{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1035.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1035.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1035.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1035.html"}],"law_id":80849,"edition_id":1,"section_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","history":"Code 1950, \u00a7 38-511; 1952, c. 317, \u00a7\u00a7 38.1-90, 38.1-93; 1966, c. 580; 1977, c. 322; 1986, c. 562.","full_text":"A\n\nEach domestic insurer shall maintain at all times the minimum surplus if a mutual insurer, and the minimum capital and surplus if a stock insurer, required by &#xA7;&#xA7; 38.2-1028, 38.2-1029 or &#xA7; 38.2-1030. If the Commission finds that (i) the minimum capital and surplus of a domestic stock insurer is impaired or (ii) the minimum surplus of a domestic mutual insurer is impaired, the Commission shall issue an order requiring the insurer to eliminate the impairment within a period not exceeding ninety days. The Commission may by order served upon the insurer prohibit the insurer from issuing any new policies while the impairment exists.B\n\nAny domestic mutual insurer may make an assessment upon its assessable members for an amount that will provide funds to cover all or any part of the impairment. However, no member shall be liable for an assessment exceeding the limit specified in his policy, and no assessment shall be made upon any member under a nonassessable policy. The assessment shall be made upon each assessable member in proportion to the liability as expressed in the policy. With the prior approval of the Commission, the deficiency may be made up from advances or borrowed funds and subject to the restrictions provided in &#xA7; 38.2-1034 for obtaining guaranty funds.C\n\nIf at the expiration of the designated period the insurer has not satisfied the Commission that the impairment has been eliminated, an order for the rehabilitation or liquidation of the insurer may be entered as provided in Chapter 15 (&#xA7; 38.2-1500 et seq.) of this title.","order_by":null,"text":{"0":{"id":289804,"text":"Each domestic insurer shall maintain at all times the minimum surplus if a mutual insurer, and the minimum capital and surplus if a stock insurer, required by &#xA7;&#xA7; 38.2-1028, 38.2-1029 or &#xA7; 38.2-1030. If the Commission finds that (i) the minimum capital and surplus of a domestic stock insurer is impaired or (ii) the minimum surplus of a domestic mutual insurer is impaired, the Commission shall issue an order requiring the insurer to eliminate the impairment within a period not exceeding ninety days. The Commission may by order served upon the insurer prohibit the insurer from issuing any new policies while the impairment exists.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":289805,"text":"Any domestic mutual insurer may make an assessment upon its assessable members for an amount that will provide funds to cover all or any part of the impairment. However, no member shall be liable for an assessment exceeding the limit specified in his policy, and no assessment shall be made upon any member under a nonassessable policy. The assessment shall be made upon each assessable member in proportion to the liability as expressed in the policy. With the prior approval of the Commission, the deficiency may be made up from advances or borrowed funds and subject to the restrictions provided in &#xA7; 38.2-1034 for obtaining guaranty funds.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":289806,"text":"If at the expiration of the designated period the insurer has not satisfied the Commission that the impairment has been eliminated, an order for the rehabilitation or liquidation of the insurer may be entered as provided in Chapter 15 (&#xA7; 38.2-1500 et seq.) of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1035\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 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 1986, chapter 562.<\/p>","references":[{"id":69874,"section_number":"38.2-2506","catch_line":"What laws applicable","order_by":null,"url":"\/38.2-2506\/"}],"refers_to":[{"id":85672,"section_number":"38.2-1028","catch_line":"Additional licensing requirements for stock insurers","order_by":null,"url":"\/38.2-1028\/"},{"id":79650,"section_number":"38.2-1029","catch_line":"Additional licensing requirements for mutual insurers","order_by":null,"url":"\/38.2-1029\/"},{"id":63344,"section_number":"38.2-1030","catch_line":"Surplus requirements for issuing policies without contingent liability","order_by":null,"url":"\/38.2-1030\/"},{"id":61767,"section_number":"38.2-1034","catch_line":"How domestic mutual insurers may acquire initial surplus","order_by":null,"url":"\/38.2-1034\/"},{"id":66658,"section_number":"38.2-1500","catch_line":"Scope of chapter","order_by":null,"url":"\/38.2-1500\/"}],"permalink":{"id":211067,"object_type":"law","relational_id":80849,"identifier":"38.2-1035","token":"38.2\/10\/5\/38.2-1035","url":"\/38.2-1035\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1035\/","token":"38.2\/10\/5\/38.2-1035","dublin_core":{"Title":"Domestic insurers to maintain minimum capital and surplus; proceedings by Commission if impairment