§ 38.2-1038 — Authority of Commission to issue orders covering insurers in hazardous financial condition

Virginia § 38.2-1038

• Jurisdiction: Virginia
• Title 38.2: INSURANCE
• Ch. 10: ORGANIZATION, ADMISSION AND LICENSING OF INSURERS
• Art. 5: LICENSING OF INSURERS

Text

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 is a reasonable expectation that the insurer will not be able to, meet its obligations to all policyholders or (ii) the insurer's continued operation in this Commonwealth is hazardous to policyholders, creditors and the public in this Commonwealth the Commission may order the insurer to take appropriate action to remedy the Commission's concerns. The insurer shall be given ten days' notice prior to issuing the order and shall be given the opportunity to be heard and introduce evidence on its behalf. The hearing may be informal, and the required notice may be waived by the Commission and the insurer. If the insurer fails to comply with the Commission's order within the prescribed time, the Commission may suspend or revoke the license of the insurer to transact the business of insurance in this Commonwealth as set forth in Article 6 (§ 38.2-1040 et seq.) of this chapter.

Legislative History

1978, c. 20, § 38.1-97.2; 1986, c. 562; 1991, c. 261.