{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1709.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1709.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1709.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1709.html"}],"law_id":69918,"edition_id":1,"section_id":69918,"structure_id":14902,"section_number":"38.2-1709","catch_line":"Tax write-offs of certificates of contributions","history":"1976, c. 330, \u00a7 38.1-482.27; 1986, c. 562; 1987, cc. 565, 655; 1991, c. 371; 1997, c. 160; 2010, c. 510; 2011, c. 850; 2018, c. 706.","full_text":"A\n\nA member insurer shall have at its option the right to show a certificate of contribution as an asset in the form approved by the Commission pursuant to subsection H of § 38.2-1705 at the original face amount for the calendar year of issuance. Such amount shall be amortized over the 10 calendar years following the year the contribution was paid in amounts each equal to 10 percent of the amount of the contribution.B\n\nThe member insurer may offset the amount of the certificate amortized in a calendar year as provided in subsection A. This amount shall be deducted from the premium tax liability incurred on business transacted in the Commonwealth for that year. However, the Association shall diligently pursue all rights available to it to recover its expenditures made in the fulfillment of its responsibilities under this chapter. If the Commission determines after a hearing that the Association is not diligently pursuing available measures of recovery, the Commission shall notify the Department and contributing member insurers will not be able to offset amounts amortized during the period that the Commission determines that the Association has not been diligently pursuing available measures of recovery.C\n\nAny sums for which a certificate of contribution has been issued that have been (i) amortized by contributing insurers and offset against premium taxes as provided in subsection B and (ii) subsequently refunded pursuant to subsection F of § 38.2-1705 shall be paid to the Department of Taxation and deposited with the State Treasurer for credit to the general fund of the Commonwealth.D\n\nThe amount of any credit against premium taxes provided for in this section for a member insurer shall be reduced by the amount of reduction in federal income taxes for any deduction claimed by the member insurer for an assessment paid pursuant to this chapter.E\n\nA member insurer that is exempt from taxes referenced in subsection A may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the Commission. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the loss ratio, or agent commission. If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the Association, and the excess amount shall be applied to reduce future assessments in the appropriate account.","order_by":null,"text":{"0":{"id":252651,"text":"A member insurer shall have at its option the right to show a certificate of contribution as an asset in the form approved by the Commission pursuant to subsection H of § 38.2-1705 at the original face amount for the calendar year of issuance. Such amount shall be amortized over the 10 calendar years following the year the contribution was paid in amounts each equal to 10 percent of the amount of the contribution.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":252652,"text":"The member insurer may offset the amount of the certificate amortized in a calendar year as provided in subsection A. This amount shall be deducted from the premium tax liability incurred on business transacted in the Commonwealth for that year. However, the Association shall diligently pursue all rights available to it to recover its expenditures made in the fulfillment of its responsibilities under this chapter. If the Commission determines after a hearing that the Association is not diligently pursuing available measures of recovery, the Commission shall notify the Department and contributing member insurers will not be able to offset amounts amortized during the period that the Commission determines that the Association has not been diligently pursuing available measures of recovery.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":252653,"text":"Any sums for which a certificate of contribution has been issued that have been (i) amortized by contributing insurers and offset against premium taxes as provided in subsection B and (ii) subsequently refunded pursuant to subsection F of § 38.2-1705 shall be paid to the Department of Taxation and deposited with the State Treasurer for credit to the general fund of the Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":252654,"text":"The amount of any credit against premium taxes provided for in this section for a member insurer shall be reduced by the amount of reduction in federal income taxes for any deduction claimed by the member insurer for an assessment paid pursuant to this chapter.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":252655,"text":"A member insurer that is exempt from taxes referenced in subsection A may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the Commission. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the loss ratio, or agent commission. If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the Association, and the excess amount shall be applied to reduce future assessments in the appropriate account.