{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1620.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1620.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1620.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1620.html"}],"law_id":54201,"edition_id":1,"section_id":54201,"structure_id":12869,"section_number":"38.2-1620","catch_line":"Financing the safety fund, maximum amount, distribution of excess","history":"1986, c. 562; 1998, c. 230.","full_text":"A\n\nThe safety fund, at the discretion of the Commission, shall receive penalty payments levied against member insurers made pursuant to subsection B of § 38.2-225 or any other payments approved by the Commission. Such payments shall include funds borrowed under the provisions of subdivision B 7 of § 38.2-1606 in the event of a natural disaster in order to provide for the prompt payment of covered claims and expenses related thereto.B\n\nThe Commission may approve the payment of funds to the Association provided the balance in the safety fund account does not exceed two percent of the total of all member insurers’ net direct written premiums for classes of insurance covered by the accounts specified in § 38.2-1604.C\n\nExcept as provided in subsection D of this section, investment income earned on assets held in the safety fund shall be credited to the safety fund.D\n\nIn the event the safety fund balance exceeds three percent of the net written premium for all classes of insurance covered by the accounts specified in § 38.2-1604, at the discretion of the Commission the difference shall be paid to the state treasury to the credit of the Literary Fund or shall be subject to subsection F of § 38.2-1622.E\n\nIn the event the fund is dissolved, remaining assets in the safety fund will be distributed to the state treasury to the credit of the Literary Fund.","order_by":null,"text":{"0":{"id":199025,"text":"The safety fund, at the discretion of the Commission, shall receive penalty payments levied against member insurers made pursuant to subsection B of § 38.2-225 or any other payments approved by the Commission. Such payments shall include funds borrowed under the provisions of subdivision B 7 of § 38.2-1606 in the event of a natural disaster in order to provide for the prompt payment of covered claims and expenses related thereto.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":199026,"text":"The Commission may approve the payment of funds to the Association provided the balance in the safety fund account does not exceed two percent of the total of all member insurers’ net direct written premiums for classes of insurance covered by the accounts specified in § 38.2-1604.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":199027,"text":"Except as provided in subsection D of this section, investment income earned on assets held in the safety fund shall be credited to the safety fund.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":199028,"text":"In the event the safety fund balance exceeds three percent of the net written premium for all classes of insurance covered by the accounts specified in § 38.2-1604, at the discretion of the Commission the difference shall be paid to the state treasury to the credit of the Literary Fund or shall be subject to subsection F of § 38.2-1622.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":199029,"text":"In the event the fund is dissolved, remaining assets in the safety fund will be distributed to the state treasury to the credit of the Literary Fund.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":12869,"edition_id":1,"name":"Additional Funds Paid to Association","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":12868,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":212291,"object_type":"structure","relational_id":12869,"identifier":"2","token":"38.2\/16\/2","url":"\/38.2\/16\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12868,"edition_id":1,"name":"Virginia Property and Casualty Insurance Guaranty Association","identifier":"16","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":212211,"object_type":"structure","relational_id":12868,"identifier":"16","token":"38.2\/16","url":"\/38.2\/16\/","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":55492,"structure_id":12869,"section_number":"38.2-1618","catch_line":"Purpose and applicability of article","url":"\/38.2-1618\/","token":"38.2\/16\/2\/38.2-1618","metadata":false},{"id":60135,"structure_id":12869,"section_number":"38.2-1619","catch_line":"Safety fund","url":"\/38.2-1619\/","token":"38.2\/16\/2\/38.2-1619","metadata":false},{"id":54201,"structure_id":12869,"section_number":"38.2-1620","catch_line":"Financing the safety fund, maximum amount, distribution of excess","url":"\/38.2-1620\/","token":"38.2\/16\/2\/38.2-1620","metadata":false},{"id":54001,"structure_id":12869,"section_number":"38.2-1621","catch_line":"Investment of safety fund","url":"\/38.2-1621\/","token":"38.2\/16\/2\/38.2-1621","metadata":false},{"id":65559,"structure_id":12869,"section_number":"38.2-1622","catch_line":"Use of safety fund, repayment, etc","url":"\/38.2-1622\/","token":"38.2\/16\/2\/38.2-1622","metadata":false},{"id":81708,"structure_id":12869,"section_number":"38.2-1623","catch_line":"Association as a fiduciary","url":"\/38.2-1623\/","token":"38.2\/16\/2\/38.2-1623","metadata":false}],"previous_section":{"id":60135,"structure_id":12869,"section_number":"38.2-1619","catch_line":"Safety fund","url":"\/38.2-1619\/","token":"38.2\/16\/2\/38.2-1619","metadata":false},"next_section":{"id":54001,"structure_id":12869,"section_number":"38.2-1621","catch_line":"Investment of safety fund","url":"\/38.2-1621\/","token":"38.2\/16\/2\/38.2-1621","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1620\/","history_text":"

