                                 CODE OF VIRGINIA

WHAT LAWS APPLICABLE TO RECIPROCALS; COMPLIANCE WITH § 38.2-208 (§ 38.2-1203)

A. Except as otherwise provided, all the provisions of this title relating to
insurers generally, and those relating to insurers writing the same classes of
insurance that reciprocals are permitted to write, are applicable to
reciprocals.

B. A reciprocal shall be deemed to have complied with § 38.2-208 if:

   1. It issues policies containing a contingent assessment liability as provided
   for in &#xA7; 38.2-1212; and

   2. It has and maintains reinsurance in an amount that the Commission considers
   adequate to reasonably limit the reciprocal&#8217;s aggregate losses to the
   lesser of:
   				a. Ten percent of the surplus to policyholders of the reciprocal
   multiplied by the number of subscribers;
   				b. The surplus to policyholders of the reciprocal multiplied by three; or
   				c. Five million dollars.

HISTORY: Code 1950, § 38-543; 1952, c. 317, § 38.1-691; 1977, c. 58; 1986, c.
562.