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14902,"edition_id":1,"name":"Establishment and Operation of the Association","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":14649,"metadata":{},"date_created":"2026-06-26 03:50:41","date_modified":"2026-06-26 03:50:41","permalink":{"id":212319,"object_type":"structure","relational_id":14902,"identifier":"1","token":"38.2\/17\/1","url":"\/38.2\/17\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14649,"edition_id":1,"name":"Virginia Life, Accident and Sickness Insurance Guaranty Association","identifier":"17","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:49:08","date_modified":"2026-06-26 03:49:08","permalink":{"id":212317,"object_type":"structure","relational_id":14649,"identifier":"17","token":"38.2\/17","url":"\/38.2\/17\/","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":85176,"structure_id":14902,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","url":"\/38.2-1700\/","token":"38.2\/17\/1\/38.2-1700","metadata":false},{"id":79730,"structure_id":14902,"section_number":"38.2-1701","catch_line":"Definitions","url":"\/38.2-1701\/","token":"38.2\/17\/1\/38.2-1701","metadata":false},{"id":62816,"structure_id":14902,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","url":"\/38.2-1702\/","token":"38.2\/17\/1\/38.2-1702","metadata":false},{"id":72232,"structure_id":14902,"section_number":"38.2-1703","catch_line":"Board of directors of Association","url":"\/38.2-1703\/","token":"38.2\/17\/1\/38.2-1703","metadata":false},{"id":65404,"structure_id":14902,"section_number":"38.2-1704","catch_line":"Powers and duties of Association","url":"\/38.2-1704\/","token":"38.2\/17\/1\/38.2-1704","metadata":false},{"id":59600,"structure_id":14902,"section_number":"38.2-1705","catch_line":"Assessments","url":"\/38.2-1705\/","token":"38.2\/17\/1\/38.2-1705","metadata":false},{"id":74544,"structure_id":14902,"section_number":"38.2-1706","catch_line":"Plan of operation","url":"\/38.2-1706\/","token":"38.2\/17\/1\/38.2-1706","metadata":false},{"id":64107,"structure_id":14902,"section_number":"38.2-1707","catch_line":"Duties and powers of the Commission","url":"\/38.2-1707\/","token":"38.2\/17\/1\/38.2-1707","metadata":false},{"id":65805,"structure_id":14902,"section_number":"38.2-1708","catch_line":"Detection and prevention of insolvencies","url":"\/38.2-1708\/","token":"38.2\/17\/1\/38.2-1708","metadata":false},{"id":69918,"structure_id":14902,"section_number":"38.2-1709","catch_line":"Tax write-offs of certificates of contributions","url":"\/38.2-1709\/","token":"38.2\/17\/1\/38.2-1709","metadata":false},{"id":56896,"structure_id":14902,"section_number":"38.2-1710","catch_line":"Miscellaneous provisions","url":"\/38.2-1710\/","token":"38.2\/17\/1\/38.2-1710","metadata":false},{"id":61703,"structure_id":14902,"section_number":"38.2-1711","catch_line":"Examination of the Association; annual report","url":"\/38.2-1711\/","token":"38.2\/17\/1\/38.2-1711","metadata":false},{"id":57475,"structure_id":14902,"section_number":"38.2-1712","catch_line":"Tax exemptions","url":"\/38.2-1712\/","token":"38.2\/17\/1\/38.2-1712","metadata":false},{"id":77644,"structure_id":14902,"section_number":"38.2-1713","catch_line":"Immunity","url":"\/38.2-1713\/","token":"38.2\/17\/1\/38.2-1713","metadata":false},{"id":59069,"structure_id":14902,"section_number":"38.2-1714","catch_line":"Stay of proceedings; reopening default judgments","url":"\/38.2-1714\/","token":"38.2\/17\/1\/38.2-1714","metadata":false},{"id":59869,"structure_id":14902,"section_number":"38.2-1715","catch_line":"Prohibited advertisement of Association coverage in insurance sales; notice to policy owners","url":"\/38.2-1715\/","token":"38.2\/17\/1\/38.2-1715","metadata":false}],"previous_section":{"id":65805,"structure_id":14902,"section_number":"38.2-1708","catch_line":"Detection and prevention of insolvencies","url":"\/38.2-1708\/","token":"38.2\/17\/1\/38.2-1708","metadata":false},"next_section":{"id":56896,"structure_id":14902,"section_number":"38.2-1710","catch_line":"Miscellaneous provisions","url":"\/38.2-1710\/","token":"38.2\/17\/1\/38.2-1710","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1709\/","history_text":"

This law was first created in 1976. The record of its establishment is cataloged in chapter 330 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 1976 \u201cActs\u201d aren\u2019t available online. It has been modified 7 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 1987, chapters 565 and 655; in 1991, chapter 371; in 1997, chapter 160<\/a>; in 2010, chapter 510<\/a>; in 2011, chapter 850<\/a>; in 2018, chapter 706<\/a>.<\/p>","references":[{"id":59600,"section_number":"38.2-1705","catch_line":"Assessments","order_by":null,"url":"\/38.2-1705\/"}],"refers_to":[{"id":59600,"section_number":"38.2-1705","catch_line":"Assessments","order_by":null,"url":"\/38.2-1705\/"}],"permalink":{"id":212357,"object_type":"law","relational_id":69918,"identifier":"38.2-1709","token":"38.2\/17\/1\/38.2-1709","url":"\/38.2-1709\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1709\/","token":"38.2\/17\/1\/38.2-1709","dublin_core":{"Title":"Tax write-offs of certificates of contributions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1709","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A member insurer<\/span> shall have at its option the right to show a certificate of contribution as an asset in the form approved by the Commission<\/span> pursuant to subsection H of § 