STATE CORPORATION COMMISSION

Bureau of Insurance

February 1, 2021

TO: All Carriers Licensed to Market Credit Life Insurance or Credit Accident and Sickness Insurance in Virginia

RE: Credit Insurance Experience Exhibits

Virginia Code § 38.2-3730

Administrative Letter 2021-01

This Administrative Letter Withdraws and Replaces Administrative Letter 2018-01.

In accordance with § 38.2-3730 B of the Code of Virginia, adjustments to the prima facie rates applicable to credit life and credit accident and sickness insurance for the triennium commencing January 1, 2022 will be established and published later this year.

This letter serves as a reminder to all carriers licensed to write either or both of these coverages that the Credit Insurance Experience Exhibit (CIEE) for the 2020 reporting year, from which information will be obtained to properly calculate these rates, must be submitted in accordance with § 38.2-3730 A of the Code of Virginia, no later than April 1, 2021.

In order to expedite the review process, we are requesting that ALL carriers complete the attached questionnaire. This questionnaire will enable the Bureau of Insurance to distinguish carriers who have Virginia experience to report on the CIEE from those who do not have any Virginia experience to report. Carriers that have experience to report must answer all questions and submit the completed questionnaire to the Life and Health Forms and Rates Section of the Bureau. Because of the time constraints under which the rate calculation must be completed, carriers must submit complete and accurate CIEEs, as well as the questionnaire, on or before April 1, 2021. Please note that carriers with no experience to report are not required to answer questions 1-9 on the questionnaire; however, all carriers must return the questionnaire to the Bureau with its name, NAIC # and contact information completed.

We have attached to this administrative letter examples of some of the problems identified with CIEE filings in previous years. In some instances, although information was correct, an explanation was necessary to properly evaluate the information. Carriers are hereby directed to review the attachment to ensure that similar problems do not recur this year. Please note that the CIEE must be filed on a direct basis; i.e. before taking into account reinsurance ceded.

We require all carriers to electronically submit the questionnaires to the Life and Health Forms and Rates Section via the Company Filing Portal. To access the questionnaire and the portal, go to https://scc.virginia.gov/pages/Life-Health-Companies and scroll down to "Credit Insurance Experience Exhibit and Questionnaire". You will note that instructions are provided on the Bureau’s website for submitting the documents through the portal.

Please contact the Bureau with any questions or requests for clarification. Questions or requests for clarification regarding the filing of required documents should be directed to: Amanda McCauley, (804) 371-0034, amanda.mccauley@scc.virginia.gov.

Questions or requests for clarification regarding the use of the portal should be directed to: Trish Todd, (804) 371-9195, trish.todd@scc.virginia.gov.

/s/ Scott A. White
Commissioner of Insurance

The following are examples of problems identified in filings of the Credit Insurance Experience Exhibits (CIEEs) in previous reporting years. Companies are directed to review the information below to ensure that similar problems do not recur in their 2020 CIEEs. Any of the following situations legitimately applicable to a 2020 CIEE should include an appropriate explanation in the attached questionnaire.

• Prima facie premium not listed. The prima facie premium is needed to evaluate the rates. Each company should explicitly state the prima facie premium on the appropriate exhibit line, even if it is the same as earned premium.

• Prima facie premiums greater than earned premiums. While this may not be a problem, our experience is that most companies charge the maximum rate allowed. This may be indicative of a miscalculation, especially on MOB business.

• Earned premiums greater than prima facie premium. For MOB business, this may be indicative of a miscalculation. Such premiums violate statutes unless the premium rates have been approved. If the premium rates have been approved, we ask that reporting carriers provide the Bureau with the approval date(s) to facilitate our analysis.

• Changes in the reserves reported from the end of one reporting year to the beginning of the subsequent reporting year. This can cause previously charged premium and claims to disappear. It can also cause claims without corresponding premium and vice versa. Restatement of opening reserves merely results in delay and unnecessary expense for the Bureau and, in light of the purpose of these CIEEs, companies should ensure that opening reserves (at the beginning of the year) are equal to closing reserves (at the end of the previous year).

