{"law_id":"786867","section_number":"38.2-1034","catch_line":"How domestic mutual insurers may acquire initial surplus","history":"Code 1950, \u00a7 38-512; 1952, c. 317, \u00a7 38.1-92; 1960, c. 291, \u00a7 38.1-92.1; 1970, c. 595; 1980, c. 187; 1986, c. 562; 1994, c. 503.","order_by":null,"metadata":false,"court_decisions":{},"official_url":"http:\/\/law.lis.virginia.gov\/vacode\/38.2-1034\/","refers_to":false,"url":"\/38.2-1034\/","token":"38.2\/10\/5\/38.2-1034","structure":{"1":{"id":"1252","name":"Licensing Of Insurers","identifier":"5","label":"article","url":"\/38.2\/10\/5\/"},"2":{"id":"1251","name":"Organization, Admission And Licensing Of Insurers","identifier":"10","label":"chapter","url":"\/38.2\/10\/"},"3":{"id":"7","name":"Insurance","identifier":"38.2","label":"title","url":"\/38.2\/"}},"referred_to_by":false,"edition_id":"11","section_id":"786867","structure_id":"1252","full_text":"Any domestic mutual insurer or mutual assessment property and casualty insurer may, without pledging any of its assets, provide a guaranty fund sufficient to defray the expenses of its organization and its initial minimum surplus required to obtain a license to do the business of insurance. The fund may be increased with the prior approval of the Commission by receiving advances or by borrowing funds upon an agreement that the funds, including interest at a rate not exceeding the one-year treasury bill interest rate plus three percentage points at the time the loan is made or renewed, shall be repaid only if the insurer has sufficient earned surplus. The agreement shall provide that the insurer may repay the advances or loans or any part of them whenever it is able to do so in accordance with the requirements of this article. No commission or brokerage shall be paid in acquiring the funds. No repayments of principal, either in whole or in part, and no payments of interest, shall be made without the prior written approval of the Commission. Neither the principal advanced or borrowed nor any interest accrued thereon under this provision shall form a part of the legal liabilities of the insurer until the Commission approves the repayment of such principal or the payment of interest thereon. However, all statements published or filed by the insurer shall show accrued interest and the amount of principal remaining unpaid. All claims under the instrument shall be subordinated to policyholder, claimant and beneficiary claims as well as debts owed to all other classes of creditors.","text":{"0":{"id":"2538511","text":"Any domestic mutual insurer or mutual assessment property and casualty insurer may, without pledging any of its assets, provide a guaranty fund sufficient to defray the expenses of its organization and its initial minimum surplus required to obtain a license to do the business of insurance. The fund may be increased with the prior approval of the Commission by receiving advances or by borrowing funds upon an agreement that the funds, including interest at a rate not exceeding the one-year treasury bill interest rate plus three percentage points at the time the loan is made or renewed, shall be repaid only if the insurer has sufficient earned surplus. The agreement shall provide that the insurer may repay the advances or loans or any part of them whenever it is able to do so in accordance with the requirements of this article. No commission or brokerage shall be paid in acquiring the funds. No repayments of principal, either in whole or in part, and no payments of interest, shall be made without the prior written approval of the Commission. Neither the principal advanced or borrowed nor any interest accrued thereon under this provision shall form a part of the legal liabilities of the insurer until the Commission approves the repayment of such principal or the payment of interest thereon. However, all statements published or filed by the insurer shall show accrued interest and the amount of principal remaining unpaid. All claims under the instrument shall be subordinated to policyholder, claimant and beneficiary claims as well as debts owed to all other classes of creditors.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":{"1":{"id":"1252","name":"Licensing Of Insurers","identifier":"5","label":"article","url":"\/38.2\/10\/5\/"},"2":{"id":"1251","name":"Organization, Admission And Licensing Of Insurers","identifier":"10","label":"chapter","url":"\/38.2\/10\/"},"3":{"id":"7","name":"Insurance","identifier":"38.2","label":"title","url":"\/38.2\/"}},"structure_contents":{"0":{"id":"792879","structure_id":"1252","section_number":"38.2-1024","catch_line":"License required to transact the business of insurance; application fee requirements for license","url":"\/38.2-1024\/","token":"38.2\/10\/5\/38.2-1024"},"1":{"id":"786153","structure_id":"1252","section_number":"38.2-1025","catch_line":"Annual renewal of license","url":"\/38.2-1025\/","token":"38.2\/10\/5\/38.2-1025"},"2":{"id":"783337","structure_id":"1252","section_number":"38.2-1026","catch_line":"Retaliatory provisions as to taxes, fees, deposits and other requirements","url":"\/38.2-1026\/","token":"38.2\/10\/5\/38.2-1026"},"3":{"id":"775932","structure_id":"1252","section_number":"38.2-1027","catch_line":"Admission of foreign and alien insurers","url":"\/38.2-1027\/","token":"38.2\/10\/5\/38.2-1027"},"4":{"id":"781814","structure_id":"1252","section_number":"38.2-1028","catch_line":"Additional