Code of Virginia - Title 38.2 Insurance - Section 38.2-2524 Proceeding when loss or damage exceeds cash on hand

§ 38.2-2524. Proceeding when loss or damage exceeds cash on hand

If at any time any loss or damage to property insured by a mutual assessment property and casualty insurer exceeds the insurer's cash available to pay the loss or damage, the insurer may borrow money in an amount sufficient to pay the loss or damage. This shall be approved by the board of directors or the executive committee. The board of directors or the executive committee may levy an assessment sufficient to repay the loan or to pay the loss or damage, or any portion that is in excess of the cash on hand.

(Code 1950, § 38-532; 1952, c. 317, § 38.1-681; 1986, c. 562.)

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Last modified: April 3, 2009