In applying the limitation specified in § 38.2-208 to fidelity and suretyrisks, the net amount of exposure on any single risk shall be considered tobe within the prescribed limit if the fidelity and surety insurer isprotected against losses in excess of the limit by:
1. Reinsurance with a fidelity and surety insurer that enables the obligee orbeneficiary to maintain an action on the contract against the insurer jointlywith the reinsurer;
2. The cosuretyship of any other fidelity and surety insurer;
3. A deposit of property with it in pledge, or conveyance of property to itin trust for its protection;
4. A conveyance or mortgage of property for its protection;
5. A deposit or other disposition of a portion of any property held in trustso that no future sale, mortgage, pledge or other disposition can be made ofthat portion of the property except with the consent of the fidelity andsurety insurer or by decree or order of a competent court whenever theobligation is entered into on behalf or on account of a person holdingproperty in a fiduciary capacity; or
6. A guarantee by the Small Business Administrator that the surety shall notsuffer loss as set forth in the Small Business Investment Act of 1958.
(Code 1950, §§ 38-343, 38-344; 1952, c. 317, § 38.1-641; 1986, c. 562; 1988,cc. 529, 548.)
In applying the limitation specified in § 38.2-208 to fidelity and suretyrisks, the net amount of exposure on any single risk shall be considered tobe within the prescribed limit if the fidelity and surety insurer isprotected against losses in excess of the limit by:
1. Reinsurance with a fidelity and surety insurer that enables the obligee orbeneficiary to maintain an action on the contract against the insurer jointlywith the reinsurer;
2. The cosuretyship of any other fidelity and surety insurer;
3. A deposit of property with it in pledge, or conveyance of property to itin trust for its protection;
4. A conveyance or mortgage of property for its protection;
5. A deposit or other disposition of a portion of any property held in trustso that no future sale, mortgage, pledge or other disposition can be made ofthat portion of the property except with the consent of the fidelity andsurety insurer or by decree or order of a competent court whenever theobligation is entered into on behalf or on account of a person holdingproperty in a fiduciary capacity; or
6. A guarantee by the Small Business Administrator that the surety shall notsuffer loss as set forth in the Small Business Investment Act of 1958.
(Code 1950, §§ 38-343, 38-344; 1952, c. 317, § 38.1-641; 1986, c. 562; 1988,cc. 529, 548.)
In applying the limitation specified in § 38.2-208 to fidelity and suretyrisks, the net amount of exposure on any single risk shall be considered tobe within the prescribed limit if the fidelity and surety insurer isprotected against losses in excess of the limit by:
1. Reinsurance with a fidelity and surety insurer that enables the obligee orbeneficiary to maintain an action on the contract against the insurer jointlywith the reinsurer;
2. The cosuretyship of any other fidelity and surety insurer;
3. A deposit of property with it in pledge, or conveyance of property to itin trust for its protection;
4. A conveyance or mortgage of property for its protection;
5. A deposit or other disposition of a portion of any property held in trustso that no future sale, mortgage, pledge or other disposition can be made ofthat portion of the property except with the consent of the fidelity andsurety insurer or by decree or order of a competent court whenever theobligation is entered into on behalf or on account of a person holdingproperty in a fiduciary capacity; or
6. A guarantee by the Small Business Administrator that the surety shall notsuffer loss as set forth in the Small Business Investment Act of 1958.
(Code 1950, §§ 38-343, 38-344; 1952, c. 317, § 38.1-641; 1986, c. 562; 1988,cc. 529, 548.)
