{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1031.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1031.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1031.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1031.html"}],"law_id":76434,"edition_id":1,"section_id":76434,"structure_id":15918,"section_number":"38.2-1031","catch_line":"Additional requirements, alien insurers","history":"Code 1950, \u00a7\u00a7 38-38, 38-514; 1952, c. 317, \u00a7 38.1-95; 1966, c. 580; 1977, c. 322; 1978, c. 20; 1985, c. 243; 1986, c. 562; 1991, c. 261.","full_text":"A\n\nNo alien insurer shall be licensed to transact the business of insurance in this Commonwealth unless it (i) has a “trusteed surplus,” as defined in subsection B of this section, of at least four million dollars and (ii) has filed with the Commission a certificate from the supervising insurance official of the state of entry certifying that it is authorized to write the classes of insurance it proposes to write in this Commonwealth or it has filed with the Commission a certificate of the supervising insurance official of its domiciliary country that it is authorized there to transact the kind of insurance business it proposes to transact in this Commonwealth.B\n\n“Trusteed surplus” of an alien insurer means the excess of the aggregate value of the assets set forth in subsection C of this section over the aggregate net amount of all of its liabilities in the United States.C\n\n1. General state deposits are all of the alien insurer’s assets within the United States on deposit with officers of any state for the benefit and security of all of its policyholders and creditors in the United States.2\n\nSpecial state deposits are all of the alien insurer’s assets in the United States, other than general state deposits, which are on deposit with officers of any state for the benefit and security of its policyholders and creditors in the state of deposit, or for the benefit and security of certain classes of its policyholders and creditors either in the state of deposit or in the United States. The value of special state deposits shall in no event exceed the value of the liability secured by the special state deposits.3\n\nTrusteed assets are all of its assets in the United States, other than general state deposits and special state deposits, held by any trustee for the benefit and security of all of its policyholders and creditors in the United States.4\n\nInterest receivable includes any interest collectable by the state or trustee that is receivable, due and accrued on the general state deposits, the special state deposits, and the trusteed assets of the alien insurer.D\n\nAn alien insurer’s liabilities in the United States are all of the reserves and other liabilities incurred by the alien insurer in the United States, from which may be deducted:1\n\nAn amount equal to the reinsurance credits allowed by Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13;2\n\nFrom the amount of such liabilities for unearned premiums, the unearned portion of premiums receivable by an alien insurer from its agents or policyholders under policies issued by it in the United States and not more than ninety days past due on the date of such statement;3\n\nThose liabilities in the United States pertaining to any asset in the United States of the alien insurer other than the assets described in subsection C of this section. This deduction shall be allowed only to the extent considered appropriate by the Commission and shall in no case exceed that portion of the value of the asset that is applicable to the liability pertaining to the asset; and4\n\nThe amount of the unpaid principal and interest of any loan made by the alien insurer to the holder of, and solely on the security of, any life insurance policy or annuity contract issued or assumed by it on the life of or to any person in the United States. This amount shall in no case exceed the amount of the reserve it is required to maintain on the policy or annuity contract.","order_by":null,"text":{"0":{"id":274350,"text":"No alien insurer shall be licensed to transact the business of insurance in this Commonwealth unless it (i) has a “trusteed surplus,” as defined in subsection B of this section, of at least four million dollars and (ii) has filed with the Commission a certificate from the supervising insurance official of the state of entry certifying that it is authorized to write the classes of insurance it proposes to write in this Commonwealth or it has filed with the Commission a certificate of the supervising insurance official of its domiciliary country that it is authorized there to transact the kind of insurance business it proposes to transact in this Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":274351,"text":"“Trusteed surplus” of an alien insurer means the excess of the aggregate value of the assets set forth in subsection C of this section over the aggregate net amount of all of its liabilities in the United States.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":274352,"text":"1. General state deposits are all of the alien insurer’s assets within the United States on deposit with officers of any state for the benefit and security of all of its policyholders and creditors in the United States.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"3":{"id":274353,"text":"Special state deposits are all of the alien insurer’s assets in the United States, other than general state deposits, which are on deposit with officers of any state for the benefit and security of its policyholders and creditors in the state of deposit, or for the benefit and security of certain classes of its policyholders and creditors either in the state of deposit or in the United States. The value of special state deposits shall in no event exceed the value of the liability secured by the special state deposits.