§ 38.2-2403. Limitation of liability on risks
In applying the limitation specified in § 38.2-208 to fidelity and surety risks, the net amount of exposure on any single risk shall be considered to be within the prescribed limit if the fidelity and surety insurer is protected against losses in excess of the limit by:
1. Reinsurance with a fidelity and surety insurer that enables the obligee or beneficiary to maintain an action on the contract against the insurer jointly with the reinsurer;
2. The cosuretyship of any other fidelity and surety insurer;
3. A deposit of property with it in pledge, or conveyance of property to it in trust for its protection;
4. A conveyance or mortgage of property for its protection;
5. A deposit or other disposition of a portion of any property held in trust so that no future sale, mortgage, pledge or other disposition can be made of that portion of the property except with the consent of the fidelity and surety insurer or by decree or order of a competent court whenever the obligation is entered into on behalf or on account of a person holding property in a fiduciary capacity; or
6. A guarantee by the Small Business Administrator that the surety shall not suffer loss as set forth in the Small Business Investment Act of 1958.
(Code 1950, §§ 38-343, 38-344; 1952, c. 317, § 38.1-641; 1986, c. 562; 1988, cc. 529, 548.)
Sections: Previous 38.2-2400 38.2-2401 38.2-2402 38.2-2403 38.2-2404 38.2-2405 38.2-2406 38.2-2407 38.2-2408 38.2-2409 38.2-2410 38.2-2411 38.2-2412 38.2-2412.1 38.2-2412.2 NextLast modified: April 16, 2009