38.2-1219 - Organization of reciprocals; what declaration to contain. - Virginia Statutes

§ 38.2-1219. Organization of reciprocals; what declaration to contain.

A. Twenty-five or more persons domiciled in this Commonwealth and designatedas subscribers may organize a domestic reciprocal and apply to the Commissionfor a license to transact the business of insurance. The original subscribersand the proposed attorney shall execute and file with the Commission adeclaration setting forth:

1. The name of the attorney, and the name of the reciprocal;

2. The location of the reciprocal's principal office, which shall be the sameas that of the attorney, and shall be in this Commonwealth;

3. The classes of insurance proposed to be written;

4. The names and addresses of the original subscribers;

5. The designation and appointment of the attorney, and a copy of the powerof attorney and subscriber's agreement;

6. The names and addresses of the officers and directors of the attorney if acorporation, or of its members if not a corporation;

7. The powers of the subscribers' advisory committee, and the names and termsof office of its members;

8. A statement that each of the original subscribers has in good faithapplied for insurance of the class proposed to be written and that thereciprocal has received from each original subscriber the anticipated premiumor premium deposit for a term of not less than six months for the policy forwhich application is made;

9. A statement of the financial condition of the reciprocal including aschedule of its assets;

10. A statement that the reciprocal has the surplus to policyholders requiredby § 38.2-1206; and

11. A copy of each policy, endorsement and application form it proposes toissue or use.

B. The declaration shall be acknowledged by each original subscriber and bythe attorney in the manner required for the acknowledgment of deeds in §55-113.

(Code 1950, § 38-546; 1952, c. 317, § 38.1-709; 1986, c. 562.)