A. Each policy purchased by the Board shall provide for an accounting to the Board not later than 120 days after the end of each policy year. The accounting shall include (i) the amounts of premiums actually accrued under the policy during the policy year, (ii) the total amount of all mortality and other claim charges incurred during the policy year, and (iii) the amounts of the insurer's expenses and risk charges for the policy year.
B. Any portion of the excess of the total of item (i) over the sum of items (ii) and (iii) may, with the approval of the Board, be held by the insurance company in an advance premium deposit reserve to be used by the company for charges under the policy only. Any expenses incurred by the Board on behalf of the group insurance program may be deducted from the advance premium deposit reserve. The advance premium deposit reserve shall bear interest at a rate to be determined in advance of each policy year by the insurance company. The rate shall be subject to Board approval as being consistent with the rates generally used by the company for similar funds held under other group life insurance policies. Any portion of the excess not held by the insurance company shall be held by the Board to be used for charges under the policy only. If the Board determines that the advance premium deposit reserve, together with any portion of the excess accumulated and held by the Board, has attained an amount estimated to make satisfactory provision for adverse fluctuations in future charges under the policy, any further excess shall inure to the benefit of the Commonwealth and other employers participating in the group insurance program as determined by the Board.
C. For purposes of this section, the insurance company may combine and consolidate the policies issued by it as directed by the Board.
1960, c. 604, § 51-111.67:7; 1970, c. 476; 1973, c. 523; 1978, c. 841; 1983, c. 457; 1990, c. 832; 1991, c. 700; 1997, c. 273.
Structure Code of Virginia
Title 51.1 - Pensions, Benefits, and Retirement
Chapter 5 - Group Insurance Program
§ 51.1-501. Board authorized to purchase group life and accident insurance policies
§ 51.1-502. Eligible employees and officers
§ 51.1-502.1. Certain employees of teaching hospitals
§ 51.1-502.3. Certain employees of the Virginia Port Authority
§ 51.1-503. Limitation on coverage
§ 51.1-504. Election of political subdivision to participate; approval by Board
§ 51.1-505.01. Additional accidental death and dismemberment benefits
§ 51.1-506. Employee contributions; payroll deductions; effect of failure to deduct
§ 51.1-507. Notice of desire not to be insured
§ 51.1-508. Employer contributions
§ 51.1-509. Keeping records and furnishing information required by Board
§ 51.1-510. Insurance exempt from process
§ 51.1-511. Persons entitled to payment of insurance on employee's death
§ 51.1-512. Optional life insurance
§ 51.1-512.1. Optional life insurance for the spouse and minor dependents of employees
§ 51.1-513.1. Long-term care insurance
§ 51.1-513.2. Long-term care coverage program
§ 51.1-513.4. Trust fund for long-term care programs
§ 51.1-514. Policies to provide for accounting to Board; advance premium deposit reserve