{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1326.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1326.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1326.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1326.html"}],"law_id":54281,"edition_id":1,"section_id":54281,"structure_id":13290,"section_number":"38.2-1326","catch_line":"Approval by Commission","history":"1977, c. 414, \u00a7 38.1-178.1:4; 1986, c. 562; 2014, c. 309.","full_text":"The Commission shall approve the application required by \u00a7 38.2-1323 unless, after giving notice and opportunity to be heard, it determines that:\n\n1\n\nAfter the change of control, the insurer would not be able to satisfy the requirements for the issuance of a license to write the classes of insurance for which it is presently licensed;2\n\nThe acquisition of control would lessen competition substantially or tend to create a monopoly in insurance in this Commonwealth;3\n\nThe financial condition of any acquiring person might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders;4\n\nAny plans or proposals of the acquiring party to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest;5\n\nThe competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the acquisition of control;6\n\nAfter the change of control, the insurer’s surplus as regards policyholders would not be reasonable in relation to its outstanding liabilities or adequate to its financial needs; or7\n\nThe acquisition is likely to be hazardous or prejudicial to the insurance-buying public.","order_by":null,"text":{"0":{"id":199283,"text":"The Commission shall approve the application required by \u00a7 38.2-1323 unless, after giving notice and opportunity to be heard, it determines that:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":199284,"text":"After the change of control, the insurer would not be able to satisfy the requirements for the issuance of a license to write the classes of insurance for which it is presently licensed;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":199285,"text":"The acquisition of control would lessen competition substantially or tend to create a monopoly in insurance in this Commonwealth;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":199286,"text":"The financial condition of any acquiring person might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":199287,"text":"Any plans or proposals of the acquiring party to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":199288,"text":"The competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the acquisition of control;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":199289,"text":"After the change of control, the insurer’s surplus as regards policyholders would not be reasonable in relation to its outstanding liabilities or adequate to its financial needs; or","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":199290,"text":"The acquisition is likely to be hazardous or prejudicial to the insurance-buying public.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6"}},"ancestry":[{"id":13290,"edition_id":1,"name":"Insurance Holding Companies","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211609,"object_type":"structure","relational_id":13290,"identifier":"5","token":"38.2\/13\/5","url":"\/38.2\/13\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","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":66587,"structure_id":13290,"section_number":"38.2-1322","catch_line":"Definitions","url":"\/38.2-1322\/","token":"38.2\/13\/5\/38.2-1322","metadata":false},{"id":84939,"structure_id":13290,"section_number":"38.2-1323","catch_line":"Acquisition of control of insurers","url":"\/38.2-1323\/","token":"38.2\/13\/5\/38.2-1323","metadata":false},{"id":72444,"structure_id":13290,"section_number":"38.2-1324","catch_line":"Contents of application","url":"\/38.2-1324\/","token":"38.2\/13\/5\/38.2-1324","metadata":false},{"id":77095,"structure_id":13290,"section_number":"38.2-1325","catch_line":"Alternate filing materials","url":"\/38.2-1325\/","token":"38.2\/13\/5\/38.2-1325","metadata":false},{"id":54281,"structure_id":13290,"section_number":"38.2-1326","catch_line":"Approval by Commission","url":"\/38.2-1326\/","token":"38.2\/13\/5\/38.2-1326","metadata":false},{"id":82872,"structure_id":13290,"section_number":"38.2-1327","catch_line":"Time for hearing; order of Commission","url":"\/38.2-1327\/","token":"38.2\/13\/5\/38.2-1327","metadata":false},{"id":65563,"structure_id":13290,"section_number":"38.2-1328","catch_line":"Exemption","url":"\/38.2-1328\/","token":"38.2\/13\/5\/38.2-1328","metadata":false},{"id":71281,"structure_id":13290,"section_number":"38.2-1329","catch_line":"Registration of insurers that are members of holding company system","url":"\/38.2-1329\/","token":"38.2\/13\/5\/38.2-1329","metadata":false},{"id":77796,"structure_id":13290,"section_number":"38.2-1330","catch_line":"Standards for transactions within an insurance holding company system; adequacy of surplus","url":"\/38.2-1330\/","token":"38.2\/13\/5\/38.2-1330","metadata":false},{"id":71817,"structure_id":13290,"section_number":"38.2-1330.1","catch_line":"Dividends and other distributions","url":"\/38.2-1330.1\/","token":"38.2\/13\/5\/38.2-1330.1","metadata":false},{"id":70122,"structure_id":13290,"section_number":"38.2-1331","catch_line":"Repealed","url":"\/38.2-1331\/","token":"38.2\/13\/5\/38.2-1331","metadata":false},{"id":84275,"structure_id":13290,"section_number":"38.2-1332","catch_line":"Examinations","url":"\/38.2-1332\/","token":"38.2\/13\/5\/38.2-1332","metadata":false},{"id":57304,"structure_id":13290,"section_number":"38.2-1332.1","catch_line":"Supervisory colleges","url":"\/38.2-1332.1\/","token":"38.2\/13\/5\/38.2-1332.1","metadata":false},{"id":62040,"structure_id":13290,"section_number":"38.2-1332.2","catch_line":"Group-wide supervision of internationally active insurance groups","url":"\/38.2-1332.2\/","token":"38.2\/13\/5\/38.2-1332.2","metadata":false},{"id":68581,"structure_id":13290,"section_number":"38.2-1333","catch_line":"Confidential treatment of information and