Virginia Code 38.2-1203: What laws applicable to reciprocals; compliance with § 38.2-208.
A. Except as otherwise provided, all the provisions of this title relating to insurers generally, and those relating to insurers writing the same classes of insurance that reciprocals are permitted to write, are applicable to reciprocals.
Terms Used In Virginia Code 38.2-1203
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Reciprocal: means the aggregation of subscribers under a common name. See Virginia Code 38.2-1201
- Surplus to policyholders: means the excess of total admitted assets over the liabilities of an insurer, and shall be the sum of all capital and surplus accounts, including any voluntary reserves, minus any impairment of all capital and surplus accounts. See Virginia Code 38.2-100
B. A reciprocal shall be deemed to have complied with § 38.2-208 if:
1. It issues policies containing a contingent assessment liability as provided for in § 38.2-1212; and
2. It has and maintains reinsurance in an amount that the Commission considers adequate to reasonably limit the reciprocal’s aggregate losses to the lesser of:
a. Ten percent of the surplus to policyholders of the reciprocal multiplied by the number of subscribers;
b. The surplus to policyholders of the reciprocal multiplied by three; or
c. Five million dollars.
Code 1950, § 38-543; 1952, c. 317, § 38.1-691; 1977, c. 58; 1986, c. 562.