• Claim reserve errors. These cause inaccurate incurred claims and may also indicate inadequate reserves for the product line.

• Premium reserve errors. These cause inaccurate premium reserve calculations.

• Assumption reinsurance transactions. If any business is transferred by assumption reinsurance, identify in the questionnaire the companies involved and the reserve amounts impacted by the transaction.

• Company Name Changes or Mergers. If the reporting company has changed its name and/or has been involved in a merger, full details should be provided in the questionnaire to enable the Bureau to appropriately combine experience for the past three years.

• Calculation of Earned Premium at Prima Facie Rates. Prima facie premium must be calculated using the prima facie rates approved and published by the Bureau effective January 1, 2019. Approval by the Bureau to charge alternate rates or use alternative rate structures does not constitute a change to the published prima facie rates, and these alternative rates or rates structures should not be used in calculating earned premium at prima facie rates.

Questionnaire

Company Name: ______________________________

NAIC #: ____________

For calendar year 2020, did the company have any earned premiums or incurred claims?

______ Yes ______ No

If "yes," please complete the entire questionnaire. If "no," please proceed to the last page and complete the contact information only. Responses to questions 1-9 are not required.

1. Are both the earned premiums and earned premiums at prima facie rates stated? _____Yes _____No

What adjustments, if any, were made to the earned premiums at prima facie rates? Please explain in detail how the adjustments were made. If none were made, please explain why not.

2. Are incurred claims stated without stating earned premiums and earned premiums at prima facie rates? ____Yes _____No If "yes," please explain.

3. Are the beginning of year (BOY) reserves equal to the prior years’ stated end of year (EOY) reserves? _____Yes _____No If “no,” please provide a detailed explanation. (This applies to the premium, IBNR and claim reserves.)

4. Are the BOY reserves positive but no data was reported last year? _____Yes ____No If “yes,” please explain.

5. Has the reserve methodology changed since the prior year’s CIEE was filed in Virginia? ____Yes _____No If “yes,” please explain.

6. Was any business transferred by assumption reinsurance? _____Yes _____No If “yes,” identify the companies involved and explain how any values in the CIEE have been impacted by the transaction.

7. Has the Company changed its name or has the Company been involved in a merger since the prior year’s CIEE was filed in Virginia? _____Yes _____No If “yes,” please provide complete details in order that the Bureau of Insurance can appropriately combine experience for the past three years.

8. Have all totals been verified as correct? _____Yes _____No If "no," please explain.

9. Does the CIEE contain any negative numbers? _____Yes _____No If “yes,” please provide a detailed explanation.

Completed by: ________________________________________

Title: _______________________________________________

Date: _______________________________________________

Phone #: ____________________________________________

Email Address: _______________________________________

(Revised 1/7/21)

Contact Information: Amanda McCauley, State Corporation, Commission, 1300 East Main Street, Richmond, VA 23219, telephone (804) 371-0034, or email amanda.mccauley@scc.virginia.gov.

DEPARTMENT OF GENERAL SERVICES

DIVISION OF CONSOLIDATED LABORATORY SERVICES, DEPARTMENT OF GENERAL SERVICES

Request for Comments on Revision to Fees for Drinking Water Laboratory Certification (1VAC30-41-270),

Effective May 1, 2021, to April 30, 2022

Purpose of notice and background information: The Division of Consolidated Laboratory Services (DCLS) is seeking comment on the revision to fees charged for certifying drinking water laboratories under 1VAC30-41-270.

1VAC30-41-270 I 2 requires DCLS to increase or decrease annually the fees charged for certifying drinking water laboratories using the Consumer Price Index-Urban percentage change, average to average for the previous calendar year published by the U.S. Bureau of Labor Statistics in January. The percentage change, average to average for 2020 is an additional 1.2%. See the table labeled "Historical Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, all items, index averages" in the following document (page 4): bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202012.pdf.

