{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2901.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2901.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2901.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2901.html"}],"law_id":65411,"edition_id":1,"section_id":65411,"structure_id":13381,"section_number":"38.2-2901","catch_line":"Association activation; members; purpose; determinations by Commission; powers of Association","history":"1988, cc. 769, 783.","full_text":"A\n\nAfter investigation, notice, and hearing, the Commission shall be empowered to activate a Joint Underwriting Association with respect to any line, subclassification or type of commercial liability insurance coverage if it finds that such line, subclassification, or type of commercial liability insurance coverage is not reasonably available for a significant number of any class, type, or group of such risks in the voluntary market or through a market assistance plan. The Association shall consist of all insurers licensed to write and engaged in writing the classes of insurance defined in §§ 38.2-117 through 38.2-119, and the liability portions of the insurance defined in §§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within this Commonwealth on a direct basis except those exempted from rate regulation by subsection C of § 38.2-1902. Each such insurer shall be a member of the Association as a condition of its license to write such insurance in this Commonwealth.B\n\nThe purpose of the Association shall be to provide markets for commercial liability insurance for persons with eligible risks who are unable to obtain commercial liability insurance coverage, including incidental coverage, through the voluntary market. It shall also be the purpose of the Association to do so on a self-supporting basis without subsidy from its members.C\n\n1. The Association shall not commence underwriting operations for any line, subclassification or type of commercial liability insurance coverage until so ordered by the Commission. At the direction of the Commission, the Association shall commence operations in accordance with the provisions of this chapter.2\n\nIf the Commission determines at any time that a line, subclassification or type of commercial liability insurance coverage is reasonably available at adequate levels in the voluntary market, the Association shall, at the direction of the Commission, cease its underwriting operations for that line, subclassification, or type of commercial liability insurance coverage.D\n\nThe Commission shall also determine after investigation and a hearing whether the Association shall be the exclusive source of any line, subclassification or type of commercial liability insurance which it finds not to be reasonably available pursuant to subsection A of this section and the type of policy or policies that shall be issued for any line, subclassification or type of commercial liability insurance. If the Commission determines that a claims-made policy will be issued for any line, subclassification or type of coverage, the Commission shall also provide for the guaranteed availability of insurance that covers claims which (i) result from incidents occurring during periods when the basic claims-made policies are in force; and (ii) are reported after the expiration of the basic claims-made policies. The Commission may from time to time after an investigation and hearing reexamine and reconsider any determination made pursuant to this subsection.E\n\nPursuant to this chapter and the plan of operation required by \u00a7 38.2-2904, the Association shall have the power on behalf of its members to:1\n\nIssue, or cause to be issued, policies of commercial liability insurance to eligible applicants, including incidental coverages, subject to limits specified in the plan of operation but not to exceed one million dollars for each claimant under any one policy and three million dollars for all claimants under one policy in any one year;2\n\nProvide a means for establishing eligibility of a risk for obtaining insurance through the plan;3\n\nUnderwrite the insurance and adjust and pay losses on the insurance;4\n\nAppoint a service company or companies to perform functions enumerated in this subsection;5\n\nProvide a means for the equitable apportionment of profits or losses and expenses among participating insurers;6\n\nDevelop rules for the classification of risks and rates which reflect the past and prospective loss experience and a rating plan which reasonably reflects the prior claims experience of the insureds;7\n\nAssume reinsurance from its members;8\n\nReinsure its risks in whole or in part; and9\n\nTake such other action as is necessary for the efficient and equitable operation and termination of the Association.","order_by":null,"text":{"0":{"id":237793,"text":"After investigation, notice, and hearing, the Commission shall be empowered to activate a Joint Underwriting Association with respect to any line, subclassification or type of commercial liability insurance coverage if it finds that such line, subclassification, or type of commercial liability insurance coverage is not reasonably available for a significant number of any class, type, or