                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-2701)

As used in this chapter:		&#8220;Basic property insurance&#8221; means insurance
against direct loss to any property caused by perils defined and limited in the
standard fire policy prescribed in §§ 38.2-2101 through 38.2-2112, and in the
extended coverage endorsement approved by the Commission pursuant to §
38.2-2117 and such additional lines of insurance and forms of coverage as may be
recommended by the governing body of the residual market facility and approved
by the Commission.		&#8220;Inspection service&#8221; means any organization
designated or approved by the Commission to determine the insurability and
conditions of the properties for which basic property insurance is
sought.		&#8220;Net direct premiums written&#8221; means gross direct premiums
written in this Commonwealth on all policies of basic property insurance and the
basic property insurance component of multi-peril policies less (i) all return
premiums on those policies, (ii) dividends paid or credited to policyholders,
and (iii) the unused or unabsorbed portions of premium
deposits.		&#8220;Qualified property&#8221; means all real property and all
tangible personal property at a fixed location in this Commonwealth, whether or
not the property is subject to exposure from an external hazard located on
property that is neither owned nor controlled by the prospective insured, and
whether or not the property is subject to exposure from riot hazard, where the
property:

1. Is not used for manufacturing purposes;

2. Complies with applicable state laws and regulations and local building codes
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 not violate
any public policy.
			&#8220;Residual market facility&#8221; means any organization approved by the
Commission to equitably distribute the responsibility to provide basic property
insurance on qualified property among insurers licensed to write basic property
insurance or other insurance containing a basic property insurance component.

HISTORY: 1968, c. 559, § 38.1-747; 1980, c. 156; 1982, c. 664; 1986, c. 562;
1987, c. 520; 1995, c. 119.