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"4":{"id":274354,"text":"Trusteed assets are all of its assets in the United States, other than general state deposits and special state deposits, held by any trustee for the benefit and security of all of its policyholders and creditors in the United States.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"5":{"id":274355,"text":"Interest receivable includes any interest collectable by the state or trustee that is receivable, due and accrued on the general state deposits, the special state deposits, and the trusteed assets of the alien insurer.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"6":{"id":274356,"text":"An alien insurer’s liabilities in the United States are all of the reserves and other liabilities incurred by the alien insurer in the United States, from which may be deducted:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"D1"},"7":{"id":274357,"text":"An amount equal to the reinsurance credits allowed by Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"8":{"id":274358,"text":"From the amount of such liabilities for unearned premiums, the unearned portion of premiums receivable by an alien insurer from its agents or policyholders under policies issued by it in the United States and not more than ninety days past due on the date of such statement;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"9":{"id":274359,"text":"Those liabilities in the United States pertaining to any asset in the United States of the alien insurer other than the assets described in subsection C of this section. This deduction shall be allowed only to the extent considered appropriate by the Commission and shall in no case exceed that portion of the value of the asset that is applicable to the liability pertaining to the asset; and","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"10":{"id":274360,"text":"The amount of the unpaid principal and interest of any loan made by the alien insurer to the holder of, and solely on the security of, any life insurance policy or annuity contract issued or assumed by it on the life of or to any person in the United States. This amount shall in no case exceed the amount of the reserve it is required to maintain on the policy or annuity contract.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3"}},"ancestry":[{"id":15918,"edition_id":1,"name":"Licensing of Insurers","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":12858,"metadata":{},"date_created":"2026-06-26 04:01:51","date_modified":"2026-06-26 04:01:51","permalink":{"id":211021,"object_type":"structure","relational_id":15918,"identifier":"5","token":"38.2\/10\/5","url":"\/38.2\/10\/5\/","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":86158,"structure_id":15918,"section_number":"38.2-1024","catch_line":"License required to transact the business of insurance; application fee requirements for license","url":"\/38.2-1024\/","token":"38.2\/10\/5\/38.2-1024","metadata":false},{"id":77754,"structure_id":15918,"section_number":"38.2-1025","catch_line":"Annual renewal of license","url":"\/38.2-1025\/","token":"38.2\/10\/5\/38.2-1025","metadata":false},{"id":69463,"structure_id":15918,"section_number":"38.2-1026","catch_line":"Retaliatory provisions as to taxes, fees, deposits and other requirements","url":"\/38.2-1026\/","token":"38.2\/10\/5\/38.2-1026","metadata":false},{"id":87463,"structure_id":15918,"section_number":"38.2-1027","catch_line":"Admission of foreign and alien insurers","url":"\/38.2-1027\/","token":"38.2\/10\/5\/38.2-1027","metadata":false},{"id":85672,"structure_id":15918,"section_number":"38.2-1028","catch_line":"Additional licensing requirements for stock insurers","url":"\/38.2-1028\/","token":"38.2\/10\/5\/38.2-1028","metadata":false},{"id":79650,"structure_id":15918,"section_number":"38.2-1029","catch_line":"Additional licensing requirements for mutual insurers","url":"\/38.2-1029\/","token":"38.2\/10\/5\/38.2-1029","metadata":false},{"id":63344,"structure_id":15918,"section_number":"38.2-1030","catch_line":"Surplus requirements for issuing policies without contingent liability","url":"\/38.2-1030\/","token":"38.2\/10\/5\/38.2-1030","metadata":false},{"id":76434,"structure_id":15918,"section_number":"38.2-1031","catch_line":"Additional requirements, alien insurers","url":"\/38.2-1031\/","token":"38.2\/10\/5\/38.2-1031","metadata":false},{"id":70766,"structure_id":15918,"section_number":"38.2-1032","catch_line":"Additional licensing requirements for domestic insurers","url":"\/38.2-1032\/","token":"38.2\/10\/5\/38.2-1032","metadata":false},{"id":87308,"structure_id":15918,"section_number":"38.2-1033","catch_line":"Additional licensing requirements for foreign insurers","url":"\/38.2-1033\/","token":"38.2\/10\/5\/38.2-1033","metadata":false},{"id":61767,"structure_id":15918,"section_number":"38.2-1034","catch_line":"How domestic mutual insurers may acquire initial surplus","url":"\/38.2-1034\/","token":"38.2\/10\/5\/38.2-1034","metadata":false},{"id":80849,"structure_id":15918,"section_number":"38.2-1035","catch_line":"Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment found","url":"\/38.2-1035\/","token":"38.2\/10\/5\/38.2-1035","metadata":false},{"id":82299,"structure_id":15918,"section_number":"38.2-1036","catch_line":"Impairment of capital and