Chap. 333.—An ACT to amend and re-enact section 1 of an act entitled an act
to authorize and regulate the exchange of certain classes of reciprocal and
inter-insurance contracts among individuals, partnerships and corporations,
empowering corporations generally to make such contracts, regulating proc-
ess in suits on such contracts, and prescribing certain fees, taxes and licenses
and penalty for violations, approved March 20, 1918, as last amended by an
act approved March 26, 1932. [H B 238]

Approved March 29, 1934

1. Be it enacted by the General Assembly of Virginia, That sec-
tion one of an act entitled an act to authorize and regulate the ex-
change of certain classes of reciprocal and inter-insurance contracts
among individuals, partnerships and corporations, empowering cor-
porations 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 twentieth, nineteen hundred and
eighteen, as last amended by an act approved March twenty-sixth, nine-
teen hundred and thirty-two, 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
inter-insurance contracts with each other or with individuals, partner-
ships and corporations of other states and countries providing indemnity
among themselves from any loss which may be insured against under
other provisions of the law, excepting fidelity and surety and life, in-
surance. Such contracts and the exchange thereof and such subscribers,
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 work-
men’s compensation insurance, enacted subsequent thereto, and except
all provisions of law relating to the deposit of bonds with the State
Treasurer, supervision of rates and prohibition of discrimination of
rates unless such law is referred to in this act, 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 subscribed, 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; pro-
vided, however, that any such inter-insurance or reciprocal exchange
may, in lieu of making the deposit of bonds required herein, furnish
a surety bond in form approved by the State Corporation Commission
and of an amount within the limits prescribed in section forty-two
hundred and eleven of the Code of Virginia; and provided further that
in lieu of making the deposit of bonds with the State Treasurer of
Virginia, as herein provided, any such inter-insurance or reciprocal
exchange, may deposit with the state treasurer or other appropriate
state official of the state in which such exchange is organized and
domiciled bonds of the United States or of any state, city or munici-
pality of the United States in the sum of not less than one hundred
fifty thousand dollars, and furnish the State Corporation Commission
of Virginia with a certificate of the state treasurer, or the appropriate
officer with whom such deposit has been made setting forth that such
deposit has been made and it is being held for the benefit of all the
subscribers of such inter-insurance or reciprocal exchange.