{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2527.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2527.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2527.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2527.html"}],"law_id":55476,"edition_id":1,"section_id":55476,"structure_id":14244,"section_number":"38.2-2527","catch_line":"Limitation on single risk to be assumed","history":"1986, c. 562.","full_text":"A\n\nNo single risk shall be assumed by a mutual assessment property and casualty insurer in an amount exceeding ten percent of its surplus to policyholders. Any risk or portion of any risk which has been reinsured in accordance with § 38.2-2528 shall be deducted in determining the limitation of risk prescribed by this section. For the purposes of this section the amount of surplus to policyholders shall be determined on the basis of the last financial statement of the insurer, or the last report of examination filed with the Commission, whichever is more recent, at the time the risk is assumed. Mutual assessment property and casualty insurers licensed on or before July 1, 1986, shall conform to this limitation by July 1, 1991.B\n\nUntil July 1, 1991, the following single risk limits after deducting for reinsurance will apply:1\n\nNo insurer having less than $2 million insurance in force shall insure any 1 risk for more than $10,000;2\n\nNo insurer having more than $2 million but less than $5 million insurance in force shall insure any 1 risk for more than $12,000;3\n\nNo insurer having more than $5 million but less than $10 million insurance in force shall insure any 1 risk for more than $20,000;4\n\nNo insurer having more than $10 million insurance in force shall insure any 1 risk for a sum in excess of 15 cent(s) for each $100 insurance it has in force; and5\n\nAn insurer may insure any one risk in larger sums than prescribed in this section if (i) the excess over such prescribed maximum is reinsured as authorized in this chapter or (ii) the excess may be increased by the extent of twenty-five percent of the surplus of the insurer as of the time the insurance is written.","order_by":null,"text":{"0":{"id":203350,"text":"No single risk shall be assumed by a mutual assessment property and casualty insurer in an amount exceeding ten percent of its surplus to policyholders. Any risk or portion of any risk which has been reinsured in accordance with § 38.2-2528 shall be deducted in determining the limitation of risk prescribed by this section. For the purposes of this section the amount of surplus to policyholders shall be determined on the basis of the last financial statement of the insurer, or the last report of examination filed with the Commission, whichever is more recent, at the time the risk is assumed. Mutual assessment property and casualty insurers licensed on or before July 1, 1986, shall conform to this limitation by July 1, 1991.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":203351,"text":"Until July 1, 1991, the following single risk limits after deducting for reinsurance will apply:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":203352,"text":"No insurer having less than $2 million insurance in force shall insure any 1 risk for more than $10,000;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":203353,"text":"No insurer having more than $2 million but less than $5 million insurance in force shall insure any 1 risk for more than $12,000;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":203354,"text":"No insurer having more than $5 million but less than $10 million insurance in force shall insure any 1 risk for more than $20,000;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":203355,"text":"No insurer having more than $10 million insurance in force shall insure any 1 risk for a sum in excess of 15 cent(s) for each $100 insurance it has in force; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":203356,"text":"An insurer may insure any one risk in larger sums than prescribed in this section if (i) the excess over such prescribed maximum is reinsured as authorized in this chapter or (ii) the excess may be increased by the extent of twenty-five percent of the surplus of the insurer as of the time the insurance is written.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4"}},"ancestry":[{"id":14244,"edition_id":1,"name":"Financial Provisions","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13766,"metadata":{},"date_created":"2026-06-26 03:47:26","date_modified":"2026-06-26 03:47:26","permalink":{"id":213925,"object_type":"structure","relational_id":14244,"identifier":"5","token":"38.2\/25\/5","url":"\/38.2\/25\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13766,"edition_id":1,"name":"Mutual Assessment Property and Casualty Insurers","identifier":"25","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:49","date_modified":"2026-06-26 03:45:49","permalink":{"id":213811,"object_type":"structure","relational_id":13766,"identifier":"25","token":"38.2\/25","url":"\/38.2\/25\/","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":66601,"structure_id":14244,"section_number":"38.2-2526","catch_line":"Surplus to policyholders","url":"\/38.2-2526\/","token":"38.2\/25\/5\/38.2-2526","metadata":false},{"id":55476,"structure_id":14244,"section_number":"38.2-2527","catch_line":"Limitation on single risk to be