{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4613.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4613.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4613.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4613.html"}],"law_id":77761,"edition_id":1,"section_id":77761,"structure_id":13850,"section_number":"38.2-4613","catch_line":"Unearned premium reserve to be held and administered for benefit of policyholders","history":"1952, c. 317, \u00a7 38.1-733; 1986, cc. 404, 562.","full_text":"A\n\nThe reserve required under § 38.2-4610.1 shall be for the security of policyholders of the title insurance company as provided in this section.B\n\nIf an order of rehabilitation or liquidation of any title insurance company is entered by a court of competent jurisdiction, the rehabilitator or receiver, with the approval of the court, or the Commission if it has been directed to rehabilitate or liquidate the title insurance company under the provisions of Chapter 15 of this title, may (i) use assets equal to the unearned premium reserve to pay any claims for losses sustained by policyholders prior to the time reinsurance is effected to the extent that those losses are in excess of the loss or claim reserves available for their payment, (ii) enter into contracts for the reinsurance of the obligations under the outstanding title insurance policies of the company in accordance with their terms and conditions, and (iii) use assets equal to the unearned premium reserve to pay the cost of reinsurance. After the payments authorized by this subsection have been made, assets equal to any balance in the unearned premium reserve shall become general assets of the company.C\n\nIf no such contract of reinsurance is effected, assets equal to the unearned premium reserve may be applied by the rehabilitator or receiver with the approval of the court, or by the Commission, in the following order of preference: (i) all expenses incurred under this section in connection with the receivership or rehabilitation proceedings, (ii) all allowed and unpaid claims for losses sustained by policyholders pending at the time fixed by the court or the Commission for the filing of claims, and (iii) all allowed claims for losses asserted within twenty years from the date of the entry of the order of rehabilitation or liquidation, which claims shall be paid in the order of the date of their allowance by the court or the Commission. Assets equal to any balance in the unearned premium reserve after payment of all allowed claims shall become general assets of the company. All title records that the rehabilitator, or the receiver, or the Commission if appointed to rehabilitate or liquidate the company, deems necessary to carry out the provisions of this section shall be preserved for twenty years.D\n\nIn proceedings for the rehabilitation or liquidation of a title insurance company that has not been declared insolvent, no assets of the company shall be distributed to its stockholders until all claims allowed in the proceedings have been paid in full. If the proposed distribution is within twenty years from the date of the entry of the order of rehabilitation or liquidation, the distribution may be made if general assets of the title insurance company sufficient to fund the unearned premium reserve to the required amount as of the date of the entry of such order are first transferred to the unearned premium reserve. Upon the expiration of twenty years from the date of the order, assets equal to any balance in the unearned premium reserve after payment of all allowed claims asserted within the twenty-year period shall become general assets of the company.","order_by":null,"text":{"0":{"id":278895,"text":"The reserve required under § 38.2-4610.1 shall be for the security of policyholders of the title insurance company as provided in this section.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":278896,"text":"If an order of rehabilitation or liquidation of any title insurance company is entered by a court of competent jurisdiction, the rehabilitator or receiver, with the approval of the court, or the Commission if it has been directed to rehabilitate or liquidate the title insurance company under the provisions of Chapter 15 of this title, may (i) use assets equal to the unearned premium reserve to pay any claims for losses sustained by policyholders prior to the time reinsurance is effected to the extent that those losses are in excess of the loss or claim reserves available for their payment, (ii) enter into contracts for the reinsurance of the obligations under the outstanding title insurance policies of the company in accordance with their terms and conditions, and (iii) use assets equal to the unearned premium reserve to pay the cost of reinsurance. After the payments authorized by this subsection have been made, assets equal to any balance in the unearned premium reserve shall become general assets of the company.