In the Commonwealth, responsibility for regulation of the State workmen's compensation system is shared by the Virginia Industrial Commission and the State Corporation Commission. Revenues for the administrative fund of the Industrial Commission are derived from a tax levied on workmen's compensation insurers in the State. The tax is levied on the premiums collected by all workmen's compensation insurance carriers. Additionally, the tax is assessed against all entities which self-insure for workmen's compensation coverage. In the case of self-insuring entities, the tax is levied on the amount of premiums which would be paid if the organization were not self-insuring for workmen's compensation coverage. The revenues from the tax are used to pay the salaries and operating expenses of the personnel of the Industrial Commission.

The Industrial Commission administers the State Workmen's Compensation Act, including the disposition of claims and the construction of policy forms. When any claim is filed, a report regarding the claim must be filed with the Commission. Although the Commission is authorized to hold a hearing concerning any claim, the Commission's practice is to hold a hearing, and render a decision, only if: (1) there is disagreement between the injured employee and his insurer regarding the amount or duration of benefits which are to be paid, or (2) the Commission believes that certain events surrounding a claim justify a hearing.

The State Corporation Commission sets workmen's compensation insurance rates in Virginia. Requests for changes in rates come from the Virginia Compensation Rating Bureau, a trade association for workmen's compensation insurance carriers in the State. When it feels that a change in workmen's compensation rates is needed, the Rating Bureau submits a rate filing to the Corporation Commission which contains various facts and figures the Rating Bureau feels justifies an increase in rates. The Commission's staff, as well as various interested parties, then analyze the rate filing and advise the Commission of their opinions. After hearing testimony from all interested parties, and after weighing all available evidence, the Commission issues is decision.