§ 38.2-4130. Injunction; liquidation; receivership of domestic society
No domestic society shall:
1. Exceed its powers;
2. Fail to comply with any provisions of this chapter;
3. Fail to fulfill its contracts in good faith;
4. Have a membership of less than 400 after an existence of 1 year or more; or
5. Conduct business fraudulently or in a manner hazardous to its members, creditors, the public or the business.
If the Commission, upon investigation, finds such deficiencies, it shall issue a written notice to the society citing the deficiencies, stating the reasons for dissatisfaction, and requiring that the deficiencies be corrected within the period it designates. The period shall be at least thirty days but not more than six months from the service of the notice. If the Commission believes the interest of the certificate holders of the society will be best served by extending the period of time beyond six months, it may do so for the period of time it considers best. If the society does not correct the deficiency to the satisfaction of the Commission, the Commission may institute delinquency proceedings against the society in the manner set out in Chapter 15 (§ 38.2-1500 et seq.) of this title. If the Commission institutes a delinquency proceeding, all the provisions of Chapter 15 of this title with respect to the rehabilitation, liquidation, conservation and reorganization of insurers generally shall be applicable to the society.
(Code 1950, §§ 38-261, 38-275, 38-319, 38.1-592, 38.1-628; 1952, c. 317, §§ 38.1-638.24, 38.1-638.49; 1968, c. 654; 1986, c. 562.)
Sections: Previous 38.2-4123 38.2-4124 38.2-4125 38.2-4126 38.2-4127 38.2-4128 38.2-4129 38.2-4130 38.2-4131 38.2-4132 38.2-4133 38.2-4134 38.2-4135 38.2-4136 38.2-4137 NextLast modified: April 16, 2009