CHAPTER 173

An Act to amend and reenact § 88.1-281 of the Code of Virginia, relating
to acting as agent for unlicensed insurance companies. [H 378]

Approved February 28, 1956

Be it enacted by the General Assembly of Virginia:

1. That § 38.1-281 of the Code of Virginia be amended and reenacted
as follows:

§ 88.1-281. No person shall solicit, negotiate or effect in this State
contracts of insurance on behalf of any insurance company which is not
licensed to transact the business of insurance in this State; provided,
however, that nothing herein shall be construed as prohibiting any person
from obtaining from an unlicensed insurance company insurance upon
his own life or property.

Any person violating the provisions of this section shall * be guilty
of a misdemeanor and upon conviction thereof shall be punished for each
offense by a fine of not less than five dollars, nor more than one thousand
dollars, or by confinment in jail not exceeding twelve months, or both,
in the discretion of the jury or of the trial justice, or of the court trying
the case without a jury, and, in addition thereto, shall be liable to any
resident of this State on any claim against such unlicensed company
acing out of a contract or policy solicited, negotiated or effected by

person or which such person assisted in soliciting or negotiating.

Nothing in this section shall apply to the solicitation, negotiation
or effecting of contracts of insurance on vessels or craft, their cargo,
freight, marine builders risk, maritime protection and indeminity, ship
repairer’s legal liability, tower's liability or other risk commonly insured
under ocean marine insurance policies as distinguished from inland
marine insurance policies, provided the person soliciting, negotiating or
effecting this kind of insurance on behalf of any insurance company which
tg not licensed to transact the business of insurance in this State, is
licensed in this State as a resident agent or company representative.