licensing requirements for stock insurers","url":"\/38.2-1028\/","token":"38.2\/10\/5\/38.2-1028"},"5":{"id":"785114","structure_id":"1252","section_number":"38.2-1029","catch_line":"Additional licensing requirements for mutual insurers","url":"\/38.2-1029\/","token":"38.2\/10\/5\/38.2-1029"},"6":{"id":"783965","structure_id":"1252","section_number":"38.2-1030","catch_line":"Surplus requirements for issuing policies without contingent liability","url":"\/38.2-1030\/","token":"38.2\/10\/5\/38.2-1030"},"7":{"id":"779721","structure_id":"1252","section_number":"38.2-1031","catch_line":"Additional requirements, alien insurers","url":"\/38.2-1031\/","token":"38.2\/10\/5\/38.2-1031"},"8":{"id":"766132","structure_id":"1252","section_number":"38.2-1032","catch_line":"Additional licensing requirements for domestic insurers","url":"\/38.2-1032\/","token":"38.2\/10\/5\/38.2-1032"},"9":{"id":"781736","structure_id":"1252","section_number":"38.2-1033","catch_line":"Additional licensing requirements for foreign insurers","url":"\/38.2-1033\/","token":"38.2\/10\/5\/38.2-1033"},"10":{"id":"786867","structure_id":"1252","section_number":"38.2-1034","catch_line":"How domestic mutual insurers may acquire initial surplus","url":"\/38.2-1034\/","token":"38.2\/10\/5\/38.2-1034"},"11":{"id":"774950","structure_id":"1252","section_number":"38.2-1035","catch_line":"Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment found","url":"\/38.2-1035\/","token":"38.2\/10\/5\/38.2-1035"},"12":{"id":"792743","structure_id":"1252","section_number":"38.2-1036","catch_line":"Impairment of capital and surplus of foreign and alien company ground for suspension or revocation of license","url":"\/38.2-1036\/","token":"38.2\/10\/5\/38.2-1036"},"13":{"id":"789230","structure_id":"1252","section_number":"38.2-1037","catch_line":"Exceptions for licensed and operating insurers","url":"\/38.2-1037\/","token":"38.2\/10\/5\/38.2-1037"},"14":{"id":"783530","structure_id":"1252","section_number":"38.2-1038","catch_line":"Authority of Commission to issue orders covering insurers in hazardous financial condition","url":"\/38.2-1038\/","token":"38.2\/10\/5\/38.2-1038"},"15":{"id":"790012","structure_id":"1252","section_number":"38.2-1039","catch_line":"Enjoining unlicensed foreign or alien insurers from transacting the business of insurance in Commonwealth","url":"\/38.2-1039\/","token":"38.2\/10\/5\/38.2-1039"},"16":{"id":"792070","structure_id":"1252","section_number":"38.2-1039.1","catch_line":"Risk retention groups","url":"\/38.2-1039.1\/","token":"38.2\/10\/5\/38.2-1039.1"}},"previous_section":{"id":"781736","structure_id":"1252","section_number":"38.2-1033","catch_line":"Additional licensing requirements for foreign insurers","url":"\/38.2-1033\/","token":"38.2\/10\/5\/38.2-1033"},"next_section":{"id":"774950","structure_id":"1252","section_number":"38.2-1035","catch_line":"Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment found","url":"\/38.2-1035\/","token":"38.2\/10\/5\/38.2-1035"},"references":[{"id":"774950","section_number":"38.2-1035","catch_line":"Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment found","url":"\/38.2-1035\/"}],"formats":{"txt":"\/38.2-1034.txt","json":"\/38.2-1034.json","xml":"\/38.2-1034.xml"},"dublin_core":{"Title":"How domestic mutual insurers may acquire initial surplus","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1034","Relation":"Code of Virginia"},"plain_text":"                                 CODE OF VIRGINIA\n\nHOW DOMESTIC MUTUAL INSURERS MAY ACQUIRE INITIAL SURPLUS (\u00a7 38.2-1034)\n\nAny domestic mutual insurer or mutual assessment property and casualty insurer\nmay, without pledging any of its assets, provide a guaranty fund sufficient to\ndefray the expenses of its organization and its initial minimum surplus required\nto obtain a license to do the business of insurance. The fund may be increased\nwith the prior approval of the Commission by receiving advances or by borrowing\nfunds upon an agreement that the funds, including interest at a rate not\nexceeding the one-year treasury bill interest rate plus three percentage points\nat the time the loan is made or renewed, shall be repaid only if the insurer has\nsufficient earned surplus. The agreement shall provide that the insurer may\nrepay the advances or loans or any part of them whenever it is able to do so in\naccordance with the requirements of this article. No commission or brokerage\nshall be paid in acquiring the funds. No repayments of principal, either in\nwhole or in part, and no payments of interest, shall be made without the prior\nwritten approval of the Commission. Neither the principal advanced or borrowed\nnor any interest accrued thereon under this provision shall form a part of the\nlegal liabilities of the insurer until the Commission approves the repayment of\nsuch principal or the payment of interest thereon. However, all statements\npublished or filed by the insurer shall show accrued interest and the amount of\nprincipal remaining unpaid. All claims under the instrument shall be\nsubordinated to policyholder, claimant and beneficiary claims as well as debts\nowed to all other classes of creditors.\n\nHISTORY: Code 1950, \u00a7 38-512; 1952, c. 317, \u00a7 38.1-92; 1960, c. 291, \u00a7\n38.1-92.1; 1970, c. 595; 1980, c. 187; 1986, c. 562; 1994, c. 503."}