CHAPTER 234

An Act to amend and reenact § 88.1-108 of the Code of Virginia, relating
to deposits required of insurance companies. CH 588]

Approved March 5, 1956

Be it enacted by the General Assembly of Virginia:

1. That § 38.1-108 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
business of suretyship and shall not either directly or indirectly be under
the same ownership or management as the principal on such bond. The
Commission shall prescribe the amount of the securities or the penalty
of the surety bond to be deposited initially by each company and, at its dis-
cretion and within the limits specified herein, may subsequently require an
increase 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
permitted by § 38.1-113 shall be required of (1) any domestic mutual
assessment fire insurance company, (2) any fraternal benefit society, or
(3) any insurance company transacting exclusively an ocean marine
business in this State.