CHAPTER 558

An Act to amend and reenact § $8.1-108, as amended, of the Code of
Virginia, relating to deposits or surety in lieu thereof required of
msurance companies.

[H 598]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That § 38.1-108, as amended, of the Code of Virginia, be amended
and reenacted as follows:

§ 38.1-108. Except as otherwise provided in this title, before the
Commission shall issue a license to transact business in this State to any
domestic, foreign or alien insurance company, such company shall deposit
with the State Treasurer securities that are legal investments under the
laws of this Commonwealth for public sinking funds that are not in de-
fault as to principal or interest and are of the current market value of not
less than ten thousand dollars nor more than fifty thousand dollars. In
lieu of such deposit of securities, an insurance company may enter into
a bond with surety, approved by the Commission, in the penalty of not less
than ten thousand dollars nor more than fifty thousand dollars with such
conditions as the Commission may require; provided that such surety shall
be an insurance company duly licensed in this State to transact the busi-
ness of suretyship and shall not either directly or indirectly be under the
same ownership or management as the principal on such bond. The Com-
mission shall prescribe the amount of the securities or the penalty of the
surety bond to be deposited initially by each company and, at its discretion
and within the limits specified herein, may subsequently require an in-
crease or authorize a decrease in the amount of such deposit or in the
penalty of the bond.

Neither the deposit referred to herein nor the alternate deposit per-
mitted by § 38.1-113 shall be required of (1) any * mutual assessment
fire insurance company, (2) any fraternal benefit society, or (8) any in-
a _ company transacting exclusively an ocean marine business in

is .