                                 CODE OF VIRGINIA

CEDING BASIC PROPERTY INSURANCE TO ASSOCIATION; PARTICIPATION OF MEMBERS;
GOVERNING BODY (§ 38.2-2709)

A. Any member of the joint underwriting association may cede to the association
basic property insurance written on qualified property, to the extent and on the
terms and conditions set forth in the plan of operation.

B. All members of the joint underwriting association shall participate in its
writings, expenses, profits and losses, or in any categories thereof that may be
separately established by the joint underwriting association, in the proportion
that the net direct premiums written by each member during the preceding
calendar year bear to the aggregate net direct premiums written in this
Commonwealth by all members of the joint underwriting association during the
preceding calendar year, but excluding (i) premiums on property used for
manufacturing purposes, and (ii) that portion of premiums attributable to the
operation of the joint underwriting association.

C. The joint underwriting association shall be governed by a board of fifteen
directors. Four directors shall be appointed by the Commissioner, two of whom
shall be property and casualty insurance agents and two of whom shall be from
the general public. The remaining eleven directors shall be elected annually by
a cumulative vote of the joint underwriting association&#8217;s members, whose
votes shall be weighted in accordance with each member&#8217;s premiums written
during the preceding calendar year. The first board shall be elected at a
meeting of the members or their authorized representatives, which shall be held
within thirty days after approval of the plan of operation as provided in &#xA7;
38.2-2708.

HISTORY: 1968, c. 559, § 38.1-751; 1982, c. 665; 1986, c. 562.