                                 CODE OF VIRGINIA

ASSESSMENT FOR EXPENSE OF HOLDING DEPOSITS; INSURANCE COLLATERAL ASSESSMENT FUND
(§ 38.2-1057)

A. For the purpose of defraying the expense of the State Treasurer&#8217;s
office in the safekeeping and handling of the securities or surety bonds
deposited under the provisions of this title, the State Treasurer shall levy
annually against each insurer an assessment. The assessment shall be a
percentage of the par or face value of the securities or surety bonds on deposit
with the State Treasurer&#8217;s office in each insurer&#8217;s account at the
end of each calendar year. The percentage shall be determined annually by the
State Treasurer as the amount necessary to meet the estimated annual expenses
incurred by the State Treasurer to meet the provisions of this title. The
percentage shall not exceed one-fourth of one percent of the par or face value
of the securities or surety bonds on deposit with the State Treasurer&#8217;s
office. Assessment collections that are more than actual expenses in any year
shall be added to the next year&#8217;s assessment calculation. The assessment
shall be collected every January. No part of the amount collected shall be used
to increase the compensation of any person connected with the office of the
State Treasurer.

B. All moneys collected from the annual assessment imposed under subsection A
shall be paid into the state treasury and credited to a special, nonreverting
fund known as the Insurance Collateral Assessment Fund which is hereby
established. The Fund shall be established on the books of the Comptroller and
be administered by the State Treasurer&#8217;s office. Disbursements from the
Fund shall be on warrants issued by the Comptroller to pay expenses associated
with the safekeeping and handling of the securities or surety bonds deposited
under the provisions of this title. Any moneys remaining in the Fund at the end
of a fiscal year shall not revert to the general fund but shall remain in the
Fund and be used to offset subsequent years&#8217; expenses as provided in
subsection A.

HISTORY: Code 1950, § 38-43; 1952, c. 317, § 38.1-121; 1973, c. 173; 1986, c.
562; 2005, c. 38.