{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2807.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2807.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2807.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2807.html"}],"law_id":82755,"edition_id":1,"section_id":82755,"structure_id":16350,"section_number":"38.2-2807","catch_line":"Stabilization reserve fund","history":"1976, c. 85, \u00a7 38.1-781; 1977, c. 154; 1986, c. 562; 1987, cc. 526, 554; 1988, c. 341.","full_text":"A\n\nWhen an association is activated under § 38.2-2801, a stabilization reserve fund shall be created. The fund shall be administered by five directors appointed by the Commission, one of whom shall be a representative of the Commission, two of whom shall be representatives of the association, and two of whom shall be representatives of the association’s policyholders.B\n\nThe directors shall act by majority vote with three directors constituting a quorum for the transaction of any business or the exercise of any power of the fund. The directors shall serve without salary, but each director shall be reimbursed for actual and necessary expenses incurred in the performance of his official duties as a director of the fund. The directors shall not be subject to any personal liability with respect to the administration of the fund.C\n\nEach policyholder shall pay to the association a stabilization reserve fund charge equal to one-third of the annual premium due for medical malpractice insurance through the association until the fund reaches a level deemed appropriate by the Commission. The means of payment shall be set forth in the plan of operation and shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge. Upon the termination of any policy during the term of the policy, payments made to the stabilization reserve fund shall be returned to the policyholder on a pro rata basis identical to that applied in computing that portion of the premium which is returned to the policyholder.D\n\nAll moneys received by the fund shall be held in a separate restricted cash account under the sole control of an independent fund manager to be selected by the directors. The fund manager may invest the moneys held, subject to the approval of the directors. All investment income shall be credited to the fund. All expenses of administration of the fund shall be charged against the fund. The moneys held shall be used solely for the following purposes: (i) to reimburse the association for any and all expenses, taxes, licenses and fees paid by the association which are properly chargeable or allocable to the stabilization reserve fund; or (ii) to pay any retrospective premium adjustment charge levied by the association. Payment of retrospective premium adjustment charges and other authorized payments shall be made by the directors upon certification to them by the association of the amount due. If all moneys accruing to the fund are exhausted in payment of retrospective premium adjustment charges, all liability and obligations of the association’s policyholders with respect to the payment of retrospective premium adjustment charges shall terminate and shall be conclusively presumed to have been discharged.E\n\nThe association shall promptly pay the fund manager of the fund all stabilization reserve fund charges that it collects from its policyholders.F\n\nUpon dissolution of the association, all assets remaining in the fund shall be distributed equitably to the policyholders who have contributed to the fund under procedures authorized by the directors. Distribution of assets remaining in the fund shall be made after final disposition of all claims, expenses, and liabilities against the fund, including reimbursement of preliminary organizational assessments made pursuant to subsection B of § 38.2-2804.","order_by":null,"text":{"0":{"id":296661,"text":"When an association is activated under § 38.2-2801, a stabilization reserve fund shall be created. The fund shall be administered by five directors appointed by the Commission, one of whom shall be a representative of the Commission, two of whom shall be representatives of the association, and two of whom shall be representatives of the association’s policyholders.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":296662,"text":"The directors shall act by majority vote with three directors constituting a quorum for the transaction of any business or the exercise of any power of the fund. The directors shall serve without salary, but each director shall be reimbursed for actual and necessary expenses incurred in the performance of his official duties as a director of the fund. The directors shall not be subject to any personal liability with respect to the administration of the fund.