{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1106.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1106.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1106.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1106.html"}],"law_id":83845,"edition_id":1,"section_id":83845,"structure_id":15916,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","history":"1980, c. 665, \u00a7 38.1-922; 1986, c. 562.","full_text":"A\n\nAny licensed captive insurer may, subject to the approval of the Commission, hold all or a portion of (i) the minimum surplus as set forth in Article 5 (§ 38.2-1024 et seq.) of Chapter 10 in the form of an irrevocable letter of credit, if a stock insurer, or (ii) fifty percent of minimum surplus not subject to subsection B of § 38.2-1105, if a mutual insurer. The letter of credit shall be issued by a national or state bank and approved by the Commission.B\n\nAny letter of credit permitted pursuant to this section shall be held by the State Treasurer for the benefit of all policyholders and creditors and shall be administered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.","order_by":null,"text":{"0":{"id":300526,"text":"Any licensed captive insurer may, subject to the approval of the Commission, hold all or a portion of (i) the minimum surplus as set forth in Article 5 (§ 38.2-1024 et seq.) of Chapter 10 in the form of an irrevocable letter of credit, if a stock insurer, or (ii) fifty percent of minimum surplus not subject to subsection B of § 38.2-1105, if a mutual insurer. The letter of credit shall be issued by a national or state bank and approved by the Commission.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":300527,"text":"Any letter of credit permitted pursuant to this section shall be held by the State Treasurer for the benefit of all policyholders and creditors and shall be administered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1106\/","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":false,"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\/"},{"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\/"}],"permalink":{"id":211197,"object_type":"law","relational_id":83845,"identifier":"38.2-1106","token":"38.2\/11\/38.2-1106","url":"\/38.2-1106\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1106\/","token":"38.2\/11\/38.2-1106","dublin_core":{"Title":"Minimum surplus in form of letter of credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1106","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any licensed captive insurer<\/span> may, subject to the approval of the Commission<\/span>, hold all or a portion of (i) the minimum surplus as set forth in Article 5 (§ 38.2-1024<\/a> et seq.) of Chapter 10 in the form of an irrevocable letter of credit, if a stock insurer, or (ii) fifty percent of minimum surplus not subject to subsection B of § 38.2-1105<\/a>, if a mutual insurer. 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

B.<\/span> Any letter of credit permitted pursuant to this section shall be held by the State<\/span> Treasurer for the benefit of all policyholders and creditors<\/span> 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>","plain_text":" CODE OF VIRGINIA\n\nMINIMUM SURPLUS IN FORM OF LETTER OF CREDIT (\u00a7 38.2-1106)\n\nA. Any licensed captive insurer may, subject to the approval of the Commission,\nhold all or a portion of (i) the minimum surplus as set forth in Article 5\n(§ 38.2-1024 et seq.) of Chapter 10 in the form of an irrevocable letter of\ncredit, if a stock insurer, or (ii) fifty percent of minimum surplus not subject\nto subsection B of § 38.2-1105, if a mutual insurer. The letter of credit\nshall be issued by a national or state bank and approved by the Commission.\n\nB. Any letter of credit permitted pursuant to this section shall be held by the\nState Treasurer for the benefit of all policyholders and creditors and shall be\nadministered as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10\nof this title.\n\nHISTORY: 1980, c. 665, \u00a7 38.1-922; 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}}