{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1105.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1105.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1105.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1105.html"}],"law_id":66651,"edition_id":1,"section_id":66651,"structure_id":15916,"section_number":"38.2-1105","catch_line":"Deposit of minimum capital; letter of credit instead of deposit","history":"1980, c. 665, \u00a7 38.1-921; 1986, c. 562.","full_text":"A\n\nNo captive insurer shall be issued a license to transact the business of insurance in this Commonwealth until it has met the requirements of Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title.B\n\nThe captive insurer shall deposit with the State Treasurer cash, bonds, or securities equal to the minimum capital or, if a mutual insurer, fifty percent of the minimum surplus, as required by Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title. The State Treasurer shall accept an irrevocable letter of credit, in a form acceptable to the Commission, on behalf of a captive insurer instead of requiring the above-mentioned deposit. The letter of credit shall be issued by a national or state bank and approved by the Commission.C\n\nThe deposit or letter of credit shall be held by the State Treasurer for the benefit of all policyholders and creditors wherever located and shall be administered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.D\n\nThe State Treasurer shall furnish to the captive insurer a certificate certifying that the State Treasurer holds the securities or letters of credit in trust for the benefit of the policyholders and creditors of the captive insurer.","order_by":null,"text":{"0":{"id":241785,"text":"No captive insurer shall be issued a license to transact the business of insurance in this Commonwealth until it has met the requirements of Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":241786,"text":"The captive insurer shall deposit with the State Treasurer cash, bonds, or securities equal to the minimum capital or, if a mutual insurer, fifty percent of the minimum surplus, as required by Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title. The State Treasurer shall accept an irrevocable letter of credit, in a form acceptable to the Commission, on behalf of a captive insurer instead of requiring the above-mentioned deposit. The letter of credit shall be issued by a national or state bank and approved by the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":241787,"text":"The deposit or letter of credit shall be held by the State Treasurer for the benefit of all policyholders and creditors wherever located and shall be administered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":241788,"text":"The State Treasurer shall furnish to the captive insurer a certificate certifying that the State Treasurer holds the securities or letters of credit in trust for the benefit of the policyholders and creditors of the captive insurer.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15916,"edition_id":1,"name":"Captive Insurers","identifier":"11","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 04:01:50","date_modified":"2026-06-26 04:01:50","permalink":{"id":211171,"object_type":"structure","relational_id":15916,"identifier":"11","token":"38.2\/11","url":"\/38.2\/11\/","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":65109,"structure_id":15916,"section_number":"38.2-1100","catch_line":"Scope of chapter","url":"\/38.2-1100\/","token":"38.2\/11\/38.2-1100","metadata":false},{"id":62853,"structure_id":15916,"section_number":"38.2-1101","catch_line":"Definitions","url":"\/38.2-1101\/","token":"38.2\/11\/38.2-1101","metadata":false},{"id":75949,"structure_id":15916,"section_number":"38.2-1102","catch_line":"Application for license; limitations on authority","url":"\/38.2-1102\/","token":"38.2\/11\/38.2-1102","metadata":false},{"id":83328,"structure_id":15916,"section_number":"38.2-1103","catch_line":"Name","url":"\/38.2-1103\/","token":"38.2\/11\/38.2-1103","metadata":false},{"id":84000,"structure_id":15916,"section_number":"38.2-1104","catch_line":"Formation; licensure after examination; amendment of articles; principal and home office","url":"\/38.2-1104\/","token":"38.2\/11\/38.2-1104","metadata":false},{"id":66651,"structure_id":15916,"section_number":"38.2-1105","catch_line":"Deposit of minimum capital; letter of credit instead of deposit","url":"\/38.2-1105\/","token":"38.2\/11\/38.2-1105","metadata":false},{"id":83845,"structure_id":15916,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","url":"\/38.2-1106\/","token":"38.2\/11\/38.2-1106","metadata":false},{"id":77376,"structure_id":15916,"section_number":"38.2-1107","catch_line":"Membership in rating organizations","url":"\/38.2-1107\/","token":"38.2\/11\/38.2-1107","metadata":false},{"id":61754,"structure_id":15916,"section_number":"38.2-1108","catch_line":"Tax