CHAPTER 198
An Act to amend and reenact §§38.2-2803 and 38.2-2903 of the
Code of Virginia, relating to the board of directors of insurance joint
underwriting associations.
[H 336]
Approved March 7, 2014
Be it enacted by the General Assembly of Virginia:
1. That §§38.2-2803 and 38.2-2903 of the Code of Virginia
are amended and reenacted as follows:
§38.2-2803. Directors.
A. The association shall be governed by a board of fourteen
14 directors. Two directors shall be appointed by each of the following
three insurance industry trade associations: (i) the American Insurance
Association; (ii) the Alliance of American Insurers Property Casualty
Insurers Association of America; and (iii) the National Association of Independent
Insurers Mutual Insurance Companies. The Commission shall appoint
two directors to represent insurers not affiliated with the insurance industry
trade associations listed above. One director shall be appointed by each of the
following two agent trade associations: (a) the Independent Insurance Agents of
Virginia; and (b) the Professional Insurance Agents Association of
Virginia and the District of Columbia. Two directors shall be appointed by the
Medical Society of Virginia, and two directors shall be appointed by the
Virginia Hospital and Healthcare Association.
B. If any of the foregoing associations fail to appoint a
director or directors within a reasonable period of time, the Commission shall
have the power to make the appointments.
§38.2-2903. Directors.
A. The Association shall be governed by a board of eleven
11 directors, including one who shall be elected chairman. Two directors
shall be appointed by each of the following three insurance industry trade associations:
(i) the American Insurance Association; (ii) the Alliance of American
Insurers Property Casualty Insurers Association of America; and
(iii) the National Association of Independent Insurers Mutual
Insurance Companies. One director shall be appointed by each of the
following two insurance agents' trade associations: (i) (a) the
Independent Insurance Agents of Virginia and (ii) (b) the
Professional Insurance Agents Association of Virginia and the District of
Columbia. The Commission shall appoint three directors not affiliated with the
aforementioned trade associations. If, for any reason, any of the trade
associations fail to appoint a director or directors within a reasonable period
of time, the Commission shall have the power to make the appointment.
B. All board members, including the chairman, shall be
appointed to serve for two-year terms beginning on a date designated by the
plan.
C. Six directors shall constitute a quorum for the transaction
of any business or exercise of any power of the Association. The directors of
the Association shall act by vote of a majority of those present. The directors
shall serve without salary, but each director shall be reimbursed for actual
and necessary expenses incurred in the performance of his or her official
duties as a director of the Association.
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