2006 Code of Virginia § 38.2-1903.1 - Exemptions of large commercial risks

38.2-1903.1. Exemptions of large commercial risks.

A. Notwithstanding any other provision of this title, an insurer shall not berequired to file with, or to receive approval from, the Commission for policyforms and rates used in the insurance of large commercial risks.

B. The form approval and rate filing exemption set forth in subsection Ashall not apply to rates and forms for writing workers' compensation andprofessional liability policies issued to large commercial risks or to formsfor writing commercial automobile policies issued to large commercial risks.

C. A "large commercial risk" is a person or entity that:

1. Has a risk manager to negotiate insurance coverage. A risk manager means(i) an employee of the large commercial risk or (ii) a third party consultantretained by the large commercial risk, who provides skilled services in lossprevention, loss reduction, or risk and insurance coverage analysis, and thepurchase of insurance, and who possesses at least one of the followingcredentials:

a. A bachelor's or higher degree in risk management issued by an accreditedcollege or university;

b. A designation as a Chartered Property and Casualty Underwriter (CPCU)issued by the American Institute for CPCU/Insurance Institute of America;

c. A designation as an Associate in Risk Management (ARM) issued by theAmerican Institute for CPCU/Insurance Institute of America;

d. A designation as a Certified Risk Manager (CRM) issued by the NationalAlliance for Insurance Education & Research;

e. A designation as a Fellow in Risk Management (FRM) issued by the GlobalRisk Management Institute/Risk & Insurance Management; or

f. At least five years of experience in one or more of the following areas ofcommercial property and casualty insurance: (i) risk financing, (ii) claimsadministration, (iii) loss prevention, or (iv) risk and insurance coverageanalysis; and

2. Meets at least two of the following criteria:

a. Possesses a net worth in excess of $2 million;

b. Generates annual revenues in excess of $2 million;

c. Employs more than 10 full-time or full-time equivalent employees perindividual insured;

d. Pays annual aggregate nationwide insurance premiums in excess of $25,000;

e. Is a not-for-profit organization or public body generating annual budgetedexpenditures of at least $5 million; or

f. Is a municipality with a population in excess of 30,000.

D. An insurer providing a policy to a large commercial risk must obtainannual, written certification signed by the risk manager and the chiefexecutive officer from the large commercial risk certifying that the largecommercial risk (i) employs the necessary qualified risk manager and statingthe basis for the risk manager's qualifications; (ii) meets two of the othercriteria set forth in subdivision C 2 of this section; (iii) is aware thatthe policy being purchased is not subject to initial state regulatory reviewor approval of rates and forms; (iv) has the necessary expertise to negotiateits own policy language and rates; and (v) agrees to the use of the exemptedrates and forms by its insurer or insurers.

E. The policyholder certification shall be filed with and retained by theinsurance company issuing coverage to the large commercial risk. An insurerissuing policies under this section shall provide the number of exemptedpolicyholders annually to the Commission, along with an aggregation of thecriteria establishing the exemption.

(2000, c. 548; 2002, c. 437; 2005, c. 251.)