{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1045.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1045.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1045.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1045.html"}],"law_id":57089,"edition_id":1,"section_id":57089,"structure_id":13190,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","history":"Code 1950, \u00a7 38-39; 1952, c. 317, \u00a7 38.1-108; 1956, c. 234; 1960, c. 558; 1964, c. 605; 1973, c. 178; 1975, c. 556; 1986, c. 562; 1991, c. 261; 1992, c. 14.","full_text":"A\n\nExcept as otherwise provided in this title, before the Commission issues a license to transact the business of insurance in this Commonwealth to any insurer, that insurer shall deposit with the State Treasurer securities that (i) are legal investments under the laws of this Commonwealth for public sinking funds or for other public funds, (ii) are not in default as to principal or interest, (iii) have a current market value of not less than $50,000 nor more than $500,000, and (iv) are issued pursuant to a system of book-entry evidencing ownership interests of the securities with transfers of ownership interests effected on the records of a depository and its participants pursuant to rules and procedures established by the depository.B\n\nThe Commission may require a reasonable amount of additional deposits in securities that meet the requirements of clauses (i), (ii) and (iv) of subsection A of this section, whenever the Commission determines that the insurer’s financial condition, method of operation, or manner of doing business is such that the Commission is not satisfied that it can meet its obligations to all policyholders.C\n\nNeither the deposit referred to in this section nor the alternate deposit permitted by § 38.2-1049 shall be required of (i) any mutual assessment property and casualty insurance company, (ii) any fraternal benefit society, or (iii) any insurer transacting exclusively an ocean marine business in this Commonwealth.D\n\nAny insurer which on June 30, 1991, instead of the deposit of securities required by subsection A, has entered into a bond with surety, approved by the Commission, with any conditions the Commission requires, shall have until the next renewal, anniversary, or expiration date of such bond, or until June 30, 1992, whichever comes first, to comply with the deposit provisions of subsection A. The surety shall be licensed in this Commonwealth to transact the business of suretyship and shall not be directly or indirectly under the same ownership or management as the principal on the bond.E\n\nEvery insurer subject to the provisions of this section having physical securities deposited with the State Treasurer on or before June 30, 1992, shall comply with the provisions of clause (iv) in subsection A not later than January 1, 1993.","order_by":null,"text":{"0":{"id":209075,"text":"Except as otherwise provided in this title, before the Commission issues a license to transact the business of insurance in this Commonwealth to any insurer, that insurer shall deposit with the State Treasurer securities that (i) are legal investments under the laws of this Commonwealth for public sinking funds or for other public funds, (ii) are not in default as to principal or interest, (iii) have a current market value of not less than $50,000 nor more than $500,000, and (iv) are issued pursuant to a system of book-entry evidencing ownership interests of the securities with transfers of ownership interests effected on the records of a depository and its participants pursuant to rules and procedures established by the depository.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":209076,"text":"The Commission may require a reasonable amount of additional deposits in securities that meet the requirements of clauses (i), (ii) and (iv) of subsection A of this section, whenever the Commission determines that the insurer’s financial condition, method of operation, or manner of doing business is such that the Commission is not satisfied that it can meet its obligations to all policyholders.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":209077,"text":"Neither the deposit referred to in this section nor the alternate deposit permitted by § 38.2-1049 shall be required of (i) any mutual assessment property and casualty insurance company, (ii) any fraternal benefit society, or (iii) any insurer transacting exclusively an ocean marine business in this Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":209078,"text":"Any insurer which on June 30, 1991, instead of the deposit of securities required by subsection A, has entered into a bond with surety, approved by the Commission, with any conditions the Commission requires, shall have until the next renewal, anniversary, or expiration date of such bond, or until June 30, 1992, whichever comes first, to comply with the deposit provisions of subsection A. The surety shall be licensed in this Commonwealth to transact the business of suretyship and shall not be directly or indirectly under the same ownership or management as the principal on the bond.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":209079,"text":"Every insurer subject to the provisions of this section having physical securities deposited with the State Treasurer on or before June 30, 1992, shall comply with the provisions of clause (iv) in subsection A not later than January 1, 1993.