38.2-2701 - Definitions.
§ 38.2-2701. Definitions.
As used in this chapter:
"Basic property insurance" means insurance against direct loss to anyproperty caused by perils defined and limited in the standard fire policyprescribed in §§ 38.2-2101 through 38.2-2112, and in the extended coverageendorsement approved by the Commission pursuant to § 38.2-2117 and suchadditional lines of insurance and forms of coverage as may be recommended bythe governing body of the residual market facility and approved by theCommission.
"Inspection service" means any organization designated or approved by theCommission to determine the insurability and conditions of the properties forwhich basic property insurance is sought.
"Net direct premiums written" means gross direct premiums written in thisCommonwealth on all policies of basic property insurance and the basicproperty insurance component of multi-peril policies less (i) all returnpremiums on those policies, (ii) dividends paid or credited to policyholders,and (iii) the unused or unabsorbed portions of premium deposits.
"Qualified property" means all real property and all tangible personalproperty at a fixed location in this Commonwealth, whether or not theproperty is subject to exposure from an external hazard located on propertythat is neither owned nor controlled by the prospective insured, and whetheror not the property is subject to exposure from riot hazard, where theproperty:
1. Is not used for manufacturing purposes;
2. Complies with applicable state laws and regulations and local buildingcodes and ordinances;
3. Is not commonly owned or controlled, or combinable for rating purposes,with property insured for similar coverages elsewhere; and
4. Has characteristics of ownership, condition or occupancy that do notviolate any public policy.
"Residual market facility" means any organization approved by theCommission to equitably distribute the responsibility to provide basicproperty insurance on qualified property among insurers licensed to writebasic property insurance or other insurance containing a basic propertyinsurance component.
(1968, c. 559, § 38.1-747; 1980, c. 156; 1982, c. 664; 1986, c. 562; 1987, c.520; 1995, c. 119.)