Code of Virginia § 38.2-2709. Ceding basic property insurance to association; participation of members; governing body.
258 words·~1 min read·
/va/title-38-2/chapter-27/38-2-2709·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Any member of the joint underwriting association may cede to the association basic property insurance written on qualified property, to the extent and on the terms and conditions set forth in the plan of operation.
B. All members of the joint underwriting association shall participate in its writings, expenses, profits and losses, or in any categories thereof that may be separately established by the joint underwriting association, in the proportion that the net direct premiums written by each member during the preceding calendar year bear to the aggregate net direct premiums written in this Commonwealth by all members of the joint underwriting association during the preceding calendar year, but excluding
(i)premiums on property used for manufacturing purposes, and
(ii)that portion of premiums attributable to the operation of the joint underwriting association.
C. The joint underwriting association shall be governed by a board of fifteen directors. Four directors shall be appointed by the Commissioner, two of whom shall be property and casualty insurance agents and two of whom shall be from the general public. The remaining eleven directors shall be elected annually by a cumulative vote of the joint underwriting association's members, whose votes shall be weighted in accordance with each member's premiums written during the preceding calendar year.
The first board shall be elected at a meeting of the members or their authorized representatives, which shall be held within thirty days after approval of the plan of operation as provided in § 38.2-2708 .
1968, c. 559, § 38.1-751; 1982, c. 665; 1986, c. 562.