group of such risks in the voluntary market or through a market assistance plan. The Association shall consist of all insurers licensed to write and engaged in writing the classes of insurance defined in §§ 38.2-117 through 38.2-119, and the liability portions of the insurance defined in §§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within this Commonwealth on a direct basis except those exempted from rate regulation by subsection C of § 38.2-1902. Each such insurer shall be a member of the Association as a condition of its license to write such insurance in this Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":237794,"text":"The purpose of the Association shall be to provide markets for commercial liability insurance for persons with eligible risks who are unable to obtain commercial liability insurance coverage, including incidental coverage, through the voluntary market. It shall also be the purpose of the Association to do so on a self-supporting basis without subsidy from its members.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":237795,"text":"1. The Association shall not commence underwriting operations for any line, subclassification or type of commercial liability insurance coverage until so ordered by the Commission. At the direction of the Commission, the Association shall commence operations in accordance with the provisions of this chapter.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"3":{"id":237796,"text":"If the Commission determines at any time that a line, subclassification or type of commercial liability insurance coverage is reasonably available at adequate levels in the voluntary market, the Association shall, at the direction of the Commission, cease its underwriting operations for that line, subclassification, or type of commercial liability insurance coverage.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"D"},"4":{"id":237797,"text":"The Commission shall also determine after investigation and a hearing whether the Association shall be the exclusive source of any line, subclassification or type of commercial liability insurance which it finds not to be reasonably available pursuant to subsection A of this section and the type of policy or policies that shall be issued for any line, subclassification or type of commercial liability insurance. If the Commission determines that a claims-made policy will be issued for any line, subclassification or type of coverage, the Commission shall also provide for the guaranteed availability of insurance that covers claims which (i) result from incidents occurring during periods when the basic claims-made policies are in force; and (ii) are reported after the expiration of the basic claims-made policies. The Commission may from time to time after an investigation and hearing reexamine and reconsider any determination made pursuant to this subsection.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"5":{"id":237798,"text":"Pursuant to this chapter and the plan of operation required by \u00a7 38.2-2904, the Association shall have the power on behalf of its members to:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"6":{"id":237799,"text":"Issue, or cause to be issued, policies of commercial liability insurance to eligible applicants, including incidental coverages, subject to limits specified in the plan of operation but not to exceed one million dollars for each claimant under any one policy and three million dollars for all claimants under one policy in any one year;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"7":{"id":237800,"text":"Provide a means for establishing eligibility of a risk for obtaining insurance through the plan;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"8":{"id":237801,"text":"Underwrite the insurance and adjust and pay losses on the insurance;","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"9":{"id":237802,"text":"Appoint a service company or companies to perform functions enumerated in this subsection;","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"10":{"id":237803,"text":"Provide a means for the equitable apportionment of profits or losses and expenses among participating insurers;","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"E6"},"11":{"id":237804,"text":"Develop rules for the classification of risks and rates which reflect the past and prospective loss experience and a rating plan which reasonably reflects the prior claims experience of the insureds;","type":"section","prefixes":["E","6"],"prefix":"6","entire_prefix":"E6","prefix_anchor":"E6","level":2,"prior_prefix":"E5","next_prefix":"E7"},"12":{"id":237805,"text":"Assume reinsurance from its members;","type":"section","prefixes":["E","7"],"prefix":"7","entire_prefix":"E7","prefix_anchor":"E7","level":2,"prior_prefix":"E6","next_prefix":"E8"},"13":{"id":237806,"text":"Reinsure its risks in whole or in part; and","type":"section","prefixes":["E","8"],"prefix":"8","entire_prefix":"E8","prefix_anchor":"E8","level":2,"prior_prefix":"E7","next_prefix":"E9"},"14":{"id":237807,"text":"Take such other action as is necessary for the efficient and equitable operation and termination of the