CHAPTER 294

An Act to amend and reenact § 38.1-44, as amended, of the Code of
Virginia, relating to assessment for expense of administration of
insurance laws.

[H 601]

Approved March 15, 1960

Be it enacted by the General Assembly of Virginia:

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

§ 38.1-44. 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 * doing business in this State in propor-
tion 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 * by § 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 prescribed 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.