38.2-1314 - Loss or claim reserves. - Virginia Statutes

§ 38.2-1314. Loss or claim reserves.

Except as provided in §§ 38.2-1311 and 38.2-4609, each insurer licensed totransact the business of insurance in this Commonwealth shall maintainreserves:

1. In an amount estimated in the aggregate as being sufficient to provide forreported and unreported unpaid losses or claims arising on or prior to thedate of any annual or other statement for which the insurer may be liable;

2. In an amount estimated to provide for loss adjustment expenses; and

3. For those classes of insurance specified by the Commission, any additionalreserves for unpaid losses, policy obligations, or deficiencies in theunearned premium reserve as required by the Commission. Each insurerauthorized to write these classes of insurance shall file with its annualstatement, schedules of its experience for such insurance in the form theCommission requires and shall calculate the reserves required by thisparagraph in the manner prescribed by the Commission.

(Code 1950, §§ 38-229 through 38-232; 1952, c. 317, § 38.1-173; 1982, c. 430;1986, c. 562; 1994, c. 503.)