{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1720.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1720.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1720.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1720.html"}],"law_id":56225,"edition_id":1,"section_id":56225,"structure_id":14650,"section_number":"38.2-1720","catch_line":"Use of safety fund, repayment, etc","history":"1986, c. 562.","full_text":"A\n\nThe purpose of the safety fund is to provide for the payment of covered claims in the event the assessment limit specified in subsection E of § 38.2-1705 is reached.B\n\nIn the event the assets of the safety fund are needed to pay covered claims, these assets shall be loaned to the respective account listed in subsection A of § 38.2-1702. This loan shall be the general obligation of the Association members and shall be evidenced by an agreement approved by the Commission.C\n\nInterest on this loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate will be updated quarterly in order to conform with market rates of interest.D\n\nThis loan shall be repaid by levying assessments against the members for the account on whose behalf the loan was negotiated. Unless otherwise approved by the Commission, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subsection E of § 38.2-1705.E\n\nSubject to the approval of the Commission assets of the safety fund may be loaned to any account in subsection A of § 38.2-1702 even though the maximum assessment in subsection E of § 38.2-1705 has not been levied if the directors of the Association determine that this action will minimize the cost to the Association in paying covered claims.F\n\nExcess safety fund assets set forth in subsection D of § 38.2-1718 may be used to pay the Association’s covered claims without the members incurring a liability to repay the safety fund.","order_by":null,"text":{"0":{"id":205966,"text":"The purpose of the safety fund is to provide for the payment of covered claims in the event the assessment limit specified in subsection E of § 38.2-1705 is reached.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":205967,"text":"In the event the assets of the safety fund are needed to pay covered claims, these assets shall be loaned to the respective account listed in subsection A of § 38.2-1702. This loan shall be the general obligation of the Association members and shall be evidenced by an agreement approved by the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":205968,"text":"Interest on this loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate will be updated quarterly in order to conform with market rates of interest.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":205969,"text":"This loan shall be repaid by levying assessments against the members for the account on whose behalf the loan was negotiated. Unless otherwise approved by the Commission, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subsection E of § 38.2-1705.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":205970,"text":"Subject to the approval of the Commission assets of the safety fund may be loaned to any account in subsection A of § 38.2-1702 even though the maximum assessment in subsection E of § 38.2-1705 has not been levied if the directors of the Association determine that this action will minimize the cost to the Association in paying covered claims.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":205971,"text":"Excess safety fund assets set forth in subsection D of § 38.2-1718 may be used to pay the Association’s covered claims without the members incurring a liability to repay the safety fund.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14650,"edition_id":1,"name":"Additional Funds Paid to the Association","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":14649,"metadata":{},"date_created":"2026-06-26 03:49:08","date_modified":"2026-06-26 03:49:08","permalink":{"id":212385,"object_type":"structure","relational_id":14650,"identifier":"2","token":"38.2\/17\/2","url":"\/38.2\/17\/2\/","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":84573,"structure_id":14650,"section_number":"38.2-1716","catch_line":"Purpose and applicability of article","url":"\/38.2-1716\/","token":"38.2\/17\/2\/38.2-1716","metadata":false},{"id":58196,"structure_id":14650,"section_number":"38.2-1717","catch_line":"Safety fund","url":"\/38.2-1717\/","token":"38.2\/17\/2\/38.2-1717","metadata":false},{"id":73632,"structure_id":14650,"section_number":"38.2-1718","catch_line":"Financing the safety fund, maximum amount, distribution of excess","url":"\/38.2-1718\/","token":"38.2\/17\/2\/38.2-1718","metadata":false},{"id":84019,"structure_id":14650,"section_number":"38.2-1719","catch_line":"Investment of safety fund","url":"\/38.2-1719\/","token":"38.2\/17\/2\/38.2-1719","metadata":false},{"id":56225,"structure_id":14650,"section_number":"38.2-1720","catch_line":"Use of safety fund, repayment, etc","url":"\/38.2-1720\/","token":"38.2\/17\/2\/38.2-1720","metadata":false},{"id":72689,"structure_id":14650,"section_number":"38.2-1721","catch_line":"Association as a fiduciary","url":"\/38.2-1721\/","token":"38.2\/17\/2\/38.2-1721","metadata":false}],"previous_section":{"id":84019,"structure_id":14650,"section_number":"38.2-1719","catch_line":"Investment of safety fund","url":"\/38.2-1719\/","token":"38.2\/17\/2\/38.2-1719","metadata":false},"next_section":{"id":72689,"structure_id":14650,"section_number":"38.2-1721","catch_line":"Association as a fiduciary","url":"\/38.2-1721\/","token":"38.2\/17\/2\/38.2-1721","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1720\/","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.