CHAPTER 160

An Act to amend the Code of Virginia by adding thereto a section num-
bered 6-28.1, to authorize participation by banks in school thrift or

savings plans.
[fH 319]

Approved March 5, 1954
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a section
numbered 6-23.1, as follows:

§ 6-23.1. A bank may contract with the principal of any elemen-
tary or secondary school, if authorized so to do by the school board in
any county, city or town wherein such bank has a location, for the par-
ticipation by the bank in any school thrift or savings plan, and it may
accept deposits at such a school either by its own collector or by any
representative of the school who becomes the agent of the bank for such
purpose.
An Act to amend and reenact §§ $8.1-659, 38.1-678,38.1-677 and 38.1-680
of the Code of Virginia, relating respectively to definitions of mutual
fire insurance companies, issuance of policies by such companies and

certain assessments which may be made by such companies.
[H 381]

Approved March 5, 1954
Be it enacted by the General Assembly of Virginia:

1. That §§ 38.1-659, 38.1-673, 38.1-677 and 38.1-680 of the Code of
Virginia be amended and reenacted as follows:

§ 38.1-659. As used in this title, unless the context or subject mat-
ter requires otherwise, the following words or terms have the meaning
herein ascribed to them, respectively :

(1) “Mutual assessment fire insurance’ means and includes (a) fire
insurance as defined in § 38.1-6, * (b) insurance against direct loss or
damage by lightning, and (c) insurance against direct loss or damage by
windstorm, hail, explosion (other than explosion of steam boilers, and
the breaking of flywheels), riot, riot attending a strike, civil commotion,
aircraft, vehicles and smoke, when such insurance is issued as a supple-
mental or comprehensive contract in connection with a fire insurance
policy; but in order for such insurance to constitute “mutual assessment
fire insurance” it must be written by a mutual assessment fire insurance
company as herein defined, and must cover only the kind or classes of
property authorized by this chapter to be insured by such companies.

(2) “Mutual assessment fire insurance company” means a company
organized without capital stock and operating under the provisions of
this chapter for the benefit of its members, which pays its losses solely
from assessments upon its members which confines its business to this
State, and which transacts only mutual assessment fire insurance as
herein defined.

‘(3) “Windstorm insurance” as used in this chapter means and
includes insurance against loss or damage including loss of rents, use
and occupancy, and miscellaneous or consequential damage caused directly
or indirectly by windstorm, tornado, or cyclone.

§ 38.1-673. The directors of every company shall cause to be issued
policies of insurance agreeing in the name of the company to pay all
losses or damages, not exceeding the amount insured, caused by the risk
insured against during the time the policy is in force. Every such policy
shall have attached thereto * or included therein so much of the by-laws
as constitute a part of the policy contract and no by-laws not a part of
the policy contract or any amendment of the by-laws shall affect the
policy contract unless made a part thereof by suitable endorsement
mailed or delivered to the policyholder.

§ 38.1-677. Every person insured by a mutual assessment fire insur-
ance company shall contract in such form as the company prescribes,
which form shall be uniform among all the members, to pay his pro rata
share of all losses or damages sustained by any member thereof from
any cause specified in the policy of the company. He shall also pay such
reasonable sums for expenses as the by-laws require, including premiums
for reinsurance or contributions to an insurance pool such as is per-
mitted in § 38.1-675 and to create and maintain an adequate safety fund
in an amount not to exceed that permitted in § 88.1-682. Funds to be
raised for all the foregoing purposes may be levied in a single assess-
ment and the assessment notice need not set forth the component parts
of the said assessment.
§ 38.1-680. ™* The directors or the executive committee may, when-
ever they deem it in the interest of the company so to do, unless spe-
cifically prohibited from so doing by a majority vote of the members,
make an estimate of the amount which will be necessary to pay all losses,
damages and expenses for the current year or any part thereof and to
make up any deficiency in funds for the preceding year, and make an
assessment upon the members, in advance, sufficient to provide such
amount. * The directors or the committee may include in the assessment
premiums for reinsurance or contributions to an insurance pool as per-
mitted in § 38.1-675 and an amount to create, add to or maintain a safety
fund for the company. No more than one such general assessment shall
be made in any six months’ period.