Association.","type":"section","prefixes":["E","9"],"prefix":"9","entire_prefix":"E9","prefix_anchor":"E9","level":2,"prior_prefix":"E8"}},"ancestry":[{"id":13381,"edition_id":1,"name":"Commercial Liability Insurance Joint Underwriting Association","identifier":"29","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:45","date_modified":"2026-06-26 03:44:45","permalink":{"id":214141,"object_type":"structure","relational_id":13381,"identifier":"29","token":"38.2\/29","url":"\/38.2\/29\/","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":67887,"structure_id":13381,"section_number":"38.2-2900","catch_line":"Definitions","url":"\/38.2-2900\/","token":"38.2\/29\/38.2-2900","metadata":false},{"id":86890,"structure_id":13381,"section_number":"38.2-2900.1","catch_line":"Market assistance plan","url":"\/38.2-2900.1\/","token":"38.2\/29\/38.2-2900.1","metadata":false},{"id":65411,"structure_id":13381,"section_number":"38.2-2901","catch_line":"Association activation; members; purpose; determinations by Commission; powers of Association","url":"\/38.2-2901\/","token":"38.2\/29\/38.2-2901","metadata":false},{"id":74095,"structure_id":13381,"section_number":"38.2-2902","catch_line":"Dissolution","url":"\/38.2-2902\/","token":"38.2\/29\/38.2-2902","metadata":false},{"id":54353,"structure_id":13381,"section_number":"38.2-2903","catch_line":"Directors","url":"\/38.2-2903\/","token":"38.2\/29\/38.2-2903","metadata":false},{"id":62519,"structure_id":13381,"section_number":"38.2-2904","catch_line":"Plan of operation","url":"\/38.2-2904\/","token":"38.2\/29\/38.2-2904","metadata":false},{"id":56099,"structure_id":13381,"section_number":"38.2-2905","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; group retrospective rating plan; examination of business of Association","url":"\/38.2-2905\/","token":"38.2\/29\/38.2-2905","metadata":false},{"id":69954,"structure_id":13381,"section_number":"38.2-2906","catch_line":"Stabilization reserve fund","url":"\/38.2-2906\/","token":"38.2\/29\/38.2-2906","metadata":false},{"id":64097,"structure_id":13381,"section_number":"38.2-2907","catch_line":"Participation in Association by insurers","url":"\/38.2-2907\/","token":"38.2\/29\/38.2-2907","metadata":false},{"id":69170,"structure_id":13381,"section_number":"38.2-2908","catch_line":"Review of actions or decisions of Association","url":"\/38.2-2908\/","token":"38.2\/29\/38.2-2908","metadata":false},{"id":66449,"structure_id":13381,"section_number":"38.2-2909","catch_line":"Annual statements","url":"\/38.2-2909\/","token":"38.2\/29\/38.2-2909","metadata":false},{"id":56213,"structure_id":13381,"section_number":"38.2-2910","catch_line":"Annual examination into affairs of Association","url":"\/38.2-2910\/","token":"38.2\/29\/38.2-2910","metadata":false},{"id":56451,"structure_id":13381,"section_number":"38.2-2911","catch_line":"Public officers or employees","url":"\/38.2-2911\/","token":"38.2\/29\/38.2-2911","metadata":false},{"id":77816,"structure_id":13381,"section_number":"38.2-2912","catch_line":"Commissions for placing and servicing risk with Association","url":"\/38.2-2912\/","token":"38.2\/29\/38.2-2912","metadata":false},{"id":76792,"structure_id":13381,"section_number":"38.2-2913","catch_line":"Liability","url":"\/38.2-2913\/","token":"38.2\/29\/38.2-2913","metadata":false}],"previous_section":{"id":86890,"structure_id":13381,"section_number":"38.2-2900.1","catch_line":"Market assistance plan","url":"\/38.2-2900.1\/","token":"38.2\/29\/38.2-2900.1","metadata":false},"next_section":{"id":74095,"structure_id":13381,"section_number":"38.2-2902","catch_line":"Dissolution","url":"\/38.2-2902\/","token":"38.2\/29\/38.2-2902","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2901\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapters 769 and 783 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 1988 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":74095,"section_number":"38.2-2902","catch_line":"Dissolution","order_by":null,"url":"\/38.2-2902\/"},{"id":62519,"section_number":"38.2-2904","catch_line":"Plan of operation","order_by":null,"url":"\/38.2-2904\/"},{"id":56099,"section_number":"38.2-2905","catch_line":"Policy forms; applicants to be issued policies; cancellation of policies; rates; group retrospective rating plan; examination of business of Association","order_by":null,"url":"\/38.2-2905\/"}],"refers_to":[{"id":83683,"section_number":"38.2-117","catch_line":"Personal injury liability","order_by":null,"url":"\/38.2-117\/"},{"id":80898,"section_number":"38.2-119","catch_line":"Workers' compensation and employers' liability","order_by":null,"url":"\/38.2-119\/"},{"id":66976,"section_number":"38.2-124","catch_line":"Motor vehicle","order_by":null,"url":"\/38.2-124\/"},{"id":66153,"section_number":"38.2-125","catch_line":"Aircraft","order_by":null,"url":"\/38.2-125\/"},{"id":75005,"section_number":"38.2-130","catch_line":"Homeowners insurance","order_by":null,"url":"\/38.2-130\/"},{"id":60601,"section_number":"38.2-132","catch_line":"Commercial multi-peril insurance","order_by":null,"url":"\/38.2-132\/"},{"id":74191,"section_number":"38.2-1902","catch_line":"Scope of chapter","order_by":null,"url":"\/38.2-1902\/"},{"id":62519,"section_number":"38.2-2904","catch_line":"Plan of