                                 CODE OF VIRGINIA

LOSS OR CLAIM RESERVES (§ 38.2-1314)

Except as provided in §§ 38.2-1311 and 38.2-4609, each insurer licensed to
transact the business of insurance in this Commonwealth shall maintain reserves:

1. In an amount estimated in the aggregate as being sufficient to provide for
reported and unreported unpaid losses or claims arising on or prior to the date
of any annual or other statement for which the insurer may be liable;

2. In an amount estimated to provide for loss adjustment expenses; and

3. For those classes of insurance specified by the Commission, any additional
reserves for unpaid losses, policy obligations, or deficiencies in the unearned
premium reserve as required by the Commission. Each insurer authorized to write
these classes of insurance shall file with its annual statement, schedules of
its experience for such insurance in the form the Commission requires and shall
calculate the reserves required by this paragraph in the manner prescribed by
the Commission.

HISTORY: Code 1950, §§ 38-229 through 38-232; 1952, c. 317, § 38.1-173; 1982,
c. 430; 1986, c. 562; 1994, c. 503.