38.2-1203 - What laws applicable to reciprocals; compliance with § 38.2-208. - Virginia Statutes

§ 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 toinsurers generally, and those relating to insurers writing the same classesof insurance that reciprocals are permitted to write, are applicable toreciprocals.

B. A reciprocal shall be deemed to have complied with § 38.2-208 if:

1. It issues policies containing a contingent assessment liability asprovided for in § 38.2-1212; and

2. It has and maintains reinsurance in an amount that the Commissionconsiders adequate to reasonably limit the reciprocal's aggregate losses tothe lesser of:

a. Ten percent of the surplus to policyholders of the reciprocal multipliedby the number of subscribers;

b. The surplus to policyholders of the reciprocal multiplied by three; or

c. Five million dollars.

(Code 1950, § 38-543; 1952, c. 317, § 38.1-691; 1977, c. 58; 1986, c. 562.)