{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2404.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2404.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2404.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2404.html"}],"law_id":54093,"edition_id":1,"section_id":54093,"structure_id":13027,"section_number":"38.2-2404","catch_line":"Limit when penalty of bond exceeds actual exposure to risk","history":"1952, c. 317, \u00a7 38.1-642; 1986, c. 562.","full_text":"When the penalty of a suretyship obligation exceeds (i) the amount of a judgment described on the obligation as appealed from and secured by the obligation, (ii) the amount of the subject matter in controversy, or (iii) the amount of the estate held in trust by the person acting in a fiduciary capacity, the bond may be executed by any fidelity and surety insurer if the actual amount of the judgment or the subject matter in controversy or estate not subject to supervision or control of the surety is not in excess of the limitation specified in \u00a7 38.2-208. When the penalty of a suretyship obligation executed for the performance of a contract exceeds the contract price, the contract price shall be taken as the basis for estimating the limit of risk specified in \u00a7 38.2-208.","order_by":null,"text":{"0":{"id":198559,"text":"When the penalty of a suretyship obligation exceeds (i) the amount of a judgment described on the obligation as appealed from and secured by the obligation, (ii) the amount of the subject matter in controversy, or (iii) the amount of the estate held in trust by the person acting in a fiduciary capacity, the bond may be executed by any fidelity and surety insurer if the actual amount of the judgment or the subject matter in controversy or estate not subject to supervision or control of the surety is not in excess of the limitation specified in \u00a7 38.2-208. When the penalty of a suretyship obligation executed for the performance of a contract exceeds the contract price, the contract price shall be taken as the basis for estimating the limit of risk specified in \u00a7 38.2-208.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2404\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 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 1952 \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 1986, chapter 562.<\/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":213737,"object_type":"law","relational_id":54093,"identifier":"38.2-2404","token":"38.2\/24\/1\/38.2-2404","url":"\/38.2-2404\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2404\/","token":"38.2\/24\/1\/38.2-2404","dublin_core":{"Title":"Limit when penalty of bond exceeds actual exposure to risk","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2404","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

When the penalty<\/span> of a suretyship obligation exceeds (i) the amount of a judgment<\/span> described on the obligation as appealed from and secured by the obligation, (ii) the amount of the subject matter in controversy, or (iii) the amount of the estate held in trust by the person<\/span> acting in a fiduciary capacity, the bond<\/span> may be executed by any fidelity and surety<\/span> insurer<\/span> if the actual amount of the judgment<\/span> or the subject matter in controversy or estate not subject to supervision or control of the surety<\/span> is not in excess of the limitation specified in \u00a7 38.2-208<\/a>. When the penalty<\/span> of a suretyship obligation executed for the performance of a contract<\/span> exceeds the contract<\/span> price, the contract<\/span> price shall be taken as the basis for estimating the limit of risk specified in \u00a7 38.2-208<\/a>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMIT WHEN PENALTY OF BOND EXCEEDS ACTUAL EXPOSURE TO RISK (\u00a7 38.2-2404)\n\nWhen the penalty of a suretyship obligation exceeds (i) the amount of a judgment\ndescribed on the obligation as appealed from and secured by the obligation, (ii)\nthe amount of the subject matter in controversy, or (iii) the amount of the\nestate held in trust by the person acting in a fiduciary capacity, the bond may\nbe executed by any fidelity and surety insurer if the actual amount of the\njudgment or the subject matter in controversy or estate not subject to\nsupervision or control of the surety is not in excess of the limitation\nspecified in \u00a7 38.2-208. When the penalty of a suretyship obligation executed\nfor the performance of a contract exceeds the contract price, the contract price\nshall be taken as the basis for estimating the limit of risk specified in \u00a7\n38.2-208.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-642; 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}}