2006 Code of Virginia § 38.2-4012 - Disposition of reserve for an emergency fund; discontinuance of business; receiver

38.2-4012. Disposition of reserve for an emergency fund; discontinuance ofbusiness; receiver.

The reserve for an emergency fund required by 38.2-4010, together with theincome earned on that fund, shall be a trust fund for the payment of deathclaims. Whenever the reserve for an emergency fund exceeds the amount of themaximum sum provided by the certificates issued and in force by the society,the investment income generated by the reserve or an emergency fund shall beadded back into that fund. It may apply that excess, or any portion of thatexcess, (i) in reduction of assessments upon certificate holders, or (ii) inany other equitable division or apportionment that its rules or contractsprovide for the payment of claims. When any society discontinues business,delinquency proceedings against the society may be instituted and conductedas provided in Chapter 15 ( 38.2-1500 et seq.) of this title. In thedelinquency proceedings, any unexhausted portion of the reserve for anemergency fund shall be used in payment of accrued claims upon certificates.If this amount is insufficient to pay the claims in full, then the payment ofthe claims shall be on a pro rata basis; and if a balance remains, thepayment of claims shall then be made in the order of their occurrence. Anyremaining balance shall be distributed among the members in proportion totheir respective premium payments during the latest full year of activebusiness of the society.

(Code 1950, 38-464; 1952, c. 317, 38.1-537; 1986, c. 562.)