{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1229.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1229.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1229.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1229.html"}],"law_id":84183,"edition_id":1,"section_id":84183,"structure_id":13370,"section_number":"38.2-1229","catch_line":"Impaired reciprocals","history":"1952, c. 317, \u00a7 38.1-718; 1986, c. 562.","full_text":"A\n\nIf (i) the assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders, and (ii) the deficiency is not cured from other sources, its attorney shall levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency. However, the assessment shall be subject to § 38.2-1212.B\n\nIf the attorney fails to make the assessment within thirty days after the Commission orders him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, delinquency proceedings may be instituted and conducted against the insurer as provided in Chapter 15 of this title.C\n\nIf liquidation of the reciprocal is ordered, an assessment shall be levied upon the subscribers for the amount the Commission or the court, as the case may be, determines to be necessary to discharge all liabilities of the reciprocal. This assessment shall exclude any funds contributed by the attorney or other persons, but shall include the reasonable cost of the liquidation. However, the assessment shall be subject to § 38.2-1212.","order_by":null,"text":{"0":{"id":301723,"text":"If (i) the assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders, and (ii) the deficiency is not cured from other sources, its attorney shall levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency. However, the assessment shall be subject to § 38.2-1212.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":301724,"text":"If the attorney fails to make the assessment within thirty days after the Commission orders him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, delinquency proceedings may be instituted and conducted against the insurer as provided in Chapter 15 of this title.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":301725,"text":"If liquidation of the reciprocal is ordered, an assessment shall be levied upon the subscribers for the amount the Commission or the court, as the case may be, determines to be necessary to discharge all liabilities of the reciprocal. This assessment shall exclude any funds contributed by the attorney or other persons, but shall include the reasonable cost of the liquidation. However, the assessment shall be subject to § 38.2-1212.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1229\/","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 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":76809,"section_number":"38.2-1212","catch_line":"Subscribers' liability","order_by":null,"url":"\/38.2-1212\/"}],"permalink":{"id":211335,"object_type":"law","relational_id":84183,"identifier":"38.2-1229","token":"38.2\/12\/2\/38.2-1229","url":"\/38.2-1229\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1229\/","token":"38.2\/12\/2\/38.2-1229","dublin_core":{"Title":"Impaired reciprocals","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1229","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If (i) the assets<\/span> of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders<\/span>, and (ii) the deficiency is not cured from other sources, its attorney shall levy<\/span> an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency. However, the assessment shall be subject to § 38.2-1212<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the attorney fails to make the assessment within thirty days after the Commission<\/span> orders<\/span> him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, delinquency proceedings may be instituted and conducted against the insurer<\/span> as provided in Chapter 15 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If liquidation<\/span> of the reciprocal is ordered, an assessment shall be levied upon the subscribers for the amount the Commission<\/span> or the court<\/span>, as the case may be, determines to be necessary to discharge all liabilities of the reciprocal. This assessment shall exclude any funds contributed by the attorney or other persons<\/span>, but shall include the reasonable cost of the liquidation<\/span>. However, the assessment shall be subject to § 38.2-1212<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nIMPAIRED RECIPROCALS (\u00a7 38.2-1229)\n\nA. If (i) the assets of a domestic reciprocal are at any time insufficient to\nsettle the sum of its liabilities, except those on account of funds contributed\nby the attorney or other parties, and its required surplus to policyholders, and\n(ii) the deficiency is not cured from other sources, its attorney shall levy an\nassessment upon subscribers made subject to assessment by the terms of their\npolicies for the amount needed to make up the deficiency. However, the\nassessment shall be subject to § 38.2-1212.\n\nB. If the attorney fails to make the assessment within thirty days after the\nCommission orders him to do so, or if the deficiency is not fully made up within\nsixty days after the date the assessment was made, delinquency proceedings may\nbe instituted and conducted against the insurer as provided in Chapter 15 of\nthis title.\n\nC. If liquidation of the reciprocal is ordered, an assessment shall be levied\nupon the subscribers for the amount the Commission or the court, as the case may\nbe, determines to be necessary to discharge all liabilities of the reciprocal.\nThis assessment shall exclude any funds contributed by the attorney or other\npersons, but shall include the reasonable cost of the liquidation. However, the\nassessment shall be subject to § 38.2-1212.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-718; 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}}