Virginia § 38.2-1203 What laws applicable to reciprocals; compliance with § 38.2-208

Virginia Statutes

§ 38.2-1203 — What laws applicable to reciprocals; compliance with § 38.2-208

Virginia § 38.2-1203

Title 38.2INSURANCE

Ch. 12RECIPROCAL INSURANCE

Art. 1General Provisions

This text of Virginia § 38.2-1203 (What laws applicable to reciprocals; compliance with § 38.2-208) is published on Counsel Stack Legal Research, covering Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Va. Code Ann. § 38.2-1203 (2026).

Text

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.

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.

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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.

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.