Appointment of the Clerk of the Commission as Agent for Service of Process, issued March 13, 1987, § 38.2-1216

STEVEN T. FOSTER

COMMISSIONER OF INSURANCE

THOMAS S. NARDO

FIRST DEPUTY COMMISSIONER

Box 1 157

RICHMOND, VA 23209

TELEPHONE (804) 786-37

STATE CORPORATION COMMISSION

BUREAU OF INSURANCE

March 13, 1987

Administrative Letter 1987-4

M E M O R A N D U M

TO: All Reciprocal Insurers Licensed in Virginia

RE: Appointment of the Cleric of the Commission as Agent for Service of Process

It has come to our attention that certain reciprocal insurers are not in com­

pliance with Virginia Code Section 38.2-1216.

Effective July 1, 1986, Section

38.2-1216 supplanted Section 38.1-700, which had required appointment of the

Secretary of the Commonwealth for service of process by every reciprocal insurer

licensed to do business in Virginia.

All licensed reciprocal insurers must now

appoint the Clerk of the State Corporation Commission as agent for service of

process.

Providing for transition, Section 38.2-1216 states in pertinent part:

Any domestic, foreign or alien reciprocal th at, on July 1,

1986, has appointed the Secretary of the Commonwealth as its

agent for service of process shall comply with the require­

ments of this section within six months of July 1, 1986.

By December 31, 1986, therefore, every licensed reciprocal insurer should have

filed a properly executed power-of-attorney appointing the Clerk of the State

Corporation Commission as its agent.

The SCC/Bureau of Insurance is enclosing copies of two versions of its power-of-

attorney form: one for corporations, the other for individuals. The appro­

priate form should be executed by the attorney-in-fact of every licensed

reciprocal insurer which has not as yet appointed the Clerk of the Commission as

its agent pursuant to Section 38.2-1216. No la ter than April 30, 1987, three

copies of the form with original signatures and properly executed should be

received by the SCC/Bureau of Insurance at the following address:

Company Licensing and Regulatory Compliance

SCC/Bureau of Insurance

Box 1157

Richmond, VA 23209

Sincerely,

Steven T

ich has not as yet appointed the Clerk of the Commission as

its agent pursuant to Section 38.2-1216. No la ter than April 30, 1987, three

copies of the form with original signatures and properly executed should be

received by the SCC/Bureau of Insurance at the following address:

Company Licensing and Regulatory Compliance

SCC/Bureau of Insurance

Box 1157

Richmond, VA 23209

Sincerely,

Steven T. Forster

Commissioner of Insurance

STF:AWG/fah

Enclosures

POWER OF ATTORNEY

For appointment of Agent by a Reciprocal Doing Business in

Virginia under Chapter 12, T itle 38.2 of the Code of Virginia.

KNOW ALL MEN BY THESE PRESENTS:

That the subscribers of t h e

, a

r e c i p r o c a l

o r g a n i z e d

a n d

e x i s t i n g

u n d e r

t h e

l a w s

of

by t h e i r duly au th o riz ed a t t o r n e y - i n - f a c t ,

a c tin g under and pursuant to the p r o v is io n s of Section 38.2-1216 of

the Code of Virginia, have agreed and by these presents do agree that

upon and after the issuance, by the State Corporation Commission, of a

l i c e n s e p e r m i t t i n g the

r e c i p r o c a l

to t r a n s a c t b u sin ess in the

Commonwealth of Virginia, any action or su it against the reciprocal,

i t s s u b s c r i b e r s or t h e i r a t t o r n e y - i n - f a c t , a r i s i n g out of or on

account of any p o lic y , c o n t r a c t or agreement for insurance in the

r e c i p r o c a l , may be brought in the c i t y or county in which the cause of

action a rise s or the claimant resides

c t b u sin ess in the

Commonwealth of Virginia, any action or su it against the reciprocal,

i t s s u b s c r i b e r s or t h e i r a t t o r n e y - i n - f a c t , a r i s i n g out of or on

account of any p o lic y , c o n t r a c t or agreement for insurance in the

r e c i p r o c a l , may be brought in the c i t y or county in which the cause of

action a rise s or the claimant resides.

And the s u b s c r i b e r s of t h e

by

th eir duly authorized a tto rn e y -in -fac t, have further made, constituted

and appointed, and by these presents do make, constitute and appoint

the Clerk of the S ta te Corporation Commission and h is successor or

successors in office, to be th e ir true and lawful agent and attorney-

i n - f a c t for the period of t h e i r lic e n s e upon whom a l l le g a l process

against the reciprocal, i t s subscribers or th eir atto rn ey -in -fact, in

a l l a c t i o n s or s u i t s a r i s i n g out of or on account of p o l i c i e s ,

contacts or agreements of insurance in the reciprocal, may be served,

which se rv ic e s h a ll be v a l i d and binding upon a l l

s u b s c r i b e r s

exchanging a t any time r e c i p r o c a l insurance c o n t r a c t s through the

atto rn e y -in -fac t whose name is affixed hereto, or his duly appointed

successor.

