38.2-1049 - Alternate deposit requirements. - Virginia Statutes

§ 38.2-1049. Alternate deposit requirements.

A. The insurer, at the discretion of the Commission, may be relieved ofmaking the deposit required by § 38.2-1045 if the insurer makes depositsaccording to the following provisions:

1. Acceptable securities as defined in subsection B of this section aredeposited with the State Treasurer in the form prescribed in clause (iv) ofsubsection A of § 38.2-1045 or with the insurance commissioner, treasurer orother officer or official body of any other state first for the protection ofthe insurer's policyholders.

2. The securities are not to be in default as to principal and interest.

3. The securities have a market value of at least $500,000.

4. A certificate is furnished to the Commission and authenticated by theappropriate state official holding the deposit that the requirements of thissubsection have been met.

B. For the purpose of this section, acceptable securities are defined asbonds of the United States, or of any state, or of any city, county or townof any state, or bonds or notes secured by mortgages or deeds of trust onotherwise unencumbered real estate of a market value in each case of not lessthan double the amount loaned, or other securities approved by the Commission.

(Code 1950, §§ 38-37, 38-40, 37-175, 38-516; 1952, c. 317, § 38.1-113; 1964,c. 605; 1975, c. 556; 1986, c. 562; 1992, c. 14.)