                                 CODE OF VIRGINIA

POLICIES ISSUED BY TWO OR MORE INSURERS (§ 38.2-2116)

A. With the consent of the Commission, two or more licensed insurers may jointly
issue a policy, using a distinctive title that is prominently printed on the
policy followed by the names and the home office addresses of the insurers
obligated under the policy. The policy shall be executed by the proper officers
of each insurer. Before issuance, the form and any terms of the policy that are
in addition to the standard provisions set out in §§ 38.2-2104 and 38.2-2105
shall be approved by the Commission. The terms of the policy shall not be
inconsistent with the standard provisions, and shall be placed under a separate
title headed as follows: &#8220;Provisions specially applicable to this jointly
issued policy.&#8221; The special provisions shall contain in substance that:

   1. The insurers executing the policy are severally liable for the full amount
   of any loss or damage according to the terms of the policy or for specified
   percentages or amounts of any loss or damage aggregating the full amount of
   insurance under the policy; and

   2. Service of process upon, or notice of proof of loss required by the policy
   and given to any of the insurers executing the policy, shall be deemed to be
   service upon or notice to all such insurers.

B. The unearned premium reserve on each policy shall be allocated to each
insurer on the basis of each insurer&#8217;s pro rata share of the face amount
of the policy, except to the extent that the risk is transferred under a valid
contract of reinsurance.

HISTORY: Code 1950, § 38-183; 1952, c. 317, § 38.1-372; 1986, c. 562.