38.2-1620 - Financing the safety fund, maximum amount, distribution of excess. - Virginia Statutes

§ 38.2-1620. Financing the safety fund, maximum amount, distribution ofexcess.

A. The safety fund, at the discretion of the Commission, shall receivepenalty payments levied against member insurers made pursuant to subsection Bof § 38.2-225 or any other payments approved by the Commission. Such paymentsshall include funds borrowed under the provisions of subdivision B 7 of §38.2-1606 in the event of a natural disaster in order to provide for theprompt payment of covered claims and expenses related thereto.

B. The Commission may approve the payment of funds to the Associationprovided the balance in the safety fund account does not exceed two percentof the total of all member insurers' net direct written premiums for classesof insurance covered by the accounts specified in § 38.2-1604.

C. Except as provided in subsection D of this section, investment incomeearned on assets held in the safety fund shall be credited to the safety fund.

D. In the event the safety fund balance exceeds three percent of the netwritten premium for all classes of insurance covered by the accountsspecified in § 38.2-1604, at the discretion of the Commission the differenceshall be paid to the state treasury to the credit of the Literary Fund orshall be subject to subsection F of § 38.2-1622.

E. In the event the fund is dissolved, remaining assets in the safety fundwill be distributed to the state treasury to the credit of the Literary Fund.

(1986, c. 562; 1998, c. 230.)