§ 38.2-1047. How deposits applied to payment of claims; deficit to be made good
A. This section shall apply only where:
1. The insurer has failed to pay any of its liabilities after the liabilities have been ascertained (i) by any agreement of the parties binding the insurer, or (ii) by judgment, order or decree of a court of competent jurisdiction which has not been appealed, superseded or stayed; and
2. The provisions of subsection B of § 38.2-1046 are not applicable.
B. Upon application of the person to whom the debt or money is due and after giving notice as provided in subsection C of this section, the State Treasurer shall (i) sell an amount of securities with accrued interest that provides sufficient funds to pay the sums due and the expenses of the sale and (ii) pay the sums due and expenses out of the available funds. This shall be subject to the approval of the Commission.
C. The State Treasurer shall give the insurer or its agent ten days' notice, either by mail or personally, of the time and place of the sale. The sale shall be advertised daily for ten days in a newspaper of general circulation published in the City of Richmond.
D. The insurer shall immediately make good any deficit in its deposit resulting from a sale. The State Treasurer shall report to the Commission in writing (i) the amount and kind of securities sold in accordance with the provisions of this section and (ii) the amount and kind of securities deposited to make good the deficit.
(Code 1950, § 38-49; 1950, p. 996; 1952, c. 317, § 38.1-111; 1986, c. 562; 1988, c. 298.)Sections: Previous 38.2-1040 38.2-1041 38.2-1042 38.2-1043 38.2-1044 38.2-1045 38.2-1046 38.2-1047 38.2-1048 38.2-1049 38.2-1050 38.2-1051 38.2-1052 38.2-1053 38.2-1054 Next
Last modified: April 16, 2009