{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1038.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1038.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1038.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1038.html"}],"law_id":84129,"edition_id":1,"section_id":84129,"structure_id":15918,"section_number":"38.2-1038","catch_line":"Authority of Commission to issue orders covering insurers in hazardous financial condition","history":"1978, c. 20, \u00a7 38.1-97.2; 1986, c. 562; 1991, c. 261.","full_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 (\u00a7 38.2-1040 et seq.) of this chapter.","order_by":null,"text":{"0":{"id":301532,"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 (\u00a7 38.2-1040 et seq.) of this chapter.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1038\/","history_text":"

This law was first created in 1978. The record of its establishment is cataloged in chapter 20 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. Unfortunately, the 1978 \u201cActs\u201d aren\u2019t available online. 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 1986, chapter 562; in 1991, chapter 261.<\/p>","references":[{"id":55347,"section_number":"38.2-4214","catch_line":"Application of certain provisions of law","order_by":null,"url":"\/38.2-4214\/"},{"id":60078,"section_number":"38.2-4408","catch_line":"Application of certain provisions","order_by":null,"url":"\/38.2-4408\/"},{"id":62548,"section_number":"38.2-4509","catch_line":"Application of certain laws","order_by":null,"url":"\/38.2-4509\/"},{"id":67266,"section_number":"38.2-5509","catch_line":"Supplemental provisions; rules; exemption","order_by":null,"url":"\/38.2-5509\/"}],"refers_to":[{"id":71497,"section_number":"38.2-1040","catch_line":"Refusal, suspension or revocation of license","order_by":null,"url":"\/38.2-1040\/"}],"permalink":{"id":211079,"object_type":"law","relational_id":84129,"identifier":"38.2-1038","token":"38.2\/10\/5\/38.2-1038","url":"\/38.2-1038\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1038\/","token":"38.2\/10\/5\/38.2-1038","dublin_core":{"Title":"Authority of Commission to issue orders covering insurers in hazardous financial condition","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1038","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

If, after reviewing an insurer<\/span>’s financial condition, method of operation, or manner of doing business, the Commission<\/span> finds that (i) the insurer<\/span> cannot, or there is a reasonable expectation that the insurer<\/span> will not be able to, meet its obligations to all policyholders or (ii) the insurer<\/span>’s continued operation in this Commonwealth is hazardous to policyholders, creditors<\/span> and the public in this Commonwealth the Commission<\/span> may order<\/span> the insurer<\/span> to take appropriate action to remedy the Commission<\/span>’s concerns. The insurer<\/span> shall be given ten days’ notice prior to issuing the order<\/span> and shall be given the opportunity to be heard and introduce evidence<\/span> on its behalf. The hearing<\/span> may be informal, and the required notice may be waived by the Commission<\/span> and the insurer<\/span>. If the insurer<\/span> fails to comply with the Commission<\/span>’s order<\/span> within the prescribed time, the Commission<\/span> may suspend or revoke the license of the insurer<\/span> to transact the business of insurance<\/span> in this Commonwealth as set forth in Article 6 (\u00a7 38.2-1040<\/a> et seq.) of this chapter.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAUTHORITY OF COMMISSION TO ISSUE ORDERS COVERING INSURERS IN HAZARDOUS FINANCIAL\nCONDITION (\u00a7 38.2-1038)\n\nIf, after reviewing an insurer’s financial condition, method of operation,\nor manner of doing business, the Commission finds that (i) the insurer cannot,\nor there is a reasonable expectation that the insurer will not be able to, meet\nits obligations to all policyholders or (ii) the insurer’s continued\noperation in this Commonwealth is hazardous to policyholders, creditors and the\npublic in this Commonwealth the Commission may order the insurer to take\nappropriate action to remedy the Commission’s concerns. The insurer shall\nbe given ten days’ notice prior to issuing the order and shall be given\nthe opportunity to be heard and introduce evidence on its behalf. The hearing\nmay be informal, and the required notice may be waived by the Commission and the\ninsurer. If the insurer fails to comply with the Commission’s order within\nthe prescribed time, the Commission may suspend or revoke the license of the\ninsurer to transact the business of insurance in this Commonwealth as set forth\nin Article 6 (\u00a7 38.2-1040 et seq.) of this chapter.\n\nHISTORY: 1978, c. 20, \u00a7 38.1-97.2; 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}}