                                 CODE OF VIRGINIA

REQUIRED PROVISIONS IN CONTRACT; ELECTION OF GOVERNING AUTHORITY; FINANCIAL
PLAN; MANAGEMENT PLAN (§ 15.2-2705)

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

1. For election by pool members of a governing authority for the pool, which may
be a board of directors, a majority of whom shall be elected or appointed
officials 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 pool
will 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 coverage over and above the claims which are not to be satisfied
directly from the pool&#8217;s resources; and			d. The amount, if any, of
aggregate excess insurance coverage to be purchased and maintained in the event
that the group self-insurance pool&#8217;s resources are 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 to the pool,
maintaining reserves, levying and collecting assessments for deficiencies,
disposing of surpluses, and administration of the pool in the event of
termination or insolvency;			c. The basis upon which new members may be admitted
to, and existing members may 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 of the pool.

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