operation","order_by":null,"url":"\/38.2-2904\/"}],"permalink":{"id":214151,"object_type":"law","relational_id":65411,"identifier":"38.2-2901","token":"38.2\/29\/38.2-2901","url":"\/38.2-2901\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2901\/","token":"38.2\/29\/38.2-2901","dublin_core":{"Title":"Association activation; members; purpose; determinations by Commission; powers of Association","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2901","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> After investigation, notice, and hearing<\/span>, the Commission<\/span> shall be empowered to activate a Joint Underwriting Association<\/span> with respect to any line, subclassification or type of commercial liability insurance<\/span> coverage if it finds that such line, subclassification, or type of commercial liability insurance<\/span> coverage is not reasonably available for a significant number of any class, type, or group of such risks in the voluntary market or through a market assistance plan<\/span>. The Association<\/span> shall consist of all insurers<\/span> licensed to write and engaged in writing the classes of insurance defined in §§ 38.2-117<\/a> through 38.2-119<\/a>, and the liability portions of the insurance defined in §§ 38.2-124<\/a>, 38.2-125<\/a> and 38.2-130<\/a> through 38.2-132<\/a> within this Commonwealth on a direct basis except those exempted from rate<\/span> regulation by subsection C of § 38.2-1902<\/a>. Each such insurer<\/span> shall be a member of the Association<\/span> as a condition of its license to write such insurance in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The purpose of the Association<\/span> shall be to provide markets for commercial liability insurance<\/span> for persons<\/span> with eligible risks who are unable to obtain commercial liability insurance<\/span> coverage, including incidental coverage<\/span>, through the voluntary market. It shall also be the purpose of the Association<\/span> to do so on a self-supporting basis without subsidy from its members. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. The Association<\/span> shall not commence underwriting operations for any line, subclassification or type of commercial liability insurance<\/span> coverage until so ordered by the Commission<\/span>. At the direction of the Commission<\/span>, the Association<\/span> shall commence operations in accordance with the provisions of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the Commission<\/span> determines at any time that a line, subclassification or type of commercial liability insurance<\/span> coverage is reasonably available at adequate levels in the voluntary market, the Association<\/span> shall, at the direction of the Commission<\/span>, cease its underwriting operations for that line, subclassification, or type of commercial liability insurance<\/span> coverage. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission<\/span> shall also determine after investigation and a hearing<\/span> whether the Association<\/span> shall be the exclusive source of any line, subclassification or type of commercial liability insurance<\/span> which it finds not to be reasonably available pursuant to subsection A of this section and the type of policy or policies that shall be issued for any line, subclassification or type of commercial liability insurance<\/span>. If the Commission<\/span> determines that a claims-made policy will be issued for any line, subclassification or type of coverage, the Commission<\/span> shall also provide for the guaranteed availability of insurance that covers claims which (i) result from incidents occurring during periods when the basic claims-made policies are in force; and (ii) are reported after the expiration of the basic claims-made policies. The Commission<\/span> may from time to time after an investigation and hearing<\/span> reexamine and reconsider any determination made pursuant to this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Pursuant to this chapter and the plan of operation required by \u00a7 38.2-2904<\/a>, the Association<\/span> shall have the power on behalf of its members to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Issue<\/span>, or cause to be issued, policies of commercial liability insurance<\/span> to eligible applicants, including incidental coverages<\/span>, subject to limits specified in the plan of operation but not to exceed one million dollars for each claimant under any one policy and three million dollars for all claimants under one policy in any one year; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Provide a means for establishing eligibility of a risk for obtaining insurance through the plan; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Underwrite the insurance and adjust and pay losses on the insurance; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Appoint a service company<\/span> or companies to perform functions enumerated in this subsection; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Provide a means for the equitable<\/span> apportionment of profits or losses and expenses among participating insurers<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Develop