assumed","url":"\/38.2-2527\/","token":"38.2\/25\/5\/38.2-2527","metadata":false},{"id":63780,"structure_id":14244,"section_number":"38.2-2528","catch_line":"Reinsurance","url":"\/38.2-2528\/","token":"38.2\/25\/5\/38.2-2528","metadata":false},{"id":56325,"structure_id":14244,"section_number":"38.2-2529","catch_line":"Unearned premium reserves required","url":"\/38.2-2529\/","token":"38.2\/25\/5\/38.2-2529","metadata":false}],"previous_section":{"id":66601,"structure_id":14244,"section_number":"38.2-2526","catch_line":"Surplus to policyholders","url":"\/38.2-2526\/","token":"38.2\/25\/5\/38.2-2526","metadata":false},"next_section":{"id":63780,"structure_id":14244,"section_number":"38.2-2528","catch_line":"Reinsurance","url":"\/38.2-2528\/","token":"38.2\/25\/5\/38.2-2528","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2527\/","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":63780,"section_number":"38.2-2528","catch_line":"Reinsurance","order_by":null,"url":"\/38.2-2528\/"}],"permalink":{"id":213931,"object_type":"law","relational_id":55476,"identifier":"38.2-2527","token":"38.2\/25\/5\/38.2-2527","url":"\/38.2-2527\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2527\/","token":"38.2\/25\/5\/38.2-2527","dublin_core":{"Title":"Limitation on single risk to be assumed","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2527","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No single risk shall be assumed by a mutual assessment property and casualty insurer<\/span> in an amount exceeding ten percent of its surplus to policyholders<\/span>. Any risk or portion of any risk which has been reinsured in accordance with § 38.2-2528<\/a> shall be deducted in determining the limitation of risk prescribed by this section. For the purposes of this section the amount of surplus to policyholders<\/span> shall be determined on the basis of the last financial statement of the insurer, or the last report of examination filed with the Commission<\/span>, whichever is more recent, at the time the risk is assumed. Mutual assessment property and casualty insurers<\/span> licensed on or before July 1, 1986, shall conform to this limitation by July 1, 1991. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Until July 1, 1991, the following single risk limits after deducting for reinsurance will apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> No insurer having less than $2 million insurance<\/span> in force shall insure any 1 risk for more than $10,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No insurer having more than $2 million but less than $5 million insurance<\/span> in force shall insure any 1 risk for more than $12,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No insurer having more than $5 million but less than $10 million insurance<\/span> in force shall insure any 1 risk for more than $20,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> No insurer having more than $10 million insurance<\/span> in force shall insure any 1 risk for a sum in excess of 15 cent(s) for each $100 insurance<\/span> it has in force; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer may insure any one risk in larger sums than prescribed in this section if (i) the excess over such prescribed maximum is reinsured as authorized in this chapter or (ii) the excess may be increased by the extent of twenty-five percent of the surplus of the insurer as of the time the insurance<\/span> is written. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATION ON SINGLE RISK TO BE ASSUMED (\u00a7 38.2-2527)\n\nA. No single risk shall be assumed by a mutual assessment property and casualty\ninsurer in an amount exceeding ten percent of its surplus to policyholders. Any\nrisk or portion of any risk which has been reinsured in accordance with §\n38.2-2528 shall be deducted in determining the limitation of risk prescribed by\nthis section. For the purposes of this section the amount of surplus to\npolicyholders shall be determined on the basis of the last financial statement\nof the insurer, or the last report of examination filed with the Commission,\nwhichever is more recent, at the time the risk is assumed. Mutual assessment\nproperty and casualty insurers licensed on or before July 1, 1986, shall conform\nto this limitation by July 1, 1991.\n\nB. Until July 1, 1991, the following single risk limits after deducting for\nreinsurance will apply:\n\n 1. No insurer having less than $2 million insurance in force shall insure any\n 1 risk for more than $10,000;\n\n 2. No insurer having more than $2 million but less than $5 million insurance\n in force shall insure any 1 risk for more than $12,000;\n\n 3. No insurer having more than $5 million but less than $10 million insurance\n in force shall insure any 1 risk for more than $20,000;\n\n 4. No insurer having more than $10 million insurance in force shall insure any\n 1 risk for a sum in excess of 15 cent(s) for each $100 insurance it has in\n force; and\n\n 5. An insurer may insure any one risk in larger sums than prescribed in this\n section if (i) the excess over such prescribed maximum is reinsured as\n authorized in this chapter or (ii) the excess may be increased by the extent\n of twenty-five percent of the surplus of the insurer as of the time the\n insurance is written.\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}}