1. Transition Planning and Execution: Develop and implement a plan to transfer the Commonwealth’s insurance collateral program from the current contractor to the new contractor if there is a change in vendor. This includes contacting insurance companies in the program to gather and confirm setup information, notifying program participants about new operating procedures and contact personnel, requesting instructions regarding the method and distribution of security proceeds and interest payments, and collecting IRS W-9 forms related to interest income reporting. 2. System Management: Maintain a computerized system to support the program, including individual accounts for each participating insurance company, with online access available to the Treasury, the Bureau, and the insurance companies. Additionally, maintain informational correspondence files for each insurance company. 3. Securities Transfer: Coordinate the transfer of securities from the current contractor. The contractor will be responsible for receiving and processing the initial transfer of securities at no cost to the Commonwealth. 4. Custody of Securities: Safekeep securities for each insurance company as their custodian. 5. Deposit Verification: Accept and verify the eligibility of securities deposits as required by Section 38.2-1045 of the Code of Virginia. Maintain and share an updated list of eligible securities with insurers, providing written confirmation of the insurance companies' deposits within five days of receipt, including both par and market values. 6. Securities Substitution: Process the substitution of eligible securities in accordance with Section 38.2-1052 of the Code of Virginia. Obtain Treasury approval for substitutions when the market value of the replacement security is less than the existing security; otherwise, approval is not required. Email correspondence with Treasury is acceptable.
