{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1102.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1102.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1102.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1102.html"}],"law_id":75949,"edition_id":1,"section_id":75949,"structure_id":15916,"section_number":"38.2-1102","catch_line":"Application for license; limitations on authority","history":"1980, c. 665, \u00a7 38.1-918; 1986, c. 562.","full_text":"A\n\nNo captive insurer shall transact any insurance business in this Commonwealth unless (i) it is permitted to do so by its articles of incorporation or charter and (ii) it procures a license to transact the business of insurance from the Commission in accordance with Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title. The license shall be renewed in accordance with § 38.2-1025. A captive insurer may only be licensed to write the classes of insurance described in §§ 38.2-110 through 38.2-120, 38.2-124, 38.2-126 and reinsure in accordance with § 38.2-136.B\n\n1. The Commission shall not issue a license to transact the business of insurance in this Commonwealth to any pure captive insurer until it is satisfied that the total insurance coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least $500,000.2\n\nThe Commission shall not issue a license to transact the business of insurance in this Commonwealth to any association captive insurer until it is satisfied (i) that the total insurance coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least one million dollars and (ii) that its insurance association has been in existence for at least one year. The Commission may waive the requirement that the insurance association be in existence for at least 1 year if the association captive insurer satisfies the Commission that each member of the insurance association would have a gross annual premium in excess of $100,000.C\n\nNo captive insurer may write classes of personal insurance coverage for individuals unless the individual is a parent.D\n\nNo captive insurer may write insurance or reinsurance on personally owned motor vehicles or homeowners’ insurance or any component of them.","order_by":null,"text":{"0":{"id":272681,"text":"No captive insurer shall transact any insurance business in this Commonwealth unless (i) it is permitted to do so by its articles of incorporation or charter and (ii) it procures a license to transact the business of insurance from the Commission in accordance with Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title. The license shall be renewed in accordance with § 38.2-1025. A captive insurer may only be licensed to write the classes of insurance described in §§ 38.2-110 through 38.2-120, 38.2-124, 38.2-126 and reinsure in accordance with § 38.2-136.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":272682,"text":"1. The Commission shall not issue a license to transact the business of insurance in this Commonwealth to any pure captive insurer until it is satisfied that the total insurance coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least $500,000.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":272683,"text":"The Commission shall not issue a license to transact the business of insurance in this Commonwealth to any association captive insurer until it is satisfied (i) that the total insurance coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least one million dollars and (ii) that its insurance association has been in existence for at least one year. The Commission may waive the requirement that the insurance association be in existence for at least 1 year if the association captive insurer satisfies the Commission that each member of the insurance association would have a gross annual premium in excess of $100,000.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":272684,"text":"No captive insurer may write classes of personal insurance coverage for individuals unless the individual is a parent.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"4":{"id":272685,"text":"No captive insurer may write insurance or reinsurance on personally owned motor vehicles or homeowners’ insurance or any component of them.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15916,"edition_id":1,"name":"Captive Insurers","identifier":"11","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 04:01:50","date_modified":"2026-06-26 04:01:50","permalink":{"id":211171,"object_type":"structure","relational_id":15916,"identifier":"11","token":"38.2\/11","url":"\/38.2\/11\/","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":65109,"structure_id":15916,"section_number":"38.2-1100","catch_line":"Scope of chapter","url":"\/38.2-1100\/","token":"38.2\/11\/38.2-1100","metadata":false},{"id":62853,"structure_id":15916,"section_number":"38.2-1101","catch_line":"Definitions","url":"\/38.2-1101\/","token":"38.2\/11\/38.2-1101","metadata":false},{"id":75949,"structure_id":15916,"section_number":"38.2-1102","catch_line":"Application for license; limitations on authority","url":"\/38.2-1102\/","token":"38.2\/11\/38.2-1102","metadata":false},{"id":83328,"structure_id":15916,"section_number":"38.2-1103","catch_line":"Name","url":"\/38.2-1103\/","token":"38.2\/11\/38.2-1103","metadata":false},{"id":84000,"structure_id":15916,"section_number":"38.2-1104","catch_line":"Formation; licensure after examination; amendment of articles; principal and home office","url":"\/38.2-1104\/","token":"38.2\/11\/38.2-1104","metadata":false},{"id":66651,"structure_id":15916,"section_number":"38.2-1105","catch_line":"Deposit of minimum capital; letter of credit instead of deposit","url":"\/38.2-1105\/","token":"38.2\/11\/38.2-1105","metadata":false},{"id":83845,"structure_id":15916,"section_number":"38.2-1106","catch_line":"Minimum surplus in form of letter of credit","url":"\/38.2-1106\/","token":"38.2\/11\/38.2-1106","metadata":false},{"id":77376,"structure_id":15916,"section_number":"38.2-1107","catch_line":"Membership in rating organizations","url":"\/38.2-1107\/","token":"38.2\/11\/38.2-1107","metadata":false},{"id":61754,"structure_id":15916,"section_number":"38.2-1108","catch_line":"Tax on premiums collected","url":"\/38.2-1108\/","token":"38.2\/11\/38.2-1108","metadata":false},{"id":73669,"structure_id":15916,"section_number":"38.2-1109","catch_line":"Applicability of other provisions of title","url":"\/38.2-1109\/","token":"38.2\/11\/38.2-1109","metadata":false}],"previous_section":{"id":62853,"structure_id":15916,"section_number":"38.2-1101","catch_line":"Definitions","url":"\/38.2-1101\/","token":"38.2\/11\/38.2-1101","metadata":false},"next_section":{"id":83328,"structure_id":15916,"section_number":"38.2-1103","catch_line":"Name","url":"\/38.2-1103\/","token":"38.2\/11\/38.2-1103","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1102\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 665 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 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 1986, chapter 562.