38.2-415 - Assessment to fund program to reduce losses from insurance fraud. - Virginia Statutes

§ 38.2-415. Assessment to fund program to reduce losses from insurance fraud.

A. Each licensed insurer doing business in the Commonwealth by writing anytype of insurance as defined in §§ 38.2-110 through 38.2-122.2 and 38.2-124through 38.2-132 shall pay, in addition to any other assessments provided inthis title, an assessment in an amount equal to 0.05 of one percent of thedirect gross premium income during the preceding calendar year. Theassessment shall be apportioned and assessed and paid as prescribed by §38.2-403. The Commission shall be reimbursed from the fund for all necessaryexpenses for the administration of this section.

B. The assessments made by the Commission under subsection A and paid intothe state treasury shall be deposited to a special fund designated "VirginiaState Police, Insurance Fraud," and out of such special fund and theunexpended balance thereof shall be appropriated the sums necessary foraccomplishing the powers and duties assigned to the Virginia State Policeunder Chapter 9 (§ 52-36 et seq.) of Title 52. All interest earned from thedeposit of moneys accumulated in the Fund shall be deposited in the Fund forthe same use.

C. The moneys deposited in the Fund shall not be considered general revenueof the Commonwealth but shall be used only to (i) effectuate the purposesenumerated in Chapter 9 (§ 52-36 et seq.) of Title 52 and (ii) reimburse theCommission for its necessary expenses for the administration of this section.The Fund shall be subject to audit by the Auditor of Public Accounts.

D. In the event that the Insurance Fraud Investigation Unit is dissolved byoperation of law or otherwise, any balance remaining in the Fund, afterdeducting administrative costs associated with the dissolution, shall bereturned to insurers in proportion to their financial contributions to theFund in the preceding calendar year.

(1998, c. 590; 1999, c. 483; 2000, c. 526.)