{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2606.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2606.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2606.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2606.html"}],"law_id":56816,"edition_id":1,"section_id":56816,"structure_id":12840,"section_number":"38.2-2606","catch_line":"Reserves required","history":"1981, c. 530, \u00a7 38.1-936; 1986, c. 562.","full_text":"A home protection company licensed in this Commonwealth shall maintain reserves in an amount sufficient to provide for its liability to furnish appropriate indemnity, repairs, and replacement services under its issued and outstanding contracts. The reserve account shall be calculated according to sound actuarial principles, but shall equal at a minimum fifty percent of the premiums received from all contracts in force in this Commonwealth, net of applicable reinsurance and any amounts paid on account of liabilities incurred under the contracts. To receive credit for reinsurance on home protection contracts, the reinsurance contract or policy shall be issued by a solvent insurer licensed in this Commonwealth or any other state having standards of solvency at least equal to those required in this Commonwealth.","order_by":null,"text":{"0":{"id":208085,"text":"A home protection company licensed in this Commonwealth shall maintain reserves in an amount sufficient to provide for its liability to furnish appropriate indemnity, repairs, and replacement services under its issued and outstanding contracts. The reserve account shall be calculated according to sound actuarial principles, but shall equal at a minimum fifty percent of the premiums received from all contracts in force in this Commonwealth, net of applicable reinsurance and any amounts paid on account of liabilities incurred under the contracts. To receive credit for reinsurance on home protection contracts, the reinsurance contract or policy shall be issued by a solvent insurer licensed in this Commonwealth or any other state having standards of solvency at least equal to those required in this Commonwealth.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":12840,"edition_id":1,"name":"Home Protection Companies","identifier":"26","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":213943,"object_type":"structure","relational_id":12840,"identifier":"26","token":"38.2\/26","url":"\/38.2\/26\/","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":85986,"structure_id":12840,"section_number":"38.2-2600","catch_line":"Definitions","url":"\/38.2-2600\/","token":"38.2\/26\/38.2-2600","metadata":false},{"id":75121,"structure_id":12840,"section_number":"38.2-2601","catch_line":"Exemptions","url":"\/38.2-2601\/","token":"38.2\/26\/38.2-2601","metadata":false},{"id":59380,"structure_id":12840,"section_number":"38.2-2602","catch_line":"Limited applicability to certain insurers","url":"\/38.2-2602\/","token":"38.2\/26\/38.2-2602","metadata":false},{"id":66093,"structure_id":12840,"section_number":"38.2-2603","catch_line":"License required; application; fee","url":"\/38.2-2603\/","token":"38.2\/26\/38.2-2603","metadata":false},{"id":80501,"structure_id":12840,"section_number":"38.2-2604","catch_line":"Qualification for license; net worth; deposit of securities with State Treasurer","url":"\/38.2-2604\/","token":"38.2\/26\/38.2-2604","metadata":false},{"id":79225,"structure_id":12840,"section_number":"38.2-2605","catch_line":"Expiration and renewal of license","url":"\/38.2-2605\/","token":"38.2\/26\/38.2-2605","metadata":false},{"id":56816,"structure_id":12840,"section_number":"38.2-2606","catch_line":"Reserves required","url":"\/38.2-2606\/","token":"38.2\/26\/38.2-2606","metadata":false},{"id":73559,"structure_id":12840,"section_number":"38.2-2607","catch_line":"Annual statements","url":"\/38.2-2607\/","token":"38.2\/26\/38.2-2607","metadata":false},{"id":74863,"structure_id":12840,"section_number":"38.2-2608","catch_line":"Home protection contracts; filing; form and contents; application or agreement to purchase; regulation of rates and charges","url":"\/38.2-2608\/","token":"38.2\/26\/38.2-2608","metadata":false},{"id":59105,"structure_id":12840,"section_number":"38.2-2609","catch_line":"Qualifications of agents","url":"\/38.2-2609\/","token":"38.2\/26\/38.2-2609","metadata":false},{"id":81246,"structure_id":12840,"section_number":"38.2-2610","catch_line":"Cancellation of home protection contracts","url":"\/38.2-2610\/","token":"38.2\/26\/38.2-2610","metadata":false},{"id":70070,"structure_id":12840,"section_number":"38.2-2611","catch_line":"Unfair