surplus of foreign and alien company ground for suspension or revocation of license","url":"\/38.2-1036\/","token":"38.2\/10\/5\/38.2-1036","metadata":false},{"id":68854,"structure_id":15918,"section_number":"38.2-1037","catch_line":"Exceptions for licensed and operating insurers","url":"\/38.2-1037\/","token":"38.2\/10\/5\/38.2-1037","metadata":false},{"id":84129,"structure_id":15918,"section_number":"38.2-1038","catch_line":"Authority of Commission to issue orders covering insurers in hazardous financial condition","url":"\/38.2-1038\/","token":"38.2\/10\/5\/38.2-1038","metadata":false},{"id":62989,"structure_id":15918,"section_number":"38.2-1039","catch_line":"Enjoining unlicensed foreign or alien insurers from transacting the business of insurance in Commonwealth","url":"\/38.2-1039\/","token":"38.2\/10\/5\/38.2-1039","metadata":false},{"id":68850,"structure_id":15918,"section_number":"38.2-1039.1","catch_line":"Risk retention groups","url":"\/38.2-1039.1\/","token":"38.2\/10\/5\/38.2-1039.1","metadata":false}],"previous_section":{"id":63344,"structure_id":15918,"section_number":"38.2-1030","catch_line":"Surplus requirements for issuing policies without contingent liability","url":"\/38.2-1030\/","token":"38.2\/10\/5\/38.2-1030","metadata":false},"next_section":{"id":70766,"structure_id":15918,"section_number":"38.2-1032","catch_line":"Additional licensing requirements for domestic insurers","url":"\/38.2-1032\/","token":"38.2\/10\/5\/38.2-1032","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1031\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 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 1952, chapter 317; in 1966, chapter 580; in 1977, chapter 322; in 1978, chapter 20; in 1985, chapter 243; in 1986, chapter 562; in 1991, chapter 261.<\/p>","references":[{"id":82299,"section_number":"38.2-1036","catch_line":"Impairment of capital and surplus of foreign and alien company ground for suspension or revocation of license","order_by":null,"url":"\/38.2-1036\/"},{"id":86167,"section_number":"38.2-1206","catch_line":"License required of reciprocals; surplus","order_by":null,"url":"\/38.2-1206\/"},{"id":83934,"section_number":"38.2-1213","catch_line":"Nonassessable policies","order_by":null,"url":"\/38.2-1213\/"},{"id":78847,"section_number":"38.2-4811","catch_line":"Surplus lines coverage to be placed with eligible nonadmitted insurers","order_by":null,"url":"\/38.2-4811\/"}],"refers_to":[{"id":80624,"section_number":"38.2-1316.1","catch_line":"Definitions","order_by":null,"url":"\/38.2-1316.1\/"}],"permalink":{"id":211051,"object_type":"law","relational_id":76434,"identifier":"38.2-1031","token":"38.2\/10\/5\/38.2-1031","url":"\/38.2-1031\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1031\/","token":"38.2\/10\/5\/38.2-1031","dublin_core":{"Title":"Additional requirements, alien insurers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1031","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No alien insurer<\/span> shall be licensed to transact the business of insurance<\/span> in this Commonwealth unless it (i) has a “trusteed surplus<\/span>,” as defined in subsection B of this section, of at least four million dollars and (ii) has filed with the Commission<\/span> a certificate from the supervising insurance<\/span> official of the state<\/span> of entry certifying that it is authorized to write the classes of insurance<\/span> it proposes to write in this Commonwealth or it has filed with the Commission<\/span> a certificate of the supervising insurance<\/span> official of its domiciliary country that it is authorized there to transact the kind of insurance<\/span> business it proposes to transact in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> “Trusteed surplus<\/span>” of an alien insurer<\/span> means the excess of the aggregate value of the assets<\/span> set forth in subsection C of this section over the aggregate net amount of all of its liabilities in the United States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. General state<\/span> deposits are all of the alien insurer<\/span>’s assets<\/span> within the United States<\/span> on deposit with officers of any state<\/span> for the benefit and security of all of its policyholders and creditors<\/span> in the United States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Special state<\/span> deposits are all of the alien insurer<\/span>’s assets<\/span> in the United States<\/span>, other than general state<\/span> deposits, which are on deposit with officers of any state<\/span> for the benefit and security of its policyholders and creditors<\/span> in the state<\/span> of deposit, or for the benefit and security of certain classes of its policyholders and creditors<\/span> either in the state<\/span> of deposit or in the United States<\/span>. The value of special state<\/span> deposits shall in no event exceed the value of the liability secured by the special state<\/span> deposits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Trusteed assets<\/span> are all of its assets<\/span> in the United States<\/span>, other than general state<\/span> deposits and special state<\/span> deposits, held by any trustee for the benefit and security of all of its policyholders and creditors<\/span> in the United States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Interest receivable includes any interest collectable by the state<\/span> or trustee that is receivable, due and accrued on the general state<\/span> deposits, the special state<\/span> deposits, and the trusteed assets<\/span> of the alien insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> An alien insurer<\/span>’s liabilities in the United States<\/span> are all of the reserves and other liabilities incurred by the alien insurer<\/span> in the United States<\/span>, from which may be deducted: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An amount equal to the reinsurance credits allowed by Article 3.1 (§ 38.2-1316.1<\/a> et seq.) of Chapter 13; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> From the amount of such liabilities for unearned premiums, the unearned portion of premiums receivable by an alien insurer<\/span> from its agents or policyholders under policies issued by it in the United States<\/span> and not more than ninety days past due on the date of such statement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Those liabilities in the United States<\/span> pertaining to any asset in the United States<\/span> of the alien insurer<\/span> other than the assets<\/span> described in subsection C of this section. This deduction shall be allowed only to the extent considered appropriate by the Commission<\/span> and shall in no case exceed that portion of the value of the asset that is applicable to the liability pertaining to the asset; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The amount of the unpaid principal and interest of any loan made by the alien insurer<\/span> to the holder of, and solely on the security of, any life insurance<\/span> policy or annuity contract<\/span> issued or assumed by it on the life of or to any person<\/span> in the United States<\/span>. This amount shall in no case exceed the amount of the reserve it is required to maintain on the policy or annuity contract<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nADDITIONAL REQUIREMENTS, ALIEN INSURERS (\u00a7 38.2-1031)\n\nA. No alien insurer shall be licensed to transact the business of insurance in\nthis Commonwealth unless it (i) has a “trusteed surplus,” as defined\nin subsection B of this section, of at least four million dollars and (ii) has\nfiled with the Commission a certificate from the supervising insurance official\nof the state of entry certifying that it is authorized to write the classes of\ninsurance it proposes to write in this Commonwealth or it has filed with the\nCommission a certificate of the supervising insurance official of its\ndomiciliary country that it is authorized there to transact the kind of\ninsurance business it proposes to transact in this Commonwealth.\n\nB. “Trusteed surplus” of an alien insurer means the excess of the\naggregate value of the assets set forth in subsection C of this section over the\naggregate net amount of all of its liabilities in the United States.\n\nC. 1. General state deposits are all of the alien insurer’s assets within\nthe United States on deposit with officers of any state for the benefit and\nsecurity of all of its policyholders and creditors in the United States.\n\n 2. Special state deposits are all of the alien insurer’s assets in the\n United States, other than general state deposits, which are on deposit with\n officers of any state for the benefit and security of its policyholders and\n creditors in the state of deposit, or for the benefit and security of certain\n classes of its policyholders and creditors either in the state of deposit or\n in the United States. The value of special state deposits shall in no event\n exceed the value of the liability secured by the special state deposits.\n\n 3. Trusteed assets are all of its assets in the United States, other than\n general state deposits and special state deposits, held by any trustee for the\n benefit and security of all of its policyholders and creditors in the United\n States.\n\n 4. Interest receivable includes any interest collectable by the state or\n trustee that is receivable, due and accrued on the general state deposits, the\n special state deposits, and the trusteed assets of the alien insurer.\n\nD. An alien insurer’s liabilities in the United States are all of the\nreserves and other liabilities incurred by the alien insurer in the United\nStates, from which may be deducted:\n\n 1. An amount equal to the reinsurance credits allowed by Article 3.1 (§\n 38.2-1316.1 et seq.) of Chapter 13;\n\n 2. From the amount of such liabilities for unearned premiums, the unearned\n portion of premiums receivable by an alien insurer from its agents or\n policyholders under policies issued by it in the United States and not more\n than ninety days past due on the date of such statement;\n\n 3. Those liabilities in the United States pertaining to any asset in the\n United States of the alien insurer other than the assets described in\n subsection C of this section. This deduction shall be allowed only to the\n extent considered appropriate by the Commission and shall in no case exceed\n that portion of the value of the asset that is applicable to the liability\n pertaining to the asset; and\n\n 4. The amount of the unpaid principal and interest of any loan made by the\n alien insurer to the holder of, and solely on the security of, any life\n insurance policy or annuity contract issued or assumed by it on the life of or\n to any person in the United States. This amount shall in no case exceed the\n amount of the reserve it is required to maintain on the policy or annuity\n contract.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-38, 38-514; 1952, c. 317, \u00a7 38.1-95; 1966, c. 580;\n1977, c. 322; 1978, c. 20; 1985, c. 243; 1986, c. 562; 1991, c. 261.","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}}