38.2-2526 - Surplus to policyholders. - Virginia Statutes

§ 38.2-2526. Surplus to policyholders.

A. Surplus to policyholders in addition to the required surplus specified insubsections A and B of § 38.2-2503 may be accumulated in amounts asdetermined by the board of directors. The surplus may be used for the paymentof losses and operating expenses of the insurer.

B. Income earned on any surplus to policyholders may be used to pay losses,operating expenses, or added to surplus.

C. The provisions of this section shall become effective July 1, 1986.

D. Any mutual assessment property and casualty insurer already licensed onJuly 1, 1986, shall comply with the minimum surplus requirements of §38.2-2503 by July 1, 1991. Any mutual assessment property and casualtyinsurer that does not meet the surplus requirements of this section as ofJuly 1, 1986, and is not writing any of the classes authorized in subsectionsB and C of § 38.2-2503 on July 1, 1986, shall not write any of those classesuntil the specified surplus requirement is met.

(1986, c. 562.)