{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1334.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1334.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1334.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1334.2.html"}],"law_id":57406,"edition_id":1,"section_id":57406,"structure_id":13290,"section_number":"38.2-1334.2","catch_line":"Recovery","history":"1993, c. 158.","full_text":"A\n\nIf an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer (i) from any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions (other than distributions of shares of the same class of stock) paid by the insurer on its capital stock or (ii) any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary or subsidiaries to a director, officer or employee, where the distribution or payment pursuant to (i) or (ii) is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections B, C and D of this section.B\n\nNo such distribution shall be recoverable if the parent or affiliate shows that, when paid, such distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that such distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.C\n\nAny person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection A of this section. Any person who otherwise controlled the insurer at the time such distributions were declared shall be liable up to the amount of distributions he would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.D\n\nThe maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay its obligations and to reimburse any guaranty funds.E\n\nTo the extent that any person liable under subsection C of this section is insolvent or otherwise fails to pay claims due from it pursuant to such subsection, its parent corporation, holding company, or person who otherwise controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation, holding company, or person who otherwise controlled it.","order_by":null,"text":{"0":{"id":210349,"text":"If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer (i) from any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions (other than distributions of shares of the same class of stock) paid by the insurer on its capital stock or (ii) any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary or subsidiaries to a director, officer or employee, where the distribution or payment pursuant to (i) or (ii) is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections B, C and D of this section.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":210350,"text":"No such distribution shall be recoverable if the parent or affiliate shows that, when paid, such distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that such distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":210351,"text":"Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection A of this section. Any person who otherwise controlled the insurer at the time such distributions were declared shall be liable up to the amount of distributions he would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":210352,"text":"The maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay its obligations and to reimburse any guaranty funds.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":210353,"text":"To the extent that any person liable under subsection C of this section is insolvent or otherwise fails to pay claims due from it pursuant to such subsection, its parent corporation, holding company, or person who otherwise controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation, holding company, or person who otherwise controlled it.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1334.2\/","history_text":"<p>This law was first created in 1993. The record of its establishment is cataloged in chapter 158 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 1993 \u201cActs\u201d aren\u2019t available online.<\/p>","references":false,"refers_to":false,"permalink":{"id":211679,"object_type":"law","relational_id":57406,"identifier":"38.2-1334.2","token":"38.2\/13\/5\/38.2-1334.2","url":"\/38.2-1334.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1334.2\/","token":"38.2\/13\/5\/38.2-1334.2","dublin_core":{"Title":"Recovery","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1334.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> If an <span class=\"dictionary\">order<\/span> for <span class=\"dictionary\">liquidation<\/span> or rehabilitation of a domestic <span class=\"dictionary\">insurer<\/span> has been entered, the receiver appointed under such <span class=\"dictionary\">order<\/span> shall have a right to recover on behalf of the <span class=\"dictionary\">insurer<\/span> (i) from any parent corporation or holding <span class=\"dictionary\">company<\/span> or <span class=\"dictionary\">person<\/span> or <span class=\"dictionary\">affiliate<\/span> who otherwise controlled the <span class=\"dictionary\">insurer<\/span>, the amount of distributions (other than distributions of shares of the same class of stock) paid by the <span class=\"dictionary\">insurer<\/span> on its capital stock or (ii) any payment in the form of a bonus, termination <span class=\"dictionary\">settlement<\/span> or extraordinary lump sum salary adjustment made by the <span class=\"dictionary\">insurer<\/span> or its <span class=\"dictionary\">subsidiary<\/span> or subsidiaries to a director, officer or employee, where the distribution or payment pursuant to (i) or (ii) is made at any time during the one year preceding the <span class=\"dictionary\">petition<\/span> for <span class=\"dictionary\">liquidation<\/span>, conservation or rehabilitation, as the case may be, subject to the limitations of subsections B, C and D of this section. <a id=\"paragraph-210349\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1334.2\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> No such distribution shall be recoverable if the parent or <span class=\"dictionary\">affiliate<\/span> shows that, when paid, such distribution was lawful and reasonable and that the <span class=\"dictionary\">insurer<\/span> did not know and could not reasonably have known that such distribution might adversely affect the ability of the <span class=\"dictionary\">insurer<\/span> to fulfill its contractual obligations. <a id=\"paragraph-210350\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1334.2\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> Any <span class=\"dictionary\">person<\/span> who was a parent corporation or holding <span class=\"dictionary\">company<\/span> or a <span class=\"dictionary\">person<\/span> who otherwise controlled the <span class=\"dictionary\">insurer<\/span> or <span class=\"dictionary\">affiliate<\/span> at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection A of this section. Any <span class=\"dictionary\">person<\/span> who otherwise controlled the <span class=\"dictionary\">insurer<\/span> at the time such distributions were declared shall be liable up to the amount of distributions he would have received if they had been paid immediately. If two or more <span class=\"dictionary\">persons<\/span> are liable with respect to the same distributions, they shall be jointly and severally liable. <a id=\"paragraph-210351\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1334.2\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> The maximum amount recoverable under this section shall be the amount needed in excess of all other available <span class=\"dictionary\">assets<\/span> of the impaired or insolvent <span class=\"dictionary\">insurer<\/span> to pay its obligations and to reimburse any guaranty funds. <a id=\"paragraph-210352\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1334.2\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> To the extent that any <span class=\"dictionary\">person<\/span> liable under subsection C of this section is insolvent or otherwise fails to pay claims due from it pursuant to such subsection, its parent corporation, holding <span class=\"dictionary\">company<\/span>, or <span class=\"dictionary\">person<\/span> who otherwise controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation, holding <span class=\"dictionary\">company<\/span>, or <span class=\"dictionary\">person<\/span> who otherwise controlled it. <a id=\"paragraph-210353\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1334.2\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nRECOVERY (\u00a7 38.2-1334.2)\n\nA. If an order for liquidation or rehabilitation of a domestic insurer has been\nentered, the receiver appointed under such order shall have a right to recover\non behalf of the insurer (i) from any parent corporation or holding company or\nperson or affiliate who otherwise controlled the insurer, the amount of\ndistributions (other than distributions of shares of the same class of stock)\npaid by the insurer on its capital stock or (ii) any payment in the form of a\nbonus, termination settlement or extraordinary lump sum salary adjustment made\nby the insurer or its subsidiary or subsidiaries to a director, officer or\nemployee, where the distribution or payment pursuant to (i) or (ii) is made at\nany time during the one year preceding the petition for liquidation,\nconservation or rehabilitation, as the case may be, subject to the limitations\nof subsections B, C and D of this section.\n\nB. No such distribution shall be recoverable if the parent or affiliate shows\nthat, when paid, such distribution was lawful and reasonable and that the\ninsurer did not know and could not reasonably have known that such distribution\nmight adversely affect the ability of the insurer to fulfill its contractual\nobligations.\n\nC. Any person who was a parent corporation or holding company or a person who\notherwise controlled the insurer or affiliate at the time such distributions\nwere paid shall be liable up to the amount of distributions or payments under\nsubsection A of this section. Any person who otherwise controlled the insurer at\nthe time such distributions were declared shall be liable up to the amount of\ndistributions he would have received if they had been paid immediately. If two\nor more persons are liable with respect to the same distributions, they shall be\njointly and severally liable.\n\nD. The maximum amount recoverable under this section shall be the amount needed\nin excess of all other available assets of the impaired or insolvent insurer to\npay its obligations and to reimburse any guaranty funds.\n\nE. To the extent that any person liable under subsection C of this section is\ninsolvent or otherwise fails to pay claims due from it pursuant to such\nsubsection, its parent corporation, holding company, or person who otherwise\ncontrolled it at the time the distribution was paid shall be jointly and\nseverally liable for any resulting deficiency in the amount recovered from such\nparent corporation, holding company, or person who otherwise controlled it.\n\nHISTORY: 1993, c. 158.","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}}