# Va. Code Ann. § 38.2-1223: Subscriber's agreement and power of attorney > Virginia · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1223 ## Section - **Citation:** Va. Code Ann. § 38.2-1223 - **Heading:** Subscriber's agreement and power of attorney - **Jurisdiction:** Virginia - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Virginia Code / Title 38.2 / Chapter 12 / Article 2 / Section 38.2-1223 ## Text A. Every subscriber of a domestic assessable reciprocal shall execute a subscriber's agreement and power of attorney setting forth the rights, privileges and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. Every subscriber of a nonassessable reciprocal may execute a subscriber's agreement and power of attorney setting forth the rights, privileges, and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. If a nonassessable reciprocal does not require execution of a subscriber's agreement and power of attorney, the reciprocal shall include on its policies a statement that the subscriber shall be bound by the terms and conditions of the then current subscriber's agreement and power of attorney on file with the attorney and the Commission, a copy of which shall be provided to each subscriber with each new or renewal policy, and each subscriber shall by operation of law be bound by such subscriber's agreement and power of attorney as if individually executed. Without additional execution, notice or acceptance, every subscriber of a reciprocal agrees to be bound by any modification of the terms of the power of attorney and subscriber's agreement which is jointly made by the attorney and the subscribers' advisory committee pursuant to § 38.2-1224 , and which shall be on file with the attorney and the Commission. Notwithstanding the provisions of this subsection, the original organizing subscribers of a reciprocal shall be required to execute and file with the declaration referred to in § 38.2-1219 the subscriber's agreement and power of attorney when such filing is in conjunction with the original organization and licensure by the Commission of a reciprocal as provided in § 38.2-1219 . The subscriber's agreement and power of attorney shall contain in substance the following provisions: 1. A designation and appointment of the attorney to act for and bind the subscriber in all transactions relating to or arising out of the operations of the reciprocal; 2. A provision empowering the attorney (i) to accept service of process on behalf of the reciprocal and (ii) to appoint the clerk of the Commission agent of the reciprocal upon whom may be served all lawful process against or notice to the reciprocal; 3. Except for nonassessable policies, a provision for a contingent assessment liability of each subscriber in a specified amount in accordance with § 38.2-1212 ; and 4. The maximum amount to be deducted from advance premiums or deposits to be paid the attorney, and the items of expense, in addition to losses, to be paid by the reciprocal. B. The subscriber's agreement may: 1. Provide for the right of substitution of the attorney and revocation of the power of attorney; 2. Impose any restrictions upon the exercise of the power agreed upon by the subscribers; 3. Provide for the exercise of any right reserved to the subscribers directly or through an advisory committee; or 4. Contain other lawful provisions considered advisable. 1952, c. 317, § 38.1-700; 1986, c. 562; 1990, c. 10. ## Nearby sections - [Va. Code Ann. § 38.2-1219 Organization of reciprocals; what declaration to contain](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1219.md) - [Va. Code Ann. § 38.2-1220 Attorney to file bond](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1220.md) - [Va. Code Ann. § 38.2-1221 Deposit instead of bond](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1221.md) - [Va. Code Ann. § 38.2-1222 Subscribers' advisory committee](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1222.md) - [Va. Code Ann. § 38.2-1223 Subscriber's agreement and power of attorney](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1223.md) - [Va. Code Ann. § 38.2-1224 Modification of power of attorney and subscriber's agreement](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1224.md) - [Va. Code Ann. § 38.2-1225 Contributions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1225.md) - [Va. Code Ann. § 38.2-1226 Assessments](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1226.md) - [Va. Code Ann. § 38.2-1227 Time limit for assessment](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1227.md) - [Va. Code Ann. § 38.2-1228 Subscribers' share in assets](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1228.md) - [Va. Code Ann. § 38.2-1229 Impaired reciprocals](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1229.md) - [Va. Code Ann. § 38.2-1230 Material transactions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1230.md) - [Va. Code Ann. § 38.2-1231 Attorney's financial statement](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1231.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1223. Check the current official text before relying on it. Not legal advice.