38.2-1718 - Financing the safety fund, maximum amount, distribution of excess. - Virginia Statutes

§ 38.2-1718. 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.

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 insurer's premium received in this Commonwealthfor classes of insurance covered by the accounts specified in subsection A of§ 38.2-1702.

C. Investment income earned on assets held in the safety fund shall becredited to the safety fund provided the balance of the safety fund does notexceed three percent of the total of all member insurer's premium received inthis Commonwealth for classes of insurance covered by the accounts specifiedin subsection A of § 38.2-1702 unless otherwise determined by the Commission.

D. In the event the safety fund balance exceeds the amount specified insubsection C of this section, at the discretion of the Commission thedifference shall be paid to the state treasury to the credit of the LiteraryFund or shall be subject to subsection F of § 38.2-1720.

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.)