§ 38.2-1620. 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. Such payments shall include funds borrowed under the provisions of subdivision B 7 of § 38.2-1606 in the event of a natural disaster in order to provide for the prompt payment of covered claims and expenses related thereto.
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 insurers' net direct written premiums for classes of insurance covered by the accounts specified in § 38.2-1604.
C. Except as provided in subsection D of this section, investment income earned on assets held in the safety fund shall be credited to the safety fund.
D. In the event the safety fund balance exceeds three percent of the net written premium for all classes of insurance covered by the accounts specified in § 38.2-1604, 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 § 38.2-1622.
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; 1998, c. 230.)
Sections: Previous 38.2-1610 38.2-1611 38.2-1611.1 38.2-1612 38.2-1613 38.2-1614 38.2-1615 38.2-1616 38.2-1617 38.2-1618 38.2-1619 38.2-1620 38.2-1621 38.2-1622 38.2-1623 NextLast modified: April 16, 2009