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":13190,"edition_id":1,"name":"Deposits","identifier":"7","label":"article","depth":3,"order_by":1,"parent_id":12858,"metadata":{},"date_created":"2026-06-26 03:44:25","date_modified":"2026-06-26 03:44:25","permalink":{"id":211113,"object_type":"structure","relational_id":13190,"identifier":"7","token":"38.2\/10\/7","url":"\/38.2\/10\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12858,"edition_id":1,"name":"Organization, Admission and Licensing of Insurers","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":210851,"object_type":"structure","relational_id":12858,"identifier":"10","token":"38.2\/10","url":"\/38.2\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57089,"structure_id":13190,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","url":"\/38.2-1045\/","token":"38.2\/10\/7\/38.2-1045","metadata":false},{"id":74487,"structure_id":13190,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","url":"\/38.2-1046\/","token":"38.2\/10\/7\/38.2-1046","metadata":false},{"id":84776,"structure_id":13190,"section_number":"38.2-1047","catch_line":"How deposits applied to payment of claims; deficit to be made good","url":"\/38.2-1047\/","token":"38.2\/10\/7\/38.2-1047","metadata":false},{"id":70085,"structure_id":13190,"section_number":"38.2-1048","catch_line":"Return of deposits","url":"\/38.2-1048\/","token":"38.2\/10\/7\/38.2-1048","metadata":false},{"id":76125,"structure_id":13190,"section_number":"38.2-1049","catch_line":"Alternate deposit requirements","url":"\/38.2-1049\/","token":"38.2\/10\/7\/38.2-1049","metadata":false},{"id":68732,"structure_id":13190,"section_number":"38.2-1050","catch_line":"Voluntary deposit in excess of amount required","url":"\/38.2-1050\/","token":"38.2\/10\/7\/38.2-1050","metadata":false},{"id":71747,"structure_id":13190,"section_number":"38.2-1051","catch_line":"Repealed","url":"\/38.2-1051\/","token":"38.2\/10\/7\/38.2-1051","metadata":false},{"id":54504,"structure_id":13190,"section_number":"38.2-1052","catch_line":"Exchange of securities","url":"\/38.2-1052\/","token":"38.2\/10\/7\/38.2-1052","metadata":false},{"id":77959,"structure_id":13190,"section_number":"38.2-1053","catch_line":"Interest on deposits; to whom paid","url":"\/38.2-1053\/","token":"38.2\/10\/7\/38.2-1053","metadata":false},{"id":80518,"structure_id":13190,"section_number":"38.2-1054","catch_line":"Duty of State Treasurer when securities deposited are paid","url":"\/38.2-1054\/","token":"38.2\/10\/7\/38.2-1054","metadata":false},{"id":56201,"structure_id":13190,"section_number":"38.2-1055","catch_line":"Annual report of State Treasurer to Commission","url":"\/38.2-1055\/","token":"38.2\/10\/7\/38.2-1055","metadata":false},{"id":68518,"structure_id":13190,"section_number":"38.2-1056","catch_line":"Treasurer to receipt for deposits; responsibility of Commonwealth; taxation of deposited bonds","url":"\/38.2-1056\/","token":"38.2\/10\/7\/38.2-1056","metadata":false},{"id":54205,"structure_id":13190,"section_number":"38.2-1057","catch_line":"Assessment for expense of holding deposits; Insurance Collateral Assessment Fund","url":"\/38.2-1057\/","token":"38.2\/10\/7\/38.2-1057","metadata":false},{"id":74173,"structure_id":13190,"section_number":"38.2-1058","catch_line":"Felony for State Treasurer to dispose of securities illegally","url":"\/38.2-1058\/","token":"38.2\/10\/7\/38.2-1058","metadata":false}],"next_section":{"id":74487,"structure_id":13190,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","url":"\/38.2-1046\/","token":"38.2\/10\/7\/38.2-1046","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1045\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 9 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1956, chapter 234; in 1960, chapter 558; in 1964, chapter 605; in 1973, chapter 178; in 1975, chapter 556; in 1986, chapter 562; in 1991, chapter 261; in 1992, chapter 14.<\/p>","references":[{"id":74487,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","order_by":null,"url":"\/38.2-1046\/"},{"id":70085,"section_number":"38.2-1048","catch_line":"Return of deposits","order_by":null,"url":"\/38.2-1048\/"},{"id":76125,"section_number":"38.2-1049","catch_line":"Alternate deposit requirements","order_by":null,"url":"\/38.2-1049\/"},{"id":68732,"section_number":"38.2-1050","catch_line":"Voluntary deposit in excess of amount required","order_by":null,"url":"\/38.2-1050\/"},{"id":80518,"section_number":"38.2-1054","catch_line":"Duty of State Treasurer when securities deposited are paid","order_by":null,"url":"\/38.2-1054\/"},{"id":66651,"section_number":"38.2-1105","catch_line":"Deposit of minimum capital; letter of credit instead of deposit","order_by":null,"url":"\/38.2-1105\/"},{"id":83845,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","order_by":null,"url":"\/38.2-1106\/"},{"id":86167,"section_number":"38.2-1206","catch_line":"License required of reciprocals; surplus","order_by":null,"url":"\/38.2-1206\/"},{"id":59865,"section_number":"38.2-1221","catch_line":"Deposit instead of bond","order_by":null,"url":"\/38.2-1221\/"},{"id":65404,"section_number":"38.2-1704","catch_line":"Powers and duties of Association","order_by":null,"url":"\/38.2-1704\/"},{"id":80501,"section_number":"38.2-2604","catch_line":"Qualification for license; net worth; deposit of securities with State Treasurer","order_by":null,"url":"\/38.2-2604\/"}],"refers_to":[{"id":76125,"section_number":"38.2-1049","catch_line":"Alternate deposit requirements","order_by":null,"url":"\/38.2-1049\/"}],"permalink":{"id":211115,"object_type":"law","relational_id":57089,"identifier":"38.2-1045","token":"38.2\/10\/7\/38.2-1045","url":"\/38.2-1045\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1045\/","token":"38.2\/10\/7\/38.2-1045","dublin_core":{"Title":"Deposits