                                 CODE OF VIRGINIA

ASSESSMENT TO FUND PROGRAM TO REDUCE LOSSES FROM INSURANCE FRAUD (§ 38.2-415)

A. Each licensed insurer doing business in the Commonwealth by writing any type
of insurance as defined in &#xA7;&#xA7; 38.2-110 through 38.2-122.2 and 38.2-124
through 38.2-132 shall pay, in addition to any other assessments provided in
this title, an assessment in an amount equal to 0.05 of one percent of the
direct gross premium income during the preceding calendar year. The assessment
shall be apportioned and assessed and paid as prescribed by &#xA7; 38.2-403. The
Commission shall be reimbursed from the fund for all necessary expenses for the
administration of this section.

B. The assessments made by the Commission under subsection A and paid into the
state treasury shall be deposited to a special fund designated &#8220;Virginia
State Police, Insurance Fraud,&#8221; and out of such special fund and the
unexpended balance thereof shall be appropriated the sums necessary for
accomplishing the powers and duties assigned to the Virginia State Police under
Chapter 9 (&#xA7; 52-36 et seq.) of Title 52. All interest earned from the
deposit of moneys accumulated in the Fund shall be deposited in the Fund for the
same use.

C. The moneys deposited in the Fund shall not be considered general revenue of
the Commonwealth but shall be used only to (i) effectuate the purposes
enumerated in Chapter 9 (&#xA7; 52-36 et seq.) of Title 52 and (ii) reimburse
the Commission for its necessary expenses for the administration of this
section. The Fund shall be subject to audit by the Auditor of Public Accounts.

D. In the event that the Insurance Fraud Investigation Unit is dissolved by
operation of law or otherwise, any balance remaining in the Fund, after
deducting administrative costs associated with the dissolution, shall be
returned to insurers in proportion to their financial contributions to the Fund
in the preceding calendar year.

HISTORY: 1998, c. 590; 1999, c. 483; 2000, c. 526.