38.2-1705<\/a> at the original face amount for the calendar year of issuance. Such amount shall be amortized over the 10 calendar years following the year the contribution was paid in amounts each equal to 10 percent of the amount of the contribution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The member insurer<\/span> may offset the amount of the certificate amortized in a calendar year as provided in subsection A. This amount shall be deducted from the premium tax liability incurred on business transacted in the Commonwealth for that year. However, the Association<\/span> shall diligently pursue all rights available to it to recover its expenditures made in the fulfillment of its responsibilities under this chapter. If the Commission<\/span> determines after a hearing<\/span> that the Association<\/span> is not diligently pursuing available measures of recovery, the Commission<\/span> shall notify the Department and contributing member insurers<\/span> will not be able to offset amounts amortized during the period that the Commission<\/span> determines that the Association<\/span> has not been diligently pursuing available measures of recovery. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any sums for which a certificate of contribution has been issued that have been (i) amortized by contributing insurers and offset against premium taxes as provided in subsection B and (ii) subsequently refunded pursuant to subsection F of § 38.2-1705<\/a> shall be paid to the Department of Taxation and deposited with the State<\/span> Treasurer for credit to the general fund of the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The amount of any credit against premium taxes provided for in this section for a member insurer<\/span> shall be reduced by the amount of reduction in federal income taxes for any deduction claimed by the member insurer<\/span> for an assessment paid pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A member insurer<\/span> that is exempt from taxes referenced in subsection A may recoup its assessments by a surcharge on its premiums<\/span> in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the Commission<\/span>. Amounts recouped shall not be considered premiums<\/span> for any other purpose, including the computation of gross premium tax, the loss ratio, or agent commission<\/span>. If a member insurer<\/span> collects excess surcharges, the member insurer<\/span> shall remit the excess amount to the Association<\/span>, and the excess amount shall be applied to reduce future assessments in the appropriate account<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAX WRITE-OFFS OF CERTIFICATES OF CONTRIBUTIONS (\u00a7 38.2-1709)\n\nA. A member insurer shall have at its option the right to show a certificate of\ncontribution as an asset in the form approved by the Commission pursuant to\nsubsection H of § 38.2-1705 at the original face amount for the calendar\nyear of issuance. Such amount shall be amortized over the 10 calendar years\nfollowing the year the contribution was paid in amounts each equal to 10 percent\nof the amount of the contribution.\n\nB. The member insurer may offset the amount of the certificate amortized in a\ncalendar year as provided in subsection A. This amount shall be deducted from\nthe premium tax liability incurred on business transacted in the Commonwealth\nfor that year. However, the Association shall diligently pursue all rights\navailable to it to recover its expenditures made in the fulfillment of its\nresponsibilities under this chapter. If the Commission determines after a\nhearing that the Association is not diligently pursuing available measures of\nrecovery, the Commission shall notify the Department and contributing member\ninsurers will not be able to offset amounts amortized during the period that the\nCommission determines that the Association has not been diligently pursuing\navailable measures of recovery.\n\nC. Any sums for which a certificate of contribution has been issued that have\nbeen (i) amortized by contributing insurers and offset against premium taxes as\nprovided in subsection B and (ii) subsequently refunded pursuant to subsection F\nof § 38.2-1705 shall be paid to the Department of Taxation and deposited\nwith the State Treasurer for credit to the general fund of the Commonwealth.\n\nD. The amount of any credit against premium taxes provided for in this section\nfor a member insurer shall be reduced by the amount of reduction in federal\nincome taxes for any deduction claimed by the member insurer for an assessment\npaid pursuant to this chapter.\n\nE. A member insurer that is exempt from taxes referenced in subsection A may\nrecoup its assessments by a surcharge on its premiums in a sum reasonably\ncalculated to recoup the assessments over a reasonable period of time, as\napproved by the Commission. Amounts recouped shall not be considered premiums\nfor any other purpose, including the computation of gross premium tax, the loss\nratio, or agent commission. If a member insurer collects excess surcharges, the\nmember insurer shall remit the excess amount to the Association, and the excess\namount shall be applied to reduce future assessments in the appropriate account.\n\nHISTORY: 1976, c. 330, \u00a7 38.1-482.27; 1986, c. 562; 1987, cc. 565, 655; 1991,\nc. 371; 1997, c. 160; 2010, c. 510; 2011, c. 850; 2018, c. 706.","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}}