{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1046.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1046.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1046.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1046.html"}],"law_id":74487,"edition_id":1,"section_id":74487,"structure_id":13190,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","history":"Code 1950, \u00a7 38-50; 1952, c. 317, \u00a7 38.1-110; 1981, c. 208; 1986, c. 562; 1988, c. 298; 1992, c. 20; 1995, c. 60.","full_text":"A\n\nAn insurer’s deposits required by § 38.2-1045 shall be held as a special fund in trust for the insurer’s liabilities which are incurred or which may be incurred as a result of a loss sustained by (i) this Commonwealth or any of its political subdivisions, (ii) any citizen or inhabitant of this Commonwealth, or (iii) any other person owning property in this Commonwealth, when the insurer fails to meet its obligations incurred in this Commonwealth. Policyholders, without preference, shall have a lien on the deposits for the amounts due or which may become due as a result of any failure of the insurer to meet its obligations. General creditors, without preference, shall be entitled to have a similar lien on the deposits which shall be subordinate to the claims of the policyholders.B\n\nWhenever any such insurer becomes insolvent or bankrupt, or makes an assignment for the benefit of its creditors, any person given a lien by this section may file a bill in the Circuit Court of the City of Richmond for the benefit of himself and all others given a lien by this section to subject such securities as may be on deposit with the State Treasurer or its agent to the payment of the liens thereon. The State Treasurer shall be made a party to such suit and a copy of such bill shall be served upon the Commissioner of Insurance as if he were a party to such suit. The funds shall be distributed by the court.","order_by":null,"text":{"0":{"id":267683,"text":"An insurer’s deposits required by § 38.2-1045 shall be held as a special fund in trust for the insurer’s liabilities which are incurred or which may be incurred as a result of a loss sustained by (i) this Commonwealth or any of its political subdivisions, (ii) any citizen or inhabitant of this Commonwealth, or (iii) any other person owning property in this Commonwealth, when the insurer fails to meet its obligations incurred in this Commonwealth. Policyholders, without preference, shall have a lien on the deposits for the amounts due or which may become due as a result of any failure of the insurer to meet its obligations. General creditors, without preference, shall be entitled to have a similar lien on the deposits which shall be subordinate to the claims of the policyholders.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":267684,"text":"Whenever any such insurer becomes insolvent or bankrupt, or makes an assignment for the benefit of its creditors, any person given a lien by this section may file a bill in the Circuit Court of the City of Richmond for the benefit of himself and all others given a lien by this section to subject such securities as may be on deposit with the State Treasurer or its agent to the payment of the liens thereon. The State Treasurer shall be made a party to such suit and a copy of such bill shall be served upon the Commissioner of Insurance as if he were a party to such suit. The funds shall be distributed by the court.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":13190,"edition_id":1,"name":"Deposits","identifier":"7","label":"article","depth":3,"order_by":1,"parent_id":12858,"metadata":{},"date_created":"2026-06-26 03:44:25","date_modified":"2026-06-26 03:44:25","permalink":{"id":211113,"object_type":"structure","relational_id":13190,"identifier":"7","token":"38.2\/10\/7","url":"\/38.2\/10\/7\/","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":57089,"structure_id":13190,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","url":"\/38.2-1045\/","token":"38.2\/10\/7\/38.2-1045","metadata":false},{"id":74487,"structure_id":13190,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","url":"\/38.2-1046\/","token":"38.2\/10\/7\/38.2-1046","metadata":false},{"id":84776,"structure_id":13190,"section_number":"38.2-1047","catch_line":"How deposits applied to payment of claims; deficit to be made good","url":"\/38.2-1047\/","token":"38.2\/10\/7\/38.2-1047","metadata":false},{"id":70085,"structure_id":13190,"section_number":"38.2-1048","catch_line":"Return of deposits","url":"\/38.2-1048\/","token":"38.2\/10\/7\/38.2-1048","metadata":false},{"id":76125,"structure_id":13190,"section_number":"38.2-1049","catch_line":"Alternate deposit requirements","url":"\/38.2-1049\/","token":"38.2\/10\/7\/38.2-1049","metadata":false},{"id":68732,"structure_id":13190,"section_number":"38.2-1050","catch_line":"Voluntary deposit in excess of amount required","url":"\/38.2-1050\/","token":"38.2\/10\/7\/38.2-1050","metadata":false},{"id":71747,"structure_id":13190,"section_number":"38.2-1051","catch_line":"Repealed","url":"\/38.2-1051\/","token":"38.2\/10\/7\/38.2-1051","metadata":false},{"id":54504,"structure_id":13190,"section_number":"38.2-1052","catch_line":"Exchange of securities","url":"\/38.2-1052\/","token":"38.2\/10\/7\/38.2-1052","metadata":false},{"id":77959,"structure_id":13190,"section_number":"38.2-1053","catch_line":"Interest on deposits; to whom paid","url":"\/38.2-1053\/","token":"38.2\/10\/7\/38.2-1053","metadata":false},{"id":80518,"structure_id":13190,"section_number":"38.2-1054","catch_line":"Duty of State Treasurer when securities deposited are paid","url":"\/38.2-1054\/","token":"38.2\/10\/7\/38.2-1054","metadata":false},{"id":56201,"structure_id":13190,"section_number":"38.2-1055","catch_line":"Annual report of