{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1447.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1447.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1447.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1447.html"}],"law_id":81029,"edition_id":1,"section_id":81029,"structure_id":15784,"section_number":"38.2-1447","catch_line":"Exception","history":"1992, c. 588.","full_text":"A\n\nThis article shall not apply to those assets of any insurer that are held, deposited, pledged, hypothecated or otherwise encumbered as provided herein to secure, offset, protect, or meet those reserve liabilities of such insurer which are established, incurred, or required under the provisions of a reinsurance agreement whereby such insurer has reinsured the insurance policy liabilities of a ceding insurer, provided:1\n\nThe ceding insurer and the reinsurer are both licensed to transact business in this Commonwealth; and2\n\nPursuant to a written agreement between the ceding insurer and the reinsurer, reserve assets substantially equal to the reserve liabilities required to be established by the ceding insurer on the reinsured business are either (i) deposited by or are withheld from the reinsurer and are in the custody of the ceding insurer as security for the payment of the reinsurer’s obligations under the reinsurance agreement, and such assets are held subject to withdrawal by and under control of the ceding insurer or (ii) are deposited and held in a trust account for such purpose and under such conditions with a qualified United States financial institution defined as eligible to act as a fiduciary of a trust by § 38.2-1316.1.B\n\nThe Commission shall have the right to examine any such assets, reinsurance agreements, or deposit arrangements at any time in accordance with its authority to make examinations of insurers as conferred by other provisions of this title.","order_by":null,"text":{"0":{"id":290429,"text":"This article shall not apply to those assets of any insurer that are held, deposited, pledged, hypothecated or otherwise encumbered as provided herein to secure, offset, protect, or meet those reserve liabilities of such insurer which are established, incurred, or required under the provisions of a reinsurance agreement whereby such insurer has reinsured the insurance policy liabilities of a ceding insurer, provided:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":290430,"text":"The ceding insurer and the reinsurer are both licensed to transact business in this Commonwealth; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":290431,"text":"Pursuant to a written agreement between the ceding insurer and the reinsurer, reserve assets substantially equal to the reserve liabilities required to be established by the ceding insurer on the reinsured business are either (i) deposited by or are withheld from the reinsurer and are in the custody of the ceding insurer as security for the payment of the reinsurer’s obligations under the reinsurance agreement, and such assets are held subject to withdrawal by and under control of the ceding insurer or (ii) are deposited and held in a trust account for such purpose and under such conditions with a qualified United States financial institution defined as eligible to act as a fiduciary of a trust by § 38.2-1316.1.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":290432,"text":"The Commission shall have the right to examine any such assets, reinsurance agreements, or deposit arrangements at any time in accordance with its authority to make examinations of insurers as conferred by other provisions of this title.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2"}},"ancestry":[{"id":15784,"edition_id":1,"name":"Asset Protection Act","identifier":"4","label":"article","depth":3,"order_by":1,"parent_id":13282,"metadata":{},"date_created":"2026-06-26 03:59:29","date_modified":"2026-06-26 03:59:29","permalink":{"id":212107,"object_type":"structure","relational_id":15784,"identifier":"4","token":"38.2\/14\/4","url":"\/38.2\/14\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13282,"edition_id":1,"name":"Investments","identifier":"14","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:34","date_modified":"2026-06-26 03:44:34","permalink":{"id":211887,"object_type":"structure","relational_id":13282,"identifier":"14","token":"38.2\/14","url":"\/38.2\/14\/","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":60790,"structure_id":15784,"section_number":"38.2-1446","catch_line":"Prohibition of hypothecation","url":"\/38.2-1446\/","token":"38.2\/14\/4\/38.2-1446","metadata":false},{"id":81029,"structure_id":15784,"section_number":"38.2-1447","catch_line":"Exception","url":"\/38.2-1447\/","token":"38.2\/14\/4\/38.2-1447","metadata":false}],"previous_section":{"id":60790,"structure_id":15784,"section_number":"38.2-1446","catch_line":"Prohibition of hypothecation","url":"\/38.2-1446\/","token":"38.2\/14\/4\/38.2-1446","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1447\/","history_text":"

This law was first created in 1992. The record of its establishment is cataloged in chapter 588 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 1992 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":55347,"section_number":"38.2-4214","catch_line":"Application of certain provisions of law","order_by":null,"url":"\/38.2-4214\/"},{"id":62548,"section_number":"38.2-4509","catch_line":"Application of certain laws","order_by":null,"url":"\/38.2-4509\/"}],"refers_to":false,"permalink":{"id":212113,"object_type":"law","relational_id":81029,"identifier":"38.2-1447","token":"38.2\/14\/4\/38.2-1447","url":"\/38.2-1447\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1447\/","token":"38.2\/14\/4\/38.2-1447","dublin_core":{"Title":"Exception","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1447","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> This article shall not apply to those assets<\/span> of any insurer<\/span> that are held, deposited, pledged, hypothecated or otherwise encumbered as provided herein to secure, offset, protect, or meet those reserve liabilities<\/span> of such insurer<\/span> which are established, incurred, or required under the provisions of a reinsurance agreement whereby such insurer<\/span> has reinsured the insurance<\/span> policy liabilities of a ceding insurer<\/span>, provided: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The ceding insurer<\/span> and the reinsurer are both licensed to transact business in this Commonwealth; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Pursuant to a written agreement between the ceding insurer<\/span> and the reinsurer, reserve assets<\/span> substantially equal to the reserve liabilities<\/span> required to be established by the ceding insurer<\/span> on the reinsured business are either (i) deposited by or are withheld from the reinsurer and are in the custody<\/span> of the ceding insurer<\/span> as security for the payment of the reinsurer’s obligations<\/span> under the reinsurance agreement, and such assets<\/span> are held subject to withdrawal by and under control of the ceding insurer<\/span> or (ii) are deposited and held in a trust account for such purpose and under such conditions with a qualified United States<\/span> financial institution defined as eligible to act as a fiduciary of a trust by § 38.2-1316.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall have the right to examine any such assets<\/span>, reinsurance agreements, or deposit arrangements at any time in accordance with its authority to make examinations of insurers<\/span> as conferred by other provisions of this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEXCEPTION (\u00a7 38.2-1447)\n\nA. This article shall not apply to those assets of any insurer that are held,\ndeposited, pledged, hypothecated or otherwise encumbered as provided herein to\nsecure, offset, protect, or meet those reserve liabilities of such insurer which\nare established, incurred, or required under the provisions of a reinsurance\nagreement whereby such insurer has reinsured the insurance policy liabilities of\na ceding insurer, provided:\n\n 1. The ceding insurer and the reinsurer are both licensed to transact business\n in this Commonwealth; and\n\n 2. Pursuant to a written agreement between the ceding insurer and the\n reinsurer, reserve assets substantially equal to the reserve liabilities\n required to be established by the ceding insurer on the reinsured business are\n either (i) deposited by or are withheld from the reinsurer and are in the\n custody of the ceding insurer as security for the payment of the\n reinsurer’s obligations under the reinsurance agreement, and such assets\n are held subject to withdrawal by and under control of the ceding insurer or\n (ii) are deposited and held in a trust account for such purpose and under such\n conditions with a qualified United States financial institution defined as\n eligible to act as a fiduciary of a trust by § 38.2-1316.1.\n\nB. The Commission shall have the right to examine any such assets, reinsurance\nagreements, or deposit arrangements at any time in accordance with its authority\nto make examinations of insurers as conferred by other provisions of this title.\n\nHISTORY: 1992, c. 588.","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}}