GENERAL NOTICES/ERRATA
Vol. 27 Iss. 21 - June 20, 2011

GENERAL NOTICES/ERRATA

STATE CORPORATION COMMISSION

Bureau of Insurance

May 27, 2011

Administrative Letter 2011-03

To:    All Licensed Property and Casualty Insurance Companies Writing Medical Malpractice Insurance in Virginia

Re:    Amendments to § 8.01-581.15 of the Code of Virginia - Notice May Be Required by § 38.2-231 When the Insurer Increases the Policy's Liability Limits

During the 2011 Session of the Virginia General Assembly, Senate Bill 771 and House Bill 1459 amended § 8.01-581.15 of the Code of Virginia. Effective July 1, 2012, this amendment increases the total amount recoverable for any injury to, or death of, a patient to $2.05 million, and each year thereafter, the amount recoverable is increased $50,000 until it reaches the maximum of $3 million on July 1, 2031.

The amendment to § 8.01-581.15 does not require insurers to issue or amend policies that provide medical malpractice liability limits that are equal to the limits set forth in the statute. However, it is important to note that if an insurer chooses to increase a policy's liability limits in response to § 8.01-581.15, there may be some situations when the insurer will be required to provide the notice set forth in § 38.2-231 L of the Code of Virginia.

Section 38.2-231 L requires insurers to issue a notice when an insurer-initiated increase results in the renewal premium being increased greater than 25% of the expiring policy's premium. Administrative Letter 2006-12 provides examples of insurer-initiated increases. The following should also be considered when determining if the premium increase greater than 25% is insurer-initiated:

· When an insurer increases the insured's liability limit at renewal, the increase would be considered an insurer-initiated increase.

· If an insurer issues policies containing a condition that increases the policy limits automatically as the recoverable amount increases, the premium increase associated with the change in the liability limit would be considered an insurer-initiated increase.

· It is not considered an insurer-initiated increase when the insurer has documentation in its underwriting files to show that the insured has requested the insurer to increase the liability limit as the recoverable amount increases. Additionally, the insurer's applications or renewal questionnaires may include a statement, signed by the insured, requesting the insurer to increase the liability limit as the recoverable amount increases.

If you have any questions regarding this administrative letter, please contact Melinda Willis, Supervisor of the Commercial Casualty Rates and Forms Section, at (804) 371-9667.

/s/ Jacqueline K. Cunningham

Commissioner of Insurance

DEPARTMENT OF ENVIRONMENTAL QUALITY

Notice of Release of Final 2012 Water Quality Assessment Guidance

The Virginia Department of Environmental Quality (DEQ) will release the final 2012 Water Quality Assessment Guidance Manual on June 20, 2011.

Virginia's 2012 Water Quality Assessment Guidance Manual contains the assessment procedures and methods to be used for the development of Virginia's 2012 § 305(b)/§ 303(d) Integrated (i.e., combined Water Quality Assessment and Impaired Waters) Report. The assessment guidance seeks to address all key elements of the U.S Environmental Protection Agency (EPA) 2006 Assessment Guidance and subsequent updates current up to March 2011, in addition to the assessment methodology for Chesapeake Bay Water Quality Standards established by EPA, most recently updated in the May 2010 addendum to Ambient Water Quality Criteria for Dissolved Oxygen, Water Clarity, and Chlorophyll a for the Chesapeake Bay and Its Tidal Tributaries.

The assessment guidance also reflects changes in Virginia's Water Quality Standards, which became effective on January 6, 2011. The Standards were updated with refinements to the methodology used in the estimation of pycnoclines in the Chesapeake Bay. Furthermore, the use of a geometric mean for seasonal chlorophyll a criteria in the James River has now been explicitly specified.

The assessment guidance also includes a new section devoted to the assessment of continuous monitoring data.

Section 62.1-44.19:5 C of the Code of Virginia requires DEQ to develop and publish the procedures used for defining and determining impaired waters and provide for public comment on the procedures. A draft version of this guidance was released for public review and comment on March 28, 2011. The comment period closed on April 29, 2011. Only one comment was received from the public.

A copy of the final 2012 Water Quality Assessment Guidance Manual will be available to download from the DEQ Water Quality Assessment webpage at http://www.deq.virginia.gov/wqa/ on June 20, 2011. A hard copy can also be requested from Tish Robertson, DEQ Water Quality Assessment Coordinator, using the contact information below.

