Friday, August 29, 2008
The General Assembly is not in session.
Tracking Virginia’s General Assembly
since 2007.
HB460: Sickness and Disability Program; reporting requirements of certain insurers.
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-1139 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-1139. Policies to provide for accounting to Board; advance premium deposit reserve.
A. Each policy insurance
product purchased by the Board or contract for
administrative services related to a self-funded product shall
provide for an accounting to the Board not later than 120 days after the end of
each policy product
year. The For an
insurance product, the accounting shall include (i) the amounts of
premiums actually accrued under the policy during the policy year, (ii) the
total amount of all claim charges incurred during the policy year, and (iii)
the amounts of the insurer's
expenses and risk charges for the policy year amount
of fees accrued under the policy during the year plus the total amount of all
claim charges incurred during the policy year. For a
self-insured product, the accounting shall include the total amount of all
claim charges incurred during the product year, the total amount
of third party administrator expenses, and the total
amount of other charges for administrative services.
B. Any portion of the excess of the total of clause A (i) over the
sum of clauses A (ii) and clause
A (iii) may, with the approval of the Board, be held by the insurance company
in an advance premium deposit reserve to be used by the company for charges
under the policy only. Any expenses incurred by the Board in connection with
the administration of the disability benefits provisions of the program may be
deducted from the advance premium deposit reserve. The advance premium deposit
reserve shall bear interest at a rate to be determined in advance of each
policy year by the insurance company. The rate shall be subject to Board
approval as being consistent with the rates generally used by the company for
similar funds held under other disability insurance policies. Any portion of
the excess not held by the insurance company shall be held by the Board to be
used for charges under the policy only. If the Board determines that the
advance premium deposit reserve, together with any portion of the excess
accumulated and held by the Board, has attained an amount estimated to make
satisfactory provision for adverse fluctuations in future charges under the
policy, any further excess shall inure to the benefit of the Commonwealth as
determined by the Board.
C. For purposes of this section, the insurance company may combine and consolidate the policies issued by it as directed by the Board.
Additional Data
Explanation
This is the actual text of the bill — the legislation itself. Generally this is amending existing law, proposing the addition or removal of words from laws that are already on the books.
Words that are highlighted in yellow are
proposed additions, and words that are crossed out in
red are proposed removals.
The numbers with the § symbol before them are references to existing laws, and if you click on them they’ll take you to that part of the law on the state's website.