38.2-2709 - Ceding basic property insurance to association; participation of members; governing body.
§ 38.2-2709. Ceding basic property insurance to association; participation ofmembers; governing body.
A. Any member of the joint underwriting association may cede to theassociation basic property insurance written on qualified property, to theextent and on the terms and conditions set forth in the plan of operation.
B. All members of the joint underwriting association shall participate in itswritings, expenses, profits and losses, or in any categories thereof that maybe separately established by the joint underwriting association, in theproportion that the net direct premiums written by each member during thepreceding calendar year bear to the aggregate net direct premiums written inthis Commonwealth by all members of the joint underwriting association duringthe preceding calendar year, but excluding (i) premiums on property used formanufacturing purposes, and (ii) that portion of premiums attributable to theoperation of the joint underwriting association.
C. The joint underwriting association shall be governed by a board of fifteendirectors. Four directors shall be appointed by the Commissioner, two of whomshall be property and casualty insurance agents and two of whom shall be fromthe general public. The remaining eleven directors shall be elected annuallyby a cumulative vote of the joint underwriting association's members, whosevotes shall be weighted in accordance with each member's premiums writtenduring the preceding calendar year. The first board shall be elected at ameeting of the members or their authorized representatives, which shall beheld within thirty days after approval of the plan of operation as providedin § 38.2-2708.
(1968, c. 559, § 38.1-751; 1982, c. 665; 1986, c. 562.)