{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1005.1_7.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1005.1_7.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1005.1_7.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1005.1_7.html"}],"law_id":66932,"edition_id":1,"section_id":66932,"structure_id":12859,"section_number":"38.2-1005.1:7","catch_line":"Regulation and authority of a mutual holding company","history":"2001, c. 726; 2014, c. 248; 2017, c. 643.","full_text":"A\n\nA mutual holding company organized under Title 13.1 pursuant to the authority granted by this article shall have all of the powers granted to a domestic mutual insurance company licensed under Chapter 10 (§ 38.2-1000 et seq.) and shall be subject to the same limitations and restrictions imposed on insurance holding companies by Article 5 (§ 38.2-1322 et seq.), Article 5.1 (§ 38.2-1334.3 et seq.), Article 5.2 (§ 38.2-1334.11 et seq.), and Article 6 (§ 38.2-1335 et seq.) of Chapter 13 as well as all requirements and provisions of the laws of this Commonwealth that are not inconsistent with the provisions of this article except that a mutual holding company shall not have authority to transact insurance pursuant to this title.B\n\nNeither the mutual holding company nor any intermediate holding company shall issue or reinsure policies of insurance.C\n\nA mutual holding company may enter into an affiliation agreement or merger agreement either at the time of the conversion, or at some later time with the approval of the Commission, with any mutual insurance company licensed to transact insurance in this Commonwealth or another mutual holding company. Any such merger agreement may authorize members of the mutual insurance company or other mutual holding company to become members of the mutual holding company. Any such affiliation or merger agreement shall be subject to the provisions of this title relating to transactions entered into by a mutual insurance company organized and licensed under the laws of this Commonwealth.D\n\nThe assets of the mutual holding company shall be held in trust under such arrangements and on such terms as the Commission may approve for the benefit of the policyholders of the converted company. Any residual rights of the MHC in such assets or any of the assets of the MHC determined not to be held in trust shall be subject to a lien in favor of the policyholders of the converted company under such terms as the Commission may approve. Upon conversion of the mutual holding company as provided for in § 38.2-1005.1:9, such assets shall be released from trust in accordance with the plan of conversion approved by the Commission.","order_by":null,"text":{"0":{"id":242669,"text":"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 a domestic mutual insurance company licensed under Chapter 10 (§ 38.2-1000 et seq.) and shall be subject to the same limitations and restrictions imposed on insurance holding companies by Article 5 (§ 38.2-1322 et seq.), Article 5.1 (§ 38.2-1334.3 et seq.), Article 5.2 (§ 38.2-1334.11 et seq.), and Article 6 (§ 38.2-1335 et seq.) of Chapter 13 as well as all requirements and provisions of the laws of this Commonwealth that are not inconsistent with the provisions of this article except that a mutual holding company shall not have authority to transact insurance pursuant to this title.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":242670,"text":"Neither the mutual holding company nor any intermediate holding company shall issue or reinsure policies of insurance.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":242671,"text":"A mutual holding company may enter into an affiliation agreement or merger agreement either at the time of the conversion, or at some later time with the approval of the Commission, with any mutual insurance company licensed to transact insurance in this Commonwealth or another mutual holding company. Any such merger agreement may authorize members of the mutual insurance company or other mutual holding company to become members of the mutual holding company. Any such affiliation or merger agreement shall be subject to the provisions of this title relating to transactions entered into by a mutual insurance company organized and licensed under the laws of this Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":242672,"text":"The assets of the mutual holding company shall be held in trust under such arrangements and on such terms as the Commission may approve for the benefit of the policyholders of the converted company. Any residual rights of the MHC in such assets or any of the assets of the MHC determined not to be held in trust shall be subject to a lien in favor of the policyholders of the converted company under such terms as the Commission may approve. Upon conversion of the mutual holding company as provided for in § 38.2-1005.1:9, such assets shall be released from trust in accordance with the plan of conversion approved by the Commission.