If at any time any loss or damage to property insured by a mutual assessment property and casualty insurer exceeds the insurer's cash available to pay the loss or damage, the insurer may borrow money in an amount sufficient to pay the loss or damage. This shall be approved by the board of directors or the executive committee. The board of directors or the executive committee may levy an assessment sufficient to repay the loan or to pay the loss or damage, or any portion that is in excess of the cash on hand.
Code 1950, § 38-532; 1952, c. 317, § 38.1-681; 1986, c. 562.
Structure Code of Virginia
Chapter 25 - Mutual Assessment Property and Casualty Insurers
§ 38.2-2502. Mutual assessment insurance authorized
§ 38.2-2504. Property beyond authorized territory
§ 38.2-2505. Risks limited to those specified in this chapter; personal liability for loss
§ 38.2-2506. What laws applicable
§ 38.2-2507. Conversion of mutual assessment property and casualty insurers
§ 38.2-2508. Incorporation of insurers
§ 38.2-2509. Directors; terms; annual meetings; voting; executive committee
§ 38.2-2511. How license obtained
§ 38.2-2512. Who may become members
§ 38.2-2513. Withdrawal and exclusion of members
§ 38.2-2514. Procedure upon exclusion of member
§ 38.2-2516. Issuance of policies; bylaws as part of contract
§ 38.2-2517. Policy forms to be filed
§ 38.2-2518. Assessment contract
§ 38.2-2519. Classification of risks; rates
§ 38.2-2520. Right to limit assessment liability
§ 38.2-2521. Notice of assessment; how given
§ 38.2-2522. Action to recover assessments; penalty
§ 38.2-2523. Notice of loss and adjustment
§ 38.2-2524. Proceeding when loss or damage exceeds cash on hand
§ 38.2-2525. Agents licenses required
§ 38.2-2526. Surplus to policyholders