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":278897,"text":"If no such contract of reinsurance is effected, assets equal to the unearned premium reserve may be applied by the rehabilitator or receiver with the approval of the court, or by the Commission, in the following order of preference: (i) all expenses incurred under this section in connection with the receivership or rehabilitation proceedings, (ii) all allowed and unpaid claims for losses sustained by policyholders pending at the time fixed by the court or the Commission for the filing of claims, and (iii) all allowed claims for losses asserted within twenty years from the date of the entry of the order of rehabilitation or liquidation, which claims shall be paid in the order of the date of their allowance by the court or the Commission. Assets equal to any balance in the unearned premium reserve after payment of all allowed claims shall become general assets of the company. All title records that the rehabilitator, or the receiver, or the Commission if appointed to rehabilitate or liquidate the company, deems necessary to carry out the provisions of this section shall be preserved for twenty years.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":278898,"text":"In proceedings for the rehabilitation or liquidation of a title insurance company that has not been declared insolvent, no assets of the company shall be distributed to its stockholders until all claims allowed in the proceedings have been paid in full. If the proposed distribution is within twenty years from the date of the entry of the order of rehabilitation or liquidation, the distribution may be made if general assets of the title insurance company sufficient to fund the unearned premium reserve to the required amount as of the date of the entry of such order are first transferred to the unearned premium reserve. Upon the expiration of twenty years from the date of the order, assets equal to any balance in the unearned premium reserve after payment of all allowed claims asserted within the twenty-year period shall become general assets of the company.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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 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":60163,"structure_id":13850,"section_number":"38.2-4600","catch_line":"Class of insurance and insurance companies to which chapter applies","url":"\/38.2-4600\/","token":"38.2\/46\/38.2-4600","metadata":false},{"id":61532,"structure_id":13850,"section_number":"38.2-4601","catch_line":"Title insurance company defined","url":"\/38.2-4601\/","token":"38.2\/46\/38.2-4601","metadata":false},{"id":65120,"structure_id":13850,"section_number":"38.2-4601.1","catch_line":"Title insurance agency or agent defined","url":"\/38.2-4601.1\/","token":"38.2\/46\/38.2-4601.1","metadata":false},{"id":73355,"structure_id":13850,"section_number":"38.2-4602","catch_line":"What laws 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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4613\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 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 1952 \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, chapters 404 and 562.<\/p>","references":false,"refers_to":[{"id":80196,"section_number":"38.2-4610.1","catch_line":"Unearned premium reserve","order_by":null,"url":"\/38.2-4610.1\/"}],"permalink":{"id":217219,"object_type":"law","relational_id":77761,"identifier":"38.2-4613","token":"38.2\/46\/38.2-4613","url":"\/38.2-4613\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4613\/","token":"38.2\/46\/38.2-4613","dublin_core":{"Title":"Unearned premium reserve to be held and administered for benefit of policyholders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4613","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The reserve required under § 38.2-4610.1<\/a> shall be for the security of policyholders of the title insurance company<\/span> as provided in this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If an order<\/span> of rehabilitation or liquidation<\/span> of any title insurance company<\/span> is entered by a court<\/span> of competent jurisdiction<\/span>, the rehabilitator or receiver, with the approval of the court<\/span>, or the Commission<\/span> if it has been directed to rehabilitate or liquidate the title insurance company<\/span> under the provisions of Chapter 15 of this title, may (i) use assets<\/span> equal to the unearned premium reserve to pay any claims for losses sustained by policyholders prior to the time reinsurance is effected to the extent that those losses are in excess of the loss or claim reserves available for their payment, (ii) enter into contracts<\/span> for the reinsurance of the obligations under the outstanding title insurance policies<\/span> of the company in accordance with their terms and conditions, and (iii) use assets<\/span> equal to the unearned premium reserve to pay the cost of reinsurance. After the payments authorized by this subsection have been made, assets<\/span> equal to any balance in the unearned premium reserve shall become general assets<\/span> of the company. