CHAPTER 172

An Act to amend and reenact § 38.1-659, as amended, of the Code of
Virginia, relating to the definition of mutual assessment fire insurance,
so as to broaden the same.

[H 413]

Approved March 1, 1962

Be it enacted by the General Assembly of Virginia:

1. That § 38.1-659, as amended, of the Code of Virginia, be amended and
reenacted as follows:

§ 38.1-659. As used in this title, unless the context or subject matter
requires otherwise, the following words or terms have the meaning herein
ascribed to them, respectively :

(1) “Mutual assessment fire insurance” means and includes (a) fire
insurance as defined in § 38.1-6, and (b) miscellaneous property insurance
as defined in § 38.1-7, * (c) water damage insurance as defined in § 38.1-8,
(d) burglary and theft insurance as defined in § 38.1-9, (e) glass insurance
as defined in § 88.1-10, (f) personal injury liability insurance as defined
im § 88.1-15, (g) property damage lability insurance as defined in § 38.1-16,
(h) marine insurance as defined in § 88.1-22 and (1) insurance against
contingent and consequential losses as defined in § 88.1-23; such insurance
as is designated in paragraphs (b) to (1) both inclusive, shall only be
issued as a supplemental or comprehensive contract in connection with a
fire insurance policy; but i in order for such insurance to constitute “mutual
assessment fire insurance’ it must be written by a mutual assessment fire
insurance company as herein defined, and must cover only the kind or
classes of property authorized by this chapter to be insured by such
companies.

No mutual assessment fire insurance company shall be authorized
to write the classes of insurance denominated in paragraphs (c) to (1),
both inclusive, as set out above, unless tt shall have an unimpatred surplus
of not less than one hundred thousand dollars and then in that case only
af it shall have all coverages under paragraphs (f) and (g) reinsured with
a company and under a contract that has the approval of the State
Corporation Commission; except, however, that this limitation shall not
apply to any mutual assessment fire insurance company which has an
unimpaired surplus of not less than three hundred thousand dollars, said
companies being expressly permitted to write all the coverages enumerated
herein without such reinsurance.

(2) “Mutual assessment fire insurance company” means a company
organized without capital stock and operating under the provisions of
this chapter for the benefit of its members, which pays its losses solely
from assessments upon its members, which confines its business to this
State, and which transacts only mutual assessment fire insurance as herein

efined.

(3) “Windstorm insurance” as used in this chapter means and in-
cludes insurance against loss or damage including loss of rents, use and
occupancy, and miscellaneous or consequential damage caused directly or
indirectly by windstorm, tornado, or cyclone.