W. Va. Code R. § 114-85-3

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

Section 114-85-3 - Licensing and Renewal Requirements

3.1. After July 31, 2009, no person may provide, advertise or otherwise hold himself, herself, or itself out as providing professional employer organization services to employers in this state without first obtaining a license pursuant to W. Va. Code § 33-46A-4 and this rule.

3.2. Each applicant for a PEO license shall provide the West Virginia Insurance Commissioner ("Commissioner") with the following information:

3.2.a. Fully completed PEO licensing application;

3.2.b. Application fee of $200, and an annual report fee of $100;

3.2.c. The name or names under which the PEO conducts business;

3.2.d. The address of the PEO's principal place of business and the address of each office it maintains in this state. The address of the principal place of business provided will be the address of record and any correspondence from the Commissioner will be directed there unless the applicant requests that another address be used for such purposes; changes to the address of record shall be promptly communicated to the Commissioner;

3.2.e. The PEO's taxpayer or employer identification number;

3.2.f. A list by jurisdiction of each name under which the PEO has operated in the preceding five (5) years, including any alternative names, names of predecessors and successor business entities;

3.2.g. A statement of ownership, which must include the names and business experience of any person who, acting individually or in concert with one or more other persons, owns or controls, directly or indirectly, twenty-five percent (25%) or more of the equity interests of the PEO.

3.2.h. A statement of management which includes the name and evidence of business experience of any person who serves as a president, chief executive officer or otherwise has the authority to act as a senior executive officer of the PEO.

3.2.i. The PEO's most recent audited financial statement setting forth the financial condition of the PEO or PEO Group, which may not be older than thirteen (13) months, performed by a CPA licensed in the jurisdiction in which the CPA is located;

3.2.j. Proof of financial responsibility in the form of $100,000 in working capital, as defined by generally accepted accounting principles and as reflected in financial statements submitted to the Commissioner. As an alternative, a PEO may provide a bond, irrevocable letter of credit or securities with a minimum market value of $100,000 to the Commissioner;

3.2.k. A complete and current listing of all client-employers located in West Virginia or who have covered employees in West Virginia; and

3.2.l. If the applicant is a corporation, a certified copy of the corporation's Articles of Incorporation filed with the Secretary of State of West Virginia must be submitted to the Commissioner. If the applicant is a partnership, a copy of the Partnership Agreement or an affidavit signed by all partners that no written partnership exists must be submitted to the Commissioner. If the applicant is a limited partnership they must additionally provide and file a certified copy of its Certificate of Limited Partnership to the Commissioner. If the applicant is a non-resident, then a certificate of authority to do business in the state, issued by the Secretary of State, must be submitted to the Commissioner.

3.3. A PEO who has not had sufficient operating history to have an audited financial statement as required by subdivision i, subsection 3.2 of this section must meet the $100,000 working capital or bond requirements set forth in subdivision j, subsection 3.2 of this section. The amount of the bond for a PEO whose financial statements do not indicate positive working capital must be $100,000 plus an amount sufficient to cover the deficit in working capital. An applicant may apply to the Commissioner for an extension of time for filing its financial statements so long as the request for an extension is accompanied by a letter from an independent certified public accountant stating the reasons for the delay and the anticipated completion date of the financial statement.

3.4. A PEO must file for renewal of its' license annually no later than one hundred eighty (180) days after the close of the PEO's fiscal year. Each application for renewal of a license shall be accompanied by a fee of $200 for the application fee and $100 for the annual report. The applicant for renewal shall submit to the Commissioner its most recent audited financial statements meeting the same requirements for initial licensure, together with any changes in the information required for initial licensure set forth in subsection 3.2 of this section. The applicant shall also submit to the Commissioner an update of the PEO's list of West Virginia clients. A late fee of $300 will be assessed to any PEO that does not timely submit the renewal application and supporting documentation.

3.5. An applicant for a PEO license that is a small start-up PEO may make a request to the Commissioner that any of the above licensing or financial requirements be reduced as determined necessary by the Commissioner.

3.6. An applicant for a PEO license in this state shall respond to any requests for more information regarding an application from the Commissioner within thirty (30) days. Failure to provide the requested information within the time period provided shall be grounds for denial of an application.

3.7. Any incomplete application, as determined by the Commissioner, that remains incomplete for a period of four (4) months from the date of notice from the Commissioner that the application is incomplete will be considered withdrawn and a new application and application fees will be required. An existing license, not suspended, revoked or otherwise limited by the Commissioner, shall remain in effect during the review of a renewal application by the Commissioner.

3.8. Accreditation services: The Commissioner may provide for the acceptance of filings and assurances of a PEO's compliance with this rule and other applicable laws by a bonded, independent and qualified assurance organization approved by the Commissioner.

W. Va. Code R. § 114-85-3