CHAPTER 231

An Act to amend and reenact § 38.1-44 of the Code of Virginia, relating
to expense of administration of insurance laws.
[fH 307]

Approved March 12, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 38.1-44 of the Code of Virginia be amended and reenacted so
as to read as follows:

&§ 38.1-44, Expense of administration of insurance laws borne by
licensees ; minimum contribution.—The expense of maintaining the division
or bureau of the Commission established to administer the insurance laws
of the State shall be assessed annually by the Commission against all
insurance companies, except fraternal benefit societies and mutual assess-
ment fire insurance companies, doing business in this State in proportion
to their respective direct gross premiums on business done in this State.
Such assessment shall be in an amount not exceeding one-tenth of one per
centum of such direct gross premiums, and shall be apportioned, assessed
and paid as prescribed in § 38.1-45, except that in any year in which a
company has no direct gross premium income, or in which its direct gross
premium income is insufficient to produce at the rate of assessment pre-
scribed by law an amount of contribution equal to or in excess of twenty
dollars, there shall be so apportioned and assessed against such company
a contribution in the amount of twenty dollars.

As used in this article the words “direct gross premiums” shall mean
the gross amount of all premiums, assessments, dues and fees collected,
received or derived, or obligations taken therefor, from business in this
State during each year ending the thirty-first day of December, excluding
premiums received for reinsurance assumed from licensed insurance com-
panies, without any deduction for dividends paid or deduction on any other
account except for premiums returned on cancelled policies, or on account
of reduction in rates or reduction in the amount insured. In computing
direct gross premiums on insurance issued by mutual companies other
than life companies, refunds or returns made to policyholders otherwise
than for losses may be deducted.