§ 38.2-1106. Minimum surplus in form of letter of credit
A. Any licensed captive insurer may, subject to the approval of the Commission, hold all or a portion of (i) the minimum surplus as set forth in Article 5 (§ 38.2-1024 et seq.) of Chapter 10 in the form of an irrevocable letter of credit, if a stock insurer, or (ii) fifty percent of minimum surplus not subject to subsection B of § 38.2-1105, if a mutual insurer. The letter of credit shall be issued by a national or state bank and approved by the Commission.
B. Any letter of credit permitted pursuant to this section shall be held by the State Treasurer for the benefit of all policyholders and creditors and shall be administered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.
(1980, c. 665, § 38.1-922; 1986, c. 562.)
Sections: Previous 38.2-1100 38.2-1101 38.2-1102 38.2-1103 38.2-1104 38.2-1105 38.2-1106 38.2-1107 38.2-1108 38.2-1109 NextLast modified: April 16, 2009