{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1223.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1223.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1223.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1223.html"}],"law_id":86660,"edition_id":1,"section_id":86660,"structure_id":13370,"section_number":"38.2-1223","catch_line":"Subscriber’s agreement and power of attorney","history":"1952, c. 317, \u00a7 38.1-700; 1986, c. 562; 1990, c. 10.","full_text":"A\n\nEvery subscriber of a domestic assessable reciprocal shall execute a subscriber’s agreement and power of attorney setting forth the rights, privileges and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. Every subscriber of a nonassessable reciprocal may execute a subscriber’s agreement and power of attorney setting forth the rights, privileges, and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. If a nonassessable reciprocal does not require execution of a subscriber’s agreement and power of attorney, the reciprocal shall include on its policies a statement that the subscriber shall be bound by the terms and conditions of the then current subscriber’s agreement and power of attorney on file with the attorney and the Commission, a copy of which shall be provided to each subscriber with each new or renewal policy, and each subscriber shall by operation of law be bound by such subscriber’s agreement and power of attorney as if individually executed. Without additional execution, notice or acceptance, every subscriber of a reciprocal agrees to be bound by any modification of the terms of the power of attorney and subscriber’s agreement which is jointly made by the attorney and the subscribers’ advisory committee pursuant to \u00a7 38.2-1224, and which shall be on file with the attorney and the Commission. Notwithstanding the provisions of this subsection, the original organizing subscribers of a reciprocal shall be required to execute and file with the declaration referred to in \u00a7 38.2-1219 the subscriber’s agreement and power of attorney when such filing is in conjunction with the original organization and licensure by the Commission of a reciprocal as provided in \u00a7 38.2-1219. The subscriber’s agreement and power of attorney shall contain in substance the following provisions:1\n\nA designation and appointment of the attorney to act for and bind the subscriber in all transactions relating to or arising out of the operations of the reciprocal;2\n\nA provision empowering the attorney (i) to accept service of process on behalf of the reciprocal and (ii) to appoint the clerk of the Commission agent of the reciprocal upon whom may be served all lawful process against or notice to the reciprocal;3\n\nExcept for nonassessable policies, a provision for a contingent assessment liability of each subscriber in a specified amount in accordance with § 38.2-1212; and4\n\nThe maximum amount to be deducted from advance premiums or deposits to be paid the attorney, and the items of expense, in addition to losses, to be paid by the reciprocal.B\n\nThe subscriber’s agreement may:1\n\nProvide for the right of substitution of the attorney and revocation of the power of attorney;2\n\nImpose any restrictions upon the exercise of the power agreed upon by the subscribers;3\n\nProvide for the exercise of any right reserved to the subscribers directly or through an advisory committee; or4\n\nContain other lawful provisions considered advisable.","order_by":null,"text":{"0":{"id":310344,"text":"Every subscriber of a domestic assessable reciprocal shall execute a subscriber’s agreement and power of attorney setting forth the rights, privileges and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. Every subscriber of a nonassessable reciprocal may execute a subscriber’s agreement and power of attorney setting forth the rights, privileges, and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. If a nonassessable reciprocal does not require execution of a subscriber’s agreement and power of attorney, the reciprocal shall include on its policies a statement that the subscriber shall be bound by the terms and conditions of the then current subscriber’s agreement and power of attorney on file with the attorney and the Commission, a copy of which shall be provided to each subscriber with each new or renewal policy, and each subscriber shall by operation of law be bound by such subscriber’s agreement and power of attorney as if individually executed. Without additional execution, notice or acceptance, every subscriber of a reciprocal agrees to be bound by any modification of the terms of the power of attorney and subscriber’s agreement which is jointly made by the attorney and