Code of Virginia - Title 38.2 Insurance - Section 38.2-1518 Rehabilitation or mutualization of companies

§ 38.2-1518. Rehabilitation or mutualization of companies

If at any time the Commission acting as the receiver finds that it is in the best interests of the policyholders and creditors of a delinquent insurer that it be rehabilitated or mutualized, the Commission shall prepare a plan of rehabilitation or mutualization. If at any time a receiver, other than the Commission, of a delinquent insurer reports to the court that it is in the best interests of the policyholders and creditors of the insurer that it be rehabilitated or mutualized, the receiver shall submit a plan of rehabilitation or mutualization to the court for its approval. The plan may include a provision imposing liens upon the net equities of policyholders of the insurer, and in the case of life insurers, a provision imposing a moratorium upon the loan or cash surrender values of the policies for whatever period of time is necessary. A hearing on the plan shall be held and notice of the hearing given in a manner prescribed by either the Commission or the court. After the hearing, the plan may be approved, disapproved, or modified by the Commission or the court.

(Code 1950, § 38-139; 1952, c. 317, § 38.1-142; 1986, c. 562.)

Sections:  Previous  38.2-1507  38.2-1508  38.2-1509  38.2-1510  38.2-1511  38.2-1512  38.2-1513  38.2-1514  38.2-1515  38.2-1516  38.2-1517  38.2-1518  38.2-1519  38.2-1520  38.2-1521  Next

Last modified: April 3, 2009