{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1315.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1315.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1315.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1315.html"}],"law_id":57402,"edition_id":1,"section_id":57402,"structure_id":15039,"section_number":"38.2-1315","catch_line":"Mortgage guaranty insurance contingency reserve","history":"1973, c. 250, \u00a7\u00a7 38.1-173.1, 38.1-173.2; 1981, c. 209; 1986, c. 562; 1989, c. 236; 2000, c. 46.","full_text":"A\n\nTo protect against the effect of adverse economic cycles, each insurer transacting the business of mortgage guaranty insurance in this Commonwealth shall establish and maintain a contingency reserve equal to fifty percent of its earned premium.B\n\nAllocations to the contingency reserve shall be maintained for 120 months. That portion of the contingency reserve that has been maintained for more than 120 months shall be released and shall no longer constitute part of the contingency reserve and shall be allocated to surplus to policyholders.C\n\nUpon approval by the Commission, the contingency reserve shall be available for loss payments only when the incurred losses in any one twelve-month period, less any amounts already released from the contingency reserve during that period, exceed thirty-five percent of the corresponding earned premium.D\n\nIn the event of release of the contingency reserve for payment of losses, the contributions required by subsection A of this section shall be treated on a first-in-first-out basis.E\n\nWhenever the laws of any other state require a greater unearned premium reserve than that set forth in § 38.2-1312, the mortgage guaranty insurance contingency reserve of mortgage guaranty insurers organized under the laws of that state may be an amount that, when added to such unearned premium reserve, will result in a reserve equal to the sum of the unearned premium reserve required by § 38.2-1312 and the contingency reserve required by this section.F\n\nThe authority of the Commission under § 38.2-223 to issue rules and regulations includes the authority to require that a greater reserve be established for mortgage guaranty insurance on liens other than first liens.","order_by":null,"text":{"0":{"id":210340,"text":"To protect against the effect of adverse economic cycles, each insurer transacting the business of mortgage guaranty insurance in this Commonwealth shall establish and maintain a contingency reserve equal to fifty percent of its earned premium.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":210341,"text":"Allocations to the contingency reserve shall be maintained for 120 months. That portion of the contingency reserve that has been maintained for more than 120 months shall be released and shall no longer constitute part of the contingency reserve and shall be allocated to surplus to policyholders.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":210342,"text":"Upon approval by the Commission, the contingency reserve shall be available for loss payments only when the incurred losses in any one twelve-month period, less any amounts already released from the contingency reserve during that period, exceed thirty-five percent of the corresponding earned premium.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":210343,"text":"In the event of release of the contingency reserve for payment of losses, the contributions required by subsection A of this section shall be treated on a first-in-first-out basis.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":210344,"text":"Whenever the laws of any other state require a greater unearned premium reserve than that set forth in § 38.2-1312, the mortgage guaranty insurance contingency reserve of mortgage guaranty insurers organized under the laws of that state may be an amount that, when added to such unearned premium reserve, will result in a reserve equal to the sum of the unearned premium reserve required by § 38.2-1312 and the contingency reserve required by this section.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":210345,"text":"The authority of the Commission under § 38.2-223 to issue rules and regulations includes the authority to require that a greater reserve be established for mortgage guaranty insurance on liens other than first liens.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":15039,"edition_id":1,"name":"Reserves","identifier":"3","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:51:40","date_modified":"2026-06-26 03:51:40","permalink":{"id":211495,"object_type":"structure","relational_id":15039,"identifier":"3","token":"38.2\/13\/3","url":"\/38.2\/13\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","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":60734,"structure_id":15039,"section_number":"38.2-1311","catch_line":"Valuation reserves","url":"\/38.2-1311\/","token":"38.2\/13\/3\/38.2-1311","metadata":false},{"id":57332,"structure_id":15039,"section_number":"38.2-1312","catch_line":"Unearned premium reserves","url":"\/38.2-1312\/","token":"38.2\/13\/3\/38.2-1312","metadata":false},{"id":83144,"structure_id":15039,"section_number":"38.2-1313","catch_line":"Loss records","url":"\/38.2-1313\/","token":"38.2\/13\/3\/38.2-1313","metadata":false},{"id":58606,"structure_id":15039,"section_number":"38.2-1314","catch_line":"Loss or claim reserves","url":"\/38.2-1314\/","token":"38.2\/13\/3\/38.2-1314","metadata":false},{"id":57402,"structure_id":15039,"section_number":"38.2-1315","catch_line":"Mortgage guaranty insurance contingency reserve","url":"\/38.2-1315\/","token":"38.2\/13\/3\/38.2-1315","metadata":false},{"id":81929,"structure_id":15039,"section_number":"38.2-1315.1","catch_line":"Actuarial statements of opinion, reports, memoranda, and summaries","url":"\/38.2-1315.1\/","token":"38.2\/13\/3\/38.2-1315.1","metadata":false},{"id":71920,"structure_id":15039,"section_number":"38.2-1316","catch_line":"Repealed","url":"\/38.2-1316\/","token":"38.2\/13\/3\/38.2-1316","metadata":false}],"previous_section":{"id":58606,"structure_id":15039,"section_number":"38.2-1314","catch_line":"Loss or claim reserves","url":"\/38.2-1314\/","token":"38.2\/13\/3\/38.2-1314","metadata":false},"next_section":{"id":81929,"structure_id":15039,"section_number":"38.2-1315.1","catch_line":"Actuarial statements of opinion, reports, memoranda, and summaries","url":"\/38.2-1315.1\/","token":"38.2\/13\/3\/38.2-1315.