§ 38.2-4010. Accumulation of reserve for an emergency fund
A. In addition to provision for liability incurred on account of claims reported but not settled, claims incurred but not reported, and premiums, dues or assessments collected in advance, every company shall accumulate and maintain a reserve for an emergency fund, which in the preparation of financial statements shall be considered a liability of the corporation, of at least $10,000.
B. Each burial society shall, in each calendar year, add to that reserve for an emergency fund at least five percent of its net receipts from premiums, dues or assessments from policies of life insurance until the total accumulated reserve fund equals twenty percent of the total benefits provided in the outstanding certificates of life insurance. However, when the corporation has issued policies of life insurance on a legal reserve basis, the net receipts from those policies shall not be considered in the calculation of the reserve for an emergency fund, but the burial society shall be required to maintain only the reserve provided for in the certificates.
(Code 1950, §§ 38-149, 38-461; 1952, c. 317, §§ 38.1-534, 38.1-559; 1986, c. 562.)
Sections: Previous 38.2-4003 38.2-4004 38.2-4005 38.2-4006 38.2-4007 38.2-4008 38.2-4009 38.2-4010 38.2-4011 38.2-4012 38.2-4013 38.2-4014 38.2-4015 38.2-4016 38.2-4017 NextLast modified: April 3, 2009