Chap. 261.—An ACT to amend and re-enact section 4332 of the Code of Virginia,
relating to assessment for mutual assessment, co-operative, fire, lightning
and storm insurance companies. [H B 227]

Approved March 19, 1928

1. Be it enacted by the general assembly of Virginia, That section
forty-three hundred and thirty-two of the Code of Virginia be amended
and re-enacted so as to read as follows:

Section 4332. Should the amount of any loss or damage exceed the
amount of money on hand, such of its officers as may be authorized
by the by-laws to do so shall convene the directors or executive com-
mittee, who may borrow money on the credit of the corporation sufh-
cient to pay the loss, but no more, and shall make an assessment upon
all the property insured prorata according to its classification, and
according to the amount insured, sufficient to pay what the cash in hand
falls short of paying or for the whole loss or damage, as the directors
or executive committee may decide to be for the best interest of the
corporation. If the directors or executive committee deem it to be for
the best interest of the corporation, they may, with the authority of the
majority in value of the insurance held by members of the corporation,
conferred by resolution, by-laws, or otherwise, previously given, make
an estimate of such sums as in their judgment will be necessary to pay
all losses, damages and expenses for the current year, and supply any
deficiency in the preceding year, and proceed to assess, levy, and collect
the same of the members of the corporation at such times as, in their
discretion, will be most advantageous to the corporation. Such assess-
ment shall be made prorata upon all the property at such time insured,
according to its classification, or according to the amount insured,
sufficient to pay the amount so estimated. Not more than one such
general assessment shall be made in any one year, nor shall any such
assessment be made if more than ten per centum of any previous assess-
ment shall be in the treasury of the corporation, and not at the time
required for losses actually suffered. No assessment shall be invalid,
made in whole or in part for the purpose of paying any money bor-
rowed by the directors or executive committee, which has been used
in the payment of any claim for loss or damage against the corporation.

In addition to the assessments provided for herein, assessments may
be made on total amount of insurance carried by such corporation
from time to time, as the directors may determine, until a reserve fund
is created, not to exceed one and one-hglf per centum of the total
amount of insurance carried. When such reserve fund reaches its
maximum no assessment shall be made to provide any amount 1n excess
of losses actually sustained, the current annual expenses of conducting
the corporation, and to keep said reserve fund at its maximum. Such
reserve fund may be invested by the board of directors of such corpora-
tion, in securities approved bv the State bureau of insurance and
banking. Withdrawals may be made from said reserve fund, when and
as the board of directors may determine, to pay for property losses
schools thereof, and a poll tax of one dollar and fifty cents on each
male and female resident thereof, over twenty-one years of age, and
the said town, in addition to the special powers herein given, shall
have like powers of distress, levy and sale for the collection of such
taxes as are now given to State officers for the collection of State taxes.

2. All acts or parts of acts in conflict with the provisions of this
act are hereby repealed.

3. An emergency now existing in the said town, this act shall be in
effect from its passage.