§ 38.2-2606. Reserves required
A home protection company licensed in this Commonwealth shall maintain reserves in an amount sufficient to provide for its liability to furnish appropriate indemnity, repairs, and replacement services under its issued and outstanding contracts. The reserve account shall be calculated according to sound actuarial principles, but shall equal at a minimum fifty percent of the premiums received from all contracts in force in this Commonwealth, net of applicable reinsurance and any amounts paid on account of liabilities incurred under the contracts. To receive credit for reinsurance on home protection contracts, the reinsurance contract or policy shall be issued by a solvent insurer licensed in this Commonwealth or any other state having standards of solvency at least equal to those required in this Commonwealth.
(1981, c. 530, § 38.1-936; 1986, c. 562.)
Sections: Previous 38.2-2600 38.2-2601 38.2-2602 38.2-2603 38.2-2604 38.2-2605 38.2-2606 38.2-2607 38.2-2608 38.2-2609 38.2-2610 38.2-2611 38.2-2612 38.2-2613 38.2-2614 NextLast modified: April 3, 2009