2006 Code of Virginia § 38.2-4010 - Accumulation of reserve for an emergency fund

38.2-4010. Accumulation of reserve for an emergency fund.

A. In addition to provision for liability incurred on account of claimsreported but not settled, claims incurred but not reported, and premiums,dues or assessments collected in advance, every company shall accumulate andmaintain a reserve for an emergency fund, which in the preparation offinancial statements shall be considered a liability of the corporation, ofat least $10,000.

B. Each burial society shall, in each calendar year, add to that reserve foran emergency fund at least five percent of its net receipts from premiums,dues or assessments from policies of life insurance until the totalaccumulated reserve fund equals twenty percent of the total benefits providedin the outstanding certificates of life insurance. However, when thecorporation has issued policies of life insurance on a legal reserve basis,the net receipts from those policies shall not be considered in thecalculation of the reserve for an emergency fund, but the burial societyshall be required to maintain only the reserve provided for in thecertificates.

(Code 1950, 38-149, 38-461; 1952, c. 317, 38.1-534, 38.1-559; 1986, c.562.)