Virginia § 38.2-2527 - Limitation on single risk to be assumed
Full text of Virginia Code of Virginia § 38.2-2527 — Limitation on single risk to be assumed, with citation guidance and answers to common questions.
§ 38.2-2527. Limitation on single risk to be assumed
A. No single risk shall be assumed by a mutual assessment property and casualty insurer in an amount exceeding ten percent of its surplus to policyholders. Any risk or portion of any risk which has been reinsured in accordance with § 38.2-2528 shall be deducted in determining the limitation of risk prescribed by this section. For the purposes of this section the amount of surplus to policyholders shall be determined on the basis of the last financial statement of the insurer, or the last report of examination filed with the Commission, whichever is more recent, at the time the risk is assumed. Mutual assessment property and casualty insurers licensed on or before July 1, 1986, shall conform to this limitation by July 1, 1991.
B. Until July 1, 1991, the following single risk limits after deducting for reinsurance will apply:
1. No insurer having less than $2 million insurance in force shall insure any 1 risk for more than $10,000;
2. No insurer having more than $2 million but less than $5 million insurance in force shall insure any 1 risk for more than $12,000;
3. No insurer having more than $5 million but less than $10 million insurance in force shall insure any 1 risk for more than $20,000;
4. No insurer having more than $10 million insurance in force shall insure any 1 risk for a sum in excess of 15 cent(s) for each $100 insurance it has in force; and
5. An insurer may insure any one risk in larger sums than prescribed in this section if (i) the excess over such prescribed maximum is reinsured as authorized in this chapter or (ii) the excess may be increased by the extent of twenty-five percent of the surplus of the insurer as of the time the insurance is written.
1986, c. 562.
Source: official Virginia text · Last verified 2026-08-27
Frequently Asked Questions About Virginia § 38.2-2527
What does Code of Virginia § 38.2-2527 cover?
Section 38.2-2527 ("Limitation on single risk to be assumed") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 38.2-2527?
A common citation format is "Code of Virginia § 38.2-2527" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 38.2-2527 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.