DEQ's response to comments received during the public comment period are also available for download at the URL above. This document has also been mailed to the organization that submitted comment.

Contact Information: Tish Robertson, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4309, FAX (804) 698-4032, or email tish.robertson@deq.virginia.gov.

Proposed Consent Order for Celebrate Virginia North Community Development Authority and T.S.C.

An enforcement action has been proposed for Celebrate Virginia North Community Development Authority and T.S.C. for alleged violations in Stafford County associated with the Celebrate Virginia North Development. The consent order describes a settlement to resolve unpermitted impacts taken to surface waters conducted on the property. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Sarah Baker will accept comments by email at sarah.baker@deq.virginia.gov, FAX at (703) 583-3821, or postal mail at Department of Environmental Quality, Northern Regional Office, 13901 Crown Court, Woodbridge, VA 22193, from June 21, 2011, through July 21, 2011.

Proposed Consent Order for SCI Virginia Funeral Services, Inc.

An enforcement action has been proposed for SCI Virginia Funeral Services, Inc. for alleged violations in Fairfax County associated with the King David Memorial Cemetery. The consent order describes a settlement to resolve unpermitted impacts taken to surface waters associated with the King David Memorial Cemetery. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Daniel Burstein will accept comments by email at daniel.durstein@deq.virginia.gov, FAX at (703) 583-3821, or postal mail at Department of Environmental Quality, Northern Regional Office, 13901 Crown Court, Woodbridge, VA 22193, from June 21, 2011, through July 21, 2011.

Proposed Consent Order for W. Harold Talley II, LLC

An enforcement action has been proposed for W. Harold Talley II, LLC, for violations of the underground storage tank regulations at the Surry Quick Stop in Surry County. The consent order requires corrective action. A description of the proposed action is available at the DEQ office named below or online at www.deq.virginia.gov. Jennifer Hoeffner will accept comments by email at jennifer.hoeffner@deq.virginia.gov, FAX (804) 527-5106, or postal mail at Department of Environmental Quality, Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA 23060, from June 20, 2011, to July 22, 2011.

Total Maximum Daily Load Study for Parker Creek

Purpose of notice: To seek public comment on a proposed modification to the completed benthic total maximum daily load (TMDL) study for Parker Creek, located in Accomack County, Virginia.

First Public Notice Issue Date: June 20, 2011.

Public comment period: 30 days following first public notice issue date.

Project Description - Parker Creek TMDL Study Modification: This TMDL was approved by the Environmental Protection Agency on November 7, 2008, and can be found at the following website: http://www.deq.virginia.gov/tmdl/apptmdls/baycoast/parkerbc.pdf. The Department of Environmental Quality (DEQ) proposes to revise the original TMDL to clarify language that describes the mechanism to achieve the Parker Creek benthic aquatic life use through the TMDL's total phosphorus concentration endpoint. The original TMDL will be changed to describe how a previously permitted facility, Perdue Farms, Inc in Accomack, VA (VPDES Permit No. VA0003808) will be required to assure compliance with the TMDL total phosphorus concentration endpoint, 0.10 mg/L. TMDL equations and WLA equations should remain and narrative description added to provide reinforcement that this is a concentration based nutrient TMDL. The concentration endpoint should be achieved by enforcement of the 0.10 mg/L total phosphorus permit limit, and appropriate implementation to achieve reductions in the original nonpoint phosphorus sources in the watershed. The TMDL does not require flow restrictions to assure attainability of Parker Creek's benthic aquatic life use. Although overall loading may change at the TMDL outlet this should not impact stream water quality or attainment of the currently impaired use.

Updating the description of the mechanism for achieving the TMDL and associated text in the Parker Creek benthic TMDL will protect and preserve water quality because the original endpoint is used, and the reasonable assurance will be reinforced by clarifying the mechanism to achieve the endpoint.

How to comment on the TMDL modification: DEQ accepts comments by email, fax, or postal mail. All comments must be in writing and be received by DEQ during the comment period. The public also may request a public meeting. Submittals must include the names, mailing addresses, and telephone numbers of the commenter and of all persons represented by the commenter.

Contact for public comments, document requests, and additional information: Jennifer Howell, Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462, telephone (757) 518-2000, FAX (757) 518-2009, or email jennifer.howell@deq.virginia.gov.

The public may review the documents at the DEQ office named in the above contact information.