required of insurers generally","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1045","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise provided in this title, before the Commission<\/span> issues<\/span> a license to transact the business of insurance<\/span> in this Commonwealth to any insurer<\/span>, that insurer<\/span> shall deposit with the State<\/span> Treasurer securities that (i) are legal investments under the laws<\/span> of this Commonwealth for public sinking funds or for other public funds, (ii) are not in default<\/span> as to principal or interest, (iii) have a current market value of not less than $50,000 nor more than $500,000, and (iv) are issued pursuant to a system of book-entry evidencing ownership interests of the securities with transfers of ownership interests effected on the records of a depository and its participants pursuant to rules and procedures established by the depository. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> may require a reasonable amount of additional deposits in securities that meet the requirements of clauses (i), (ii) and (iv) of subsection A of this section, whenever the Commission<\/span> determines that the insurer<\/span>’s financial condition, method of operation, or manner of doing business is such that the Commission<\/span> is not satisfied that it can meet its obligations to all policyholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Neither the deposit referred to in this section nor the alternate deposit permitted by § 38.2-1049<\/a> shall be required of (i) any mutual assessment property and casualty insurance company<\/span>, (ii) any fraternal benefit society, or (iii) any insurer<\/span> transacting exclusively an ocean marine business in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any insurer<\/span> which on June 30, 1991, instead of the deposit of securities required by subsection A, has entered into a bond<\/span> with surety<\/span>, approved by the Commission<\/span>, with any conditions the Commission<\/span> requires, shall have until the next renewal, anniversary, or expiration date of such bond<\/span>, or until June 30, 1992, whichever comes first, to comply with the deposit provisions of subsection A. The surety<\/span> shall be licensed in this Commonwealth to transact the business of suretyship and shall not be directly or indirectly under the same ownership or management as the principal on the bond<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Every insurer<\/span> subject to the provisions of this section having physical securities deposited with the State<\/span> Treasurer on or before June 30, 1992, shall comply with the provisions of clause (iv) in subsection A not later than January 1, 1993. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEPOSITS REQUIRED OF INSURERS GENERALLY (\u00a7 38.2-1045)\n\nA. Except as otherwise provided in this title, before the Commission issues a\nlicense to transact the business of insurance in this Commonwealth to any\ninsurer, that insurer shall deposit with the State Treasurer securities that (i)\nare legal investments under the laws of this Commonwealth for public sinking\nfunds or for other public funds, (ii) are not in default as to principal or\ninterest, (iii) have a current market value of not less than $50,000 nor more\nthan $500,000, and (iv) are issued pursuant to a system of book-entry evidencing\nownership interests of the securities with transfers of ownership interests\neffected on the records of a depository and its participants pursuant to rules\nand procedures established by the depository.\n\nB. The Commission may require a reasonable amount of additional deposits in\nsecurities that meet the requirements of clauses (i), (ii) and (iv) of\nsubsection A of this section, whenever the Commission determines that the\ninsurer’s financial condition, method of operation, or manner of doing\nbusiness is such that the Commission is not satisfied that it can meet its\nobligations to all policyholders.\n\nC. Neither the deposit referred to in this section nor the alternate deposit\npermitted by § 38.2-1049 shall be required of (i) any mutual assessment\nproperty and casualty insurance company, (ii) any fraternal benefit society, or\n(iii) any insurer transacting exclusively an ocean marine business in this\nCommonwealth.\n\nD. Any insurer which on June 30, 1991, instead of the deposit of securities\nrequired by subsection A, has entered into a bond with surety, approved by the\nCommission, with any conditions the Commission requires, shall have until the\nnext renewal, anniversary, or expiration date of such bond, or until June 30,\n1992, whichever comes first, to comply with the deposit provisions of subsection\nA. The surety shall be licensed in this Commonwealth to transact the business of\nsuretyship and shall not be directly or indirectly under the same ownership or\nmanagement as the principal on the bond.\n\nE. Every insurer subject to the provisions of this section having physical\nsecurities deposited with the State Treasurer on or before June 30, 1992, shall\ncomply with the provisions of clause (iv) in subsection A not later than January\n1, 1993.\n\nHISTORY: Code 1950, \u00a7 38-39; 1952, c. 317, \u00a7 38.1-108; 1956, c. 234; 1960, c.\n558; 1964, c. 605; 1973, c. 178; 1975, c. 556; 1986, c. 562; 1991, c. 261; 1992,\nc. 14.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}