                                 CODE OF VIRGINIA

LIABILITY OF PARTICIPANTS (§ 38.2-4210)

A. All hospitals, persons, nonstock corporations, and physicians participating
in a plan shall be jointly and severally liable on all contracts made for the
purposes of the plan by the nonstock corporation as agent for them. Each
contract may be executed and signed by their agent on their behalf. A contract
so signed shall be binding on the principals and not on the agent.

B. Actions for breach of these contracts may be brought against the principals
by naming the agent as the sole defendant. A judgment in favor of the plaintiff
may be satisfied out of the assets of the nonstock corporation or out of the
assets of each of the principals.

C. Each participant shall be liable for his own torts and not for the torts of
any other participant or of the agent.

HISTORY: Code 1950, § 32-195.4; 1956, c. 268, § 38.1-814; 1972, c. 429; 1979,
c. 721; 1980, c. 682; 1986, c. 562.