Total Maximum Daily Load for York River Basin

The Department of Environmental Quality (DEQ) and the Department of Conservation and Recreation seek written and oral comments from interested persons on the development of an implementation plan (IP) for bacteria total maximum daily loads (TMDLs) on a 7.33 mile stream segment of Goldmine Creek in Louisa County; a 2.51 mile segment of Beaver Creek, 2.52 mile segment of Mountain Run, 12.15 mile segment of Pamunkey Creek, and 1.83 mile segment of Terry's Run in Orange County; and a 3.12 mile segment of Plentiful Creek in Spotsylvania County. The TMDLs for these stream impairments were completed in August 2005 and can be found in the Bacteria TMDLs for York River Basin Orange, Louisa, Spotsylvania Counties, Virginia study report on DEQ's website, http://www.deq.virginia.gov/tmdl/apptmdls/yorkrvr/lakeanna.pdf.

Section 62.1-44.19:7 C of the Code of Virginia requires the development of an IP for approved TMDLs. The IP should provide measurable goals and the date of expected achievement of water quality objectives. The IP should also include the corrective actions needed and their associated costs, benefits, and environmental impacts.

The final public meeting to discuss the draft IP for the bacteria TMDLs listed in this notice will be held on Thursday, June 21, 2011, 6 p.m. to 8 p.m. at the Town of Orange Public Works Community Room, 235 Warren Street, Orange, Virginia. At this meeting, the implementation plan development process for this project will be reviewed and the draft implementation plan will be made available for public discussion and comment. The previous public and working group meeting notes, as well as other supplemental information can be found at www.rrregion.org/tmdl_york.html.

The 30-day public comment period on the information presented at the meetings will end on July 21, 2011. A fact sheet on the development of an IP for Goldmine Creek, Beaver Creek, Mountain Run, Pamunkey Creek, Terry's Run, and Plentiful Creek is available at www.rrregion.org/tmdl_york.html. Questions or information requests should be addressed to May Sligh with the Virginia Department of Conservation and Recreation. Written comments and inquiries should include the name, address, and telephone number of the person submitting the comments and should be sent to May Sligh, Department of Conservation and Recreation, email may.sligh@dcr.virginia.gov, or telephone (804) 443-1494.

COMMISSION ON LOCAL GOVERNMENT

Schedule for the Assessment of State and Federal Mandates on Local Governments

Pursuant to the provisions of §§ 2.2-613 and 15.2-2903(6) of the Code of Virginia, the following schedule, established by the Commission on Local Government and approved by the Secretary of Commerce and Trade and Governor McDonnell, represents the timetable that the listed executive agencies will follow in conducting their assessments of certain state and federal mandates that they administer that are imposed on local governments.  Such mandates are either new (in effect for at least 24 months) or newly identified.  In conducting these assessments, agencies will follow the process established by Executive Order 58 which became effective October 11, 2007. These mandates are abstracted in the Catalog of State and Federal Mandates on Local Governments published by the Commission on Local Government.

For further information contact Zachary Robbins, Senior Policy Analyst, Commission on Local Government, email zachary.robbins@dhcd.virginia.gov or telephone (804) 371-8010 or visit the Commission's website at www.dhcd.virginia.gov.

STATE AND FEDERAL MANDATES ON LOCAL GOVERNMENTS

Approved Schedule of Assessment Periods
July 2011 through June 2012 for Executive Agency Assessment of Cataloged Mandates

AGENCY
Mandate Short Title

CATALOG NUMBER

ASSESSMENT PERIOD

AGRICULTURE AND CONSUMER SERVICES, DEPARTMENT OF

Inspection of Commercial Dog Breeding Locations

SAF.VDACS010

8/1/11 to 10/31/11

CONSERVATION AND RECREATION, DEPARTMENT OF

Dam Safety, Flood Prevention and Protection Assistance Fund

SNR.DCR003

10/1/11 to 12/31/11

Dam Safety and Flood Prevention Planning

SNR.DCR020

10/1/11 to 12/31/11

CRIMINAL JUSTICE SERVICE SERVICES, DEPT  OF

Domestic and Sexual Assault Policies

SPS.DCJS030

8/1/11 to 10/31/11

EDUCATION, DEPARTMENT OF

Felony/Child Abuse/Molestation/
Crime of Moral Turpitude Offense Certification Required