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If no such contract<\/span> of reinsurance is effected, assets<\/span> equal to the unearned premium reserve may be applied by the rehabilitator or receiver with the approval of the court<\/span>, or by the Commission<\/span>, in the following order<\/span> of preference: (i) all expenses incurred under this section in connection with the receivership or rehabilitation proceedings, (ii) all allowed and unpaid claims for losses sustained by policyholders pending at the time fixed by the court<\/span> or the Commission<\/span> for the filing of claims, and (iii) all allowed claims for losses asserted within twenty years from the date of the entry of the order<\/span> of rehabilitation or liquidation<\/span>, which claims shall be paid in the order<\/span> of the date of their allowance by the court<\/span> or the Commission<\/span>. Assets<\/span> equal to any balance in the unearned premium reserve after payment of all allowed claims shall become general assets<\/span> of the company. All title records that the rehabilitator, or the receiver, or the Commission<\/span> if appointed to rehabilitate or liquidate the company, deems necessary to carry out the provisions of this section shall be preserved for twenty years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In proceedings for the rehabilitation or liquidation<\/span> of a title insurance company<\/span> that has not been declared insolvent, no assets<\/span> of the company shall be distributed to its stockholders until all claims allowed in the proceedings have been paid in full. If the proposed distribution is within twenty years from the date of the entry of the order<\/span> of rehabilitation or liquidation<\/span>, the distribution may be made if general assets<\/span> of the title insurance company<\/span> sufficient to fund the unearned premium reserve to the required amount as of the date of the entry of such order<\/span> are first transferred to the unearned premium reserve. Upon the expiration of twenty years from the date of the order<\/span>, assets<\/span> equal to any balance in the unearned premium reserve after payment of all allowed claims asserted within the twenty-year period shall become general assets<\/span> of the company. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUNEARNED PREMIUM RESERVE TO BE HELD AND ADMINISTERED FOR BENEFIT OF\nPOLICYHOLDERS (\u00a7 38.2-4613)\n\nA. The reserve required under § 38.2-4610.1 shall be for the security of\npolicyholders of the title insurance company as provided in this section.\n\nB. If an order of rehabilitation or liquidation of any title insurance company\nis entered by a court of competent jurisdiction, the rehabilitator or receiver,\nwith the approval of the court, or the Commission if it has been directed to\nrehabilitate or liquidate the title insurance company under the provisions of\nChapter 15 of this title, may (i) use assets equal to the unearned premium\nreserve to pay any claims for losses sustained by policyholders prior to the\ntime reinsurance is effected to the extent that those losses are in excess of\nthe loss or claim reserves available for their payment, (ii) enter into\ncontracts for the reinsurance of the obligations under the outstanding title\ninsurance policies of the company in accordance with their terms and conditions,\nand (iii) use assets equal to the unearned premium reserve to pay the cost of\nreinsurance. After the payments authorized by this subsection have been made,\nassets equal to any balance in the unearned premium reserve shall become general\nassets of the company.\n\nC. If no such contract of reinsurance is effected, assets equal to the unearned\npremium reserve may be applied by the rehabilitator or receiver with the\napproval of the court, or by the Commission, in the following order of\npreference: (i) all expenses incurred under this section in connection with the\nreceivership or rehabilitation proceedings, (ii) all allowed and unpaid claims\nfor losses sustained by policyholders pending at the time fixed by the court or\nthe Commission for the filing of claims, and (iii) all allowed claims for losses\nasserted within twenty years from the date of the entry of the order of\nrehabilitation or liquidation, which claims shall be paid in the order of the\ndate of their allowance by the court or the Commission. Assets equal to any\nbalance in the unearned premium reserve after payment of all allowed claims\nshall become general assets of the company. All title records that the\nrehabilitator, or the receiver, or the Commission if appointed to rehabilitate\nor liquidate the company, deems necessary to carry out the provisions of this\nsection shall be preserved for twenty years.\n\nD. In proceedings for the rehabilitation or liquidation of a title insurance\ncompany that has not been declared insolvent, no assets of the company shall be\ndistributed to its stockholders until all claims allowed in the proceedings have\nbeen paid in full. If the proposed distribution is within twenty years from the\ndate of the entry of the order of rehabilitation or liquidation, the\ndistribution may be made if general assets of the title insurance company\nsufficient to fund the unearned premium reserve to the required amount as of the\ndate of the entry of such order are first transferred to the unearned premium\nreserve. Upon the expiration of twenty years from the date of the order, assets\nequal to any balance in the unearned premium reserve after payment of all\nallowed claims asserted within the twenty-year period shall become general\nassets of the company.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-733; 1986, cc. 404, 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}}