38.2-3921 - Limitation on single risk to be assumed. - Virginia Statutes

§ 38.2-3921. Limitation on single risk to be assumed.

No single risk shall be assumed by a mutual assessment life, accident andsickness insurer if the risk exceeds fifteen percent of the company's totalsurplus to policyowners. Any risk or portion of any risk that has beenreinsured in accordance with § 38.2-3922 shall be deducted in determining thelimitation of risk prescribed by this section. For the purposes of thissection the amount of surplus to policyowners shall be determined on thebasis of the last sworn statement of the insurer, or the last report ofexamination filed with the Commission, whichever is more recent at the timethe risk is assumed. Mutual assessment life, accident and sickness insurerslicensed on July 1, 1985, shall conform to this limitation by July 1, 1990.Until July 1, 1986, the single risk limit, after deducting for reinsurance,shall be twenty-five percent of surplus to policyowners. Between July 1,1986, and July 1, 1988, single risk limits, after deducting for reinsurance,shall be twenty percent of surplus to policyowners. This section shall notapply to insurance coverages defined in §§ 38.2-108 and 38.2-109 and Medicaresupplement insurance defined in § 38.2-3600.

(1985, c. 400, § 38.1-549.22; 1986, c. 562.)