SOE.DOE003

7/1/11 to 8/31/11

School Board Background Checks for Employees and Contractors

SOE.DOE006

8/1/11 to 9/30/11

Required Local Funding Effort for School Division

SOE.DOE095

9/1/11 to 10/31/11

Planning Time for Elementary School Teachers

SOE.DOE127

10/1/11 to 11/30/11

ENVIRONMENTAL QUALITY, DEPARTMENT OF

Sewage Collection and Treatment Regulation

SNR.DEQ035

8/1/11  to 10/31/11

EMERGENCY MANAGEMENT, DEPARTMENT OF

Appoint Local Emergency Management Director

SPS.VDEM001

4/1/12  to 6/30/12

GAME AND INLAND FISHERIES, DEPARTMENT OF

Restrictions on Feeding Waterfowl

SNR.DGIF007

9/1/11 to 11/30/11

HOUSING AND COMMUNITY DEVELOPMENT, DEPARTMENT OF

Disclosure of Proffered Cash Payments and Expenditures

SCT.DHCD018

7/1/11 to 9/30/11

LIBRARY OF VIRGINIA, THE

Protection from Identity Theft

SOE.LVA007

3/1/12 to 5/31/12

SOCIAL SERVICES, DEPARTMENT OF

Foster Care Services

SHHR.DSS032

9/1/11 to 10/31/11

TRANSPORTATION, DEPARTMENT OF

Subdivision Street Development Control

STO.VDOT009

4/1/12 to 6/30/12

Traffic Signs, Signals, and Markings

STO.VDOT013

4/1/12 to 6/30/12

STATE LOTTERY DEPARTMENT

Director's Orders

The following Director's Orders of the State Lottery Department were filed with the Virginia Registrar of Regulations on May 25, 2011. The orders may be viewed at the State Lottery Department, 900 East Main Street, Richmond, VA, or at the office of the Registrar of Regulations, 910 Capitol Street, 2nd Floor, Richmond, VA.

Director's Order Number Forty-Three (11)

"Retailer Recruitment Incentive Plan" Virginia Lottery Retailer Incentive Program Rules (effective May 24, 2011)

Director's Order Number Forty-Four (11)

"You Activate/We Pay" Virginia Lottery Retailer Incentive Program Rules (effective May 24, 2011)

DEPARTMENT OF MEDICAL ASSISTANCE

2011 Managed Care Quality Strategy Final Draft for Public Comment

In accordance with the requirements of the federal Medicaid authority, the Centers for Medicare and Medicaid Services (CMS), the Department of Medical Assistance Services gives notice that the agency is publishing for public comment a final draft of the DMAS 2011 Managed Care Quality Strategy. The Code of Federal Regulations, specifically 42 CFR § 438.202, requires states that contract with Managed Care Organizations (MCOs) to have a written strategy for assessing and improving the quality of managed care services offered by all MCOs. It also requires those states to obtain the input of recipients and other stakeholders in the development of the strategy and to make the strategy available for public comment before adopting it in final. The purpose of this notice is to fulfill that requirement. This strategy was originally posted on February 23, 2011, until March 25, 2011. Two comment letters were received and added to the appendices of the strategy. The strategy was then reviewed by CMS. CMS provided suggestions for additional content, which DMAS agreed and added. The additions can be found highlighted on pages 5, 8, 9, 25, 26, 27 of the strategy.

CMS reviewed the additional content and approved the strategy. The CMS approval letter is included in the appendix as the back page.

A copy of the DMAS Final Draft 2011 Managed Care Quality Strategy may be viewed on the DMAS website at the following address: http://dmasva.dmas.virginia.gov/Content_atchs/mc/mc-qs.pdf.

This notice is being made available for comment by interested parties through June 21, 2011. Following this public notice period, DMAS shall take into consideration the public comments received by the agency. Anyone wishing to provide public comment on the Final DMAS Draft 2011 Managed Care Quality Strategy may submit their comments to: Carol L. Stanley, MS, CPHQ, Quality Improvement Analyst, as indicated in the contact information.

Contact Information: Carol L. Stanley, MS, CPHQ, Quality Improvement Analyst, Division of Health Care Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-7980, FAX (804) 786-1680, or email carol.stanley@dmas.virginia.gov.

STATE WATER CONTROL BOARD

Proposed Consent Order for Hercules Incorporated

An enforcement action has been proposed for Hercules Incorporated for alleged violations of the Virginia Pollutant Discharge Elimination System Permit at the facility operated by Hercules at 27123 Shady Brook Trail, Southampton County. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462, from June 20, 2011, to July 20, 2011.

