Virginia Code 38.2-1718: Financing the safety fund, maximum amount, distribution of excess.
A. The safety fund, at the discretion of the Commission, shall receive penalty payments levied against member insurers made pursuant to subsection B of § 38.2-225 or any other payments approved by the Commission.
Terms Used In Virginia Code 38.2-1718
- Account: means any one of the two accounts created under § Virginia Code 38.2-1701
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Virginia Life, Accident and Sickness Insurance Guaranty Association created under § Virginia Code 38.2-1701
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Member insurer: means an insurer or health maintenance organization licensed to transact in the Commonwealth any class of insurance or health maintenance organization business to which this chapter applies under § Virginia Code 38.2-1701
- State: means any commonwealth, state, territory, district or insular possession of the United States. See Virginia Code 38.2-100
B. The Commission may approve the payment of funds to the Association provided the balance in the safety fund account does not exceed two percent of the total of all member insurer‘s premium received in this Commonwealth for classes of insurance covered by the accounts specified in subsection A of § 38.2-1702.
C. Investment income earned on assets held in the safety fund shall be credited to the safety fund provided the balance of the safety fund does not exceed three percent of the total of all member insurer‘s premium received in this Commonwealth for classes of insurance covered by the accounts specified in subsection A of § 38.2-1702 unless otherwise determined by the Commission.
D. In the event the safety fund balance exceeds the amount specified in subsection C of this section, at the discretion of the Commission the difference shall be paid to the state treasury to the credit of the Literary Fund or shall be subject to subsection F of § 38.2-1720.
E. In the event the fund is dissolved, remaining assets in the safety fund will be distributed to the state treasury to the credit of the Literary Fund.
1986, c. 562.