§ 38.2-1200. Scope of chapter
This chapter applies to all reciprocals and reciprocal insurance as defined in § 38.2-1201. 1952, c. 317, § 38.1-688; 1986, c. 562.
§ 38.2-1201. Definitions
A. As used in this title: “Reciprocal” means the aggregation of subscribers under a common name. “Reciprocal insurance” means insurance resulting from the mutual exchange of insurance contracts among persons in an unincorporated association under a common name through an attorney-in-fact having authority to obligate each person both as insured and insurer. B. As used […]
§ 38.2-1202. Insuring power of reciprocals
A reciprocal licensed to transact the business of insurance in this Commonwealth may write the classes of insurance enumerated in Article 2 (§ 38.2-101 et seq.) of Chapter 1 of this title, except life insurance, annuities, and title insurance. Code 1950, § 38-543; 1952, c. 317, § 38.1-690; 1986, c. 562.
§ 38.2-1203. What laws applicable to reciprocals; compliance with § 38.2-208
A. Except as otherwise provided, all the provisions of this title relating to insurers generally, and those relating to insurers writing the same classes of insurance that reciprocals are permitted to write, are applicable to reciprocals. B. A reciprocal shall be deemed to have complied with § 38.2-208 if: 1. It issues policies containing a […]
§ 38.2-1204. Power to enter into reciprocal insurance contracts
A. Persons of this Commonwealth may enter into reciprocal insurance contracts with each other and with persons of other states and countries. For the purposes of this chapter, the definition of “person” shall also include any county, city, or town, school board, Transportation District Commission, or any other local governmental authority or local agency or […]
§ 38.2-1205. Name
Every reciprocal shall have and use a business name that includes the word “reciprocal,” “interinsurer,” “interinsurance,” “exchange,” “underwriters,” or “underwriting.” Code 1950, § 38-546; 1952, c. 317, § 38.1-694; 1986, c. 562.
§ 38.2-1206. License required of reciprocals; surplus
A. No reciprocal shall engage in any insurance transaction in this Commonwealth until it has obtained a license to do so in accordance with the applicable provisions of Articles 5 (§ 38.2-1024 et seq.) and 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title. B. No domestic or foreign reciprocal shall be licensed […]
§ 38.2-1207. Exceptions as to reciprocals licensed and operating
A. Notwithstanding other provisions of this chapter regarding minimum required surplus, any reciprocal that was licensed to write and was writing any class of insurance in this Commonwealth on June 30, 1991, may continue to write that class of insurance under the appropriate license from the Commission until July 1, 1994. The reciprocal shall maintain […]
§ 38.2-1208. Additional requirements, foreign and alien reciprocals
No foreign reciprocal shall be licensed to transact the business of insurance in this Commonwealth unless it has filed with the Commission a certificate of the supervising insurance official of the state in which it is organized. The certificate shall show that the foreign reciprocal is licensed to write and is writing actively in that […]
§ 38.2-1209. Residence and office of attorney of foreign and alien reciprocals
Nothing in this title regarding the admission and licensing of foreign and alien insurers requires that the attorney of a foreign or alien reciprocal be resident or domiciled in this Commonwealth, or that the principal office of the attorney be maintained in this Commonwealth. The office or offices of the attorney shall be determined by […]
§ 38.2-1210. Contracts executed by attorney
Reciprocal insurance contracts shall be executed by the attorney of the reciprocal. Code 1950, § 38-545; 1952, c. 317, § 38.1-699; 1986, c. 562.
§ 38.2-1211. License required of agent
No person shall act in this Commonwealth as an agent of a reciprocal in the selling, solicitation or negotiation of applications for insurance, subscriber’s agreements and powers of attorney, or in the collection of premiums in connection with the reciprocal insurer, without first procuring a license from the Commission pursuant to the requirements in Chapter […]
§ 38.2-1212. Subscribers’ liability
A. Each subscriber insured under an assessable policy shall have a contingent assessment liability for payment of actual losses and expenses incurred while his policy was in force. This shall be in the amount provided for in the power of attorney or subscriber’s agreement. B. The contingent assessment liability on any one policy in any […]
§ 38.2-1213. Nonassessable policies
A. The Commission may issue a certificate authorizing the reciprocal to reduce or extinguish the contingent assessment liability of subscribers under its policies then in force in this Commonwealth, and to omit provisions imposing contingent assessment liability in all policies delivered or issued for delivery in this Commonwealth for as long as all such surplus […]
§ 38.2-1214. Savings returned to subscribers
A reciprocal may return to its subscribers any savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks or policies, or between subscribers. However, the distribution may vary for classes of subscribers based upon the experience of those classes. 1952, c. 317, § 38.1-704; 1986, c. 562.
§ 38.2-1215. Reserves
Each reciprocal shall maintain the same unearned premium and loss or claim reserves required for stock and mutual companies writing the same classes of insurance. Code 1950, §§ 38-558, 38-559; 1952, c. 317, § 38.1-705; 1986, c. 562.
§ 38.2-1216. Clerk of Commission to be appointed agent for service of process; procedure thereafter
A. Each attorney of a domestic reciprocal who files the declaration required by § 38.2-1219, and each attorney of a foreign or alien reciprocal who applies for a license to transact the business of insurance in this Commonwealth shall file with the Commission a written power of attorney executed in duplicate by the attorney appointing […]
§ 38.2-1217. Reciprocal may be sued as such; where action or suit may be brought; upon whom service of process had
A. Any reciprocal doing business in this Commonwealth may sue or be sued in the name or designation under which its insurance contracts are effected. B. Any action or suit against a reciprocal may be brought in any county or city (i) where its principal office is located, or (ii) where the cause of action […]
§ 38.2-1218. Effect of judgment against reciprocal
Any judgment against a reciprocal based upon legal process duly served as provided in this chapter shall be binding upon the reciprocal and upon each of the reciprocal’s subscribers as their respective interests may appear, in an amount not exceeding their respective contingent assessment liabilities. 1952, c. 317, § 38.1-708; 1986, c. 562.