Proposed Consent Order for the City of Lynchburg

An enforcement action has been proposed for the City of Lynchburg for violations of the State Water Control Law and Regulation in the City of Lynchburg. The State Water Control Board proposes to issue a Consent Order to the City of Lynchburg to resolve violations regarding sanitary sewer overflows at the City's Regional Wastewater Treatment Plant and Sanitary Sewer Collection System. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. G. Marvin Booth, III will accept comments by email at marvin.booth@deq.virginia.gov, FAX at (434) 582-5125 or postal mail at Department of Environmental Quality, 7705 Timberlake Road, Lynchburg, VA 24502, from June 20, 2011, to July 21, 2011.

Proposed Consent Order for S.E.A. Solutions Corporation

An enforcement action has been proposed for S.E.A. Solutions Corporation for alleged violations of Virginia Pollutant Discharge Elimination System General Permit VAR05 and for the unauthorized discharge of oil to state waters at its ship dismantling facility at 5500 Bainbridge Boulevard, Chesapeake, Virginia. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462, from June 20, 2011, to July 20, 2011.

Proposed Consent Order for Tyson Farms, Inc.

An enforcement action has been proposed for Tyson Farms, Inc., for alleged violations of the Virginia Pollutant Discharge Elimination System Permit at the Tyson Facility at 11224 Lankford Highway, Temperanceville, Accomack County. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462, from June 18, 2011, to July 20, 2011.

VIRGINIA CODE COMMISSION

Recodifying Titles of the Code of Virginia -- Public Input Requested

The Virginia Code Commission is responsible for publishing and maintaining the Code of Virginia, which contains the general and permanent statutes of the Commonwealth. In addition, it is the commission's duty to revise or recodify individual titles of the Code of Virginia as determined by the commission.

The Virginia Code Commission seeks input from law practitioners and other interested parties concerning which titles of the Code of Virginia the commission should consider placing on its future work plan for the purpose of recodification or revision. The main purposes of a title recodification are to improve the organization of the title and modernize the language. To the extent practical, the commission avoids making substantive changes to the statutory text. In the event a substantive change is made, the change is highlighted and explained in the final report.

The commission currently is completing its work on Title 64.1, Wills and Decedents' Estates, assisted by an advisory panel of practitioners experienced in this area. For a list of other recent title revisions and to view the final reports, go to the commission's website: http://codecommission.dls.virginia.gov/titlerevisions.htm.

Send recommendations to Jane Chaffin at jchaffin@dls.virginia.gov or 910 Capitol Street, General Assembly Building, 2nd Floor, Richmond, VA 23219, by July 1, 2011.

Notice to State Agencies

Contact Information: Mailing Address: Virginia Code Commission, 910 Capitol Street, General Assembly Building, 2nd Floor, Richmond, VA 23219; Telephone: Voice (804) 786-3591; FAX (804) 692-0625; Email: varegs@dls.virginia.gov.

Meeting Notices: Section 2.2-3707 C of the Code of Virginia requires state agencies to post meeting notices on their websites and on the Commonwealth Calendar at http://www.virginia.gov/cmsportal3/cgi-bin/calendar.cgi.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed: A table listing regulation sections that have been amended, added, or repealed in the Virginia Register of Regulations since the regulations were originally published or last supplemented in the print version of the Virginia Administrative Code is available at http://register.dls.virginia.gov/cumultab.htm.

Filing Material for Publication in the Virginia Register of Regulations: Agencies are required to use the Regulation Information System (RIS) when filing regulations for publication in the Virginia Register of Regulations. The Office of the Virginia Register of Regulations implemented a web-based application called RIS for filing regulations and related items for publication in the Virginia Register. The Registrar's office has worked closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.

ERRATA

STATE CORPORATION COMMISSION

Title of Regulation: 14VAC5-215. Rules Governing Independent External Review of Final Adverse Utilization Review Decisions (amending 14VAC5-215-10).

14VAC5-216. Rules Governing Internal Appeal and External Review (adding 14VAC5-216-10 through 14VAC5-216-130).

Publication: 27:19 VA.R. 2211 May 23, 2011.

