38.2-1226 - Assessments. - Virginia Statutes

§ 38.2-1226. Assessments.

A. Assessments may be levied upon the subscribers of a domestic reciprocal bythe attorney in accordance with § 38.2-1212. The assessments shall beapproved in advance by the subscribers' advisory committee and the Commission.

B. Each domestic reciprocal subscriber's share of a deficiency for which anassessment is made shall be computed by multiplying the premiums earned onthe subscriber's policies during the period to be covered by the assessmentby the ratio of the total deficiency to the total premiums earned during theperiod upon all policies subject to the assessment. However, no assessmentshall exceed the aggregate contingent assessment liability computed inaccordance with § 38.2-1212. For the purposes of this section, the premiumsearned on the subscriber's policies are the gross premiums charged by thereciprocal for the policies minus any charges not recurring upon the renewalor extension of the policies. No subscriber shall have an offset against anyassessment for which he is liable on account of any claim for unearnedpremium or losses payable.

(1952, c. 317, § 38.1-714; 1986, c. 562.)