documents","url":"\/38.2-1333\/","token":"38.2\/13\/5\/38.2-1333","metadata":false},{"id":56656,"structure_id":13290,"section_number":"38.2-1334","catch_line":"Revocation, suspension, or nonrenewal of insurer's license","url":"\/38.2-1334\/","token":"38.2\/13\/5\/38.2-1334","metadata":false},{"id":76185,"structure_id":13290,"section_number":"38.2-1334.1","catch_line":"Voting of securities, injunctions, and sequestration of voting securities","url":"\/38.2-1334.1\/","token":"38.2\/13\/5\/38.2-1334.1","metadata":false},{"id":57406,"structure_id":13290,"section_number":"38.2-1334.2","catch_line":"Recovery","url":"\/38.2-1334.2\/","token":"38.2\/13\/5\/38.2-1334.2","metadata":false},{"id":60684,"structure_id":13290,"section_number":"38.2-1334.2:1","catch_line":"Rules and regulations","url":"\/38.2-1334.2_1\/","token":"38.2\/13\/5\/38.2-1334.2_1","metadata":false},{"id":78719,"structure_id":13290,"section_number":"38.2-1334.2:2","catch_line":"Sanctions","url":"\/38.2-1334.2_2\/","token":"38.2\/13\/5\/38.2-1334.2_2","metadata":false},{"id":56478,"structure_id":13290,"section_number":"38.2-1334.2:3","catch_line":"Statutory construction and relationship to other laws","url":"\/38.2-1334.2_3\/","token":"38.2\/13\/5\/38.2-1334.2_3","metadata":false}],"previous_section":{"id":77095,"structure_id":13290,"section_number":"38.2-1325","catch_line":"Alternate filing materials","url":"\/38.2-1325\/","token":"38.2\/13\/5\/38.2-1325","metadata":false},"next_section":{"id":82872,"structure_id":13290,"section_number":"38.2-1327","catch_line":"Time for hearing; order of Commission","url":"\/38.2-1327\/","token":"38.2\/13\/5\/38.2-1327","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1326\/","history_text":"

This law was first created in 1977. The record of its establishment is cataloged in chapter 414 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 1977 \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 2014, chapter 309<\/a>.<\/p>","references":[{"id":82872,"section_number":"38.2-1327","catch_line":"Time for hearing; order of Commission","order_by":null,"url":"\/38.2-1327\/"}],"refers_to":[{"id":84939,"section_number":"38.2-1323","catch_line":"Acquisition of control of insurers","order_by":null,"url":"\/38.2-1323\/"}],"permalink":{"id":211627,"object_type":"law","relational_id":54281,"identifier":"38.2-1326","token":"38.2\/13\/5\/38.2-1326","url":"\/38.2-1326\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1326\/","token":"38.2\/13\/5\/38.2-1326","dublin_core":{"Title":"Approval by Commission","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1326","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The Commission<\/span> shall approve the application required by \u00a7 38.2-1323<\/a> unless, after giving notice and opportunity to be heard, it determines that:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> After the change of control, the insurer<\/span> would not be able to satisfy the requirements for the issuance of a license to write the classes of insurance<\/span> for which it is presently licensed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The acquisition of control would lessen competition substantially or tend to create a monopoly in insurance<\/span> in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The financial condition of any acquiring person<\/span> might jeopardize the financial stability of the insurer<\/span>, or prejudice the interest of its policyholders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any plans or proposals of the acquiring party<\/span> to liquidate the insurer<\/span>, sell its assets<\/span> or consolidate or merge it with any person, or to make any other material<\/span> change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer<\/span> and not in the public interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The competence, experience, and integrity of those persons<\/span> who would control the operation of the insurer<\/span> are such that it would not be in the interest of policyholders of the insurer<\/span> and of the public to permit the acquisition of control; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> After the change of control, the insurer<\/span>’s surplus as regards policyholders would not be reasonable in relation to its outstanding liabilities or adequate to its financial needs; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The acquisition is likely to be hazardous or prejudicial to the insurance<\/span>-buying public. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPROVAL BY COMMISSION (\u00a7 38.2-1326)\n\nThe Commission shall approve the application required by \u00a7 38.2-1323 unless,\nafter giving notice and opportunity to be heard, it determines that:\n\n1. After the change of control, the insurer would not be able to satisfy the\nrequirements for the issuance of a license to write the classes of insurance for\nwhich it is presently licensed;\n\n2. The acquisition of control would lessen competition substantially or tend to\ncreate a monopoly in insurance in this Commonwealth;\n\n3. The financial condition of any acquiring person might jeopardize the\nfinancial stability of the insurer, or prejudice the interest of its\npolicyholders;\n\n4. Any plans or proposals of the acquiring party to liquidate the insurer, sell\nits assets or consolidate or merge it with any person, or to make any other\nmaterial change in its business or corporate structure or management, are unfair\nand unreasonable to policyholders of the insurer and not in the public interest;\n\n5. The competence, experience, and integrity of those persons who would control\nthe operation of the insurer are such that it would not be in the interest of\npolicyholders of the insurer and of the public to permit the acquisition of\ncontrol;\n\n6. After the change of control, the insurer’s surplus as regards\npolicyholders would not be reasonable in relation to its outstanding liabilities\nor adequate to its financial needs; or\n\n7. The acquisition is likely to be hazardous or prejudicial to the\ninsurance-buying public.\n\nHISTORY: 1977, c. 414, \u00a7 38.1-178.1:4; 1986, c. 562; 2014, c. 309.","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}}