{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1040.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1040.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1040.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1040.html"}],"law_id":71497,"edition_id":1,"section_id":71497,"structure_id":15153,"section_number":"38.2-1040","catch_line":"Refusal, suspension or revocation of license","history":"Code 1950, \u00a7\u00a7 38-68, 38-132, 38-133, 38-134, 38-169, 38-370; 1952, c. 317, \u00a7 38.1-99; 1966, c. 457; 1986, c. 562; 1987, c. 431.","full_text":"A\n\nThe Commission may refuse to issue a license to any domestic, foreign or alien insurer to transact the business of insurance in this Commonwealth, and may suspend or revoke the license of any licensee, whenever it finds that the applicant or licensee:1\n\nHas refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission or its representative;2\n\nHas refused, or its officers or agents have refused, to furnish satisfactory evidence of its financial and business standing or solvency;3\n\nIs insolvent, or is in a condition that any further transaction of business in this Commonwealth is hazardous to its policyholders, creditors and public in this Commonwealth;4\n\nHas failed to pay a final judgment against it within sixty days after (i) the judgment became final, (ii) the time for making an appeal has expired, or (iii) the dismissal of an appeal before final determination, whichever date is the latest;5\n\nHas violated any law of this Commonwealth, or has in this Commonwealth violated its charter or exceeded its corporate powers;6\n\nHas failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition of any legal contest with respect to liability for the fees, taxes or charges;7\n\nHas had its corporate existence dissolved or its certificate of authority revoked in the state in which it was organized or in this Commonwealth;8\n\nHas been found insolvent by a court of any other state, or by the Commission or other proper officer or agency of any other state, and has been prohibited from doing business in that state;9\n\nHas had all its risks reinsured in their entirety in another insurer; or10\n\nHas notified the insured in writing or by any other means that any policy of insurance covering the ownership or operation of a motor vehicle issued by the insurer will be cancelled if the insured institutes any legal action against the insurer to pursue any rights of the insured under the policy.B\n\nThe grounds for suspension or revocation of licenses in subsection A of this section are in addition to those provided for elsewhere in this title.","order_by":null,"text":{"0":{"id":257687,"text":"The Commission may refuse to issue a license to any domestic, foreign or alien insurer to transact the business of insurance in this Commonwealth, and may suspend or revoke the license of any licensee, whenever it finds that the applicant or licensee:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":257688,"text":"Has refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission or its representative;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":257689,"text":"Has refused, or its officers or agents have refused, to furnish satisfactory evidence of its financial and business standing or solvency;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":257690,"text":"Is insolvent, or is in a condition that any further transaction of business in this Commonwealth is hazardous to its policyholders, creditors and public in this Commonwealth;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":257691,"text":"Has failed to pay a final judgment against it within sixty days after (i) the judgment became final, (ii) the time for making an appeal has expired, or (iii) the dismissal of an appeal before final determination, whichever date is the latest;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":257692,"text":"Has violated any law of this Commonwealth, or has in this Commonwealth violated its charter or exceeded its corporate powers;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":257693,"text":"Has failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition of any legal contest with respect to liability for the fees, taxes or charges;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":257694,"text":"Has had its corporate existence dissolved or its certificate of authority revoked in the state in which it was organized or in this Commonwealth;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":257695,"text":"Has been found insolvent by a court of any other state, or by the Commission or other proper officer or agency of any other state, and has been prohibited from doing business in that state;","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":257696,"text":"Has had all its risks reinsured in their entirety in another insurer; or","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":257697,"text":"Has notified the insured in writing or by any other means that any policy of insurance covering the ownership or operation of a motor vehicle issued by the insurer will be cancelled if the insured institutes any legal action against the insurer to pursue any rights of the insured under the policy.","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"B"},"11":{"id":257698,"text":"The grounds for suspension or revocation of licenses in subsection A of this section are in addition to those provided for elsewhere in this title.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A10"}},"ancestry":[{"id":15153,"edition_id":1,"name":"Refusal, Suspension or Revocation of Insurer's License","identifier":"6","label":"article","depth":3,"order_by":1,"parent_id":12858,"metadata":{},"date_created":"2026-06-26 03:52:34","date_modified":"2026-06-26 03:52:34","permalink":{"id":211091,"object_type":"structure","relational_id":15153,"identifier":"6","token":"38.2\/10\/6","url":"\/38.2\/10\/6\/","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":71497,"structure_id":15153,"section_number":"38.2-1040","catch_line":"Refusal, suspension or revocation of license","url":"\/38.2-1040\/","token":"38.2\/10\/6\/38.2-1040","metadata":false},{"id":86001,"structure_id":15153,"section_number":"38.2-1041","catch_line":"Notice to company of proposed suspension or revocation","url":"\/38.2-1041\/","token":"38.2\/10\/6\/38.2-1041","metadata":false},{"id":57725,"structure_id":15153,"section_number":"38.2-1042","catch_line":"Agent's authority likewise suspended or revoked","url":"\/38.2-1042\/","token":"38.2\/10\/6\/38.2-1042","metadata":false},{"id":80028,"structure_id":15153,"section_number":"38.2-1043","catch_line":"Suspension or revocation published","url":"\/38.2-1043\/","token":"38.2\/10\/6\/38.2-1043","metadata":false},{"id":72878,"structure_id":15153,"section_number":"38.2-1044","catch_line":"New business prohibited","url":"\/38.2-1044\/","token":"38.2\/10\/6\/38.2-1044","metadata":false}],"next_section":{"id":86001,"structure_id":15153,"section_number":"38.2-1041","catch_line":"Notice to company of proposed suspension or revocation","url":"\/38.2-1041\/","token":"38.2\/10\/6\/38.2-1041","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1040\/","history_text":"

