{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2403.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2403.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2403.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2403.html"}],"law_id":83888,"edition_id":1,"section_id":83888,"structure_id":13027,"section_number":"38.2-2403","catch_line":"Limitation of liability on risks","history":"Code 1950, \u00a7\u00a7 38-343, 38-344; 1952, c. 317, \u00a7 38.1-641; 1986, c. 562; 1988, cc. 529, 548.","full_text":"In applying the limitation specified in \u00a7 38.2-208 to fidelity and surety risks, the net amount of exposure on any single risk shall be considered to be within the prescribed limit if the fidelity and surety insurer is protected against losses in excess of the limit by:\n\n1\n\nReinsurance with a fidelity and surety insurer that enables the obligee or beneficiary to maintain an action on the contract against the insurer jointly with the reinsurer;2\n\nThe cosuretyship of any other fidelity and surety insurer;3\n\nA deposit of property with it in pledge, or conveyance of property to it in trust for its protection;4\n\nA conveyance or mortgage of property for its protection;5\n\nA deposit or other disposition of a portion of any property held in trust so that no future sale, mortgage, pledge or other disposition can be made of that portion of the property except with the consent of the fidelity and surety insurer or by decree or order of a competent court whenever the obligation is entered into on behalf or on account of a person holding property in a fiduciary capacity; or6\n\nA guarantee by the Small Business Administrator that the surety shall not suffer loss as set forth in the Small Business Investment Act of 1958.","order_by":null,"text":{"0":{"id":300632,"text":"In applying the limitation specified in \u00a7 38.2-208 to fidelity and surety risks, the net amount of exposure on any single risk shall be considered to be within the prescribed limit if the fidelity and surety insurer is protected against losses in excess of the limit by:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":300633,"text":"Reinsurance with a fidelity and surety insurer that enables the obligee or beneficiary to maintain an action on the contract against the insurer jointly with the reinsurer;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":300634,"text":"The cosuretyship of any other fidelity and surety insurer;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":300635,"text":"A deposit of property with it in pledge, or conveyance of property to it in trust for its protection;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":300636,"text":"A conveyance or mortgage of property for its protection;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":300637,"text":"A deposit or other disposition of a portion of any property held in trust so that no future sale, mortgage, pledge or other disposition can be made of that portion of the property except with the consent of the fidelity and surety insurer or by decree or order of a competent court whenever the obligation is entered into on behalf or on account of a person holding property in a fiduciary capacity; or","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":300638,"text":"A guarantee by the Small Business Administrator that the surety shall not suffer loss as set forth in the Small Business Investment Act of 1958.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5"}},"ancestry":[{"id":13027,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13026,"metadata":{},"date_created":"2026-06-26 03:44:09","date_modified":"2026-06-26 03:44:09","permalink":{"id":213719,"object_type":"structure","relational_id":13027,"identifier":"1","token":"38.2\/24\/1","url":"\/38.2\/24\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13026,"edition_id":1,"name":"Fidelity and Surety Insurance","identifier":"24","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:09","date_modified":"2026-06-26 03:44:09","permalink":{"id":213717,"object_type":"structure","relational_id":13026,"identifier":"24","token":"38.2\/24","url":"\/38.2\/24\/","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":60009,"structure_id":13027,"section_number":"38.2-2400","catch_line":"Class of insurance to which chapter applies","url":"\/38.2-2400\/","token":"38.2\/24\/1\/38.2-2400","metadata":false},{"id":87461,"structure_id":13027,"section_number":"38.2-2401","catch_line":"Fidelity and surety insurer defined","url":"\/38.2-2401\/","token":"38.2\/24\/1\/38.2-2401","metadata":false},{"id":83565,"structure_id":13027,"section_number":"38.2-2402","catch_line":"Fidelity and surety insurer not to transact insurance without appropriate license","url":"\/38.2-2402\/","token":"38.2\/24\/1\/38.2-2402","metadata":false},{"id":83888,"structure_id":13027,"section_number":"38.2-2403","catch_line":"Limitation of liability on risks","url":"\/38.2-2403\/","token":"38.2\/24\/1\/38.2-2403","metadata":false},{"id":54093,"structure_id":13027,"section_number":"38.2-2404","catch_line":"Limit when penalty of bond exceeds actual exposure to risk","url":"\/38.2-2404\/","token":"38.2\/24\/1\/38.2-2404","metadata":false},{"id":67467,"structure_id":13027,"section_number":"38.2-2405","catch_line":"When insurer accepted as surety","url":"\/38.2-2405\/","token":"38.2\/24\/1\/38.2-2405","metadata":false},{"id":78486,"structure_id":13027,"section_number":"38.2-2406","catch_line":"Requirements deemed met by insurer","url":"\/38.2-2406\/","token":"38.2\/24\/1\/38.2-2406","metadata":false},{"id":86573,"structure_id":13027,"section_number":"38.2-2407","catch_line":"Repealed","url":"\/38.2-2407\/","token":"38.2\/24\/1\/38.2-2407","metadata":false},{"id":66278,"structure_id":13027,"section_number":"38.2-2409","catch_line":"Agreement for joint control of money and assets","url":"\/38.2-2409\/","token":"38.2\/24\/1\/38.2-2409","metadata":false},{"id":55291,"structure_id":13027,"section_number":"38.2-2410","catch_line":"Expense of securing bond to be