{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4610.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4610.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4610.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4610.2.html"}],"law_id":60470,"edition_id":1,"section_id":60470,"structure_id":13850,"section_number":"38.2-4610.2","catch_line":"Loss reserves","history":"1996, c. 494.","full_text":"A\n\nEach title insurance company licensed in this Commonwealth shall annually evaluate the adequacy of its total recorded loss reserves. Total recorded loss reserves are the sum of claim reserves held under § 38.2-4609 and unearned premium reserves held under § 38.2-4610.1. The evaluation of reserve adequacy shall be prepared by a qualified actuary and shall be based on a comparison of total recorded reserves to a projection of ultimate losses not yet paid. The actuary shall certify the results of his evaluation in a report complying with such applicable title insurance annual statement instructions as may be issued by the National Association of Insurance Commissioners.B\n\nA domestic title insurance company shall record an additional reserve to the extent the projection of ultimate losses not yet paid set forth in the report of the qualified actuary exceeds total recorded loss reserves held by the company. For purposes of calculating any additional reserve required, a domestic title insurance company may discount the projection of ultimate losses not yet paid to reflect the time value of money. The interest rate used by the actuary to reflect the time value of money shall be based on a portfolio interest rate approach with appropriate provision for risk margins and subject to published actuarial standards for discounting reserves.C\n\nA foreign or alien title insurance company licensed in this Commonwealth shall record an additional reserve to the extent the projection of ultimate losses set forth in the report of the qualified actuary exceeds all recorded reserves held by the company as reported in its most recent statutory statement filed with the Commission, including reserves held under subsection C of § 38.2-4610.1 and all reserves held under the laws of the jurisdiction of the domicile of the foreign or alien title insurance company or any other jurisdiction.","order_by":null,"text":{"0":{"id":221104,"text":"Each title insurance company licensed in this Commonwealth shall annually evaluate the adequacy of its total recorded loss reserves. Total recorded loss reserves are the sum of claim reserves held under § 38.2-4609 and unearned premium reserves held under § 38.2-4610.1. The evaluation of reserve adequacy shall be prepared by a qualified actuary and shall be based on a comparison of total recorded reserves to a projection of ultimate losses not yet paid. The actuary shall certify the results of his evaluation in a report complying with such applicable title insurance annual statement instructions as may be issued by the National Association of Insurance Commissioners.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":221105,"text":"A domestic title insurance company shall record an additional reserve to the extent the projection of ultimate losses not yet paid set forth in the report of the qualified actuary exceeds total recorded loss reserves held by the company. For purposes of calculating any additional reserve required, a domestic title insurance company may discount the projection of ultimate losses not yet paid to reflect the time value of money. The interest rate used by the actuary to reflect the time value of money shall be based on a portfolio interest rate approach with appropriate provision for risk margins and subject to published actuarial standards for discounting reserves.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":221106,"text":"A foreign or alien title insurance company licensed in this Commonwealth shall record an additional reserve to the extent the projection of ultimate losses set forth in the report of the qualified actuary exceeds all recorded reserves held by the company as reported in its most recent statutory statement filed with the Commission, including reserves held under subsection C of § 38.2-4610.1 and all reserves held under the laws of the jurisdiction of the domicile of the foreign or alien title insurance company or any other jurisdiction.