on premiums collected","url":"\/38.2-1108\/","token":"38.2\/11\/38.2-1108","metadata":false},{"id":73669,"structure_id":15916,"section_number":"38.2-1109","catch_line":"Applicability of other provisions of title","url":"\/38.2-1109\/","token":"38.2\/11\/38.2-1109","metadata":false}],"previous_section":{"id":84000,"structure_id":15916,"section_number":"38.2-1104","catch_line":"Formation; licensure after examination; amendment of articles; principal and home office","url":"\/38.2-1104\/","token":"38.2\/11\/38.2-1104","metadata":false},"next_section":{"id":83845,"structure_id":15916,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","url":"\/38.2-1106\/","token":"38.2\/11\/38.2-1106","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1105\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 665 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 1986, chapter 562.<\/p>","references":[{"id":84000,"section_number":"38.2-1104","catch_line":"Formation; licensure after examination; amendment of articles; principal and home office","order_by":null,"url":"\/38.2-1104\/"},{"id":83845,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","order_by":null,"url":"\/38.2-1106\/"}],"refers_to":[{"id":86158,"section_number":"38.2-1024","catch_line":"License required to transact the business of insurance; application fee requirements for license","order_by":null,"url":"\/38.2-1024\/"},{"id":57089,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","order_by":null,"url":"\/38.2-1045\/"}],"permalink":{"id":211193,"object_type":"law","relational_id":66651,"identifier":"38.2-1105","token":"38.2\/11\/38.2-1105","url":"\/38.2-1105\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1105\/","token":"38.2\/11\/38.2-1105","dublin_core":{"Title":"Deposit of minimum capital; letter of credit instead of deposit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1105","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No captive insurer<\/span> shall be issued a license to transact the business of insurance<\/span> in this Commonwealth until it has met the requirements of Article 5 (§ 38.2-1024<\/a> et seq.) of Chapter 10 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The captive insurer<\/span> shall deposit with the State<\/span> Treasurer cash, bonds<\/span>, or securities equal to the minimum capital or, if a mutual insurer, fifty percent of the minimum surplus, as required by Article 5 (§ 38.2-1024<\/a> et seq.) of Chapter 10 of this title. The State<\/span> Treasurer shall accept an irrevocable letter of credit, in a form acceptable to the Commission<\/span>, on behalf of a captive insurer<\/span> instead of requiring the above-mentioned deposit. The letter of credit shall be issued by a national or state<\/span> bank and approved by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The deposit or letter of credit shall be held by the State<\/span> Treasurer for the benefit of all policyholders and creditors<\/span> wherever located and shall be administered as provided in Article 7 (§ 38.2-1045<\/a> et seq.) of Chapter 10 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The State<\/span> Treasurer shall furnish to the captive insurer<\/span> a certificate certifying that the State<\/span> Treasurer holds the securities or letters of credit in trust for the benefit of the policyholders and creditors<\/span> of the captive insurer<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEPOSIT OF MINIMUM CAPITAL; LETTER OF CREDIT INSTEAD OF DEPOSIT (\u00a7 38.2-1105)\n\nA. No captive insurer shall be issued a license to transact the business of\ninsurance in this Commonwealth until it has met the requirements of Article 5\n(§ 38.2-1024 et seq.) of Chapter 10 of this title.\n\nB. The captive insurer shall deposit with the State Treasurer cash, bonds, or\nsecurities equal to the minimum capital or, if a mutual insurer, fifty percent\nof the minimum surplus, as required by Article 5 (§ 38.2-1024 et seq.) of\nChapter 10 of this title. The State Treasurer shall accept an irrevocable letter\nof credit, in a form acceptable to the Commission, on behalf of a captive\ninsurer instead of requiring the above-mentioned deposit. The letter of credit\nshall be issued by a national or state bank and approved by the Commission.\n\nC. The deposit or letter of credit shall be held by the State Treasurer for the\nbenefit of all policyholders and creditors wherever located and shall be\nadministered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10\nof this title.\n\nD. The State Treasurer shall furnish to the captive insurer a certificate\ncertifying that the State Treasurer holds the securities or letters of credit in\ntrust for the benefit of the policyholders and creditors of the captive insurer.\n\nHISTORY: 1980, c. 665, \u00a7 38.1-921; 1986, c. 562.","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}}