Virginia § 38.2-2702 - Establishment of residual market facility
Full text of Virginia Code of Virginia § 38.2-2702 — Establishment of residual market facility, with citation guidance and answers to common questions.
§ 38.2-2702. Establishment of residual market facility
A. A residual market facility shall be established and maintained by all insurers licensed to write basic property insurance or other insurance containing a basic property insurance component. The plan of operation of the residual market facility shall be subject to approval by the Commission.
B. The residual market facility 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.
C. The residual market facility shall have the power to:
1. Employ or retain persons necessary to perform the duties of the residual market facility;
2. Acquire, hold, and dispose of real and personal property, or any interest in real and personal property;
3. Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation;
4. Negotiate and become a party to those contracts necessary to carry out the purposes of this chapter;
5. Indemnify any director or member of its governing body, officer, employee, or agent in the manner permitted by and subject to the limitations contained in Article 9 (§ 13.1-875 et seq.) of Chapter 10 of Title 13.1; and provide any other or further indemnity to any such person that may be authorized by the plan of operation except an indemnity against his gross negligence or willful misconduct, and purchase and maintain insurance in the manner permitted by § 13.1-882; and
6. Perform any other acts necessary or proper to carry out the purposes of this chapter.
D. The residual market facility shall not be deemed to be an insurer within the provisions of § 38.2-100.
1968, c. 559, § 38.1-748; 1973, c. 451, § 38.1-748.1; 1980, c. 156; 1982, c. 664; 1986, c. 562.
Source: official Virginia text · Last verified 2026-08-27
Frequently Asked Questions About Virginia § 38.2-2702
What does Code of Virginia § 38.2-2702 cover?
Section 38.2-2702 ("Establishment of residual market facility") 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 § 38.2-2702?
A common citation format is "Code of Virginia § 38.2-2702" (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 § 38.2-2702 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.