discrimination","url":"\/38.2-2611\/","token":"38.2\/26\/38.2-2611","metadata":false},{"id":55408,"structure_id":12840,"section_number":"38.2-2612","catch_line":"Unfair trade practices","url":"\/38.2-2612\/","token":"38.2\/26\/38.2-2612","metadata":false},{"id":75413,"structure_id":12840,"section_number":"38.2-2613","catch_line":"Application of insurance laws","url":"\/38.2-2613\/","token":"38.2\/26\/38.2-2613","metadata":false},{"id":79863,"structure_id":12840,"section_number":"38.2-2614","catch_line":"Fronting not permitted","url":"\/38.2-2614\/","token":"38.2\/26\/38.2-2614","metadata":false},{"id":63662,"structure_id":12840,"section_number":"38.2-2615","catch_line":"Other insurance transactions prohibited","url":"\/38.2-2615\/","token":"38.2\/26\/38.2-2615","metadata":false},{"id":63494,"structure_id":12840,"section_number":"38.2-2616","catch_line":"Binding arbitration provisions in contract","url":"\/38.2-2616\/","token":"38.2\/26\/38.2-2616","metadata":false},{"id":53987,"structure_id":12840,"section_number":"38.2-2617","catch_line":"Repealed","url":"\/38.2-2617\/","token":"38.2\/26\/38.2-2617","metadata":false},{"id":63420,"structure_id":12840,"section_number":"38.2-2628","catch_line":"Repealed","url":"\/38.2-2628\/","token":"38.2\/26\/38.2-2628","metadata":false}],"previous_section":{"id":79225,"structure_id":12840,"section_number":"38.2-2605","catch_line":"Expiration and renewal of license","url":"\/38.2-2605\/","token":"38.2\/26\/38.2-2605","metadata":false},"next_section":{"id":73559,"structure_id":12840,"section_number":"38.2-2607","catch_line":"Annual statements","url":"\/38.2-2607\/","token":"38.2\/26\/38.2-2607","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2606\/","history_text":"<p>This law was first created in 1981. The record of its establishment is cataloged in chapter 530 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 1981 \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":[{"id":59380,"section_number":"38.2-2602","catch_line":"Limited applicability to certain insurers","order_by":null,"url":"\/38.2-2602\/"},{"id":73559,"section_number":"38.2-2607","catch_line":"Annual statements","order_by":null,"url":"\/38.2-2607\/"}],"refers_to":false,"permalink":{"id":213969,"object_type":"law","relational_id":56816,"identifier":"38.2-2606","token":"38.2\/26\/38.2-2606","url":"\/38.2-2606\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2606\/","token":"38.2\/26\/38.2-2606","dublin_core":{"Title":"Reserves required","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2606","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>A <span class=\"dictionary\">home protection company<\/span> licensed in this Commonwealth shall maintain reserves in an amount sufficient to provide for its liability to furnish appropriate indemnity, repairs, and replacement services under its issued and outstanding <span class=\"dictionary\">contracts<\/span>. The reserve account shall be calculated according to sound actuarial principles, but shall equal at a minimum fifty percent of the premiums received from all <span class=\"dictionary\">contracts<\/span> in force in this Commonwealth, net of applicable reinsurance and any amounts paid on account of liabilities incurred under the <span class=\"dictionary\">contracts<\/span>. To receive credit for reinsurance on home protection <span class=\"dictionary\">contracts<\/span>, the reinsurance <span class=\"dictionary\">contract<\/span> or policy shall be issued by a solvent <span class=\"dictionary\">insurer<\/span> licensed in this Commonwealth or any other <span class=\"dictionary\">state<\/span> having standards of solvency at least equal to those required in this Commonwealth.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nRESERVES REQUIRED (\u00a7 38.2-2606)\n\nA home protection company licensed in this Commonwealth shall maintain reserves\nin an amount sufficient to provide for its liability to furnish appropriate\nindemnity, repairs, and replacement services under its issued and outstanding\ncontracts. The reserve account shall be calculated according to sound actuarial\nprinciples, but shall equal at a minimum fifty percent of the premiums received\nfrom all contracts in force in this Commonwealth, net of applicable reinsurance\nand any amounts paid on account of liabilities incurred under the contracts. To\nreceive credit for reinsurance on home protection contracts, the reinsurance\ncontract or policy shall be issued by a solvent insurer licensed in this\nCommonwealth or any other state having standards of solvency at least equal to\nthose required in this Commonwealth.\n\nHISTORY: 1981, c. 530, \u00a7 38.1-936; 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}}