§ 38.2-2901. Association activation; members; purpose; determinations byCommission; powers of Association.
A. After investigation, notice, and hearing, the Commission shall beempowered to activate a Joint Underwriting Association with respect to anyline, subclassification or type of commercial liability insurance coverage ifit finds that such line, subclassification, or type of commercial liabilityinsurance coverage is not reasonably available for a significant number ofany class, type, or group of such risks in the voluntary market or through amarket assistance plan. The Association shall consist of all insurerslicensed to write and engaged in writing the classes of insurance defined in§§ 38.2-117 through 38.2-119, and the liability portions of the insurancedefined in §§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within thisCommonwealth on a direct basis except those exempted from rate regulation bysubsection C of § 38.2-1902. Each such insurer shall be a member of theAssociation as a condition of its license to write such insurance in thisCommonwealth.
B. The purpose of the Association shall be to provide markets for commercialliability insurance for persons with eligible risks who are unable to obtaincommercial liability insurance coverage, including incidental coverage,through the voluntary market. It shall also be the purpose of the Associationto do so on a self-supporting basis without subsidy from its members.
C. 1. The Association shall not commence underwriting operations for anyline, subclassification or type of commercial liability insurance coverageuntil so ordered by the Commission. At the direction of the Commission, theAssociation shall commence operations in accordance with the provisions ofthis chapter.
2. If the Commission determines at any time that a line, subclassification ortype of commercial liability insurance coverage is reasonably available atadequate levels in the voluntary market, the Association shall, at thedirection of the Commission, cease its underwriting operations for that line,subclassification, or type of commercial liability insurance coverage.
D. The Commission shall also determine after investigation and a hearingwhether the Association shall be the exclusive source of any line,subclassification or type of commercial liability insurance which it findsnot to be reasonably available pursuant to subsection A of this section andthe type of policy or policies that shall be issued for any line,subclassification or type of commercial liability insurance. If theCommission determines that a claims-made policy will be issued for any line,subclassification or type of coverage, the Commission shall also provide forthe guaranteed availability of insurance that covers claims which (i) resultfrom incidents occurring during periods when the basic claims-made policiesare in force; and (ii) are reported after the expiration of the basicclaims-made policies. The Commission may from time to time after aninvestigation and hearing reexamine and reconsider any determination madepursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2904, the Association shall have the power on behalf of its members to:
1. Issue, or cause to be issued, policies of commercial liability insuranceto eligible applicants, including incidental coverages, subject to limitsspecified in the plan of operation but not to exceed one million dollars foreach claimant under any one policy and three million dollars for allclaimants under one policy in any one year;
2. Provide a means for establishing eligibility of a risk for obtaininginsurance through the plan;
3. Underwrite the insurance and adjust and pay losses on the insurance;
4. Appoint a service company or companies to perform functions enumerated inthis subsection;
5. Provide a means for the equitable apportionment of profits or losses andexpenses among participating insurers;
6. Develop rules for the classification of risks and rates which reflect thepast and prospective loss experience and a rating plan which reasonablyreflects the prior claims experience of the insureds;
7. Assume reinsurance from its members;
8. Reinsure its risks in whole or in part; and
9. Take such other action as is necessary for the efficient and equitableoperation and termination of the Association.
§ 38.2-2901. Association activation; members; purpose; determinations byCommission; powers of Association.
A. After investigation, notice, and hearing, the Commission shall beempowered to activate a Joint Underwriting Association with respect to anyline, subclassification or type of commercial liability insurance coverage ifit finds that such line, subclassification, or type of commercial liabilityinsurance coverage is not reasonably available for a significant number ofany class, type, or group of such risks in the voluntary market or through amarket assistance plan. The Association shall consist of all insurerslicensed to write and engaged in writing the classes of insurance defined in§§ 38.2-117 through 38.2-119, and the liability portions of the insurancedefined in §§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within thisCommonwealth on a direct basis except those exempted from rate regulation bysubsection C of § 38.2-1902. Each such insurer shall be a member of theAssociation as a condition of its license to write such insurance in thisCommonwealth.
B. The purpose of the Association shall be to provide markets for commercialliability insurance for persons with eligible risks who are unable to obtaincommercial liability insurance coverage, including incidental coverage,through the voluntary market. It shall also be the purpose of the Associationto do so on a self-supporting basis without subsidy from its members.
C. 1. The Association shall not commence underwriting operations for anyline, subclassification or type of commercial liability insurance coverageuntil so ordered by the Commission. At the direction of the Commission, theAssociation shall commence operations in accordance with the provisions ofthis chapter.
2. If the Commission determines at any time that a line, subclassification ortype of commercial liability insurance coverage is reasonably available atadequate levels in the voluntary market, the Association shall, at thedirection of the Commission, cease its underwriting operations for that line,subclassification, or type of commercial liability insurance coverage.
