                                 CODE OF VIRGINIA

LIMITATION OF LIABILITY ON RISKS (§ 38.2-2403)

In applying the limitation specified in § 38.2-208 to fidelity and surety
risks, the net amount of exposure on any single risk shall be considered to be
within the prescribed limit if the fidelity and surety insurer is protected
against losses in excess of the limit by:

1. Reinsurance with a fidelity and surety insurer that enables the obligee or
beneficiary to maintain an action on the contract against the insurer jointly
with the reinsurer;

2. The cosuretyship of any other fidelity and surety insurer;

3. A deposit of property with it in pledge, or conveyance of property to it in
trust for its protection;

4. A conveyance or mortgage of property for its protection;

5. A deposit or other disposition of a portion of any property held in trust so
that no future sale, mortgage, pledge or other disposition can be made of that
portion of the property except with the consent of the fidelity and surety
insurer or by decree or order of a competent court whenever the obligation is
entered into on behalf or on account of a person holding property in a fiduciary
capacity; or

6. A guarantee by the Small Business Administrator that the surety shall not
suffer loss as set forth in the Small Business Investment Act of 1958.

HISTORY: Code 1950, §§ 38-343, 38-344; 1952, c. 317, § 38.1-641; 1986, c.
562; 1988, cc. 529, 548.