38.2-1106 - Minimum surplus in form of letter of credit. - Virginia Statutes

§ 38.2-1106. Minimum surplus in form of letter of credit.

A. Any licensed captive insurer may, subject to the approval of theCommission, hold all or a portion of (i) the minimum surplus as set forth inArticle 5 (§ 38.2-1024 et seq.) of Chapter 10 in the form of an irrevocableletter of credit, if a stock insurer, or (ii) fifty percent of minimumsurplus not subject to subsection B of § 38.2-1105, if a mutual insurer. Theletter of credit shall be issued by a national or state bank and approved bythe Commission.

B. Any letter of credit permitted pursuant to this section shall be held bythe State Treasurer for the benefit of all policyholders and creditors andshall be administered as provided in Article 7 (§ 38.2-1045 et seq.) ofChapter 10 of this title.

(1980, c. 665, § 38.1-922; 1986, c. 562.)