the subscribers’ advisory committee pursuant to \u00a7 38.2-1224, and which shall be on file with the attorney and the Commission. Notwithstanding the provisions of this subsection, the original organizing subscribers of a reciprocal shall be required to execute and file with the declaration referred to in \u00a7 38.2-1219 the subscriber’s agreement and power of attorney when such filing is in conjunction with the original organization and licensure by the Commission of a reciprocal as provided in \u00a7 38.2-1219. The subscriber’s agreement and power of attorney shall contain in substance the following provisions:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":310345,"text":"A designation and appointment of the attorney to act for and bind the subscriber in all transactions relating to or arising out of the operations of the reciprocal;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":310346,"text":"A provision empowering the attorney (i) to accept service of process on behalf of the reciprocal and (ii) to appoint the clerk of the Commission agent of the reciprocal upon whom may be served all lawful process against or notice to the reciprocal;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":310347,"text":"Except for nonassessable policies, a provision for a contingent assessment liability of each subscriber in a specified amount in accordance with § 38.2-1212; and","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":310348,"text":"The maximum amount to be deducted from advance premiums or deposits to be paid the attorney, and the items of expense, in addition to losses, to be paid by the reciprocal.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":310349,"text":"The subscriber’s agreement may:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"B1"},"6":{"id":310350,"text":"Provide for the right of substitution of the attorney and revocation of the power of attorney;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"7":{"id":310351,"text":"Impose any restrictions upon the exercise of the power agreed upon by the subscribers;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"8":{"id":310352,"text":"Provide for the exercise of any right reserved to the subscribers directly or through an advisory committee; or","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"9":{"id":310353,"text":"Contain other lawful provisions considered advisable.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3"}},"ancestry":[{"id":13370,"edition_id":1,"name":"Domestic Reciprocals","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13369,"metadata":{},"date_created":"2026-06-26 03:44:43","date_modified":"2026-06-26 03:44:43","permalink":{"id":211293,"object_type":"structure","relational_id":13370,"identifier":"2","token":"38.2\/12\/2","url":"\/38.2\/12\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13369,"edition_id":1,"name":"Reciprocal Insurance","identifier":"12","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:43","date_modified":"2026-06-26 03:44:43","permalink":{"id":211213,"object_type":"structure","relational_id":13369,"identifier":"12","token":"38.2\/12","url":"\/38.2\/12\/","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":82841,"structure_id":13370,"section_number":"38.2-1219","catch_line":"Organization of reciprocals; what declaration to contain","url":"\/38.2-1219\/","token":"38.2\/12\/2\/38.2-1219","metadata":false},{"id":70255,"structure_id":13370,"section_number":"38.2-1220","catch_line":"Attorney to file bond","url":"\/38.2-1220\/","token":"38.2\/12\/2\/38.2-1220","metadata":false},{"id":59865,"structure_id":13370,"section_number":"38.2-1221","catch_line":"Deposit instead of bond","url":"\/38.2-1221\/","token":"38.2\/12\/2\/38.2-1221","metadata":false},{"id":55197,"structure_id":13370,"section_number":"38.2-1222","catch_line":"Subscribers' advisory committee","url":"\/38.2-1222\/","token":"38.2\/12\/2\/38.2-1222","metadata":false},{"id":86660,"structure_id":13370,"section_number":"38.2-1223","catch_line":"Subscriber's agreement and power of attorney","url":"\/38.2-1223\/","token":"38.2\/12\/2\/38.2-1223","metadata":false},{"id":58066,"structure_id":13370,"section_number":"38.2-1224","catch_line":"Modification of power of attorney and subscriber's agreement","url":"\/38.2-1224\/","token":"38.2\/12\/2\/38.2-1224","metadata":false},{"id":54344,"structure_id":13370,"section_number":"38.2-1225","catch_line":"Contributions","url":"\/38.2-1225\/","token":"38.2\/12\/2\/38.2-1225","metadata":false},{"id":81495,"structure_id":13370,"section_number":"38.2-1226","catch_line":"Assessments","url":"\/38.2-1226\/","token":"38.2\/12\/2\/38.2-1226","metadata":false},{"id":55134,"structure_id":13370,"section_number":"38.2-1227","catch_line":"Time