Virginia Code 38.2-2526: Surplus to policyholders.
A. Surplus to policyholders in addition to the required surplus specified in subsections A and B of § 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.
Terms Used In Virginia Code 38.2-2526
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Mutual assessment property and casualty insurer: means a company without capital stock that writes only mutual assessment insurance insuring property located in or protecting against losses of members who are residents of this Commonwealth. See Virginia Code 38.2-2501
- Surplus to policyholders: means the excess of total admitted assets over the liabilities of an insurer, and shall be the sum of all capital and surplus accounts, including any voluntary reserves, minus any impairment of all capital and surplus accounts. See Virginia Code 38.2-100
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 § 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 § 38.2-2503 on July 1, 1986, shall not write any of those classes until the specified surplus requirement is met.
1986, c. 562.