                                 CODE OF VIRGINIA

SURPLUS TO POLICYHOLDERS (§ 38.2-2526)

A. Surplus to policyholders in addition to the required surplus specified in
subsections A and B of &#xA7; 38.2-2503 may be accumulated in amounts as
determined by the board of directors. The surplus may be used for the payment of
losses and operating expenses of the insurer.

B. Income earned on any surplus to policyholders may be used to pay losses,
operating expenses, or added to surplus.

C. The provisions of this section shall become effective July 1, 1986.

D. Any mutual assessment property and casualty insurer already licensed on July
1, 1986, shall comply with the minimum surplus requirements of &#xA7; 38.2-2503
by July 1, 1991. Any mutual assessment property and casualty insurer that does
not meet the surplus requirements of this section as of July 1, 1986, and is not
writing any of the classes authorized in subsections B and C of &#xA7; 38.2-2503
on July 1, 1986, shall not write any of those classes until the specified
surplus requirement is met.

HISTORY: 1986, c. 562.