38.2-5021 - Actuarial investigation, valuations, gain/loss analysis; notice if assessments prove insufficient.
§ 38.2-5021. Actuarial investigation, valuations, gain/loss analysis; noticeif assessments prove insufficient.
A. The Bureau of Insurance of the State Corporation Commission shallundertake an actuarial investigation of the requirements of the Fund based onthe Fund's experience in the first year of operation, including withoutlimitation the assets and liabilities of the Fund. Pursuant to suchinvestigation, the State Corporation Commission shall establish the rate ofcontribution of the entities listed in subsection E of § 38.2-5020 for thetax year beginning January 1, 1989.
Following the initial valuation, the State Corporation Commission shall causean actuarial valuation to be made of the assets and liabilities of the Fundno less frequently than biennially. Pursuant to the results of suchvaluations, the State Corporation Commission shall prepare a statement as tothe contribution rate applicable to contributors listed in subsection E of §38.2-5020. However, at no time shall the rate be greater than one quarter ofone percent of net direct premiums written.
In conducting the actuarial evaluation, a loss reserving methodologyconsistent with the one employed by the Florida Birth-Related NeurologicalInjury Compensation Association as of July 1, 2007, may be employed in orderto account for individual participant costs and injury characteristics to theextent that the data are available to perform such methodology and the StateCorporation Commission's actuary determines that such methodology isactuarially appropriate.
B. In the event that the State Corporation Commission finds that the Fundcannot be maintained on an actuarially sound basis subject to the maximumassessments listed in § 38.2-5020, the Commission shall promptly notify theSpeaker of the House of Delegates, the President of the Senate, the board ofdirectors of the Program, and the Virginia Workers' Compensation Commission.
(1987, c. 540; 1989, c. 523; 2008, cc. 267, 520.)