CHAPTER 358

An Act to amend the Code of Virginia by adding new sections numbered
65-114.1 through 65-114.5, inclusive, to provide for assignment of
risks to insurance carriers under workmen’s compensation; and to
confer certain powers and impose certain duties on the State Corpora-
tion Commission.

[S 232]

Approved March 14, 1956

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding new sections num-
bered 65-114.1 through 65-114.5, inclusive, as follows:

§ 65-114.1. Every employer subject to the provisions of this act who
has been unable to obtain a workmen’s compensation insurance policy shall
have the right to apply to the State Corporation Commission to have his
risk assigned to an insurance carrier licensed to write and writing work-
men’s compensation insurance in this State. The insurance carrier, whether
stock, mutual, reciprocal or inter-insurer or other type or form of organiza-
tion, to whom any such risk is assigned shall issue a policy of workmen’s
compensation insurance which will enable such employer to meet the re-
quirements of this act.

§ 65-114.2. The State Corporation Commission may make reasonable
rules and regulations for the assignment of risks to insurance carriers.

It shall establish such rate classifications, rating schedules, rates, rules
and regulations to be used by insurance carriers issuing assigned risk work-
men’s compensation policies in accordance with this chapter as appear to it
to be proper.

In the establishment of rate classifications, rating schedules, rates,
rules and regulations, it shall be guided by such principles and practices as
have been established under its statutory authority to regulate workmen’s
compensation insurance rates and it may act in conformity with its statu-
tory discretionary authority in such matters.

§ 65-114.3. The Commission may, if in its judgment it deems such
action to be justified after reviewing all information pertaining to the ap-
plicant or policyholder available from its records, the records of the In-
dustrial Commission or from other sources:

(1) Refuse to assign an application;

(2) Approve the rejection of an application by an insurance carrier;

(3) Approve the cancellation of a workmen’s compensation policy by
an insurance carrier ; or

‘ (4) Refuse to approve the renewal or the reassignment of an expiring
policy.

§ 65-114.4. Any and all information filed with the State Corporation
Commission by an insurance carrier in connection with an assigned risk
shall be confidential and solely for the information of the State Corporation
Commission and its staff and shall not be disclosed to any person, including
an applicant, policyholder and any other insurance carrier.

65-114.5. The State Corporation Commission shall not be required
to Gincioge to any person, including the applicant or policyholder, its
reasons for:
CHS. 358, 359, 360] ACTS OF ASSEMBLY 411

(1) Refusing to assign an application; _ ; .
(2) Approving the rejection of an poelsaiion by an insurance carrier;
(3) Approving the cancellation of a workmen’s compensation policy
by an insurance carrier; or .
_, (4) Refusing to approve the renewal or the reassignment of an ex-
piring policy. at as ,
The Commission shall not nor shall anyone acting for it be held liable
for any act or omission in connection with the administration of the duties
imposed upon it by the provisions of this chapter, except upon proof of
actual malfeasance.