38.2-2524 - Proceeding when loss or damage exceeds cash on hand. - Virginia Statutes

§ 38.2-2524. Proceeding when loss or damage exceeds cash on hand.

If at any time any loss or damage to property insured by a mutual assessmentproperty and casualty insurer exceeds the insurer's cash available to pay theloss or damage, the insurer may borrow money in an amount sufficient to paythe loss or damage. This shall be approved by the board of directors or theexecutive committee. The board of directors or the executive committee maylevy an assessment sufficient to repay the loan or to pay the loss or damage,or any portion that is in excess of the cash on hand.

(Code 1950, § 38-532; 1952, c. 317, § 38.1-681; 1986, c. 562.)