{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2702.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2702.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2702.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2702.html"}],"law_id":73266,"edition_id":1,"section_id":73266,"structure_id":13727,"section_number":"38.2-2702","catch_line":"Establishment of residual market facility","history":"1968, c. 559, \u00a7 38.1-748; 1973, c. 451, \u00a7 38.1-748.1; 1980, c. 156; 1982, c. 664; 1986, c. 562.","full_text":"A\n\nA residual market facility shall be established and maintained by all insurers licensed to write basic property insurance or other insurance containing a basic property insurance component. The plan of operation of the residual market facility shall be subject to approval by the Commission.B\n\nThe residual market facility shall be governed by a board of fifteen directors. Four directors shall be appointed by the Commissioner, two of whom shall be property and casualty insurance agents and two of whom shall be from the general public.C\n\nThe residual market facility shall have the power to:1\n\nEmploy or retain persons necessary to perform the duties of the residual market facility;2\n\nAcquire, hold, and dispose of real and personal property, or any interest in real and personal property;3\n\nBorrow funds necessary to effect the purposes of this chapter in accord with the plan of operation;4\n\nNegotiate and become a party to those contracts necessary to carry out the purposes of this chapter;5\n\nIndemnify any director or member of its governing body, officer, employee, or agent in the manner permitted by and subject to the limitations contained in Article 9 (§ 13.1-875 et seq.) of Chapter 10 of Title 13.1; and provide any other or further indemnity to any such person that may be authorized by the plan of operation except an indemnity against his gross negligence or willful misconduct, and purchase and maintain insurance in the manner permitted by § 13.1-882; and6\n\nPerform any other acts necessary or proper to carry out the purposes of this chapter.D\n\nThe residual market facility shall not be deemed to be an insurer within the provisions of § 38.2-100.","order_by":null,"text":{"0":{"id":263691,"text":"A residual market facility shall be established and maintained by all insurers licensed to write basic property insurance or other insurance containing a basic property insurance component. The plan of operation of the residual market facility shall be subject to approval by the Commission.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":263692,"text":"The residual market facility shall be governed by a board of fifteen directors. Four directors shall be appointed by the Commissioner, two of whom shall be property and casualty insurance agents and two of whom shall be from the general public.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":263693,"text":"The residual market facility shall have the power to:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":263694,"text":"Employ or retain persons necessary to perform the duties of the residual market facility;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":263695,"text":"Acquire, hold, and dispose of real and personal property, or any interest in real and personal property;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":263696,"text":"Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":263697,"text":"Negotiate and become a party to those contracts necessary to carry out the purposes of this chapter;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"7":{"id":263698,"text":"Indemnify any director or member of its governing body, officer, employee, or agent in the manner permitted by and subject to the limitations contained in Article 9 (§ 13.1-875 et seq.) of Chapter 10 of Title 13.1; and provide any other or further indemnity to any such person that may be authorized by the plan of operation except an indemnity against his gross negligence or willful misconduct, and purchase and maintain insurance in the manner permitted by § 13.1-882; and","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"8":{"id":263699,"text":"Perform any other acts necessary or proper to carry out the purposes of this chapter.","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"D"},"9":{"id":263700,"text":"The residual market facility shall not be deemed to be an insurer within the provisions of § 38.2-100.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C6"}},"ancestry":[{"id":13727,"edition_id":1,"name":"Basic Property Insurance Residual Market Facility and Joint Underwriting Association","identifier":"27","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:41","date_modified":"2026-06-26 03:45:41","permalink":{"id":214021,"object_type":"structure","relational_id":13727,"identifier":"27","token":"38.2\/27","url":"\/38.2\/27\/","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":76295,"structure_id":13727,"section_number":"38.2-2700","catch_line":"Purposes of chapter","url":"\/38.2-2700\/","token":"38.2\/27\/38.2-2700","metadata":false},{"id":70510,"structure_id":13727,"section_number":"38.2-2701","catch_line":"Definitions","url":"\/38.2-2701\/","token":"38.2\/27\/38.2-2701","metadata":false},{"id":73266,"structure_id":13727,"section_number":"38.2-2702","catch_line":"Establishment of residual market facility","url":"\/38.2-2702\/","token":"38.2\/27\/38.2-2702","metadata":false},{"id":54721,"structure_id":13727,"section_number":"38.2-2703","catch_line":"Rules, rates, policy forms and endorsements subject to the approval of Commission","url":"\/38.2-2703\/","token":"38.2\/27\/38.2-2703","metadata":false},{"id":57901,"structure_id":13727,"section_number":"38.2-2704","catch_line":"Inspection of property","url":"\/38.2-2704\/","token":"38.2\/27\/38.2-2704","metadata":false},{"id":71280,"structure_id":13727,"section_number":"38.2-2705","catch_line":"Operation of inspection service","url":"\/38.2-2705\/","token":"38.2\/27\/38.2-2705","metadata":false},{"id":66385,"structure_id":13727,"section_number":"38.2-2706","catch_line":"Service of process","url":"\/38.2-2706\/","token":"38.2\/27\/38.2-2706","metadata":false},{"id":58816,"structure_id":13727,"section_number":"38.2-2707","catch_line":"When Commission may order implementation of \u00a7\u00a7 38.2-2708 and 38.2-2709","url":"\/38.2-2707\/","token":"38.2\/27\/38.2-2707","metadata":false},{"id":85005,"structure_id":13727,"section_number":"38.2-2708","catch_line":"Creation and plan of operation of joint underwriting association","url":"\/38.2-2708\/","token":"38.2\/27\/38.2-2708","metadata":false},{"id":81180,"structure_id":13727,"section_number":"38.2-2709","catch_line":"Ceding basic property insurance