rules for the classification of risks and rates<\/span><\/span> which reflect the past and prospective loss experience and a rating plan which reasonably reflects the prior claims experience of the insureds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Assume reinsurance from its members; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Reinsure its risks in whole or in part; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Take such other action as is necessary for the efficient and equitable<\/span> operation and termination of the Association<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nASSOCIATION ACTIVATION; MEMBERS; PURPOSE; DETERMINATIONS BY COMMISSION; POWERS\nOF ASSOCIATION (\u00a7 38.2-2901)\n\nA. After investigation, notice, and hearing, the Commission shall be empowered\nto activate a Joint Underwriting Association with respect to any line,\nsubclassification or type of commercial liability insurance coverage if it finds\nthat such line, subclassification, or type of commercial liability insurance\ncoverage is not reasonably available for a significant number of any class,\ntype, or group of such risks in the voluntary market or through a market\nassistance plan. The Association shall consist of all insurers licensed to write\nand engaged in writing the classes of insurance defined in §§ 38.2-117\nthrough 38.2-119, and the liability portions of the insurance defined in\n§§ 38.2-124, 38.2-125 and 38.2-130 through 38.2-132 within this\nCommonwealth on a direct basis except those exempted from rate regulation by\nsubsection C of § 38.2-1902. Each such insurer shall be a member of the\nAssociation as a condition of its license to write such insurance in this\nCommonwealth.\n\nB. The purpose of the Association shall be to provide markets for commercial\nliability insurance for persons with eligible risks who are unable to obtain\ncommercial liability insurance coverage, including incidental coverage, through\nthe voluntary market. It shall also be the purpose of the Association to do so\non a self-supporting basis without subsidy from its members.\n\nC. 1. The Association shall not commence underwriting operations for any line,\nsubclassification or type of commercial liability insurance coverage until so\nordered by the Commission. At the direction of the Commission, the Association\nshall commence operations in accordance with the provisions of this chapter.\n\n 2. If the Commission determines at any time that a line, subclassification or\n type of commercial liability insurance coverage is reasonably available at\n adequate levels in the voluntary market, the Association shall, at the\n direction of the Commission, cease its underwriting operations for that line,\n subclassification, or type of commercial liability insurance coverage.\n\nD. The Commission shall also determine after investigation and a hearing whether\nthe Association shall be the exclusive source of any line, subclassification or\ntype of commercial liability insurance which it finds not to be reasonably\navailable pursuant to subsection A of this section and the type of policy or\npolicies that shall be issued for any line, subclassification or type of\ncommercial liability insurance. If the Commission determines that a claims-made\npolicy will be issued for any line, subclassification or type of coverage, the\nCommission shall also provide for the guaranteed availability of insurance that\ncovers claims which (i) result from incidents occurring during periods when the\nbasic claims-made policies are in force; and (ii) are reported after the\nexpiration of the basic claims-made policies. The Commission may from time to\ntime after an investigation and hearing reexamine and reconsider any\ndetermination made pursuant to this subsection.\n\nE. Pursuant to this chapter and the plan of operation required by \u00a7 38.2-2904,\nthe Association shall have the power on behalf of its members to:\n\n 1. Issue, or cause to be issued, policies of commercial liability insurance to\n eligible applicants, including incidental coverages, subject to limits\n specified in the plan of operation but not to exceed one million dollars for\n each claimant under any one policy and three million dollars for all claimants\n under one policy in any one year;\n\n 2. Provide a means for establishing eligibility of a risk for obtaining\n insurance through the plan;\n\n 3. Underwrite the insurance and adjust and pay losses on the insurance;\n\n 4. Appoint a service company or companies to perform functions enumerated in\n this subsection;\n\n 5. Provide a means for the equitable apportionment of profits or losses and\n expenses among participating insurers;\n\n 6. Develop rules for the classification of risks and rates which reflect the\n past and prospective loss experience and a rating plan which reasonably\n reflects the prior claims experience of the insureds;\n\n 7. Assume reinsurance from its members;\n\n 8. Reinsure its risks in whole or in part; and\n\n 9. Take such other action as is necessary for the efficient and equitable\n operation and termination of the Association.\n\nHISTORY: 1988, cc. 769, 783.","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}}