The revised fees are exempt from the requirements of the Administrative Process Act. The Budget of the Commonwealth of Virginia (Chapter 1289, effective July 1, 2020) in Part I, Item 76, at C 3.a requires DCLS to provide notice and an opportunity to submit written comments on the revised fees.

The notice of fees for May 1, 2021, through April 30, 2022 will be published on the DCLS drinking water laboratory certification webpage after consideration of submitted comments.

Public comment period: February 15, 2021, through March 17, 2021.

How to comment: DCLS accepts written comments by email, fax, and postal mail. In order to be considered, comments must include the full name, address, and telephone number of the person commenting and be received by DCLS by the last day of the comment period. All materials received are part of the public record. Email comments should be sent to rhonda.bishton@dgs.virginia.gov. The number for faxed comments is (804) 371-8305. Written comments should be sent to Rhonda Bishton, Regulatory Coordinator, Department of General Services, Attn: DCLS DW Fee Comments, 1100 Bank Street, Richmond, VA, 23219.

NOTICE OF FEES FOR MAY 1, 2021 – APRIL 30, 2022

DCLS requests comments on the revised fees in the notice below.

Contact Information: Rhonda Bishton, Director's Executive Administrative Assistant, Department of General Services, 1100 Bank Street, Suite 420, Richmond, VA 23219, telephone (804) 786-3311, FAX (804) 371-8305.

DEPARTMENT OF ENVIRONMENTAL QUALITY

Energix Aditya LLC Notice of Intent for Small Renewable Energy Project (Solar) - Louisa County

Energix Aditya LLC, has provided the Department of Environmental Quality a notice of intent to submit the necessary document for a permit by rule for a small renewable energy project (solar) in Louisa County. Energix Aditya LLC will be located near the Town of Louisa. Latitude and longitude coordinates are as follows: 38.017539 -77.957089. The estimated fenced-in project area will be 95 acres and the maximum generating capacity of the project in alternating current will be 11 megawatts. The solar facility will consist of approximately 31,000 photovoltaic modules.

Contact Information: Mary Major, Department of Environmental Quality, 1111 East Main Street, Suite 1400, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4423, FAX (804) 698-4178.

Availability of the 2021 Annual Monitoring Plan

Purpose of notice: The Virginia Department of Environmental Quality (DEQ) is announcing the availability of the 2021 Water Quality Monitoring Plan (MonPlan). The 2021 MonPlan is now available on the agency's website at https://www.deq.virginia.gov/water/water-quality/water-quality-monitoring/current-year-water-quality-monitoring-plan.

A map view of the 2021 MonPlan is available through DEQ's VEGIS viewer a https://geohub-vadeq.hub.arcgis.com/datasets/fcbf74731d4d4c79a881f8dd23587e52_131.

Background: Every year, DEQ staff from the agency's six regional offices collect water samples for testing from more than 1,000 locations across the Commonwealth. The agency's various monitoring activities for each calendar year are outlined in the annual statewide MonPlan.

2021 MonPlan: The 2021 MonPlan summarizes DEQ's water quality monitoring activities to be conducted from January 1 through December 31, and is developed for the purpose of implementing the goals and objectives of DEQ's Water Quality Monitoring Strategy. This water quality information is presented in compliance with the Virginia Water Quality Monitoring, Information and Restoration Act (§ 62.1-44.19:5 et seq. of the Code of Virginia) to help ensure public awareness of water quality issues and conditions. The MonPlan contains detailed information on DEQ's monitoring activities, including the station locations, specific conditions, frequency of monitoring, and costs.

Contacts for more information: Requests for more information on the 2021 MonPlan can be directed to Roger Stewart at (804) 698-4449 or roger.stewart@deq.virginia.gov. Additional information is also available on DEQ's Water Quality Monitoring website at https://www.deq.virginia.gov/water/water-quality/water-quality-monitoring.

