38.2-3915 - Assessment contract. - Virginia Statutes

§ 38.2-3915. Assessment contract.

Contracts issued by a mutual assessment life, accident and sickness insurershall be on forms prescribed by the insurer and shall be substantiallyuniform among members of the respective classes of insurance written by theinsurer. Each member shall pay his pro rata share of all losses or damagessustained, expenses of operations of the insurer, and the maintenance of anadequate surplus to policyowners as determined by the board of directors.Periodic assessments may be collected as advance premiums, or by pastassessments, or by both methods. The amount of assessments shall beestablished by the board of directors of the insurer. When a contract issubject to assessment, the contingent liability of each member of an insurershall be clearly stated in the contract. Contracts omitting the right ofcontingent assessment shall be deemed to be nonassessable.

(1985, c. 400, § 38.1-549.16; 1986, c. 562.)