                                 CODE OF VIRGINIA

LICENSE REQUIRED OF RECIPROCALS; SURPLUS (§ 38.2-1206)

A. No reciprocal shall engage in any insurance transaction in this Commonwealth
until it has obtained a license to do so in accordance with the applicable
provisions of Articles 5 (&#xA7; 38.2-1024 et seq.) and 7 (&#xA7; 38.2-1045 et
seq.) of Chapter 10 of this title.

B. No domestic or foreign reciprocal shall be licensed to transact the business
of insurance in this Commonwealth unless it has a surplus to policyholders of at
least $1,600,000, and no alien reciprocal shall be so licensed unless it has a
trusteed surplus, as defined in &#xA7; 38.2-1031, of at least $1,600,000.

HISTORY: Code 1950, § 38-549; 1952, c. 317, § 38.1-695; 1977, c. 322; 1986, c.
562; 1991, c. 261.