Citizen Nominations for the 2022 MonPlan: Citizens can nominate portions of lakes, streams, and rivers of Virginia for water quality monitoring by DEQ. Nominations received on or before April 30, 2021, will be considered for inclusion in DEQ's 2022 MonPlan. More information on the citizen nomination process is available on DEQ's Citizen Monitoring website at https://www.deq.virginia.gov/water/water-quality/water-quality-monitoring/citizen-monitoring. Contact Stuart Torbeck at (804) 698-4461 or charles.torbeck@deq.virginia.gov for more information.

Contact Information: Roger Stewart, Department of Environmental Quality, Central Office, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4449, FAX (804) 698-4178, or email roger.stewart@deq.virginia.gov.

DEPARTMENT OF MEDICAL ASSISTANCE SERVICES

All Manuals Chapter III Draft Available for Review

The draft Chapter III of all provider manuals is now available on the Department of Medical Assistance Services website at https://www.dmas.virginia.gov/#/manualdraft for public comment until February 24, 2021.

Contact Information: Emily McClellan, Regulatory Manager, Division of Policy and Research, Department of Medical Assistance Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-4300, FAX (804) 786-1680.

Hospital Provider Manual Chapter IV Draft Available for Review

The draft Hospital Manual Chapter IV is now available on the Department of Medical Assistance Services website at https://www.dmas.virginia.gov/#/manualdraft for public comment until February 24, 2021.

Contact Information: Emily McClellan, Regulatory Manager, Division of Policy and Research, Department of Medical Assistance Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-4300, FAX (804) 786-1680.

Physician/Practitioner Provider Manual Chapter IV Draft Available for Review

The draft Physician/Practitioner Manual Chapter IV is now available on the Department of Medical Assistance Services website at https://www.dmas.virginia.gov/#/manualdraft for public comment until February 24, 2021.

Contact Information: Emily McClellan, Regulatory Manager, Division of Policy and Research, Department of Medical Assistance Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-4300, FAX (804) 786-1680.

STATE WATER CONTROL BOARD

Proposed Enforcement Action for Good Luck Good Luck LLC

An enforcement action has been proposed for Good Luck Good Luck LLC for violations at the underground storage tank facility known as Mechanicsville Station, 2000 Mechanicsville Turnpike, Richmond, Virginia. The State Water Control Board proposes to issue a consent order to address noncompliance with State Water Control Law and regulations at the facility. The consent order requires corrective action and payment of a civil charge. A description of the proposed action is available at the Department of Environmental Quality office listed or online at www.deq.virginia.gov. The staff contact will accept comments by email, fax, or postal mail from February 15, 2021, to April 17, 2021.

Contact Information: Frank Lupini, Department of Environmental Quality, Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA 23060, FAX (804) 698-4178, or email frank.lupini@deq.virginia.gov.

Public Meeting and Public Comment for a TMDL Implementation Plan for the McClure River Watershed in Dickenson County

Purpose of notice: The Department of Environmental Quality (DEQ) is seeking feedback from watershed stakeholders on the proposed draft plan to restore water quality in the McClure River watershed. A draft total maximum daily load (TMDL) Implementation Plan (IP) has been developed to explain the pollutant reductions needed to meet the targets contained in the 2018 TMDL report prepared for the watershed. A 30-day public comment period starts February 24, 2021, for interested persons to submit written comments. See directions in this notice to submit a comment. A public meeting to discuss the Water Quality Improvement Plan (also known as the Implementation Plan (IP)) for the McClure River watershed will be held on Tuesday, February 23, 2021, from 5:30 - 7 p.m. Given the existing State of Emergency related to the COVID-19 pandemic, this meeting will be held entirely virtually. The URL to register for the virtual meeting is provided at the end of this notice.

How to participate in meeting: This meeting is open to the public and all interested parties are welcome. A computer or a telephone are necessary to participate virtually. URL and telephone information to participate in the meeting. Department of Environmental Quality, Southwest Regional Office, 355A Deadmore Street, Abingdon, VA 24210.

How to comment on draft: A public comment period on the development of the TMDL IP begins February 24, 2021, and ends March 26, 2021. All comments must be written and submitted via postal mail or email by 11:59 p.m. on March 26, 2021. Comments must include the name, address, and telephone number of the person submitting the comments. Please submit comments to staff contact person.

