                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-2701)

As used in this chapter:
		&#8220;Basic property insurance&#8221; means insurance against direct loss to
any property caused by perils defined and limited in the standard fire policy
prescribed in §§ 38.2-2101 through 38.2-2112, and in the extended coverage
endorsement approved by the Commission pursuant to § 38.2-2117 and such
additional lines of insurance and forms of coverage as may be recommended by the
governing body of the residual market facility and approved by the Commission.
		&#8220;Inspection service&#8221; means any organization designated or approved
by the Commission to determine the insurability and conditions of the properties
for which basic property insurance is sought.
		&#8220;Net direct premiums written&#8221; means gross direct premiums written
in this Commonwealth on all policies of basic property insurance and the basic
property insurance component of multi-peril policies less (i) all return
premiums on those policies, (ii) dividends paid or credited to policyholders,
and (iii) the unused or unabsorbed portions of premium deposits.
		&#8220;Qualified property&#8221; means all real property and all tangible
personal property at a fixed location in this Commonwealth, whether or not the
property is subject to exposure from an external hazard located on property that
is neither owned nor controlled by the prospective insured, and whether or not
the property is subject to exposure from riot hazard, where the property:

1. Is not used for manufacturing purposes;

2. Complies with applicable state laws and regulations and local building codes
and ordinances;

3. Is not commonly owned or controlled, or combinable for rating purposes, with
property insured for similar coverages elsewhere; and

4. Has characteristics of ownership, condition or occupancy that do not violate
any public policy.
			&#8220;Residual market facility&#8221; means any organization approved by the
Commission to equitably distribute the responsibility to provide basic property
insurance on qualified property among insurers licensed to write basic property
insurance or other insurance containing a basic property insurance component.

HISTORY: 1968, c. 559, § 38.1-747; 1980, c. 156; 1982, c. 664; 1986, c. 562;
1987, c. 520; 1995, c. 119.