to association; participation of members; governing body","url":"\/38.2-2709\/","token":"38.2\/27\/38.2-2709","metadata":false},{"id":80031,"structure_id":13727,"section_number":"38.2-2710","catch_line":"Supervision and regulation by Commission","url":"\/38.2-2710\/","token":"38.2\/27\/38.2-2710","metadata":false},{"id":71397,"structure_id":13727,"section_number":"38.2-2711","catch_line":"Immunity from liability; reports, etc., not public documents","url":"\/38.2-2711\/","token":"38.2\/27\/38.2-2711","metadata":false},{"id":60783,"structure_id":13727,"section_number":"38.2-2712","catch_line":"Appeal from decision of inspection service, residual market facility or joint underwriting association","url":"\/38.2-2712\/","token":"38.2\/27\/38.2-2712","metadata":false},{"id":81221,"structure_id":13727,"section_number":"38.2-2713","catch_line":"Obligations not to be impaired in event of repeal of chapter","url":"\/38.2-2713\/","token":"38.2\/27\/38.2-2713","metadata":false}],"previous_section":{"id":70510,"structure_id":13727,"section_number":"38.2-2701","catch_line":"Definitions","url":"\/38.2-2701\/","token":"38.2\/27\/38.2-2701","metadata":false},"next_section":{"id":54721,"structure_id":13727,"section_number":"38.2-2703","catch_line":"Rules, rates, policy forms and endorsements subject to the approval of Commission","url":"\/38.2-2703\/","token":"38.2\/27\/38.2-2703","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2702\/","history_text":"

This law was first created in 1968. The record of its establishment is cataloged in chapter 559 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 1968 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1973, chapter 451; in 1980, chapter 156; in 1982, chapter 664; in 1986, chapter 562.<\/p>","references":[{"id":58816,"section_number":"38.2-2707","catch_line":"When Commission may order implementation of \u00a7\u00a7 38.2-2708 and 38.2-2709","order_by":null,"url":"\/38.2-2707\/"}],"refers_to":[{"id":56361,"section_number":"13.1-875","catch_line":"Definitions","order_by":null,"url":"\/13.1-875\/"},{"id":55875,"section_number":"13.1-882","catch_line":"Insurance","order_by":null,"url":"\/13.1-882\/"},{"id":59918,"section_number":"38.2-100","catch_line":"Definitions","order_by":null,"url":"\/38.2-100\/"}],"permalink":{"id":214031,"object_type":"law","relational_id":73266,"identifier":"38.2-2702","token":"38.2\/27\/38.2-2702","url":"\/38.2-2702\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2702\/","token":"38.2\/27\/38.2-2702","dublin_core":{"Title":"Establishment of residual market facility","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2702","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A residual market facility<\/span> shall be established and maintained by all insurers<\/span> licensed to write basic property insurance<\/span> or other insurance containing a basic property insurance<\/span> component. The plan of operation of the residual market facility<\/span> shall be subject to approval by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The residual market facility<\/span> shall be governed by a board of fifteen directors. Four directors shall be appointed by the Commissioner<\/span>, two of whom shall be property and casualty insurance agents and two of whom shall be from the general public. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The residual market facility<\/span> shall have the power to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Employ or retain persons<\/span> necessary to perform the duties of the residual market facility<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Acquire, hold, and dispose of real and personal property, or any interest in real and personal property; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Negotiate and become a party<\/span> to those contracts<\/span> necessary to carry out the purposes of this chapter; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Indemnify any director or member of its governing body, officer, employee, or agent in the manner permitted by and subject to the limitations contained in Article 9 (§ 13.1-875<\/a> et seq.) of Chapter 10 of Title 13.1; and provide any other or further indemnity to any such person<\/span> that may be authorized by the plan of operation except an indemnity against his gross negligence<\/span> or willful misconduct, and purchase and maintain insurance in the manner permitted by § 13.1-882<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Perform any other acts necessary or proper to carry out the purposes of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The residual market facility<\/span> shall not be deemed to be an insurer<\/span> within the provisions of § 38.2-100<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nESTABLISHMENT OF RESIDUAL MARKET FACILITY (\u00a7 38.2-2702)\n\nA. A residual market facility shall be established and maintained by all\ninsurers licensed to write basic property insurance or other insurance\ncontaining a basic property insurance component. The plan of operation of the\nresidual market facility shall be subject to approval by the Commission.\n\nB. The residual market facility shall be governed by a board of fifteen\ndirectors. Four directors shall be appointed by the Commissioner, two of whom\nshall be property and casualty insurance agents and two of whom shall be from\nthe general public.\n\nC. The residual market facility shall have the power to:\n\n 1. Employ or retain persons necessary to perform the duties of the residual\n market facility;\n\n 2. Acquire, hold, and dispose of real and personal property, or any interest\n in real and personal property;\n\n 3. Borrow funds necessary to effect the purposes of this chapter in accord\n with the plan of operation;\n\n 4. Negotiate and become a party to those contracts necessary to carry out the\n purposes of this chapter;\n\n 5. Indemnify any director or member of its governing body, officer, employee,\n or agent in the manner permitted by and subject to the limitations contained\n in Article 9 (§ 13.1-875 et seq.) of Chapter 10 of Title 13.1; and\n provide any other or further indemnity to any such person that may be\n authorized by the plan of operation except an indemnity against his gross\n negligence or willful misconduct, and purchase and maintain insurance in the\n manner permitted by § 13.1-882; and\n\n 6. Perform any other acts necessary or proper to carry out the purposes of\n this chapter.\n\nD. The residual market facility shall not be deemed to be an insurer within the\nprovisions of § 38.2-100.\n\nHISTORY: 1968, c. 559, \u00a7 38.1-748; 1973, c. 451, \u00a7 38.1-748.1; 1980, c. 156;\n1982, c. 664; 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}}