                                 CODE OF VIRGINIA

ASSESSMENTS (§ 38.2-1226)

A. Assessments may be levied upon the subscribers of a domestic reciprocal by
the attorney in accordance with &#xA7; 38.2-1212. The assessments shall be
approved in advance by the subscribers&#8217; advisory committee and the
Commission.

B. Each domestic reciprocal subscriber&#8217;s share of a deficiency for which
an assessment is made shall be computed by multiplying the premiums earned on
the subscriber&#8217;s policies during the period to be covered by the
assessment by the ratio of the total deficiency to the total premiums earned
during the period upon all policies subject to the assessment. However, no
assessment shall exceed the aggregate contingent assessment liability computed
in accordance with &#xA7; 38.2-1212. For the purposes of this section, the
premiums earned on the subscriber&#8217;s policies are the gross premiums
charged by the reciprocal for the policies minus any charges not recurring upon
the renewal or extension of the policies. No subscriber shall have an offset
against any assessment for which he is liable on account of any claim for
unearned premium or losses payable.

HISTORY: 1952, c. 317, § 38.1-714; 1986, c. 562.