found","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1035","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> Each domestic <span class=\"dictionary\">insurer<\/span> shall maintain at all times the minimum surplus if a mutual <span class=\"dictionary\">insurer<\/span>, and the minimum capital and surplus if a stock <span class=\"dictionary\">insurer<\/span>, required by &#xA7;&#xA7; <a class=\"law\" title=\"Additional licensing requirements for stock insurers\" href=\"\/38.2-1028\/\">38.2-1028<\/a>, <a class=\"law\" title=\"Additional licensing requirements for mutual insurers\" href=\"\/38.2-1029\/\">38.2-1029<\/a> or &#xA7; <a class=\"law\" title=\"Surplus requirements for issuing policies without contingent liability\" href=\"\/38.2-1030\/\">38.2-1030<\/a>. If the <span class=\"dictionary\">Commission<\/span> finds that (i) the minimum capital and surplus of a domestic stock <span class=\"dictionary\">insurer<\/span> is impaired or (ii) the minimum surplus of a domestic mutual <span class=\"dictionary\">insurer<\/span> is impaired, the <span class=\"dictionary\">Commission<\/span> shall <span class=\"dictionary\">issue<\/span> an <span class=\"dictionary\">order<\/span> requiring the <span class=\"dictionary\">insurer<\/span> to eliminate the impairment within a period not exceeding ninety days. The <span class=\"dictionary\">Commission<\/span> may by <span class=\"dictionary\">order<\/span> served upon the <span class=\"dictionary\">insurer<\/span> prohibit the <span class=\"dictionary\">insurer<\/span> from issuing any new policies while the impairment exists. <a id=\"paragraph-289804\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1035\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> Any domestic mutual <span class=\"dictionary\">insurer<\/span> may make an assessment upon its assessable members for an amount that will provide funds to cover all or any part of the impairment. However, no member shall be liable for an assessment exceeding the limit specified in his policy, and no assessment shall be made upon any member under a nonassessable policy. The assessment shall be made upon each assessable member in proportion to the liability as expressed in the policy. With the prior approval of the <span class=\"dictionary\">Commission<\/span>, the deficiency may be made up from advances or borrowed funds and subject to the restrictions provided in &#xA7; <a class=\"law\" title=\"How domestic mutual insurers may acquire initial surplus\" href=\"\/38.2-1034\/\">38.2-1034<\/a> for obtaining guaranty funds. <a id=\"paragraph-289805\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1035\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> If at the expiration of the designated period the <span class=\"dictionary\">insurer<\/span> has not satisfied the <span class=\"dictionary\">Commission<\/span> that the impairment has been eliminated, an <span class=\"dictionary\">order<\/span> for the rehabilitation or <span class=\"dictionary\">liquidation<\/span> of the <span class=\"dictionary\">insurer<\/span> may be entered as provided in Chapter 15 (&#xA7; <a class=\"law\" title=\"Scope of chapter\" href=\"\/38.2-1500\/\">38.2-1500<\/a> et seq.) of this title. <a id=\"paragraph-289806\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1035\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nDOMESTIC INSURERS TO MAINTAIN MINIMUM CAPITAL AND SURPLUS; PROCEEDINGS BY\nCOMMISSION IF IMPAIRMENT FOUND (\u00a7 38.2-1035)\n\nA. Each domestic insurer shall maintain at all times the minimum surplus if a\nmutual insurer, and the minimum capital and surplus if a stock insurer, required\nby &#xA7;&#xA7; 38.2-1028, 38.2-1029 or &#xA7; 38.2-1030. If the Commission\nfinds that (i) the minimum capital and surplus of a domestic stock insurer is\nimpaired or (ii) the minimum surplus of a domestic mutual insurer is impaired,\nthe Commission shall issue an order requiring the insurer to eliminate the\nimpairment within a period not exceeding ninety days. The Commission may by\norder served upon the insurer prohibit the insurer from issuing any new policies\nwhile the impairment exists.\n\nB. Any domestic mutual insurer may make an assessment upon its assessable\nmembers for an amount that will provide funds to cover all or any part of the\nimpairment. However, no member shall be liable for an assessment exceeding the\nlimit specified in his policy, and no assessment shall be made upon any member\nunder a nonassessable policy. The assessment shall be made upon each assessable\nmember in proportion to the liability as expressed in the policy. With the prior\napproval of the Commission, the deficiency may be made up from advances or\nborrowed funds and subject to the restrictions provided in &#xA7; 38.2-1034 for\nobtaining guaranty funds.\n\nC. If at the expiration of the designated period the insurer has not satisfied\nthe Commission that the impairment has been eliminated, an order for the\nrehabilitation or liquidation of the insurer may be entered as provided in\nChapter 15 (&#xA7; 38.2-1500 et seq.) of this title.\n\nHISTORY: Code 1950, \u00a7 38-511; 1952, c. 317, \u00a7\u00a7 38.1-90, 38.1-93; 1966, c.\n580; 1977, c. 322; 1986, c. 562.","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}}