This law was first created in 1986. The record of its establishment is cataloged in chapter 562 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 1986 \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 1998, chapter 230<\/a>.<\/p>","references":[{"id":65559,"section_number":"38.2-1622","catch_line":"Use of safety fund, repayment, etc","order_by":null,"url":"\/38.2-1622\/"},{"id":59699,"section_number":"38.2-225","catch_line":"Disposition of fines and penalties","order_by":null,"url":"\/38.2-225\/"}],"refers_to":[{"id":86917,"section_number":"38.2-1604","catch_line":"Association created; members; divided into three accounts","order_by":null,"url":"\/38.2-1604\/"},{"id":72860,"section_number":"38.2-1606","catch_line":"Duties and powers of Association","order_by":null,"url":"\/38.2-1606\/"},{"id":59699,"section_number":"38.2-225","catch_line":"Disposition of fines and penalties","order_by":null,"url":"\/38.2-225\/"}],"permalink":{"id":212301,"object_type":"law","relational_id":54201,"identifier":"38.2-1620","token":"38.2\/16\/2\/38.2-1620","url":"\/38.2-1620\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1620\/","token":"38.2\/16\/2\/38.2-1620","dublin_core":{"Title":"Financing the safety fund, maximum amount, distribution of excess","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1620","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The safety fund, at the discretion of the Commission<\/span>, shall receive penalty<\/span> payments levied against member insurers<\/span> made pursuant to subsection B of § 38.2-225<\/a> or any other payments approved by the Commission<\/span>. Such payments shall include funds borrowed under the provisions of subdivision B 7 of § 38.2-1606<\/a> in the event of a natural disaster in order<\/span> to provide for the prompt payment of covered claims<\/span> and expenses related thereto. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> may approve the payment of funds to the Association<\/span> provided the balance in the safety fund account<\/span> does not exceed two percent of the total of all member insurers<\/span>’ net direct written premiums<\/span> for classes of insurance<\/span> covered by the accounts<\/span> specified in § 38.2-1604<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Except as provided in subsection D of this section, investment income earned on assets<\/span> held in the safety fund shall be credited to the safety fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In the event the safety fund balance exceeds three percent of the net written premium for all classes of insurance<\/span> covered by the accounts<\/span> specified in § 38.2-1604<\/a>, at the discretion of the Commission<\/span> the difference shall be paid to the state<\/span> treasury to the credit of the Literary Fund or shall be subject to subsection F of § 38.2-1622<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In the event the fund is dissolved, remaining assets<\/span> in the safety fund will be distributed to the state<\/span> treasury to the credit of the Literary Fund. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFINANCING THE SAFETY FUND, MAXIMUM AMOUNT, DISTRIBUTION OF EXCESS (\u00a7 38.2-1620)\n\nA. The safety fund, at the discretion of the Commission, shall receive penalty\npayments levied against member insurers made pursuant to subsection B of §\n38.2-225 or any other payments approved by the Commission. Such payments shall\ninclude funds borrowed under the provisions of subdivision B 7 of §\n38.2-1606 in the event of a natural disaster in order to provide for the prompt\npayment of covered claims and expenses related thereto.\n\nB. The Commission may approve the payment of funds to the Association provided\nthe balance in the safety fund account does not exceed two percent of the total\nof all member insurers’ net direct written premiums for classes of\ninsurance covered by the accounts specified in § 38.2-1604.\n\nC. Except as provided in subsection D of this section, investment income earned\non assets held in the safety fund shall be credited to the safety fund.\n\nD. In the event the safety fund balance exceeds three percent of the net written\npremium for all classes of insurance covered by the accounts specified in §\n38.2-1604, at the discretion of the Commission the difference shall be paid to\nthe state treasury to the credit of the Literary Fund or shall be subject to\nsubsection F of § 38.2-1622.\n\nE. In the event the fund is dissolved, remaining assets in the safety fund will\nbe distributed to the state treasury to the credit of the Literary Fund.\n\nHISTORY: 1986, c. 562; 1998, c. 230.","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}}