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13850,"edition_id":1,"name":"Title Insurance","identifier":"46","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:46:04","date_modified":"2026-06-26 03:46:04","permalink":{"id":217153,"object_type":"structure","relational_id":13850,"identifier":"46","token":"38.2\/46","url":"\/38.2\/46\/","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 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applicable","url":"\/38.2-4602\/","token":"38.2\/46\/38.2-4602","metadata":false},{"id":55288,"structure_id":13850,"section_number":"38.2-4603","catch_line":"What companies may transact title insurance","url":"\/38.2-4603\/","token":"38.2\/46\/38.2-4603","metadata":false},{"id":67063,"structure_id":13850,"section_number":"38.2-4604","catch_line":"Investment in plant and equipment","url":"\/38.2-4604\/","token":"38.2\/46\/38.2-4604","metadata":false},{"id":54872,"structure_id":13850,"section_number":"38.2-4605","catch_line":"Interim binders","url":"\/38.2-4605\/","token":"38.2\/46\/38.2-4605","metadata":false},{"id":79727,"structure_id":13850,"section_number":"38.2-4606","catch_line":"Forms to be filed with Commission","url":"\/38.2-4606\/","token":"38.2\/46\/38.2-4606","metadata":false},{"id":60596,"structure_id":13850,"section_number":"38.2-4607","catch_line":"Maximum risk","url":"\/38.2-4607\/","token":"38.2\/46\/38.2-4607","metadata":false},{"id":74319,"structure_id":13850,"section_number":"38.2-4608","catch_line":"Title insurance rates","url":"\/38.2-4608\/","token":"38.2\/46\/38.2-4608","metadata":false},{"id":79630,"structure_id":13850,"section_number":"38.2-4609","catch_line":"Loss or claim reserves","url":"\/38.2-4609\/","token":"38.2\/46\/38.2-4609","metadata":false},{"id":60467,"structure_id":13850,"section_number":"38.2-4610","catch_line":"Repealed","url":"\/38.2-4610\/","token":"38.2\/46\/38.2-4610","metadata":false},{"id":80196,"structure_id":13850,"section_number":"38.2-4610.1","catch_line":"Unearned premium reserve","url":"\/38.2-4610.1\/","token":"38.2\/46\/38.2-4610.1","metadata":false},{"id":59674,"structure_id":13850,"section_number":"38.2-4610.1:1","catch_line":"Unearned premium reserves of foreign title insurance companies","url":"\/38.2-4610.1_1\/","token":"38.2\/46\/38.2-4610.1_1","metadata":false},{"id":60470,"structure_id":13850,"section_number":"38.2-4610.2","catch_line":"Loss reserves","url":"\/38.2-4610.2\/","token":"38.2\/46\/38.2-4610.2","metadata":false},{"id":56376,"structure_id":13850,"section_number":"38.2-4611","catch_line":"Repealed","url":"\/38.2-4611\/","token":"38.2\/46\/38.2-4611","metadata":false},{"id":77761,"structure_id":13850,"section_number":"38.2-4613","catch_line":"Unearned premium reserve to be held and administered for benefit of policyholders","url":"\/38.2-4613\/","token":"38.2\/46\/38.2-4613","metadata":false},{"id":78129,"structure_id":13850,"section_number":"38.2-4614","catch_line":"Prohibition against payment or receipt of title insurance kickbacks, rebates, commissions and other payments; penalty","url":"\/38.2-4614\/","token":"38.2\/46\/38.2-4614","metadata":false},{"id":85851,"structure_id":13850,"section_number":"38.2-4615","catch_line":"Exchange of information","url":"\/38.2-4615\/","token":"38.2\/46\/38.2-4615","metadata":false},{"id":57124,"structure_id":13850,"section_number":"38.2-4616","catch_line":"Notification to buyers of the availability of owner's title insurance","url":"\/38.2-4616\/","token":"38.2\/46\/38.2-4616","metadata":false}],"previous_section":{"id":59674,"structure_id":13850,"section_number":"38.2-4610.1:1","catch_line":"Unearned premium reserves of foreign title insurance companies","url":"\/38.2-4610.1_1\/","token":"38.2\/46\/38.2-4610.1_1","metadata":false},"next_section":{"id":56376,"structure_id":13850,"section_number":"38.2-4611","catch_line":"Repealed","url":"\/38.2-4611\/","token":"38.2\/46\/38.2-4611","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4610.2\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 494<\/a> 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.<\/p>","references":false,"refers_to":[{"id":79630,"section_number":"38.2-4609","catch_line":"Loss or claim reserves","order_by":null,"url":"\/38.2-4609\/"},{"id":80196,"section_number":"38.2-4610.1","catch_line":"Unearned premium reserve","order_by":null,"url":"\/38.2-4610.1\/"}],"permalink":{"id":217211,"object_type":"law","relational_id":60470,"identifier":"38.2-4610.2","token":"38.2\/46\/38.2-4610.2","url":"\/38.2-4610.