                                 CODE OF VIRGINIA

UNEARNED PREMIUM RESERVES (§ 38.2-1312)

A. Except for risks or policies for which reserves are required under
&#xA7;&#xA7; 38.2-1311 and 38.2-4610.1, each insurer licensed to transact
business in this Commonwealth, subject to the applicable provisions of this
title, shall maintain reserves not less than the unearned portions of the gross
premiums charged on unexpired or unterminated risks and policies.

B. Premiums charged for bulk assumption reinsurance assumed from other insurers
shall be included in gross premiums charged on the basis of the original
premiums and the original terms of the policies of the ceding insurer.

C. No deduction shall be made from the gross unearned premiums except for
premiums paid or credited for risks reinsured as provided in Article 3.1 (&#xA7;
38.2-1316.1 et seq.) of this chapter.

D. Reserves required by this section shall be computed, valued, and reported in
conformity with guidance set forth in the National Association of Insurance
Commissioners accounting practices and procedures manuals.

HISTORY: Code 1950, § 38-228; 1952, c. 317, § 38.1-171; 1982, c. 430; 1986, c.
562; 2000, c. 46.