38.2-2528 - Reinsurance. - Virginia Statutes

§ 38.2-2528. Reinsurance.

Any mutual assessment property and casualty insurer may reinsure the whole orany part of its risks with any solvent insurer licensed in this Commonwealthor licensed or approved in any other state and meeting standards of solvencyat least equal to those required in this Commonwealth if the reinsurance isceded without contingent liability on the part of the reinsured insurer. Anymutual assessment property and casualty insurer having a surplus in excess of$800,000 may accept or assume reinsurance from any licensed property andcasualty insurer. Any of those companies may accept or assume reinsurance onrisks located within or without the territory in which it is authorized totransact insurance.

Nothing in this section shall be construed to prohibit the participation of amutual assessment property and casualty insurer in a pool or other plan amongsimilar companies approved by the Commission for the purpose of spreadinglosses or providing reinsurance or catastrophe coverage for participants. Theacceptance of reinsurance by any insurer outside the territory in which it isauthorized to transact the business of insurance shall not be construed toenlarge its territory so as to affect any tax exemption to which it may beentitled.

(1952, c. 317, § 38.1-675; 1986, c. 562.)