Code of Virginia - Title 38.2 Insurance - Chapter 12 Reciprocal Insurance

38.2-1200 Scope of chapter
This chapter applies to all reciprocals and reciprocal insurance as defined in § 38.2-1201. (1952, c. 317, § 38.1-688; 1986, c. 562.) ...

38.2-1201 Definitions
A. As used in this title: "Reciprocal" means the aggregation of subscribers under a common name. "Reciprocal insurance" means insurance resulting from the mutual exchange ...

38.2-1202 Insuring power of reciprocals
A reciprocal licensed to transact the business of insurance in this Commonwealth may write the classes of insurance enumerated in Article 2 (§ 38.2-101 et ...

38.2-1203 What laws applicable to reciprocals; compliance with { 38.2-208
A. Except as otherwise provided, all the provisions of this title relating to insurers generally, and those relating to insurers writing the same classes of ...

38.2-1204 Power to enter into reciprocal insurance contracts
A. Persons of this Commonwealth may enter into reciprocal insurance contracts with each other and with persons of other states and countries. For the purposes ...

38.2-1205 Name
Every reciprocal shall have and use a business name that includes the word "reciprocal," "interinsurer," "interinsurance," "exchange," "underwriters," or "underwriting." (Code 1950, § 38-546; 1952, ...

38.2-1206 License required of reciprocals; surplus
A. No reciprocal shall engage in any insurance transaction in this Commonwealth until it has obtained a license to do so in accordance with the ...

38.2-1207 Exceptions as to reciprocals licensed and operating
A. Notwithstanding other provisions of this chapter regarding minimum required surplus, any reciprocal that was licensed to write and was writing any class of insurance ...

38.2-1208 Additional requirements, foreign and alien reciprocals
No foreign reciprocal shall be licensed to transact the business of insurance in this Commonwealth unless it has filed with the Commission a certificate of ...

38.2-1209 Residence and office of attorney of foreign and alien reciprocals
Nothing in this title regarding the admission and licensing of foreign and alien insurers requires that the attorney of a foreign or alien reciprocal be ...

38.2-1210 Contracts executed by attorney
Reciprocal insurance contracts shall be executed by the attorney of the reciprocal. (Code 1950, § 38-545; 1952, c. 317, § 38.1-699; 1986, c. 562.) ...

38.2-1211 License required of agent
No person shall act in this Commonwealth as an agent of a reciprocal in the selling, solicitation or negotiation of applications for insurance, subscriber's agreements ...

38.2-1212 Subscribers' liability
A. Each subscriber insured under an assessable policy shall have a contingent assessment liability for payment of actual losses and expenses incurred while his policy ...

38.2-1213 Nonassessable policies
A. The Commission may issue a certificate authorizing the reciprocal to reduce or extinguish the contingent assessment liability of subscribers under its policies then in ...

38.2-1214 Savings returned to subscribers
A reciprocal may return to its subscribers any savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of ...

38.2-1215 Reserves
Each reciprocal shall maintain the same unearned premium and loss or claim reserves required for stock and mutual companies writing the same classes of insurance. ...

38.2-1216 Clerk of Commission to be appointed agent for service of process; procedure thereafter
A. Each attorney of a domestic reciprocal who files the declaration required by § 38.2-1219, and each attorney of a foreign or alien reciprocal who ...

38.2-1217 Reciprocal may be sued as such; where action or suit may be brought; upon whom service of process h...
A. Any reciprocal doing business in this Commonwealth may sue or be sued in the name or designation under which its insurance contracts are effected. ...

38.2-1218 Effect of judgment against reciprocal
Any judgment against a reciprocal based upon legal process duly served as provided in this chapter shall be binding upon the reciprocal and upon each ...

38.2-1219 Organization of reciprocals; what declaration to contain
A. Twenty-five or more persons domiciled in this Commonwealth and designated as subscribers may organize a domestic reciprocal and apply to the Commission for a ...

38.2-1220 Attorney to file bond
A. Concurrent with the filing of the declaration provided for in § 38.2-1219, the attorney of a domestic reciprocal shall certify to the Commission, and ...

38.2-1221 Deposit instead of bond
Instead of filing the bond required by § 38.2-1220, the attorney may maintain on deposit with the State Treasurer an equal amount in cash or ...

38.2-1222 Subscribers' advisory committee
The advisory committee exercising the subscribers' rights in a domestic reciprocal shall be selected under rules adopted by the subscribers. At least three-fourths of the ...

38.2-1223 Subscriber's agreement and power of attorney
A. Every subscriber of a domestic assessable reciprocal shall execute a subscriber's agreement and power of attorney setting forth the rights, privileges and obligations of ...

38.2-1224 Modification of power of attorney and subscriber's agreement
Modification of the terms of the power of attorney and subscriber's agreement of a domestic reciprocal shall be made jointly by the attorney and the ...

38.2-1225 Contributions
The attorney or other interested persons may advance to a domestic reciprocal any funds required in its operations. No repayment of the principal, or any ...

38.2-1226 Assessments
A. Assessments may be levied upon the subscribers of a domestic reciprocal by the attorney in accordance with § 38.2-1212. The assessments shall be approved ...

38.2-1227 Time limit for assessment
Every subscriber of a domestic reciprocal having contingent assessment liability shall be liable for and shall pay his share of any assessment computed in accordance ...

38.2-1228 Subscribers' share in assets
Upon the liquidation of a domestic reciprocal, the assets remaining after discharge of its (i) indebtedness and policy obligations, (ii) the return of any contributions ...

38.2-1229 Impaired reciprocals
A. If (i) the assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account ...

38.2-1230 Material transactions
A. Prior written approval of the Commission shall be required for a material transaction between a domestic reciprocal and any of its related parties or ...

38.2-1231 Attorney's financial statement
A. The subscribers' advisory committee of a domestic reciprocal shall annually obtain from its attorney an audited financial report of the attorney's financial position and ...