<\/p>","references":false,"refers_to":[{"id":62816,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","order_by":null,"url":"\/38.2-1702\/"},{"id":59600,"section_number":"38.2-1705","catch_line":"Assessments","order_by":null,"url":"\/38.2-1705\/"},{"id":73632,"section_number":"38.2-1718","catch_line":"Financing the safety fund, maximum amount, distribution of excess","order_by":null,"url":"\/38.2-1718\/"}],"permalink":{"id":212403,"object_type":"law","relational_id":56225,"identifier":"38.2-1720","token":"38.2\/17\/2\/38.2-1720","url":"\/38.2-1720\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1720\/","token":"38.2\/17\/2\/38.2-1720","dublin_core":{"Title":"Use of safety fund, repayment, etc","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1720","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The purpose of the safety fund is to provide for the payment of covered claims in the event the assessment limit specified in subsection E of § 38.2-1705<\/a> is reached. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the event the assets<\/span> of the safety fund are needed to pay covered claims, these assets<\/span> shall be loaned to the respective account<\/span> listed in subsection A of § 38.2-1702<\/a>. This loan shall be the general obligation of the Association<\/span> members and shall be evidenced by an agreement approved by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Interest on this loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate<\/span> for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate<\/span> will be updated quarterly in order<\/span> to conform with market rates<\/span><\/span> of interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> This loan shall be repaid by levying assessments against the members for the account<\/span> on whose behalf the loan was negotiated. Unless otherwise approved by the Commission<\/span>, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subsection E of § 38.2-1705<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Subject to the approval of the Commission<\/span> assets<\/span> of the safety fund may be loaned to any account<\/span> in subsection A of § 38.2-1702<\/a> even though the maximum assessment in subsection E of § 38.2-1705<\/a> has not been levied if the directors of the Association<\/span> determine that this action will minimize the cost to the Association<\/span> in paying covered claims. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Excess safety fund assets<\/span> set forth in subsection D of § 38.2-1718<\/a> may be used to pay the Association<\/span>’s covered claims without the members incurring a liability to repay the safety fund. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUSE OF SAFETY FUND, REPAYMENT, ETC (\u00a7 38.2-1720)\n\nA. The purpose of the safety fund is to provide for the payment of covered\nclaims in the event the assessment limit specified in subsection E of §\n38.2-1705 is reached.\n\nB. In the event the assets of the safety fund are needed to pay covered claims,\nthese assets shall be loaned to the respective account listed in subsection A of\n§ 38.2-1702. This loan shall be the general obligation of the Association\nmembers and shall be evidenced by an agreement approved by the Commission.\n\nC. Interest on this loan shall be compounded quarterly and be based upon the\naverage ninety-day treasury bill rate for the most recently completed calendar\nquarter as published in the Federal Reserve Bulletin. This rate will be updated\nquarterly in order to conform with market rates of interest.\n\nD. This loan shall be repaid by levying assessments against the members for the\naccount on whose behalf the loan was negotiated. Unless otherwise approved by\nthe Commission, the loan shall be repaid within six months of its issuance. This\nassessment in conjunction with any other assessments levied, shall not exceed\nthe limit specified in subsection E of § 38.2-1705.\n\nE. Subject to the approval of the Commission assets of the safety fund may be\nloaned to any account in subsection A of § 38.2-1702 even though the\nmaximum assessment in subsection E of § 38.2-1705 has not been levied if\nthe directors of the Association determine that this action will minimize the\ncost to the Association in paying covered claims.\n\nF. Excess safety fund assets set forth in subsection D of § 38.2-1718 may\nbe used to pay the Association’s covered claims without the members\nincurring a liability to repay the safety fund.\n\nHISTORY: 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}}