Code of Virginia - Title 38.2 Insurance - Chapter 10 Organization, Admission And Licensing Of Insurers

38.2-1000 Incorporation of domestic stock insurers
Domestic stock insurers shall be incorporated under the provisions of Article 3 (§ 13.1-618 et seq.) of Chapter 9 of Title 13.1. A foreign insurer ...
38.2-1001 Incorporation of domestic mutual insurers
Domestic mutual insurers shall be incorporated under the provisions of Article 3 (§ 13.1-818 et seq.) of Chapter 10 of Title 13.1. A foreign insurer ...
38.2-1002 Additional requirements of articles of incorporation; name
The articles of incorporation for a domestic mutual insurer shall be signed by at least twenty natural persons, a majority of whom are legal residents ...
38.2-1003 When corporate status attained; bylaws filed with Commission
A domestic mutual insurer shall have legal existence as soon as the charter has been recorded with the Commission, after which the board of directors ...
38.2-1004 Voting
Each member of a domestic mutual insurer shall have one vote, or a number of votes based upon the insurance in force, the number of ...
38.2-1005 Certain mutual companies and societies not to become stock companies without approval of Commissio...
No mutual insurance company, mutual assessment property and casualty insurer, cooperative nonprofit life benefit company, mutual assessment life, accident and sickness company, burial society, or ...
38.2-1005.1 Conversion of a domestic mutual insurer to a domestic stock insurer
A. Any domestic mutual insurer may convert to a domestic stock insurer pursuant to a plan of conversion approved by the Commission. B. The Commission ...
38.2-1005.1:1 Definitions
As used in this article: "Converted company" means a stock insurance company incorporated and organized under the laws of this Commonwealth that continues in existence ...
38.2-1005.1:2 Formation of mutual holding company and conversion of mutual company
A mutual company, upon approval of the Commission, may reorganize by forming a mutual holding company and continue the corporate existence of the reorganizing mutual ...
38.2-1005.1:3 Mutual holding company membership interest
A. A member of a mutual holding company shall not transfer membership in the company or any right arising from membership. B. A member of ...
38.2-1005.1:4 Contents of plan of MHC conversion
A plan of MHC conversion shall: A. Include: 1. The reasons for the proposed conversion; and 2. The effect of the proposed conversion on the ...
38.2-1005.1:5 Adoption and approval of plan of MHC conversion
A. The board of directors of a mutual company may adopt a plan of MHC conversion that is consistent with the provisions of § 38.2-1005.1:4 ...
38.2-1005.1:6 Corporate existence
A. Upon conversion of a mutual company to a converted company in accordance with the provisions of this article, the corporate existence of the mutual ...
38.2-1005.1:7 Regulation and authority of a mutual holding company
A. A mutual holding company organized under Title 13.1 pursuant to the authority granted by this article shall have all of the powers granted to ...
38.2-1005.1:8 Diversion of business to affiliates
Without prior approval of the Commission, neither the converted company nor any person affiliated with or controlling the converted company shall divert business from the ...
38.2-1005.1:9 Conversion of mutual holding company
A mutual holding company may reorganize as a stock holding company by complying with the applicable provisions of § 38.2-1005.1. For the purposes of effecting ...
38.2-1005.1:10 Conflicts of interest
No director, officer, agent or employee of a mutual company or other person shall receive any fee, commission or other valuable consideration, other than such ...
38.2-1005.1:11 Costs and expenses
All costs and expenses incurred in connection with a plan of MHC conversion shall be paid either by the mutual company or the converted company. ...
38.2-1005.1:12 Failure to give notice
If a mutual company complies substantially and in good faith with the notice requirements in this article, its failure to give any member a required ...
38.2-1005.1:13 Limitation on actions
Any action challenging the validity of or arising out of any act taken or proposed to be taken under this article shall be commenced within ...
38.2-1006 Conversion of a domestic stock insurer to a mutual insurer
A. Any domestic stock life insurer may become a mutual life insurer, and to that end may carry out a plan for the acquisition of ...
38.2-1007 Notice to policyholders of meeting to approve conversion
At least thirty days before the meeting of policyholders required by § 38.2-1006, the insurer shall mail notice of the meeting to each policyholder at ...
38.2-1008 Conduct of and voting at meeting
The meeting required by § 38.2-1006 shall be conducted in the manner provided in the plan, subject to the following requirements: 1. Policyholders may vote ...
38.2-1009 Payment for shares pursuant to conversion plan
Every payment for the acquisition of any shares of the capital stock of the insurer, the purchase price of which is not fixed by the ...
38.2-1010 How acquired shares held
Until all shares are acquired, the acquired shares shall be held in trust for the policyholders of the insurer as provided in this article and ...
