                                 CODE OF VIRGINIA

REINSURANCE (§ 38.2-2528)

Any mutual assessment property and casualty insurer may reinsure the whole or
any part of its risks with any solvent insurer licensed in this Commonwealth or
licensed or approved in any other state and meeting standards of solvency at
least equal to those required in this Commonwealth if the reinsurance is ceded
without contingent liability on the part of the reinsured insurer. Any mutual
assessment property and casualty insurer having a surplus in excess of $800,000
may accept or assume reinsurance from any licensed property and casualty
insurer. Any of those companies may accept or assume reinsurance on risks
located within or without the territory in which it is authorized to transact
insurance.
		Nothing in this section shall be construed to prohibit the participation of a
mutual assessment property and casualty insurer in a pool or other plan among
similar companies approved by the Commission for the purpose of spreading losses
or providing reinsurance or catastrophe coverage for participants. The
acceptance of reinsurance by any insurer outside the territory in which it is
authorized to transact the business of insurance shall not be construed to
enlarge its territory so as to affect any tax exemption to which it may be
entitled.

HISTORY: 1952, c. 317, § 38.1-675; 1986, c. 562.