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":12859,"edition_id":1,"name":"Formation of Mutual Insurance Holding Company; Conversion of Mutual Holding Company to Stock Holding Company","identifier":"1.1","label":"article","depth":3,"order_by":1,"parent_id":12858,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":210883,"object_type":"structure","relational_id":12859,"identifier":"1.1","token":"38.2\/10\/1.1","url":"\/38.2\/10\/1.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12858,"edition_id":1,"name":"Organization, Admission and Licensing of Insurers","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":210851,"object_type":"structure","relational_id":12858,"identifier":"10","token":"38.2\/10","url":"\/38.2\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56902,"structure_id":12859,"section_number":"38.2-1005.1:1","catch_line":"Definitions","url":"\/38.2-1005.1_1\/","token":"38.2\/10\/1.1\/38.2-1005.1_1","metadata":false},{"id":64846,"structure_id":12859,"section_number":"38.2-1005.1:10","catch_line":"Conflicts of interest","url":"\/38.2-1005.1_10\/","token":"38.2\/10\/1.1\/38.2-1005.1_10","metadata":false},{"id":76203,"structure_id":12859,"section_number":"38.2-1005.1:11","catch_line":"Costs and expenses","url":"\/38.2-1005.1_11\/","token":"38.2\/10\/1.1\/38.2-1005.1_11","metadata":false},{"id":77766,"structure_id":12859,"section_number":"38.2-1005.1:12","catch_line":"Failure to give notice","url":"\/38.2-1005.1_12\/","token":"38.2\/10\/1.1\/38.2-1005.1_12","metadata":false},{"id":79053,"structure_id":12859,"section_number":"38.2-1005.1:13","catch_line":"Limitation on actions","url":"\/38.2-1005.1_13\/","token":"38.2\/10\/1.1\/38.2-1005.1_13","metadata":false},{"id":71404,"structure_id":12859,"section_number":"38.2-1005.1:2","catch_line":"Formation of mutual holding company and conversion of mutual company","url":"\/38.2-1005.1_2\/","token":"38.2\/10\/1.1\/38.2-1005.1_2","metadata":false},{"id":85196,"structure_id":12859,"section_number":"38.2-1005.1:3","catch_line":"Mutual holding company membership interest","url":"\/38.2-1005.1_3\/","token":"38.2\/10\/1.1\/38.2-1005.1_3","metadata":false},{"id":85678,"structure_id":12859,"section_number":"38.2-1005.1:4","catch_line":"Contents of plan of MHC conversion","url":"\/38.2-1005.1_4\/","token":"38.2\/10\/1.1\/38.2-1005.1_4","metadata":false},{"id":81727,"structure_id":12859,"section_number":"38.2-1005.1:5","catch_line":"Adoption and approval of plan of MHC conversion","url":"\/38.2-1005.1_5\/","token":"38.2\/10\/1.1\/38.2-1005.1_5","metadata":false},{"id":53995,"structure_id":12859,"section_number":"38.2-1005.1:6","catch_line":"Corporate existence","url":"\/38.2-1005.1_6\/","token":"38.2\/10\/1.1\/38.2-1005.1_6","metadata":false},{"id":66932,"structure_id":12859,"section_number":"38.2-1005.1:7","catch_line":"Regulation and authority of a mutual holding company","url":"\/38.2-1005.1_7\/","token":"38.2\/10\/1.1\/38.2-1005.1_7","metadata":false},{"id":57547,"structure_id":12859,"section_number":"38.2-1005.1:8","catch_line":"Diversion of business to affiliates","url":"\/38.2-1005.1_8\/","token":"38.2\/10\/1.1\/38.2-1005.1_8","metadata":false},{"id":71758,"structure_id":12859,"section_number":"38.2-1005.1:9","catch_line":"Conversion of mutual holding company","url":"\/38.2-1005.1_9\/","token":"38.2\/10\/1.1\/38.2-1005.1_9","metadata":false}],"previous_section":{"id":53995,"structure_id":12859,"section_number":"38.2-1005.1:6","catch_line":"Corporate existence","url":"\/38.2-1005.1_6\/","token":"38.2\/10\/1.1\/38.2-1005.1_6","metadata":false},"next_section":{"id":57547,"structure_id":12859,"section_number":"38.2-1005.1:8","catch_line":"Diversion of business to affiliates","url":"\/38.2-1005.1_8\/","token":"38.2\/10\/1.1\/38.2-1005.1_8","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1005.1:7\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 726<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2014, chapter 248<\/a>; in 2017, chapter 643<\/a>.<\/p>","references":false,"refers_to":[{"id":58285,"section_number":"38.2-1000","catch_line":"Incorporation of domestic stock insurers","order_by":null,"url":"\/38.2-1000\/"},{"id":71758,"section_number":"38.2-1005.1:9","catch_line":"Conversion of mutual holding company","order_by":null,"url":"\/38.2-1005.1_9\/"},{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":65917,"section_number":"38.2-1334.11","catch_line":"Definitions","order_by":null,"url":"\/38.2-1334.11\/"},{"id":66267,"section_number":"38.2-1334.3","catch_line":"Definitions","order_by":null,"url":"\/38.2-1334.3\/"},{"id":85446,"section_number":"38.2-1335","catch_line":"Definitions","order_by":null,"url":"\/38.2-1335\/"}],"permalink":{"id":210925,"object_type":"law","relational_id":66932,"identifier":"38.2-1005.1:7","token":"38.2\/10\/1.1\/38.2-1005.1_7","url":"\/38.2-1005.1_7\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1005.1_7\/","token":"38.2\/10\/1.1\/38.2-1005.1_7","dublin_core":{"Title":"Regulation and authority of a mutual holding company","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1005.1:7","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A