Chap. 354.—An ACT to amend and re-enact section 1 of an act entitled an act to
- authorize and regulate the exchanges of certain classes of reciprocal and inter-
insurance contracts among individuals, partnerships and corporations, empower-
ing corporations generally to make such contracts, regulating process in suits
on such contracts, and prescribing certain fees, taxes and licenses and penalty
for violation, approved March 20, 1918, as last amended by an act approved

[

March 19, 1920. H B 153]
Approved March 26, 1932

1. Be it enacted by the general assembly of Virginia, That section
one of an act entitled an act to authorize and regulate the exchange of
certain classes of reciprocal and inter-insurance contracts among in-
dividuals, partnerships and corporations, empowering corporations gen-
erally to make such contracts, regulating process in suits on such con-
tracts and prescribing certain fees, taxes and licenses and penalty for
violation, approved March twentieth, nineteen hundred and eighteen,
as last amended by an act approved March nineteenth, nineteen hun-
dred and twenty, be amended and re-enacted so as to read as follows:

Section 1. Individuals, partnerships and corporations of this State
herein designated subscribers, are authorized to exchange reciprocal or
‘nter-insurance contracts with each other or with individuals, partner-
ships and corporations of other States and countries providing in-
demnity among themselves from any loss which may be insured against
under other provisions of the law, excepting fidelity and surety and
life, insurance. Such contracts and the exchange thereof and such sub-
scribers, their attorneys and representatives shall be regulated by this
act and by no other law relating to insurance, except that act known
as the Virginia workmen’s compensation act, and laws relating to
workmen’s compensation insurance, enacted subsequent thereto, and
except all provisions of law relating to supervision of rates and prohibi-
tion of discrimination of rates unless such law is referred to in this act,
and except that such inter-insurance or reciprocal exchanges as write
workmen’s compensation insurance under this act shall be subject to
sections forty-two hundred and eleven, forty-two hundred and twelve,
forty-two hundred and thirteen, forty-two hundred and fourteen, forty-
two hundred and fifteen, forty-two hundred and sixteen, forty-two
hundred and seventeen and forty-two hundred and eighteen of the
Code of Virginia; provided, however, that in its discretion the State
corporation commission may permit any such inter-insurance or recip-
rocal exchange, in lieu of making the deposit required under section
fortv-two hundred and eleven, to furnish a surety bond of an amount
within the limits prescribed in said section, but in such form as the
said commission may approve; and provided further that any such
inter-insurance or reciprocal exchange writing workmen’s compensa-
tion insurance may, in lieu of making the deposit or furnishing the
surety bond required herein, deposit with the State treasurer or other
appropriate State official of the State in which such company is organ-
ized, bonds of the United States or of any State, city, or municipality
of the United States in the sum of not less than one hundred thousand
dollars, and furnish the State corporation commission of Virginia with
a certificate of the State officer with whom such deposit is made setting
forth that such deposit has been made and is being held for the benefit
of the subscribers of such inter-insurance or reciprocal exchange; and
no law hereafter enacted shall apply to them unless they be expressly
designated therein, but inter-insurance or reciprocal exchanges may
make return of unused portion of premium or deposit to insured or
subscriber, and nothing shall be construed to prevent in the case of
workmen’s compensation or employer’s liability insurance, merit rating
or weekly or monthly adjustments for the purpose of reaching cost
basis to insured. ,

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