W. Va. Code R. § 114-65-5

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-65-5 - Authorization of Pools

5.1. After review of the documents and information described in section four of this rule, the Commissioner may notify the pool that its operation is authorized if he or she determines that the pool meets the criteria set forth in this rule. Authorization to operate a pool shall remain in effect until terminated at the request of the board or revoked by the Commissioner.

5.2. The Commissioner is authorized to monitor as he or she considers necessary the financial solvency of pools, which may include reviewing the pool's rates, to ensure that the pool's liabilities for claims, present and contingent, and other expenses are at no time greater than its assets. If a pool is found by the Commissioner to be in a deficit condition the pool must file a financial plan acceptable to the Commissioner to correct the deficit condition. The Commissioner may examine the affairs, transactions, accounts, records, and assets of the pool as often as it deems necessary and may take appropriate regulatory action whenever in his or her judgment a pool is insolvent or otherwise financially impaired, which may include the withdrawal of the authorization to operate the pool.

5.3. Information regarding the portion of reserves of a pool established to satisfy a specific claim or cause of action is confidential and is not subject to discovery.

5.4.

5.4.a. A civil liability pool may voluntarily dissolve after presentation to and approval by the Commissioner of a plan of dissolution. The plan must provide for the payment of all incurred losses and expenses of the fund and its members, including all incurred but not reported losses, as certified by an actuary, to the extent of the pool's assets. No assets of the pool maybe used for any other purpose until payment of all such losses and expenses is provided for. Subject to approval of the Commissioner, a pool may merge with another pool if the resulting pool assumes in full all obligations of the merging pools.

5.4.b. Upon approval from the Commissioner, a workers' compensation pool may voluntarily dissolve. The pool and its members shall remain forever jointly and severally liable for all injuries and exposures, whether known, unknown, or contingent, occurring during the period in which the pool was in existence. Prior to dissolving, a pool shall post bond or security in a form acceptable to the Commissioner and in an amount sufficient to cover all past, present and future liabilities, whether known, unknown or contingent, resulting from the period in which the pool was self-insured, and provide adequate assurances for the continued administration of claims and payment of assessments, surcharges as required by chapter twenty-three of the West Virginia code and the rules promulgated thereunder. The pool shall further meet all other reasonable terms and conditions for dissolution as required by the Commissioner.

5.5. No member of a workers' compensation pool may be terminated unless at least 30 days written notice has been given to the member and the Commissioner: Provided, That the pool shall remain liable for all claims applicable to the period during which an employer was a member of an association, including the period of 30 days or more required for termination of membership.

5.6. If the Commissioner determines that a pool is not in compliance with this rule or with any applicable statute, rule or order of the Commissioner, he or she must notify the board by certified or registered mail in writing with a description of the non-compliance and a date by which the non-compliance must be corrected or by which a plan for correcting the noncompliance must be filed. If the non-compliance is thereafter not corrected, the Commissioner may, after notice and a hearing, withdraw the authorization of approval of the pool or assess a monetary penalty, or both.

W. Va. Code R. § 114-65-5