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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>83888</law_id><section_number>38.2-2403</section_number><catch_line>Limitation of liability on risks</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="38.2">Insurance</unit><unit label="chapter" level="2" order_by="1" identifier="24">Fidelity and Surety Insurance</unit><unit label="article" level="3" order_by="1" identifier="1">General Provisions</unit></structure><text>
						<section><p>In applying the limitation specified in &#xA7;&#xA0;<a class="law" title="Limitation of risks generally" href="/38.2-208/">38.2-208</a> to fidelity and <span class="dictionary">surety</span> risks, the net amount of exposure on any single risk shall be considered to be within the prescribed limit if the fidelity and <span class="dictionary">surety</span> <span class="dictionary">insurer</span> is protected against losses in excess of the limit by:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> Reinsurance with a fidelity and <span class="dictionary">surety</span> <span class="dictionary">insurer</span> that enables the obligee or beneficiary to maintain an action on the <span class="dictionary">contract</span> against the <span class="dictionary">insurer</span> jointly with the reinsurer; <a id="paragraph-300633" class="section-permalink" href="https://vacode.org/38.2-2403/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> The cosuretyship of any other fidelity and <span class="dictionary">surety</span> <span class="dictionary">insurer</span>; <a id="paragraph-300634" class="section-permalink" href="https://vacode.org/38.2-2403/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> A deposit of property with it in pledge, or conveyance of property to it in trust for its protection; <a id="paragraph-300635" class="section-permalink" href="https://vacode.org/38.2-2403/#3"><i class="fa fa-link"/></a></p></section>
						<section id="4"><p><span class="prefix-number">4.</span> A conveyance or mortgage of property for its protection; <a id="paragraph-300636" class="section-permalink" href="https://vacode.org/38.2-2403/#4"><i class="fa fa-link"/></a></p></section>
						<section id="5"><p><span class="prefix-number">5.</span> A deposit or other <span class="dictionary">disposition</span> of a portion of any property held in trust so that no future sale, mortgage, pledge or other <span class="dictionary">disposition</span> can be made of that portion of the property except with the consent of the fidelity and <span class="dictionary">surety</span> <span class="dictionary">insurer</span> or by <span class="dictionary">decree</span> or <span class="dictionary">order</span> of a competent <span class="dictionary">court</span> whenever the obligation is entered into on behalf or on account of a <span class="dictionary">person</span> holding property in a fiduciary capacity; or <a id="paragraph-300637" class="section-permalink" href="https://vacode.org/38.2-2403/#5"><i class="fa fa-link"/></a></p></section>
						<section id="6"><p><span class="prefix-number">6.</span> A guarantee by the Small Business Administrator that the <span class="dictionary">surety</span> shall not suffer loss as set forth in the Small Business Investment Act of 1958. <a id="paragraph-300638" class="section-permalink" href="https://vacode.org/38.2-2403/#6"><i class="fa fa-link"/></a></p></section></text><history>Code 1950, &#xA7;&#xA7; 38-343, 38-344; 1952, c. 317, &#xA7; 38.1-641; 1986, c. 562; 1988, cc. 529, 548.</history><metadata></metadata></law>
