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1998 SESSION

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SB 64 Property and Casualty Insurance Guaranty Association.

Introduced by: John H. Chichester | all patrons    ...    notes | add to my profiles

SUMMARY:

Property and Casualty Insurance Guaranty Association. Authorizes Virginia's Property and Casualty Insurance Guaranty Association ("the Association"), whose membership is comprised of insurers writing property and casualty insurance within the Commonwealth, to obtain commitments or lines of credit, and to secure borrowings by pledging future assessments. The bill does, however, limit the amount of Association borrowings, while establishing related approvals required from the Virginia State Corporation Commission (SCC) and providing clarifications in provisions governing the operation of the Association's Safety Fund. The proposed lines of credit could be drawn on only in the event of insurer insolvency following a natural disaster. These funds would enable the Association to respond promptly to claims under policies underwritten by a suddenly insolvent insurer--such as could occur in the event of widespread casualty and property losses from a particularly severe multi-state or coastal hurricane. In addition, the amendments clarify in Chapter 16 of Title 38.2 that guaranty fund coverage is not available for risks insured by risk retention groups.


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