D. The Commission shall also determine after investigation and a hearingwhether the Association shall be the exclusive source of any line,subclassification or type of commercial liability insurance which it findsnot to be reasonably available pursuant to subsection A of this section andthe type of policy or policies that shall be issued for any line,subclassification or type of commercial liability insurance. If theCommission determines that a claims-made policy will be issued for any line,subclassification or type of coverage, the Commission shall also provide forthe guaranteed availability of insurance that covers claims which (i) resultfrom incidents occurring during periods when the basic claims-made policiesare in force; and (ii) are reported after the expiration of the basicclaims-made policies. The Commission may from time to time after aninvestigation and hearing reexamine and reconsider any determination madepursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2904, the Association shall have the power on behalf of its members to:
1. Issue, or cause to be issued, policies of commercial liability insuranceto eligible applicants, including incidental coverages, subject to limitsspecified in the plan of operation but not to exceed one million dollars foreach claimant under any one policy and three million dollars for allclaimants under one policy in any one year;
2. Provide a means for establishing eligibility of a risk for obtaininginsurance through the plan;
3. Underwrite the insurance and adjust and pay losses on the insurance;
4. Appoint a service company or companies to perform functions enumerated inthis subsection;
5. Provide a means for the equitable apportionment of profits or losses andexpenses among participating insurers;
6. Develop rules for the classification of risks and rates which reflect thepast and prospective loss experience and a rating plan which reasonablyreflects the prior claims experience of the insureds;
7. Assume reinsurance from its members;
8. Reinsure its risks in whole or in part; and
9. Take such other action as is necessary for the efficient and equitableoperation and termination of the Association.
§ 38.2-2901. Association activation; members; purpose; determinations byCommission; powers of Association.
A. After investigation, notice, and hearing, the Commission shall beempowered to activate a Joint Underwriting Association with respect to anyline, subclassification or type of commercial liability insurance coverage ifit finds that such line, subclassification, or type of commercial liabilityinsurance coverage is not reasonably available for a significant number ofany class, type, or group of such risks in the voluntary market or through amarket assistance plan. The Association shall consist of all insurerslicensed to write and engaged in writing the classes of insurance defined in§§ 38.2-117 through 38.2-119, and the liability portions of the insurancedefined in §§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within thisCommonwealth on a direct basis except those exempted from rate regulation bysubsection C of § 38.2-1902. Each such insurer shall be a member of theAssociation as a condition of its license to write such insurance in thisCommonwealth.
B. The purpose of the Association shall be to provide markets for commercialliability insurance for persons with eligible risks who are unable to obtaincommercial liability insurance coverage, including incidental coverage,through the voluntary market. It shall also be the purpose of the Associationto do so on a self-supporting basis without subsidy from its members.
C. 1. The Association shall not commence underwriting operations for anyline, subclassification or type of commercial liability insurance coverageuntil so ordered by the Commission. At the direction of the Commission, theAssociation shall commence operations in accordance with the provisions ofthis chapter.
2. If the Commission determines at any time that a line, subclassification ortype of commercial liability insurance coverage is reasonably available atadequate levels in the voluntary market, the Association shall, at thedirection of the Commission, cease its underwriting operations for that line,subclassification, or type of commercial liability insurance coverage.
D. The Commission shall also determine after investigation and a hearingwhether the Association shall be the exclusive source of any line,subclassification or type of commercial liability insurance which it findsnot to be reasonably available pursuant to subsection A of this section andthe type of policy or policies that shall be issued for any line,subclassification or type of commercial liability insurance. If theCommission determines that a claims-made policy will be issued for any line,subclassification or type of coverage, the Commission shall also provide forthe guaranteed availability of insurance that covers claims which (i) resultfrom incidents occurring during periods when the basic claims-made policiesare in force; and (ii) are reported after the expiration of the basicclaims-made policies. The Commission may from time to time after aninvestigation and hearing reexamine and reconsider any determination madepursuant to this subsection.
E. Pursuant to this chapter and the plan of operation required by §38.2-2904, the Association shall have the power on behalf of its members to:
1. Issue, or cause to be issued, policies of commercial liability insuranceto eligible applicants, including incidental coverages, subject to limitsspecified in the plan of operation but not to exceed one million dollars foreach claimant under any one policy and three million dollars for allclaimants under one policy in any one year;
2. Provide a means for establishing eligibility of a risk for obtaininginsurance through the plan;
3. Underwrite the insurance and adjust and pay losses on the insurance;
4. Appoint a service company or companies to perform functions enumerated inthis subsection;
5. Provide a means for the equitable apportionment of profits or losses andexpenses among participating insurers;
6. Develop rules for the classification of risks and rates which reflect thepast and prospective loss experience and a rating plan which reasonablyreflects the prior claims experience of the insureds;
7. Assume reinsurance from its members;
8. Reinsure its risks in whole or in part; and
9. Take such other action as is necessary for the efficient and equitableoperation and termination of the Association.
