Workers’ compensation insurers are under dual regulation in Virginia. The Virginia Workers’ Compensation Commission is responsible for ensuring that insurers abide by the Workers’ Compensation Act. The Bureau of Insurance in State Corporation Commission is responsible for licensing and underwriting. Insurers writing in Virginia are required to be licensed in Virginia.
Insurers are required to file proof of coverage compliance within 30 days of the policy effective date, by filing electronically with the Commission’s agent, (NCCI) pursuant to Va. Code § 65.2-804. Proof of coverage shall include the name and address of the insured, the insured's federal employer identification number (FEIN), the policy number, dates of insurance coverage, the name and address of the insurer, and the insurer's identification number. The insurer must provide 30 days’ notice of cancellation or nonrenewal by the insurer, and 10 days’ notice if for nonpayment of premium.
An insurer is required to have one designated representative with a Virginia office location. The designated representative shall have the authority to: (i) issue drafts to provide for payment of benefits; (ii) arrange for immediate medical attention; (iii) investigate the nature and disposition of any claim; and (iv) represent the carrier or self-insurer upon request to the Virginia Workers' Compensation Commission by phone, by mail, or in person at the commission's offices. While the designated representative shall receive claim mail, each insurer may also designate one separate address to which routine mail related to the processing of claims is to be sent. An insurer is required to provide the notice to the Commission of the designated representative name, address and phone. In the event this information changes notice should be sent to the Insurance Department of the Commission.
Workers’ compensation insurance policies are deemed subject to the provisions of the Act pursuant to Va. Code § 65.2-813. Insurance form filings are therefore subject to approval by the Commission. An insurer may seek approval by sending the proposed form along with a cover letter to the Insurance Department.
Rating Schedules and Rates
The State Corporation Commission establishes regulations for the assignment of risks to insurers including rate classifications, rating schedules, rates and issuance of residual mark policies.
Second Injury Fund
A Second Injury Fund is maintained and is administered in accordance with Va. Code § 65.2-1100 et seq.
Each insurer shall report annually to the Commission, pursuant to Va. Code § 65.2-1001 for the twelve months ending December 31st each year, stating the amount of premiums and credits during the period covered by such return. Reporting is completed on the Form 26A. The form must be signed by two chief officers of the company and notarized. The deadline for filing and for payment of taxes is January 31st.
An insurer that fails to comply with properly filing proof of coverage, cancellation or nonrenewal shall be subject to assessment of a civil penalty of not more than $500.00 for each failure.