limit for assessment","url":"\/38.2-1227\/","token":"38.2\/12\/2\/38.2-1227","metadata":false},{"id":75854,"structure_id":13370,"section_number":"38.2-1228","catch_line":"Subscribers' share in assets","url":"\/38.2-1228\/","token":"38.2\/12\/2\/38.2-1228","metadata":false},{"id":84183,"structure_id":13370,"section_number":"38.2-1229","catch_line":"Impaired reciprocals","url":"\/38.2-1229\/","token":"38.2\/12\/2\/38.2-1229","metadata":false},{"id":72446,"structure_id":13370,"section_number":"38.2-1230","catch_line":"Material transactions","url":"\/38.2-1230\/","token":"38.2\/12\/2\/38.2-1230","metadata":false},{"id":64155,"structure_id":13370,"section_number":"38.2-1231","catch_line":"Attorney's financial statement","url":"\/38.2-1231\/","token":"38.2\/12\/2\/38.2-1231","metadata":false}],"previous_section":{"id":55197,"structure_id":13370,"section_number":"38.2-1222","catch_line":"Subscribers' advisory committee","url":"\/38.2-1222\/","token":"38.2\/12\/2\/38.2-1222","metadata":false},"next_section":{"id":58066,"structure_id":13370,"section_number":"38.2-1224","catch_line":"Modification of power of attorney and subscriber's agreement","url":"\/38.2-1224\/","token":"38.2\/12\/2\/38.2-1224","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1223\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 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 1952 \u201cActs\u201d aren\u2019t available online. It has been modified 2 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 1986, chapter 562; in 1990, chapter 10.<\/p>","references":false,"refers_to":[{"id":76809,"section_number":"38.2-1212","catch_line":"Subscribers' liability","order_by":null,"url":"\/38.2-1212\/"},{"id":82841,"section_number":"38.2-1219","catch_line":"Organization of reciprocals; what declaration to contain","order_by":null,"url":"\/38.2-1219\/"},{"id":58066,"section_number":"38.2-1224","catch_line":"Modification of power of attorney and subscriber's agreement","order_by":null,"url":"\/38.2-1224\/"}],"permalink":{"id":211311,"object_type":"law","relational_id":86660,"identifier":"38.2-1223","token":"38.2\/12\/2\/38.2-1223","url":"\/38.2-1223\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1223\/","token":"38.2\/12\/2\/38.2-1223","dublin_core":{"Title":"Subscriber’s agreement and power of attorney","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1223","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every subscriber of a domestic assessable reciprocal shall execute a subscriber’s agreement and power of attorney<\/span> setting forth the rights, privileges<\/span> and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. Every subscriber of a nonassessable reciprocal may execute a subscriber’s agreement and power of attorney<\/span> setting forth the rights, privileges<\/span>, and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. If a nonassessable reciprocal does not require execution of a subscriber’s agreement and power of attorney<\/span>, the reciprocal shall include on its policies a statement that the subscriber shall be bound by the terms and conditions of the then current subscriber’s agreement and power of attorney<\/span> on file with the attorney and the Commission<\/span>, a copy of which shall be provided to each subscriber with each new or renewal policy, and each subscriber shall by operation of law<\/span> be bound by such subscriber’s agreement and power of attorney<\/span> as if individually executed. Without additional execution, notice or acceptance, every subscriber of a reciprocal agrees to be bound by any modification of the terms of the power of attorney<\/span> and subscriber’s agreement which is jointly made by the attorney and the subscribers’ advisory committee pursuant to \u00a7 38.2-1224<\/a>, and which shall be on file with the attorney and the Commission<\/span>. Notwithstanding the provisions of this subsection, the original organizing subscribers of a reciprocal shall be required to execute and file with the declaration referred to in \u00a7 38.2-1219<\/a> the subscriber’s agreement and power of attorney<\/span> when such filing is in conjunction with the original organization and licensure by the Commission<\/span> of a reciprocal as provided in \u00a7 38.2-1219<\/a>. The subscriber’s agreement and power of attorney<\/span> shall contain in substance the following provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A designation and appointment of the attorney to act for and bind the subscriber in all transactions relating to or arising out of the operations of the reciprocal; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A provision empowering the attorney (i) to accept service