Correction to Proposed Regulation:

Page 2211, the Order to Take Notice was inadvertently omitted from publication and should appear following the summary as follows:

AT RICHMOND, MAY 2, 2011

COMMONWEALTH OF VIRGINIA

At the relation of the

STATE CORPORATION COMMISSION

CASE NO. INS-2011-00070

Ex Parte: In the matter of
Amending Rules Governing Independent
External Review of Final Adverse Utilization
Review Decisions and Adopting New Rules
Governing Internal Appeal and
External Review

ORDER TO TAKE NOTICE

Section 12.1-13 of the Code of Virginia provides that the State Corporation Commission ("Commission") shall have the power to promulgate rules and regulations in the enforcement and administration of all laws within its jurisdiction, and § 38.2-223 of the Code of Virginia provides that the Commission may issue any rules and regulations necessary or appropriate for the administration and enforcement of Title 38.2 of the Code of Virginia.

The rules and regulations issued by the Commission pursuant to § 38.2-223 of the Code of Virginia are set forth in Title 14 of the Virginia Administrative Code.

The Bureau of Insurance ("Bureau") has submitted to the Commission a proposal to amend section 10 in Chapter 215 in Title 14 of the Virginia Administrative Code entitled "Rules Governing Independent External Review of Final Adverse Utilization Review Decisions" and adopt a new chapter, Chapter 216 of Title 14 of the Virginia Administrative Code entitled "Rules Governing Internal Appeal and External Review," as set forth at 14 VAC 5-216-10 through 14 VAC 5-216-130 and accompanying forms.

The amendment to section 10 in Chapter 215 is necessary to limit the chapter's application to final adverse decisions made before or on June 30, 2011.

The proposed new rules in Chapter 216 are necessary because the federal Patient Protection and Affordable Care Act requires that the state's external review program be in conformity with the Uniform Health Carrier External Review Model Act prepared by the National Association of Insurance Commissioners. The 2011 General Assembly passed House Bill 1928 (Acts of the Assembly Ch. 788) to conform Virginia's internal appeal and external review processes to meet these requirements. These rules clarify and implement the provisions contained in House Bill 1928 which becomes effective on July 1, 2011.

The Commission is of the opinion that section 10 in Chapter 215 of Title 14 of the Virginia Administrative Code should be amended, and the new rules at proposed Chapter 216 of Title 14 of the Virginia Administrative Code should be considered for adoption.

Accordingly, IT IS ORDERED THAT:

(1) The proposal that section 10 in Chapter 215 of Title 14 of the Virginia Administrative Code be amended and a new chapter proposed at Chapter 216 of Title 14 of the Virginia Administrative Code set forth at 14 VAC 5-216-10 through 14 VAC 5-216-130 and accompanying forms be attached hereto and made a part hereof.

(2) All interested persons who desire to comment in support of, or in opposition to, or request a hearing to oppose amending section 10 in Chapter 215 and the adoption of the proposed new Chapter 216 shall file such comments or hearing request on or before June 1, 2011, with the Clerk of the Commission, Document Control Center, P.O. Box 2118, Richmond, Virginia 23218 and shall refer to Case No. INS-2011-00070. Interested persons desiring to submit comments electronically may do so by following the instructions at the Commission's website: http://www.scc.virginia.gov/case.

(3) If no written request for a hearing on the proposed amendment and adoption of new rules is filed on or before June 1, 2011, the Commission, upon consideration of any comments submitted in support of or in opposition to the proposal, may amend section 10 in Chapter 215 and adopt proposed Chapter 216 of Title 14 of the Virginia Administrative Code as proposed by the Bureau of Insurance.

(4) AN ATTESTED COPY hereof, together with a copy of the proposal to amend and adopt new rules, shall be sent by the Clerk of the Commission to the Bureau of Insurance in care of Deputy Commissioner Althelia P. Battle, who forthwith shall give further notice of the proposal to amend current rules and adopt new rules by mailing a copy of this Order, together with the proposal, to all companies, HMOs and health services plans licensed by the Commission to write accident and sickness insurance in the Commonwealth of Virginia, as well as all interested parties.

(5) The Commission's Division of Information Resources forthwith shall cause a copy of this Order, together with the proposal to amend current rules and adopt new rules, to be forwarded to the Virginia Registrar of Regulations for appropriate publication in the Virginia Register.

(6) The Commission's Division of Information Resources shall make available this Order and the attached proposed revisions to the Rules on the Commission's website, http://www.scc.virginia.gov/case.

(7) The Bureau of Insurance shall file with the Clerk of the Commission an affidavit of compliance with the notice requirements of paragraph (4) above.

VA.R. Doc. No. R11-2809; Filed June 9, 2011, 4:07 p.m.