IN WITNESS WHEREOF,

,

incorporated under the laws of

, the

duly au th o riz e d a t t o r n e y - i n - f a c t of the

acting for the subscribers of the reciprocal, has executed th is power

of attorney in duplicate, by affixing hereto the name or designation

of the reciprocal and his own name as a tto rn e y -in -fac t, th is

day of

, 19.

(Attorney-in-Fact)

Corporate Seal

______________________

(Name)

(Title)

Attested By: __________________

(Name)

SCC/BOI: REl

o riz e d a t t o r n e y - i n - f a c t of the

acting for the subscribers of the reciprocal, has executed th is power

of attorney in duplicate, by affixing hereto the name or designation

of the reciprocal and his own name as a tto rn e y -in -fac t, th is

day of

, 19.

(Attorney-in-Fact)

Corporate Seal

______________________

(Name)

(Title)

Attested By: __________________

(Name)

SCC/BOI: REl

a t t e s t e d by t h e s e c r e t a r y ) .

STATE OF _________________________

CITY

(OR COUNTY) OF _________

I ,

, a N o t a r y P u b l i c i n and f o r t h e c i t y

(or c o u n t y ) a f o r e s a i d , h e r e b y c e r t i f y t h a t

and

, w h o s e n a m es a s P r e s i d e n t and S e c r e t a r y a r e

s i g n e d t o t h e f o r e g o i n g p o w e r o f a t t o r n e y h a v e a c k n o w l e d g e d t h e

same b e f o r e me i n my c i t y (or c o u n t y ) a f o r e s a i d .

G i v e n u n d e r my h a n d a n d o f f i c i a l s e a l t h i s

d a y o f

, 19

.

( N o t a r y P u b l i c )

My C o m m i s s i o n e x p i r e s

.

_____

N o t a r y S e a l

POWER OF ATTORNEY

For a p p o i n t m e n t o f A g e n t by a R e c i p r o c a l D o in g B u s i n e s s i n

Virginia under Chapter 12, T itle 38.2 of the Code of Virginia.

KNOW ALL MEN BY THESE PRESENTS:

T h a t

t h e

s u b s c r i b e r s o f

t h e

,

a

r e c i p r o c a l

o r g a n i z e d

a n d

e x i s t i n g

u n d e r

t h e

l a w s

of

by t h e i r duly a u th o riz ed a t t o r n e y - i n - f a c t ,

a c tin g under and pursuant to the p r o v is io n s of S ection 38.2-1216 of

the Code of Virginia, have agreed and by these presents do agree that

upon and after the issuance, by the State Corporation Commission, of a

l i c e n s e p e r m i t t i n g the r e c i p r o c a l

to t r a n s a c t b u sin e ss in the

Commonwealth of Virginia, any action or suit against the reciprocal,

i t s s u b s c r ib e r s or t h e i r a t t o r n e y - i n - f a c t ,

a r i s i n g out of or on

account of any p o lic y , c o n

resents do agree that

upon and after the issuance, by the State Corporation Commission, of a

l i c e n s e p e r m i t t i n g the r e c i p r o c a l

to t r a n s a c t b u sin e ss in the

Commonwealth of Virginia, any action or suit against the reciprocal,

i t s s u b s c r ib e r s or t h e i r a t t o r n e y - i n - f a c t ,

a r i s i n g out of or on

account of any p o lic y , c o n t r a c t or agreement for insurance in the

r e c i p r o c a l , may be brought in the c i t y or county in which the cause of

action a rise s or the claimant resides.

And the s u b s c r ib e r s of t h e

by

their duly authorized a tto rn e y -in -fac t, have further made, constituted

and appointed, and by these presents do make, co nstitute and appoint

the Clerk of the S ta te Corporation Commission and h is successor or

successors in office, to be th eir true and lawful agent and attorney-

i n - f a c t for the period of t h e i r lic e n s e upon whom a l l le g a l process

against the reciprocal, i t s subscribers or their atto rn e y -in -fac t, in

a l l a c t i o n s or s u i t s a r i s i n g out of or on account of p o l i c i e s ,

contacts or agreements of insurance in the reciprocal, may be served,

which se rv ic e

s h a ll be v a l i d and binding upon a l l

s u b s c r ib e r s

exchanging a t any time r e c i p r o c a l insurance c o n t r a c t s through the

atto rn e y -in -fac t whose name is affixed hereto, or his duly appointed

successor.

IN WITNESS W H E R E O F ,

,

the duly authorized atto rn e y -in -fac t of the

acting for the subscribers of the reciprocal, has executed t h i s power

of attorney in duplicate, by affixing hereto the name or designation

of the reciprocal and i t s own name as atto rn e y -in -fac t, th is

day of

, 19

.

( A t t o r n e y - i n - F a c t )

SCC/BOI:RE2