                                 CODE OF VIRGINIA

ALTERNATE DEPOSIT REQUIREMENTS (§ 38.2-1049)

A. The insurer, at the discretion of the Commission, may be relieved of making
the deposit required by § 38.2-1045 if the insurer makes deposits according to
the following provisions:

   1. Acceptable securities as defined in subsection B of this section are
   deposited with the State Treasurer in the form prescribed in clause (iv) of
   subsection A of &#xA7; 38.2-1045 or with the insurance commissioner, treasurer
   or other officer or official body of any other state first for the protection
   of the insurer&#8217;s policyholders.

   2. The securities are not to be in default as to principal and interest.

   3. The securities have a market value of at least $500,000.

   4. A certificate is furnished to the Commission and authenticated by the
   appropriate state official holding the deposit that the requirements of this
   subsection have been met.

B. For the purpose of this section, acceptable securities are defined as bonds
of the United States, or of any state, or of any city, county or town of any
state, or bonds or notes secured by mortgages or deeds of trust on otherwise
unencumbered real estate of a market value in each case of not less than double
the amount loaned, or other securities approved by the Commission.

HISTORY: Code 1950, §§ 38-37, 38-40, 37-175, 38-516; 1952, c. 317, §
38.1-113; 1964, c. 605; 1975, c. 556; 1986, c. 562; 1992, c. 14.