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"The concept of mutual assurance for mutual risk is as valid today as it was in
the 18th century. Today the Society seeks to have Virginia homeowners mutually insure
each other for the same primary purpose of minimizing their exposure to losses at
a reasonable cost."
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The Society Today
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The Society is a mutual assessment property and casualty insurance company and is
operated as a pure mutual for the sole benefit of its member policyholders. The
Society conducts its business on the assessment plan whereby the Society's Board
of Directors establishes the initial premiums to be charged each policyholder and
thereafter the Board levies an annual assessment. The annual assessment cannot exceed
two hundred percent of the policy premium.
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Uniquely, the Society issues a perpetual homeowners policy, i.e., there is no policy
expiration date, and as long as the conditions of membership are satisfied the policy
shall remain in effect, subject however to the cancellation provisions of the policy
and the Society's bylaws.
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Conceptually, the advantage of this type of organization is lower insurance costs
developed through the mutual sharing of risks, through conservative underwriting
of risks and through sound investment of the Society's funds. It is our hope that
once your home is insured by the Society a mutually satisfactory relationship will
develop so that the Society will be able to continue to insure your home as long
as you own it.
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From its inception in 1794 until 1955, the Society provided only fire insurance
on selected buildings throughout Virginia. In 1955, the Society amended its charter
to permit it to write extended coverage and again in 1965 its charter was amended
to permit the issuance of the homeowners package policy. Since 1955, the Society
has specialized in residential property insurance and at the present time writes
fire and allied lines, homeowners, inland marine and personal umbrella liability
insurance. The Society continues its tradition of physically inspecting every property
prior to binding coverage or issuing a policy, a tradition that is in stark contrast
to today's telemarketing and .com strategies.
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