38.2-1011 Disposition of dividends after payments provided in conversion plan
After the payment of stockholder dividends as provided in the plan adopted under § 38.2-1006, and after paying the necessary expenses of executing the trust ...
38.2-1012 Jurisdiction to compel completion of mutualization
Whenever (i) a plan of mutualization approved in accordance with the laws of this Commonwealth has been in effect for more than five years, and ...
38.2-1013 Venue of proceedings
The petition may be filed in the circuit court of record with general equity jurisdiction in the county or city in which the principal office ...
38.2-1014 Parties and process
Necessary parties to the proceeding shall be (i) the insurer, (ii) the registered holders of all its stock still outstanding in the hands of the ...
38.2-1015 Determining value of stock outstanding; dismissal of petition or entry of decree requiring payment ...
The court shall determine the per share fair cash value as of the date of the filing of the petition of the stock remaining in ...
38.2-1016 Amendment of charter and bylaws; change of name; retirement and cancellation of stock; when mutuali...
A. Upon acquisition by the trustees of all of the capital stock of the insurer pursuant to the provisions of this article, the charter of ...
38.2-1016.1 Conversion of a health maintenance organization to an accident and sickness insurer
A. Any health maintenance organization domiciled in the Commonwealth and subject to the provisions of Chapter 43 (§ 38.2-4300 et seq.) may, at its option ...
38.2-1017 Applicability of Title 13.1
Except as otherwise provided in this title, Article 12 (§ 13.1-715.1 et seq.) of Chapter 9 of Title 13.1 shall apply to mergers involving a ...
38.2-1018 Plan of merger to be approved by Commission
Before any joint agreement for the merger of domestic insurers is submitted to the stockholders or members, it shall first be submitted to and approved ...
38.2-1019 Change of status from foreign to domestic insurer
A. Any foreign insurer licensed to transact the business of insurance in this Commonwealth may become a domestic insurer upon (i) complying with the requirements ...
38.2-1020 Transfer of domicile from Virginia to another state
Any domestic insurer, upon the approval of the Commission, may transfer its domicile from this Commonwealth to any other state in which it is licensed ...
38.2-1021 Change of domicile of foreign insurer to another foreign state
Any foreign insurer licensed to transact the business of insurance in this Commonwealth, upon proper notice to the Commission, may change its domicile to another ...
38.2-1022 Commission to be notified of proposed transfer of domicile
Each insurer licensed to transact the business of insurance in this Commonwealth that transfers its domicile to any other state shall notify the Commission of ...
38.2-1023 Effect of transfer of domicile on certificate of authority, agents' appointments and licenses, et...
When any insurer licensed to transact the business of insurance in this Commonwealth transfers its domicile to this or any other state, its certificate of ...
38.2-1024 License required to transact the business of insurance; application fee requirements for licens...
A. No insurer unless authorized pursuant to Chapter 48 (§ 38.2-4806 et seq.) of this title shall transact the business of insurance in this Commonwealth ...
38.2-1025 Annual renewal of license
Each insurer licensed to transact the business of insurance in this Commonwealth shall obtain an annual renewal of its license from the Commission. The Commission ...
38.2-1026 Retaliatory provisions as to taxes, fees, deposits and other requirements
A. When a domestic insurer or its agents are subject to regulatory costs in another state that are greater than those imposed in this Commonwealth ...
38.2-1027 Admission of foreign and alien insurers
Before transacting any insurance business in this Commonwealth, each foreign or alien insurer shall obtain a certificate of authority and shall comply with the applicable ...
38.2-1028 Additional licensing requirements for stock insurers
No stock insurer shall be licensed to transact the business of insurance in this Commonwealth unless it has fully paid in capital stock of at ...
38.2-1029 Additional licensing requirements for mutual insurers
No mutual insurer shall be licensed to transact the business of insurance in this Commonwealth unless it has a surplus of at least $1,600,000. (Code ...
38.2-1030 Surplus requirements for issuing policies without contingent liability
No domestic or foreign mutual insurer shall issue policies without contingent liability unless, at the time of issue, the insurer has at least four million ...
38.2-1031 Additional requirements, alien insurers
A. No alien insurer shall be licensed to transact the business of insurance in this Commonwealth unless it (i) has a "trusteed surplus," as defined ...
38.2-1032 Additional licensing requirements for domestic insurers
No domestic insurer shall be licensed to transact the business of insurance in this Commonwealth until it has furnished the Commission with a statement under ...
38.2-1033 Additional licensing requirements for foreign insurers
No foreign insurer shall be licensed to transact the business of insurance in this Commonwealth until it has filed with the Commission a certificate from ...