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4610.2\/","token":"38.2\/46\/38.2-4610.2","dublin_core":{"Title":"Loss reserves","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4610.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each title insurance company<\/span> licensed in this Commonwealth shall annually evaluate the adequacy of its total recorded loss reserves. Total recorded loss reserves are the sum of claim reserves held under § 38.2-4609<\/a> and unearned premium reserves held under § 38.2-4610.1<\/a>. The evaluation of reserve adequacy shall be prepared by a qualified actuary and shall be based on a comparison of total recorded reserves to a projection of ultimate losses not yet paid. The actuary shall certify the results of his evaluation in a report complying with such applicable title insurance annual statement instructions as may be issued by the National Association of Insurance Commissioners<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A domestic title insurance company<\/span> shall record an additional reserve to the extent the projection of ultimate losses not yet paid set forth in the report of the qualified actuary exceeds total recorded loss reserves held by the company. For purposes of calculating any additional reserve required, a domestic title insurance company<\/span> may discount the projection of ultimate losses not yet paid to reflect the time value of money. The interest rate<\/span> used by the actuary to reflect the time value of money shall be based on a portfolio interest rate<\/span> approach with appropriate provision for risk margins and subject to published actuarial standards for discounting reserves. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A foreign or alien title insurance company<\/span> licensed in this Commonwealth shall record an additional reserve to the extent the projection of ultimate losses set forth in the report of the qualified actuary exceeds all recorded reserves held by the company as reported in its most recent statutory statement filed with the Commission<\/span>, including reserves held under subsection C of § 38.2-4610.1<\/a> and all reserves held under the laws<\/span> of the jurisdiction<\/span> of the domicile of the foreign or alien title insurance company<\/span> or any other jurisdiction<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOSS RESERVES (\u00a7 38.2-4610.2)\n\nA. Each title insurance company licensed in this Commonwealth shall annually\nevaluate the adequacy of its total recorded loss reserves. Total recorded loss\nreserves are the sum of claim reserves held under § 38.2-4609 and unearned\npremium reserves held under § 38.2-4610.1. The evaluation of reserve\nadequacy shall be prepared by a qualified actuary and shall be based on a\ncomparison of total recorded reserves to a projection of ultimate losses not yet\npaid. The actuary shall certify the results of his evaluation in a report\ncomplying with such applicable title insurance annual statement instructions as\nmay be issued by the National Association of Insurance Commissioners.\n\nB. A domestic title insurance company shall record an additional reserve to the\nextent the projection of ultimate losses not yet paid set forth in the report of\nthe qualified actuary exceeds total recorded loss reserves held by the company.\nFor purposes of calculating any additional reserve required, a domestic title\ninsurance company may discount the projection of ultimate losses not yet paid to\nreflect the time value of money. The interest rate used by the actuary to\nreflect the time value of money shall be based on a portfolio interest rate\napproach with appropriate provision for risk margins and subject to published\nactuarial standards for discounting reserves.\n\nC. A foreign or alien title insurance company licensed in this Commonwealth\nshall record an additional reserve to the extent the projection of ultimate\nlosses set forth in the report of the qualified actuary exceeds all recorded\nreserves held by the company as reported in its most recent statutory statement\nfiled with the Commission, including reserves held under subsection C of §\n38.2-4610.1 and all reserves held under the laws of the jurisdiction of the\ndomicile of the foreign or alien title insurance company or any other\njurisdiction.\n\nHISTORY: 1996, c. 494.","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}}