<\/p>","references":false,"refers_to":[{"id":86158,"section_number":"38.2-1024","catch_line":"License required to transact the business of insurance; application fee requirements for license","order_by":null,"url":"\/38.2-1024\/"},{"id":77754,"section_number":"38.2-1025","catch_line":"Annual renewal of license","order_by":null,"url":"\/38.2-1025\/"},{"id":56505,"section_number":"38.2-110","catch_line":"Fire","order_by":null,"url":"\/38.2-110\/"},{"id":60879,"section_number":"38.2-120","catch_line":"Fidelity","order_by":null,"url":"\/38.2-120\/"},{"id":66976,"section_number":"38.2-124","catch_line":"Motor vehicle","order_by":null,"url":"\/38.2-124\/"},{"id":63990,"section_number":"38.2-126","catch_line":"Marine","order_by":null,"url":"\/38.2-126\/"}],"permalink":{"id":211181,"object_type":"law","relational_id":75949,"identifier":"38.2-1102","token":"38.2\/11\/38.2-1102","url":"\/38.2-1102\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1102\/","token":"38.2\/11\/38.2-1102","dublin_core":{"Title":"Application for license; limitations on authority","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1102","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No captive insurer<\/span> shall transact any insurance<\/span> business in this Commonwealth unless (i) it is permitted to do so by its articles of incorporation or charter and (ii) it procures a license to transact the business of insurance<\/span> from the Commission<\/span> in accordance with Article 5 (§ 38.2-1024<\/a> et seq.) of Chapter 10 of this title. The license shall be renewed in accordance with § 38.2-1025<\/a>. A captive insurer<\/span> may only be licensed to write the classes of insurance<\/span> described in §§ 38.2-110<\/a> through 38.2-120<\/a>, 38.2-124<\/a>, 38.2-126<\/a> and reinsure in accordance with § 38.2-136<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. The Commission<\/span> shall not issue<\/span> a license to transact the business of insurance<\/span> in this Commonwealth to any pure captive insurer<\/span> until it is satisfied that the total insurance<\/span> coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least $500,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission<\/span> shall not issue<\/span> a license to transact the business of insurance in this Commonwealth to any association captive insurer<\/span> until it is satisfied (i) that the total insurance coverage necessary to insure all risks, hazards, and liabilities would develop, in the aggregate, gross annual premiums of at least one million dollars and (ii) that its insurance association<\/span> has been in existence for at least one year. The Commission<\/span> may waive<\/span> the requirement that the insurance association<\/span> be in existence for at least 1 year if the association captive insurer<\/span> satisfies the Commission<\/span> that each member of the insurance association<\/span> would have a gross annual premium in excess of $100,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> No captive insurer may write classes of personal insurance coverage for individuals unless the individual is a parent<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No captive insurer may write insurance or reinsurance on personally owned motor vehicles or homeowners’ insurance or any component of them. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPLICATION FOR LICENSE; LIMITATIONS ON AUTHORITY (\u00a7 38.2-1102)\n\nA. No captive insurer shall transact any insurance business in this Commonwealth\nunless (i) it is permitted to do so by its articles of incorporation or charter\nand (ii) it procures a license to transact the business of insurance from the\nCommission in accordance with Article 5 (§ 38.2-1024 et seq.) of Chapter 10\nof this title. The license shall be renewed in accordance with § 38.2-1025.\nA captive insurer may only be licensed to write the classes of insurance\ndescribed in §§ 38.2-110 through 38.2-120, 38.2-124, 38.2-126 and\nreinsure in accordance with § 38.2-136.\n\nB. 1. The Commission shall not issue a license to transact the business of\ninsurance in this Commonwealth to any pure captive insurer until it is satisfied\nthat the total insurance coverage necessary to insure all risks, hazards, and\nliabilities would develop, in the aggregate, gross annual premiums of at least\n$500,000.\n\n 2. The Commission shall not issue a license to transact the business of\n insurance in this Commonwealth to any association captive insurer until it is\n satisfied (i) that the total insurance coverage necessary to insure all risks,\n hazards, and liabilities would develop, in the aggregate, gross annual\n premiums of at least one million dollars and (ii) that its insurance\n association has been in existence for at least one year. The Commission may\n waive the requirement that the insurance association be in existence for at\n least 1 year if the association captive insurer satisfies the Commission that\n each member of the insurance association would have a gross annual premium in\n excess of $100,000.\n\nC. No captive insurer may write classes of personal insurance coverage for\nindividuals unless the individual is a parent.\n\nD. No captive insurer may write insurance or reinsurance on personally owned\nmotor vehicles or homeowners’ insurance or any component of them.\n\nHISTORY: 1980, c. 665, \u00a7 38.1-918; 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}}