) assume reinsurance from itsmembers; and (v) reinsure its risks in whole or in part.
(1976, c. 85, § 38.1-776; 1980, c. 286, § 38.1-776.2; 1986, c. 562; 2003, cc.488, 1026.)
§ 38.2-2801. Association activation; members; purpose; determinations byCommission; powers of association.
A. The Commission shall activate a joint underwriting association if, afterinvestigation, notice, and hearing, it finds that medical malpracticeinsurance cannot be made reasonably available in the voluntary market for asignificant number of any class, type, or group of providers of health care.The association shall consist of all insurers licensed to write and engagedin writing liability insurance within this Commonwealth on a direct basisexcept those exempted from rate regulation by subsection C of § 38.2-1902.Each such insurer shall be a member of the association as a condition of itslicense to write liability insurance in this Commonwealth.
B. The purpose of the association shall be to provide a market for medicalmalpractice insurance on a self-supporting basis without subsidy from itsmembers.
C. 1. The association shall not commence underwriting operations for anyclass, type or group of providers of health care until it is activated by theCommission. At the direction of the Commission, the association shallcommence operations in accordance with the provisions of this chapter.
2. If the Commission determines at any time that medical malpracticeinsurance can be made reasonably available in the voluntary market for anyclass, type or group of providers of health care, the association shall, atthe direction of the Commission, cease its underwriting operations for thatclass, type or group of providers of health care.
D. The Commission shall also determine after investigation and a hearingwhether the association shall be the exclusive source of medical malpracticeinsurance for any class, type or group of providers of health care and thetype of policy or policies that shall be issued to any class, type or groupof providers of health care. If the Commission determines that a claims-madepolicy will be issued to any class, type or group of providers of healthcare, the Commission shall also provide for the guaranteed availability ofinsurance that covers claims that (i) result from incidents occurring duringperiods when the basic claims-made policies are in force, and (ii) arereported after the expiration of the basic claims-made policies. TheCommission may from time to time after an investigation and hearing reexamineand reconsider any determination made pursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2804, the association shall have the power on behalf of its members to:(i) issue, or cause to be issued, policies of medical malpractice insuranceto applicants, including incidental coverages, subject to limits as specifiedin the plan of operation but not to exceed $2 million for each claimant underany one policy and $6 million for all claimants under one policy in any oneyear; (ii) underwrite the insurance and adjust and pay losses on theinsurance; (iii) appoint a service company or companies to perform thefunctions enumerated in this subsection; (iv) assume reinsurance from itsmembers; and (v) reinsure its risks in whole or in part.
(1976, c. 85, § 38.1-776; 1980, c. 286, § 38.1-776.2; 1986, c. 562; 2003, cc.488, 1026.)
