{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1047.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1047.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1047.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1047.html"}],"law_id":84776,"edition_id":1,"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","history":"Code 1950, \u00a7 38-49; 1950, p. 996; 1952, c. 317, \u00a7 38.1-111; 1986, c. 562; 1988, c. 298.","full_text":"A\n\nThis section shall apply only where:1\n\nThe insurer has failed to pay any of its liabilities after the liabilities have been ascertained (i) by any agreement of the parties binding the insurer, or (ii) by judgment, order or decree of a court of competent jurisdiction which has not been appealed, superseded or stayed; and2\n\nThe provisions of subsection B of § 38.2-1046 are not applicable.B\n\nUpon application of the person to whom the debt or money is due and after giving notice as provided in subsection C of this section, the State Treasurer shall (i) sell an amount of securities with accrued interest that provides sufficient funds to pay the sums due and the expenses of the sale and (ii) pay the sums due and expenses out of the available funds. This shall be subject to the approval of the Commission.C\n\nThe State Treasurer shall give the insurer or its agent ten days’ notice, either by mail or personally, of the time and place of the sale. The sale shall be advertised daily for ten days in a newspaper of general circulation published in the City of Richmond.D\n\nThe insurer shall immediately make good any deficit in its deposit resulting from a sale. The State Treasurer shall report to the Commission in writing (i) the amount and kind of securities sold in accordance with the provisions of this section and (ii) the amount and kind of securities deposited to make good the deficit.","order_by":null,"text":{"0":{"id":303769,"text":"This section shall apply only where:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":303770,"text":"The insurer has failed to pay any of its liabilities after the liabilities have been ascertained (i) by any agreement of the parties binding the insurer, or (ii) by judgment, order or decree of a court of competent jurisdiction which has not been appealed, superseded or stayed; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":303771,"text":"The provisions of subsection B of § 38.2-1046 are not applicable.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":303772,"text":"Upon application of the person to whom the debt or money is due and after giving notice as provided in subsection C of this section, the State Treasurer shall (i) sell an amount of securities with accrued interest that provides sufficient funds to pay the sums due and the expenses of the sale and (ii) pay the sums due and expenses out of the available funds. This shall be subject to the approval of the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":303773,"text":"The State Treasurer shall give the insurer or its agent ten days’ notice, either by mail or personally, of the time and place of the sale. The sale shall be advertised daily for ten days in a newspaper of general circulation published in the City of Richmond.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":303774,"text":"The insurer shall immediately make good any deficit in its deposit resulting from a sale. The State Treasurer shall report to the Commission in writing (i) the amount and kind of securities sold in accordance with the provisions of this section and (ii) the amount and kind of securities deposited to make good the deficit.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1047\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 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 1986, chapter 562; in 1988, chapter 298.<\/p>","references":false,"refers_to":[{"id":74487,"section_number":"38.2-1046","catch_line":"Purpose of deposits; enforcement of lien","order_by":null,"url":"\/38.2-1046\/"}],"permalink":{"id":211123,"object_type":"law","relational_id":84776,"identifier":"38.2-1047","token":"38.2\/10\/7\/38.2-1047","url":"\/38.2-1047\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1047\/","token":"38.2\/10\/7\/38.2-1047","dublin_core":{"Title":"How deposits applied to payment of claims; deficit to be made good","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1047","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> This section shall apply only where: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The insurer<\/span> has failed to pay any of its liabilities after the liabilities have been ascertained (i) by any agreement of the parties binding the insurer<\/span>, or (ii) by judgment<\/span>, order<\/span> or decree<\/span> of a court<\/span> of competent jurisdiction<\/span> which has not been appealed, superseded or stayed; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The provisions of subsection B of § 38.2-1046<\/a> are not applicable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Upon application of the person<\/span> to whom the debt or money is due and after giving notice as provided in subsection C of this section, the State<\/span> Treasurer shall (i) sell an amount of securities with accrued interest that provides sufficient funds to pay the sums due and the expenses of the sale and (ii) pay the sums due and expenses out of the available funds. This shall be subject to the approval of the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The State<\/span> Treasurer shall give the insurer<\/span> or its agent ten days’ notice, either by mail or personally, of the time and place of the sale. The sale shall be advertised daily for ten days in a newspaper of general circulation published in the City of Richmond. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The insurer<\/span> shall immediately make good any deficit in its deposit resulting from a sale. The State<\/span> Treasurer shall report to the Commission<\/span> in writing (i) the amount and kind of securities sold in accordance with the provisions of this section and (ii) the amount and kind of securities deposited to make good the deficit. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHOW DEPOSITS APPLIED TO PAYMENT OF CLAIMS; DEFICIT TO BE MADE GOOD (\u00a7\n38.2-1047)\n\nA. This section shall apply only where:\n\n 1. The insurer has failed to pay any of its liabilities after the liabilities\n have been ascertained (i) by any agreement of the parties binding the insurer,\n or (ii) by judgment, order or decree of a court of competent jurisdiction\n which has not been appealed, superseded or stayed; and\n\n 2. The provisions of subsection B of § 38.2-1046 are not applicable.\n\nB. Upon application of the person to whom the debt or money is due and after\ngiving notice as provided in subsection C of this section, the State Treasurer\nshall (i) sell an amount of securities with accrued interest that provides\nsufficient funds to pay the sums due and the expenses of the sale and (ii) pay\nthe sums due and expenses out of the available funds. This shall be subject to\nthe approval of the Commission.\n\nC. The State Treasurer shall give the insurer or its agent ten days’\nnotice, either by mail or personally, of the time and place of the sale. The\nsale shall be advertised daily for ten days in a newspaper of general\ncirculation published in the City of Richmond.\n\nD. The insurer shall immediately make good any deficit in its deposit resulting\nfrom a sale. The State Treasurer shall report to the Commission in writing (i)\nthe amount and kind of securities sold in accordance with the provisions of this\nsection and (ii) the amount and kind of securities deposited to make good the\ndeficit.\n\nHISTORY: Code 1950, \u00a7 38-49; 1950, p. 996; 1952, c. 317, \u00a7 38.1-111; 1986, c.\n562; 1988, c. 298.","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}}