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":296663,"text":"Each policyholder shall pay to the association a stabilization reserve fund charge equal to one-third of the annual premium due for medical malpractice insurance through the association until the fund reaches a level deemed appropriate by the Commission. The means of payment shall be set forth in the plan of operation and shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge. Upon the termination of any policy during the term of the policy, payments made to the stabilization reserve fund shall be returned to the policyholder on a pro rata basis identical to that applied in computing that portion of the premium which is returned to the policyholder.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":296664,"text":"All moneys received by the fund shall be held in a separate restricted cash account under the sole control of an independent fund manager to be selected by the directors. The fund manager may invest the moneys held, subject to the approval of the directors. All investment income shall be credited to the fund. All expenses of administration of the fund shall be charged against the fund. The moneys held shall be used solely for the following purposes: (i) to reimburse the association for any and all expenses, taxes, licenses and fees paid by the association which are properly chargeable or allocable to the stabilization reserve fund; or (ii) to pay any retrospective premium adjustment charge levied by the association. Payment of retrospective premium adjustment charges and other authorized payments shall be made by the directors upon certification to them by the association of the amount due. If all moneys accruing to the fund are exhausted in payment of retrospective premium adjustment charges, all liability and obligations of the association’s policyholders with respect to the payment of retrospective premium adjustment charges shall terminate and shall be conclusively presumed to have been discharged.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":296665,"text":"The association shall promptly pay the fund manager of the fund all stabilization reserve fund charges that it collects from its policyholders.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":296666,"text":"Upon dissolution of the association, all assets remaining in the fund shall be distributed equitably to the policyholders who have contributed to the fund under procedures authorized by the directors. Distribution of assets remaining in the fund shall be made after final disposition of all claims, expenses, and liabilities against the fund, including reimbursement of preliminary organizational assessments made pursuant to subsection B of § 38.2-2804.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":16350,"edition_id":1,"name":"Medical Malpractice Joint Underwriting Association","identifier":"28","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 04:14:45","date_modified":"2026-06-26 04:14:45","permalink":{"id":214079,"object_type":"structure","relational_id":16350,"identifier":"28","token":"38.2\/28","url":"\/38.2\/28\/","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":87324,"structure_id":16350,"section_number":"38.2-2800","catch_line":"Definitions","url":"\/38.2-2800\/","token":"38.2\/28\/38.2-2800","metadata":false},{"id":76688,"structure_id":16350,"section_number":"38.2-2801","catch_line":"Association activation; members; purpose; determinations by Commission; powers of association","url":"\/38.2-2801\/","token":"38.2\/28\/38.2-2801","metadata":false},{"id":72714,"structure_id":16350,"section_number":"38.2-2802","catch_line":"Dissolution","url":"\/38.2-2802\/","token":"38.2\/28\/38.2-2802","metadata":false},{"id":71399,"structure_id":16350,"section_number":"38.2-2803","catch_line":"Directors","url":"\/38.2-2803\/","token":"38.2\/28\/38.2-2803","metadata":false},{"id":68647,"structure_id":16350,"section_number":"38.2-2804","catch_line":"Plan of operation","url":"\/38.2-2804\/","token":"38.2\/28\/38.2-2804","metadata":false},{"id":86913,"structure_id":16350,"section_number":"38.2-2805","catch_line":"Medical and hospital advisory committees","url":"\/38.2-2805\/","token":"38.2\/28\/38.2-2805","metadata":false},{"id":71882,"structure_id":16350,"section_number":"38.2-2806","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; examination of business of association","url":"\/38.2-2806\/","token":"38.2\/28\/38.2-2806","metadata":false},{"id":82755,"structure_id":16350,"section_number":"38.2-2807","catch_line":"Stabilization reserve fund","url":"\/38.2-2807\/","token":"38.2\/28\/38.2-2807","metadata":false},{"id":84923,"structure_id":16350,"section_number":"38.2-2808","catch_line":"Participation in association by insurers","url":"\/38.2-2808\/","token":"38.2\/28\/38.2-2808","metadata":false},{"id":85338,"structure_id":16350,"section_number":"38.2-2809","catch_line":"Review of actions or decisions of association","url":"\/38.2-2809\/","token":"38.2\/28\/38.2-2809","metadata":false},{"id":77634,"structure_id":16350,"section_number":"38.2-2810","catch_line":"Annual