State Treasurer to Commission","url":"\/38.2-1055\/","token":"38.2\/10\/7\/38.2-1055","metadata":false},{"id":68518,"structure_id":13190,"section_number":"38.2-1056","catch_line":"Treasurer to receipt for deposits; responsibility of Commonwealth; taxation of deposited bonds","url":"\/38.2-1056\/","token":"38.2\/10\/7\/38.2-1056","metadata":false},{"id":54205,"structure_id":13190,"section_number":"38.2-1057","catch_line":"Assessment for expense of holding deposits; Insurance Collateral Assessment Fund","url":"\/38.2-1057\/","token":"38.2\/10\/7\/38.2-1057","metadata":false},{"id":74173,"structure_id":13190,"section_number":"38.2-1058","catch_line":"Felony for State Treasurer to dispose of securities illegally","url":"\/38.2-1058\/","token":"38.2\/10\/7\/38.2-1058","metadata":false}],"previous_section":{"id":57089,"structure_id":13190,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","url":"\/38.2-1045\/","token":"38.2\/10\/7\/38.2-1045","metadata":false},"next_section":{"id":84776,"structure_id":13190,"section_number":"38.2-1047","catch_line":"How deposits applied to payment of claims; deficit to be made good","url":"\/38.2-1047\/","token":"38.2\/10\/7\/38.2-1047","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1046\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 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 1981, chapter 208; in 1986, chapter 562; in 1988, chapter 298; in 1992, chapter 20; in 1995, chapter 60<\/a>.<\/p>","references":[{"id":84776,"section_number":"38.2-1047","catch_line":"How deposits applied to payment of claims; deficit to be made good","order_by":null,"url":"\/38.2-1047\/"},{"id":70085,"section_number":"38.2-1048","catch_line":"Return of deposits","order_by":null,"url":"\/38.2-1048\/"},{"id":68732,"section_number":"38.2-1050","catch_line":"Voluntary deposit in excess of amount required","order_by":null,"url":"\/38.2-1050\/"}],"refers_to":[{"id":57089,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","order_by":null,"url":"\/38.2-1045\/"}],"permalink":{"id":211119,"object_type":"law","relational_id":74487,"identifier":"38.2-1046","token":"38.2\/10\/7\/38.2-1046","url":"\/38.2-1046\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1046\/","token":"38.2\/10\/7\/38.2-1046","dublin_core":{"Title":"Purpose of deposits; enforcement of lien","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1046","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> An insurer<\/span>’s deposits required by § 38.2-1045<\/a> shall be held as a special fund in trust for the insurer<\/span>’s liabilities which are incurred or which may be incurred as a result of a loss sustained by (i) this Commonwealth or any of its political subdivisions, (ii) any citizen or inhabitant of this Commonwealth, or (iii) any other person<\/span> owning property in this Commonwealth, when the insurer<\/span> fails to meet its obligations incurred in this Commonwealth. Policyholders, without preference, shall have a lien<\/span> on the deposits for the amounts due or which may become due as a result of any failure of the insurer<\/span> to meet its obligations. General creditors<\/span>, without preference, shall be entitled to have a similar lien<\/span> on the deposits which shall be subordinate to the claims of the policyholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Whenever any such insurer<\/span> becomes insolvent or bankrupt, or makes an assignment for the benefit of its creditors<\/span>, any person<\/span> given a lien<\/span> by this section may file a bill in the Circuit<\/span> Court<\/span> of the City of Richmond for the benefit of himself and all others given a lien<\/span> by this section to subject such securities as may be on deposit with the State<\/span> Treasurer or its agent to the payment of the liens<\/span> thereon. The State<\/span> Treasurer shall be made a party<\/span> to such suit and a copy of such bill shall be served upon the Commissioner of Insurance<\/span> as if he were a party<\/span> to such suit. The funds shall be distributed by the court<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPURPOSE OF DEPOSITS; ENFORCEMENT OF LIEN (\u00a7 38.2-1046)\n\nA. An insurer’s deposits required by § 38.2-1045 shall be held as a\nspecial fund in trust for the insurer’s liabilities which are incurred or\nwhich may be incurred as a result of a loss sustained by (i) this Commonwealth\nor any of its political subdivisions, (ii) any citizen or inhabitant of this\nCommonwealth, or (iii) any other person owning property in this Commonwealth,\nwhen the insurer fails to meet its obligations incurred in this Commonwealth.\nPolicyholders, without preference, shall have a lien on the deposits for the\namounts due or which may become due as a result of any failure of the insurer to\nmeet its obligations. General creditors, without preference, shall be entitled\nto have a similar lien on the deposits which shall be subordinate to the claims\nof the policyholders.\n\nB. Whenever any such insurer becomes insolvent or bankrupt, or makes an\nassignment for the benefit of its creditors, any person given a lien by this\nsection may file a bill in the Circuit Court of the City of Richmond for the\nbenefit of himself and all others given a lien by this section to subject such\nsecurities as may be on deposit with the State Treasurer or its agent to the\npayment of the liens thereon. The State Treasurer shall be made a party to such\nsuit and a copy of such bill shall be served upon the Commissioner of Insurance\nas if he were a party to such suit. The funds shall be distributed by the court.\n\nHISTORY: Code 1950, \u00a7 38-50; 1952, c. 317, \u00a7 38.1-110; 1981, c. 208; 1986, c.\n562; 1988, c. 298; 1992, c. 20; 1995, c. 60.","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}}