38.2-1034 How domestic mutual insurers may acquire initial surplus
Any domestic mutual insurer or mutual assessment property and casualty insurer may, without pledging any of its assets, provide a guaranty fund sufficient to defray ...
38.2-1035 Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment ...
A. Each domestic insurer shall maintain at all times the minimum surplus if a mutual insurer, and the minimum capital and surplus if a stock ...
38.2-1036 Impairment of capital and surplus of foreign and alien company ground for suspension or revocation ...
Each foreign and each alien insurer shall maintain at all times the minimum surplus, capital and surplus, or trusteed surplus required by §§ 38.2-1028, 38.2-1029, ...
38.2-1037 Exceptions for licensed and operating insurers
A. Notwithstanding the other provisions of this chapter with respect to minimum required capital and surplus, any insurer which, on June 30, 1991, was licensed ...
38.2-1038 Authority of Commission to issue orders covering insurers in hazardous financial conditio...
If, after reviewing an insurer's financial condition, method of operation, or manner of doing business, the Commission finds that (i) the insurer cannot, or there ...
38.2-1039 Enjoining unlicensed foreign or alien insurers from transacting the business of insurance in Common...
A. For the purposes of issuing a temporary or permanent injunction under § 38.2-220 to restrain unlicensed foreign or alien insurers from transacting the business ...
38.2-1039.1 Risk retention groups
Except in the case of a risk retention group all of whose members are insurers, no risk retention group, as defined in Chapter 51 of ...
38.2-1040 Refusal, suspension or revocation of license
A. The Commission may refuse to issue a license to any domestic, foreign or alien insurer to transact the business of insurance in this Commonwealth, ...
38.2-1041 Notice to company of proposed suspension or revocation
The Commission shall not revoke or suspend the license of any insurer to do the business of insurance in this Commonwealth upon any of the ...
38.2-1042 Agent's authority likewise suspended or revoked
Upon the suspension or revocation of the license of any insurer, the Commission shall suspend or revoke the authority of the insurer's agents in this ...
38.2-1043 Suspension or revocation published
Unless an appeal is taken within thirty days, the Commission shall have published in one or more newspapers having general circulation in this Commonwealth a ...
38.2-1044 New business prohibited
No new business shall be done by any insurer or its agents on behalf of that insurer while its license to do business is suspended ...
38.2-1045 Deposits required of insurers generally
A. Except as otherwise provided in this title, before the Commission issues a license to transact the business of insurance in this Commonwealth to any ...
38.2-1046 Purpose of deposits; enforcement of lien
A. An insurer's deposits required by § 38.2-1045 shall be held as a special fund in trust for the insurer's liabilities which are incurred or ...
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) ...
38.2-1048 Return of deposits
A. The Commission, at its discretion, may direct the State Treasurer to return to any insurer all or a part of the deposit made by ...
38.2-1049 Alternate deposit requirements
A. The insurer, at the discretion of the Commission, may be relieved of making the deposit required by § 38.2-1045 if the insurer makes deposits ...
38.2-1050 Voluntary deposit in excess of amount required
Any domestic insurer, in order to comply with the laws of any other state or of the United States, may make a voluntary deposit with ...
38.2-1051 Description unavailable
Repealed by Acts 1992, c. 14. ...
38.2-1052 Exchange of securities
A depositing insurer may from time to time exchange for any of the deposited securities other securities eligible for deposit under this article if in ...
38.2-1053 Interest on deposits; to whom paid
The State Treasurer, at the time of receiving any securities deposited under this title, shall give the insurer authority to collect the interest for its ...
38.2-1054 Duty of State Treasurer when securities deposited are paid
When the principal of any securities deposited under this title is paid to the State Treasurer, the money received shall be paid to the insurer. ...
38.2-1055 Annual report of State Treasurer to Commission
Each January the State Treasurer shall certify to the Commission the kind and face value of all securities, bonds, notes, mortgages or deeds of trust ...
38.2-1056 Treasurer to receipt for deposits; responsibility of Commonwealth; taxation of deposited bond...
The State Treasurer shall provide receipts to the insurer for all securities deposited with him under the provisions of this title. The Commonwealth shall be ...
38.2-1057 Assessment for expense of holding deposits; Insurance Collateral Assessment Fund
A. For the purpose of defraying the expense of the State Treasurer's office in the safekeeping and handling of the securities or surety bonds deposited ...
38.2-1058 Felony for State Treasurer to dispose of securities illegally
If the State Treasurer disposes of any securities deposited with him under this title, other than as provided in this title, he shall be guilty ...

Last modified: April 3, 2009