statements","url":"\/38.2-2810\/","token":"38.2\/28\/38.2-2810","metadata":false},{"id":73090,"structure_id":16350,"section_number":"38.2-2811","catch_line":"Examination into affairs of association","url":"\/38.2-2811\/","token":"38.2\/28\/38.2-2811","metadata":false},{"id":67125,"structure_id":16350,"section_number":"38.2-2812","catch_line":"Public officers or employees","url":"\/38.2-2812\/","token":"38.2\/28\/38.2-2812","metadata":false},{"id":79966,"structure_id":16350,"section_number":"38.2-2813","catch_line":"Commissions for placing and servicing risk with association","url":"\/38.2-2813\/","token":"38.2\/28\/38.2-2813","metadata":false},{"id":77408,"structure_id":16350,"section_number":"38.2-2814","catch_line":"Liability","url":"\/38.2-2814\/","token":"38.2\/28\/38.2-2814","metadata":false}],"previous_section":{"id":71882,"structure_id":16350,"section_number":"38.2-2806","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; examination of business of association","url":"\/38.2-2806\/","token":"38.2\/28\/38.2-2806","metadata":false},"next_section":{"id":84923,"structure_id":16350,"section_number":"38.2-2808","catch_line":"Participation in association by insurers","url":"\/38.2-2808\/","token":"38.2\/28\/38.2-2808","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2807\/","history_text":"

This law was first created in 1976. The record of its establishment is cataloged in chapter 85 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 1976 \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 1977, chapter 154; in 1986, chapter 562; in 1987, chapters 526 and 554; in 1988, chapter 341.<\/p>","references":[{"id":71882,"section_number":"38.2-2806","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; examination of business of association","order_by":null,"url":"\/38.2-2806\/"}],"refers_to":[{"id":76688,"section_number":"38.2-2801","catch_line":"Association activation; members; purpose; determinations by Commission; powers of association","order_by":null,"url":"\/38.2-2801\/"},{"id":68647,"section_number":"38.2-2804","catch_line":"Plan of operation","order_by":null,"url":"\/38.2-2804\/"}],"permalink":{"id":214109,"object_type":"law","relational_id":82755,"identifier":"38.2-2807","token":"38.2\/28\/38.2-2807","url":"\/38.2-2807\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2807\/","token":"38.2\/28\/38.2-2807","dublin_core":{"Title":"Stabilization reserve fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2807","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> When an association<\/span> is activated under § 38.2-2801<\/a>, a stabilization reserve fund shall be created. The fund shall be administered by five directors appointed by the Commission<\/span>, one of whom shall be a representative of the Commission<\/span>, two of whom shall be representatives of the association<\/span>, and two of whom shall be representatives of the association<\/span>’s policyholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The directors shall act by majority vote with three directors constituting a quorum for the transaction of any business or the exercise of any power of the fund. The directors shall serve without salary, but each director shall be reimbursed for actual and necessary expenses incurred in the performance of his official duties as a director of the fund. The directors shall not be subject to any personal liability with respect to the administration of the fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Each policyholder shall pay to the association<\/span> a stabilization reserve fund charge equal to one-third of the annual premium due for medical malpractice insurance<\/span> through the association<\/span> until the fund reaches a level deemed appropriate by the Commission<\/span>. The means of payment shall be set forth in the plan of operation and shall be separately stated in the policy. The association<\/span> shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge. Upon the termination of any policy during the term of the policy, payments made to the stabilization reserve fund shall be returned to the policyholder on a pro rata basis identical to that applied in computing that portion of the premium which is returned to the policyholder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> All moneys received by the fund shall be held in a separate restricted cash account under the sole control of an independent fund manager to be selected by the directors. The fund manager may invest the moneys held, subject to the approval of the directors. All investment income shall be credited to the fund. All expenses of administration of the fund shall be charged against the fund. The moneys held shall be used solely for the following purposes: (i) to reimburse the association<\/span> for any and all expenses, taxes, licenses and fees paid by the association<\/span> which are properly chargeable or allocable to the stabilization reserve fund; or (ii) to pay any retrospective premium adjustment charge levied by the association<\/span>. Payment of retrospective premium adjustment charges and other authorized payments shall be made by the directors upon certification to them by the association<\/span> of the amount due. If all moneys accruing to the fund are exhausted in payment of retrospective premium adjustment charges, all liability and obligations of the association<\/span>’s policyholders with respect to the payment of retrospective premium adjustment charges shall terminate and shall be conclusively presumed to have been discharged. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The association<\/span> shall promptly pay the fund manager of the fund all stabilization reserve fund charges that it collects from its policyholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Upon dissolution of the association<\/span>, all assets<\/span> remaining in the fund shall be distributed equitably to the policyholders who have contributed to the fund under procedures authorized by the directors. Distribution of assets<\/span> remaining in the fund shall be made after final disposition<\/span> of all claims, expenses, and liabilities against the fund, including reimbursement of preliminary organizational assessments made pursuant to subsection B of § 38.2-2804<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSTABILIZATION RESERVE FUND (\u00a7 38.2-2807)\n\nA. When an association is activated under § 38.2-2801, a stabilization\nreserve fund shall be created. The fund shall be administered by five directors\nappointed by the Commission, one of whom shall be a representative of the\nCommission, two of whom shall be representatives of the association, and two of\nwhom shall be representatives of the association’s policyholders.\n\nB. The directors shall act by majority vote with three directors constituting a\nquorum for the transaction of any business or the exercise of any power of the\nfund. The directors shall serve without salary, but each director shall be\nreimbursed for actual and necessary expenses incurred in the performance of his\nofficial duties as a director of the fund. The directors shall not be subject to\nany personal liability with respect to the administration of the fund.\n\nC. Each policyholder shall pay to the association a stabilization reserve fund\ncharge equal to one-third of the annual premium due for medical malpractice\ninsurance through the association until the fund reaches a level deemed\nappropriate by the Commission. The means of payment shall be set forth in the\nplan of operation and shall be separately stated in the policy. The association\nshall cancel the policy of any policyholder who fails to pay the stabilization\nreserve fund charge. Upon the termination of any policy during the term of the\npolicy, payments made to the stabilization reserve fund shall be returned to the\npolicyholder on a pro rata basis identical to that applied in computing that\nportion of the premium which is returned to the policyholder.\n\nD. All moneys received by the fund shall be held in a separate restricted cash\naccount under the sole control of an independent fund manager to be selected by\nthe directors. The fund manager may invest the moneys held, subject to the\napproval of the directors. All investment income shall be credited to the fund.\nAll expenses of administration of the fund shall be charged against the fund.\nThe moneys held shall be used solely for the following purposes: (i) to\nreimburse the association for any and all expenses, taxes, licenses and fees\npaid by the association which are properly chargeable or allocable to the\nstabilization reserve fund; or (ii) to pay any retrospective premium adjustment\ncharge levied by the association. Payment of retrospective premium adjustment\ncharges and other authorized payments shall be made by the directors upon\ncertification to them by the association of the amount due. If all moneys\naccruing to the fund are exhausted in payment of retrospective premium\nadjustment charges, all liability and obligations of the association’s\npolicyholders with respect to the payment of retrospective premium adjustment\ncharges shall terminate and shall be conclusively presumed to have been\ndischarged.\n\nE. The association shall promptly pay the fund manager of the fund all\nstabilization reserve fund charges that it collects from its policyholders.\n\nF. Upon dissolution of the association, all assets remaining in the fund shall\nbe distributed equitably to the policyholders who have contributed to the fund\nunder procedures authorized by the directors. Distribution of assets remaining\nin the fund shall be made after final disposition of all claims, expenses, and\nliabilities against the fund, including reimbursement of preliminary\norganizational assessments made pursuant to subsection B of § 38.2-2804.\n\nHISTORY: 1976, c. 85, \u00a7 38.1-781; 1977, c. 154; 1986, c. 562; 1987, cc. 526,\n554; 1988, c. 341.","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}}