mutual holding company<\/span> organized under Title 13.1 pursuant to the authority granted by this article shall have all of the powers granted to a domestic mutual insurance company<\/span> licensed under Chapter 10 (§ 38.2-1000<\/a> et seq.) and shall be subject to the same limitations and restrictions imposed on insurance holding companies by Article 5 (§ 38.2-1322<\/a> et seq.), Article 5.1 (§ 38.2-1334.3<\/a> et seq.), Article 5.2 (§ 38.2-1334.11<\/a> et seq.), and Article 6 (§ 38.2-1335<\/a> et seq.) of Chapter 13 as well as all requirements and provisions of the laws<\/span> of this Commonwealth that are not inconsistent with the provisions of this article except that a mutual holding company<\/span> shall not have authority to transact insurance pursuant to this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Neither the mutual holding company<\/span> nor any intermediate holding company<\/span> shall issue<\/span> or reinsure policies of insurance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A mutual holding company<\/span> may enter into an affiliation agreement or merger agreement either at the time of the conversion, or at some later time with the approval of the Commission<\/span>, with any mutual insurance company<\/span> licensed to transact insurance in this Commonwealth or another mutual holding company<\/span>. Any such merger agreement may authorize members<\/span> of the mutual insurance company<\/span> or other mutual holding company<\/span> to become members<\/span> of the mutual holding company<\/span>. Any such affiliation or merger agreement shall be subject to the provisions of this title relating to transactions entered into by a mutual insurance company<\/span> organized and licensed under the laws<\/span> of this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The assets<\/span> of the mutual holding company<\/span> shall be held in trust under such arrangements and on such terms as the Commission<\/span> may approve for the benefit of the policyholders<\/span> of the converted company<\/span>. Any residual rights of the MHC<\/span> in such assets<\/span> or any of the assets<\/span> of the MHC<\/span> determined not to be held in trust shall be subject to a lien<\/span> in favor of the policyholders<\/span> of the converted company<\/span> under such terms as the Commission<\/span> may approve. Upon conversion of the mutual holding company<\/span> as provided for in § 38.2-1005.1:9<\/a>, such assets<\/span> shall be released from trust in accordance with the plan<\/span> of conversion approved by the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREGULATION AND AUTHORITY OF A MUTUAL HOLDING COMPANY (\u00a7 38.2-1005.1:7)\n\nA. A mutual holding company organized under Title 13.1 pursuant to the authority\ngranted by this article shall have all of the powers granted to a domestic\nmutual insurance company licensed under Chapter 10 (§ 38.2-1000 et seq.)\nand shall be subject to the same limitations and restrictions imposed on\ninsurance holding companies by Article 5 (§ 38.2-1322 et seq.), Article 5.1\n(§ 38.2-1334.3 et seq.), Article 5.2 (§ 38.2-1334.11 et seq.), and\nArticle 6 (§ 38.2-1335 et seq.) of Chapter 13 as well as all requirements\nand provisions of the laws of this Commonwealth that are not inconsistent with\nthe provisions of this article except that a mutual holding company shall not\nhave authority to transact insurance pursuant to this title.\n\nB. Neither the mutual holding company nor any intermediate holding company shall\nissue or reinsure policies of insurance.\n\nC. A mutual holding company may enter into an affiliation agreement or merger\nagreement either at the time of the conversion, or at some later time with the\napproval of the Commission, with any mutual insurance company licensed to\ntransact insurance in this Commonwealth or another mutual holding company. Any\nsuch merger agreement may authorize members of the mutual insurance company or\nother mutual holding company to become members of the mutual holding company.\nAny such affiliation or merger agreement shall be subject to the provisions of\nthis title relating to transactions entered into by a mutual insurance company\norganized and licensed under the laws of this Commonwealth.\n\nD. The assets of the mutual holding company shall be held in trust under such\narrangements and on such terms as the Commission may approve for the benefit of\nthe policyholders of the converted company. Any residual rights of the MHC in\nsuch assets or any of the assets of the MHC determined not to be held in trust\nshall be subject to a lien in favor of the policyholders of the converted\ncompany under such terms as the Commission may approve. Upon conversion of the\nmutual holding company as provided for in § 38.2-1005.1:9, such assets\nshall be released from trust in accordance with the plan of conversion approved\nby the Commission.\n\nHISTORY: 2001, c. 726; 2014, c. 248; 2017, c. 643.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}