CODE OF VIRGINIA

RESTRICTIONS ON INSURANCE PURCHASED BY PURCHASING GROUPS (§ 38.2-5109)

A. A purchasing group may not purchase insurance from a risk retention group
that is not chartered in a state or from an insurer not admitted in the state in
which the purchasing group is located, unless the purchase is effected through a
licensed agent or broker acting pursuant to the surplus lines laws and
regulations of such state.

B. No purchasing group may purchase insurance providing for a deductible or
self-insured retention applicable to the group as a whole; however, coverage may
provide for a deductible or self-insured retention applicable to individual
members.

HISTORY: 1987, c. 585; 1992, c. 588.