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 457; in 1986, chapter 562; in 1987, chapter 431.<\/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":84129,"section_number":"38.2-1038","catch_line":"Authority of Commission to issue orders covering insurers in hazardous financial condition","order_by":null,"url":"\/38.2-1038\/"},{"id":86001,"section_number":"38.2-1041","catch_line":"Notice to company of proposed suspension or revocation","order_by":null,"url":"\/38.2-1041\/"},{"id":60737,"section_number":"38.2-1835","catch_line":"Failure to appoint","order_by":null,"url":"\/38.2-1835\/"},{"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\/"},{"id":55841,"section_number":"58.1-2507","catch_line":"Penalties for failure to make report or pay tax; revocation of license; recovery by suit","order_by":null,"url":"\/58.1-2507\/"}],"refers_to":false,"permalink":{"id":211093,"object_type":"law","relational_id":71497,"identifier":"38.2-1040","token":"38.2\/10\/6\/38.2-1040","url":"\/38.2-1040\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1040\/","token":"38.2\/10\/6\/38.2-1040","dublin_core":{"Title":"Refusal, suspension or revocation of license","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1040","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commission<\/span> may refuse to issue<\/span> a license to any domestic, foreign or alien insurer<\/span> to transact the business of insurance<\/span> in this Commonwealth, and may suspend or revoke the license of any licensee, whenever it finds that the applicant or licensee: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Has refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission<\/span> or its representative; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Has refused, or its officers or agents have refused, to furnish satisfactory evidence<\/span> of its financial and business standing or solvency; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Is insolvent, or is in a condition that any further transaction of business in this Commonwealth is hazardous to its policyholders, creditors<\/span> and public in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Has failed to pay a final judgment<\/span> against it within sixty days after (i) the judgment<\/span> became final, (ii) the time for making an appeal<\/span> has expired, or (iii) the dismissal<\/span> of an appeal<\/span> before final determination, whichever date is the latest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Has violated any law<\/span> of this Commonwealth, or has in this Commonwealth violated its charter or exceeded its corporate powers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Has failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition<\/span> of any legal contest with respect to liability for the fees, taxes or charges; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Has had its corporate existence dissolved or its certificate of authority revoked in the state<\/span> in which it was organized or in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Has been found insolvent by a court<\/span> of any other state<\/span>, or by the Commission<\/span> or other proper officer or agency of any other state<\/span>, and has been prohibited from doing business in that state<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Has had all its risks reinsured in their entirety in another insurer<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Has notified the insured in writing or by any other means that any policy of insurance<\/span> covering the ownership or operation of a motor vehicle issued by the insurer<\/span> will be cancelled if the insured institutes any legal action against the insurer<\/span> to pursue any rights of the insured under the policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The grounds for suspension or revocation<\/span> of licenses in subsection A of this section are in addition to those provided for elsewhere in this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREFUSAL, SUSPENSION OR REVOCATION OF LICENSE (\u00a7 38.2-1040)\n\nA. The Commission may refuse to issue a license to any domestic, foreign or\nalien insurer to transact the business of insurance in this Commonwealth, and\nmay suspend or revoke the license of any licensee, whenever it finds that the\napplicant or licensee:\n\n 1. Has refused to submit its books, papers, accounts, or affairs to the\n reasonable inspection of the Commission or its representative;\n\n 2. Has refused, or its officers or agents have refused, to furnish\n satisfactory evidence of its financial and business standing or solvency;\n\n 3. Is insolvent, or is in a condition that any further transaction of business\n in this Commonwealth is hazardous to its policyholders, creditors and public\n in this Commonwealth;\n\n 4. Has failed to pay a final judgment against it within sixty days after (i)\n the judgment became final, (ii) the time for making an appeal has expired, or\n (iii) the dismissal of an appeal before final determination, whichever date is\n the latest;\n\n 5. Has violated any law of this Commonwealth, or has in this Commonwealth\n violated its charter or exceeded its corporate powers;\n\n 6. Has failed to pay any fees, taxes or charges imposed in this Commonwealth\n within sixty days after they are due and payable, or within sixty days after\n final disposition of any legal contest with respect to liability for the fees,\n taxes or charges;\n\n 7. Has had its corporate existence dissolved or its certificate of authority\n revoked in the state in which it was organized or in this Commonwealth;\n\n 8. Has been found insolvent by a court of any other state, or by the\n Commission or other proper officer or agency of any other state, and has been\n prohibited from doing business in that state;\n\n 9. Has had all its risks reinsured in their entirety in another insurer; or\n\n 10. Has notified the insured in writing or by any other means that any policy\n of insurance covering the ownership or operation of a motor vehicle issued by\n the insurer will be cancelled if the insured institutes any legal action\n against the insurer to pursue any rights of the insured under the policy.\n\nB. The grounds for suspension or revocation of licenses in subsection A of this\nsection are in addition to those provided for elsewhere in this title.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-68, 38-132, 38-133, 38-134, 38-169, 38-370; 1952, c.\n317, \u00a7 38.1-99; 1966, c. 457; 1986, c. 562; 1987, c. 431.","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}}