CODE OF VIRGINIA

UNEARNED PREMIUM RESERVES REQUIRED (§ 38.2-2529)

A. Advance assessments received by mutual assessment property and casualty
insurers shall be considered premiums and, except as provided in subsection B of
this section, shall be subject to the requirement of an unearned premium reserve
computed in accordance with § 38.2-1312. The reserves may be reduced for
applicable reinsurance in accordance with the provisions of Article 3.1 (§
38.2-1316.1 et seq.) of Chapter 13 of this title.

B. The amount each insurer shall maintain in reserves for unearned premium
reserves shall be as follows:

   1.  For calendar year 1987, at least ten percent of the unearned premium
   reserve as calculated in subsection A of this section; and

   2.  For each subsequent year, at least an additional ten percent as calculated
   in subsection A for that subsequent year in order that the full amount of
   unearned premium reserves shall be established by December 31, 1996.

HISTORY: 1986, c. 562; 1994, c. 316.