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1315\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 250 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 1973 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1981, chapter 209; in 1986, chapter 562; in 1989, chapter 236; in 2000, chapter 46<\/a>.<\/p>","references":[{"id":65309,"section_number":"38.2-4123","catch_line":"Exemptions","order_by":null,"url":"\/38.2-4123\/"}],"refers_to":[{"id":57332,"section_number":"38.2-1312","catch_line":"Unearned premium reserves","order_by":null,"url":"\/38.2-1312\/"},{"id":87496,"section_number":"38.2-223","catch_line":"Rules and regulations; orders","order_by":null,"url":"\/38.2-223\/"}],"permalink":{"id":211513,"object_type":"law","relational_id":57402,"identifier":"38.2-1315","token":"38.2\/13\/3\/38.2-1315","url":"\/38.2-1315\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1315\/","token":"38.2\/13\/3\/38.2-1315","dublin_core":{"Title":"Mortgage guaranty insurance contingency reserve","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1315","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> To protect against the effect of adverse economic cycles, each insurer<\/span> transacting the business of mortgage guaranty insurance<\/span> in this Commonwealth shall establish and maintain a contingency reserve equal to fifty percent of its earned premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Allocations to the contingency reserve shall be maintained for 120 months. That portion of the contingency reserve that has been maintained for more than 120 months shall be released and shall no longer constitute part of the contingency reserve and shall be allocated to surplus to policyholders<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Upon approval by the Commission<\/span>, the contingency reserve shall be available for loss payments only when the incurred losses in any one twelve-month period, less any amounts already released from the contingency reserve during that period, exceed thirty-five percent of the corresponding earned premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In the event of release of the contingency reserve for payment of losses, the contributions required by subsection A of this section shall be treated on a first-in-first-out basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Whenever the laws<\/span> of any other state<\/span> require a greater unearned premium reserve than that set forth in § 38.2-1312<\/a>, the mortgage guaranty insurance<\/span> contingency reserve of mortgage guaranty insurers<\/span> organized under the laws<\/span> of that state<\/span> may be an amount that, when added to such unearned premium reserve, will result in a reserve equal to the sum of the unearned premium reserve required by § 38.2-1312<\/a> and the contingency reserve required by this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The authority of the Commission<\/span> under § 38.2-223<\/a> to issue<\/span> rules and regulations includes the authority to require that a greater reserve be established for mortgage guaranty insurance<\/span> on liens<\/span> other than first liens<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMORTGAGE GUARANTY INSURANCE CONTINGENCY RESERVE (\u00a7 38.2-1315)\n\nA. To protect against the effect of adverse economic cycles, each insurer\ntransacting the business of mortgage guaranty insurance in this Commonwealth\nshall establish and maintain a contingency reserve equal to fifty percent of its\nearned premium.\n\nB. Allocations to the contingency reserve shall be maintained for 120 months.\nThat portion of the contingency reserve that has been maintained for more than\n120 months shall be released and shall no longer constitute part of the\ncontingency reserve and shall be allocated to surplus to policyholders.\n\nC. Upon approval by the Commission, the contingency reserve shall be available\nfor loss payments only when the incurred losses in any one twelve-month period,\nless any amounts already released from the contingency reserve during that\nperiod, exceed thirty-five percent of the corresponding earned premium.\n\nD. In the event of release of the contingency reserve for payment of losses, the\ncontributions required by subsection A of this section shall be treated on a\nfirst-in-first-out basis.\n\nE. Whenever the laws of any other state require a greater unearned premium\nreserve than that set forth in § 38.2-1312, the mortgage guaranty insurance\ncontingency reserve of mortgage guaranty insurers organized under the laws of\nthat state may be an amount that, when added to such unearned premium reserve,\nwill result in a reserve equal to the sum of the unearned premium reserve\nrequired by § 38.2-1312 and the contingency reserve required by this\nsection.\n\nF. The authority of the Commission under § 38.2-223 to issue rules and\nregulations includes the authority to require that a greater reserve be\nestablished for mortgage guaranty insurance on liens other than first liens.\n\nHISTORY: 1973, c. 250, \u00a7\u00a7 38.1-173.1, 38.1-173.2; 1981, c. 209; 1986, c. 562;\n1989, c. 236; 2000, c. 46.","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}}