allowed in settlements; exceptions","url":"\/38.2-2410\/","token":"38.2\/24\/1\/38.2-2410","metadata":false},{"id":60275,"structure_id":13027,"section_number":"38.2-2411","catch_line":"Repealed","url":"\/38.2-2411\/","token":"38.2\/24\/1\/38.2-2411","metadata":false},{"id":71589,"structure_id":13027,"section_number":"38.2-2412","catch_line":"Notice to clerks of revocation of licenses","url":"\/38.2-2412\/","token":"38.2\/24\/1\/38.2-2412","metadata":false},{"id":79081,"structure_id":13027,"section_number":"38.2-2412.1","catch_line":"Notice to Department of Criminal Justice Services of revocation of property and casualty insurance license","url":"\/38.2-2412.1\/","token":"38.2\/24\/1\/38.2-2412.1","metadata":false},{"id":56004,"structure_id":13027,"section_number":"38.2-2412.2","catch_line":"Surety bail bondsman; notice to Department of Criminal Justice Services of violations","url":"\/38.2-2412.2\/","token":"38.2\/24\/1\/38.2-2412.2","metadata":false},{"id":66100,"structure_id":13027,"section_number":"38.2-2413","catch_line":"Release of insurers from liability; rights and remedies","url":"\/38.2-2413\/","token":"38.2\/24\/1\/38.2-2413","metadata":false},{"id":61600,"structure_id":13027,"section_number":"38.2-2414","catch_line":"Insurer estopped to deny power to assume liability","url":"\/38.2-2414\/","token":"38.2\/24\/1\/38.2-2414","metadata":false},{"id":78586,"structure_id":13027,"section_number":"38.2-2415","catch_line":"Where civil proceedings may be instituted","url":"\/38.2-2415\/","token":"38.2\/24\/1\/38.2-2415","metadata":false}],"previous_section":{"id":83565,"structure_id":13027,"section_number":"38.2-2402","catch_line":"Fidelity and surety insurer not to transact insurance without appropriate license","url":"\/38.2-2402\/","token":"38.2\/24\/1\/38.2-2402","metadata":false},"next_section":{"id":54093,"structure_id":13027,"section_number":"38.2-2404","catch_line":"Limit when penalty of bond exceeds actual exposure to risk","url":"\/38.2-2404\/","token":"38.2\/24\/1\/38.2-2404","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2403\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 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 1952, chapter 317; in 1986, chapter 562; in 1988, chapters 529 and 548.<\/p>","references":false,"refers_to":[{"id":66293,"section_number":"38.2-208","catch_line":"Limitation of risks generally","order_by":null,"url":"\/38.2-208\/"}],"permalink":{"id":213733,"object_type":"law","relational_id":83888,"identifier":"38.2-2403","token":"38.2\/24\/1\/38.2-2403","url":"\/38.2-2403\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2403\/","token":"38.2\/24\/1\/38.2-2403","dublin_core":{"Title":"Limitation of liability on risks","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2403","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In applying the limitation specified in \u00a7 38.2-208<\/a> to fidelity and surety<\/span> risks, the net amount of exposure on any single risk shall be considered to be within the prescribed limit if the fidelity and surety<\/span> insurer<\/span> is protected against losses in excess of the limit by:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Reinsurance with a fidelity and surety<\/span> insurer<\/span> that enables the obligee or beneficiary to maintain an action on the contract<\/span> against the insurer<\/span> jointly with the reinsurer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The cosuretyship of any other fidelity and surety<\/span> insurer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A deposit of property with it in pledge, or conveyance of property to it in trust for its protection; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A conveyance or mortgage of property for its protection; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A deposit or other disposition<\/span> of a portion of any property held in trust so that no future sale, mortgage, pledge or other disposition<\/span> can be made of that portion of the property except with the consent of the fidelity and surety<\/span> insurer<\/span> or by decree<\/span> or order<\/span> of a competent court<\/span> whenever the obligation is entered into on behalf or on account of a person<\/span> holding property in a fiduciary capacity; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A guarantee by the Small Business Administrator that the surety<\/span> shall not suffer loss as set forth in the Small Business Investment Act of 1958. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATION OF LIABILITY ON RISKS (\u00a7 38.2-2403)\n\nIn applying the limitation specified in \u00a7 38.2-208 to fidelity and surety\nrisks, the net amount of exposure on any single risk shall be considered to be\nwithin the prescribed limit if the fidelity and surety insurer is protected\nagainst losses in excess of the limit by:\n\n1. Reinsurance with a fidelity and surety insurer that enables the obligee or\nbeneficiary to maintain an action on the contract against the insurer jointly\nwith the reinsurer;\n\n2. The cosuretyship of any other fidelity and surety insurer;\n\n3. A deposit of property with it in pledge, or conveyance of property to it in\ntrust for its protection;\n\n4. A conveyance or mortgage of property for its protection;\n\n5. A deposit or other disposition of a portion of any property held in trust so\nthat no future sale, mortgage, pledge or other disposition can be made of that\nportion of the property except with the consent of the fidelity and surety\ninsurer or by decree or order of a competent court whenever the obligation is\nentered into on behalf or on account of a person holding property in a fiduciary\ncapacity; or\n\n6. A guarantee by the Small Business Administrator that the surety shall not\nsuffer loss as set forth in the Small Business Investment Act of 1958.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-343, 38-344; 1952, c. 317, \u00a7 38.1-641; 1986, c.\n562; 1988, cc. 529, 548.","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}}