Contact Information: Stephanie Kreps, Department of Environmental Quality, Southwest Regional Office, 355A Deadmore Street, Abingdon, VA 24210, telephone (276) 676-4803, FAX (804) 698-4178, or email stephanie.kreps@deq.virginia.gov.

Notice of Proposal to Amend 9VAC 25-71 to add Sarah Creek and Perrin River to Virginia's List of Designated No Discharge Zones

Purpose of notice: The U.S. Environmental Protection Agency (EPA) submitted to the Federal Register its final affirmative determination for No Discharge Zones (NDZ) for Sarah Creek and Perrin River, Gloucester County, Virginia pursuant to the federal Clean Water Act. EPA determined that there exists adequate facilities for the safe and sanitary removal and treatment of sewage from all vessels within these two waterbodies. The NDZ designations would prohibit the overboard discharge of treated sewage from marine sanitation devices in these waterways. The Virginia Department of Environmental Quality (DEQ) is announcing its intent to ask the State Water Control Board to amend 9VAC25-71 to add the Sarah Creek and Perrin River NDZs to Virginia's list of designated NDZs and is seeking public comment.

Background: Section 62.1-44.33 of the Code of Virginia resolves that all tidal creeks in Virginia be designated federal No Discharge Zones premised on the improvement of impaired tidal creeks and directs DEQ to pursue this designation. It is illegal to discharge raw sewage in U.S. territorial waters. In an NDZ, this ban is expanded to include sewage treated by on-board marine sanitation devices. An NDZ is determined by EPA upon application from the state, and is contingent on the state demonstrating (i) the need for enhanced protection of water quality, (ii) the availability of sufficient local alternatives to overboard discharge (i.e. pump-outs), and (iii) local stakeholder support.

The Go Green Gloucester Advisory Committee of the Gloucester County Board of Supervisors partnered with the Virginia Institute of Marine Science (VIMS) to conduct an analysis of boat usage and pump-out availability for Sarah Creek and Perrin River in Gloucester County. VIMS, with the assistance of DEQ, then prepared a draft application and held a public meeting with a 30-day public comment period for which 25 comments were received; all in support of the application. The application was then transmitted to Virginia's Secretary of Natural Resources for submittal to EPA requesting an affirmative determination. EPA published its tentative affirmative determination in the Federal Register on March 11, 2020, followed by a 30-day public comment period. EPA did not receive any comments and published its final affirmative determination in the Federal Register on September 23, 2020. DEQ intends to ask the State Water Control Board to amend 9VAC25-71 to add the Sarah Creek and Perrin River NDZs to Virginia's list of designated NDZs. The NDZ application is located at https://www.deq.virginia.gov/water/water-quality/implementation/no-discharge-zone-program/ and EPA's final affirmative determination is located at https://www.federalregister.gov/documents/2020/09/23/2020-20956/clean-water-act-virginia-sarah-creek-and-perrin-river-vessel-sewage-no-discharge-zone-final.

How to comment: DEQ will accept written comments beginning Tuesday, February 16, 2021, by email or postal mail. Comments should include the name, address, and telephone number of the person commenting and be received by DEQ during the comment period, which will expire on Thursday, March 18, 2021.

Contact the staff contact person listed for additional information and to submit comments.

Contact Information: Anne Schlegel, TMDL Coordinator, Department of Environmental Quality, Central Office, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4046, FAX (804) 698-4178, or email anne.schlegel@deq.virginia.gov.

VIRGINIA CODE COMMISSION

Notice to State Agencies

Contact Information: Mailing Address: Virginia Code Commission, Pocahontas Building, 900 East Main Street, 8th Floor, Richmond, VA 23219; Telephone: (804) 698-1810; 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 https://commonwealthcalendar.virginia.gov.

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/documents/cumultab.pdf.

Filing Material for Publication in the Virginia Register of Regulations: Agencies use the Regulation Information System (RIS) to file regulations and related items for publication in the Virginia Register of Regulations. The Registrar's office works 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.