                                 CODE OF VIRGINIA

PROCEEDING WHEN LOSS OR DAMAGE EXCEEDS CASH ON HAND (§ 38.2-2524)

If at any time any loss or damage to property insured by a mutual assessment
property and casualty insurer exceeds the insurer&#8217;s cash available to pay
the loss or damage, the insurer may borrow money in an amount sufficient to pay
the loss or damage. This shall be approved by the board of directors or the
executive committee. The board of directors or the executive committee may levy
an assessment sufficient to repay the loan or to pay the loss or damage, or any
portion that is in excess of the cash on hand.

HISTORY: Code 1950, § 38-532; 1952, c. 317, § 38.1-681; 1986, c. 562.