of process<\/span> on behalf of the reciprocal and (ii) to appoint the clerk of the Commission<\/span> agent of the reciprocal upon whom may be served all lawful process against or notice to the reciprocal; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Except for nonassessable policies, a provision for a contingent assessment liability of each subscriber in a specified amount in accordance with § 38.2-1212<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The maximum amount to be deducted from advance premiums or deposits to be paid the attorney, and the items of expense, in addition to losses, to be paid by the reciprocal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The subscriber’s agreement may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Provide for the right of substitution of the attorney and revocation<\/span> of the power of attorney<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Impose any restrictions upon the exercise of the power agreed upon by the subscribers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Provide for the exercise of any right reserved to the subscribers directly or through an advisory committee; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Contain other lawful provisions considered advisable. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSUBSCRIBER’S AGREEMENT AND POWER OF ATTORNEY (\u00a7 38.2-1223)\n\nA. Every subscriber of a domestic assessable reciprocal shall execute a\nsubscriber’s agreement and power of attorney setting forth the rights,\nprivileges and obligations of the subscriber as an underwriter and as a\npolicyholder, and the powers and duties of the attorney. Every subscriber of a\nnonassessable reciprocal may execute a subscriber’s agreement and power of\nattorney setting forth the rights, privileges, and obligations of the subscriber\nas an underwriter and as a policyholder, and the powers and duties of the\nattorney. If a nonassessable reciprocal does not require execution of a\nsubscriber’s agreement and power of attorney, the reciprocal shall include\non its policies a statement that the subscriber shall be bound by the terms and\nconditions of the then current subscriber’s agreement and power of\nattorney on file with the attorney and the Commission, a copy of which shall be\nprovided to each subscriber with each new or renewal policy, and each subscriber\nshall by operation of law be bound by such subscriber’s agreement and\npower of attorney as if individually executed. Without additional execution,\nnotice or acceptance, every subscriber of a reciprocal agrees to be bound by any\nmodification of the terms of the power of attorney and subscriber’s\nagreement which is jointly made by the attorney and the subscribers’\nadvisory committee pursuant to \u00a7 38.2-1224, and which shall be on file with the\nattorney and the Commission. Notwithstanding the provisions of this subsection,\nthe original organizing subscribers of a reciprocal shall be required to execute\nand file with the declaration referred to in \u00a7 38.2-1219 the subscriber’s\nagreement and power of attorney when such filing is in conjunction with the\noriginal organization and licensure by the Commission of a reciprocal as\nprovided in \u00a7 38.2-1219. The subscriber’s agreement and power of attorney\nshall contain in substance the following provisions:\n\n 1. A designation and appointment of the attorney to act for and bind the\n subscriber in all transactions relating to or arising out of the operations of\n the reciprocal;\n\n 2. A provision empowering the attorney (i) to accept service of process on\n behalf of the reciprocal and (ii) to appoint the clerk of the Commission agent\n of the reciprocal upon whom may be served all lawful process against or notice\n to the reciprocal;\n\n 3. Except for nonassessable policies, a provision for a contingent assessment\n liability of each subscriber in a specified amount in accordance with §\n 38.2-1212; and\n\n 4. The maximum amount to be deducted from advance premiums or deposits to be\n paid the attorney, and the items of expense, in addition to losses, to be paid\n by the reciprocal.\n\nB. The subscriber’s agreement may:\n\n 1. Provide for the right of substitution of the attorney and revocation of the\n power of attorney;\n\n 2. Impose any restrictions upon the exercise of the power agreed upon by the\n subscribers;\n\n 3. Provide for the exercise of any right reserved to the subscribers directly\n or through an advisory committee; or\n\n 4. Contain other lawful provisions considered advisable.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-700; 1986, c. 562; 1990, c. 10.","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}}