{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1336.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1336.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1336.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1336.html"}],"law_id":84008,"edition_id":1,"section_id":84008,"structure_id":14592,"section_number":"38.2-1336","catch_line":"Subsidiaries of insurers","history":"1977, c. 414, \u00a7 38.1-178.12; 1986, c. 562.","full_text":"Notwithstanding the provisions of any other law, a domestic insurer shall not organize, acquire, or obtain control of any subsidiary, either by itself or in cooperation with one or more persons, unless the subsidiary is engaged in the following kinds of business:\n\n1\n\nTransacting any kind of insurance business authorized by the jurisdiction in which the subsidiary is incorporated;2\n\nActing as an insurance broker or as an insurance agent for its parent or for any of its parent’s insurer subsidiaries;3\n\nInvesting, reinvesting or trading in securities for its own account, that of its parent, any subsidiary of its parent, or any affiliate or subsidiary;4\n\nManaging any investment company subject to or registered pursuant to the Investment Company Act of 1940, as amended, including related sales and services;5\n\nActing as a broker-dealer subject to or registered pursuant to the Securities Exchange Act of 1934, as amended;6\n\nRendering investment advice to governments, governmental agencies, corporations or other organizations or groups;7\n\nRendering other services related to the operations of an insurance business including, but not limited to, actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal and collection services;8\n\nOwning and managing assets that the domestic insurer could itself own or manage;9\n\nActing as administrative agent for a governmental instrumentality that is performing an insurance function;10\n\nFinancing of insurance premiums or agents;11\n\nEngaging in any other business activity the Commission determines to be reasonably ancillary to an insurance business; or12\n\nOwning a corporation or corporations engaged or organized to engage exclusively in one or more of the businesses specified in this section.","order_by":null,"text":{"0":{"id":301068,"text":"Notwithstanding the provisions of any other law, a domestic insurer shall not organize, acquire, or obtain control of any subsidiary, either by itself or in cooperation with one or more persons, unless the subsidiary is engaged in the following kinds of business:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":301069,"text":"Transacting any kind of insurance business authorized by the jurisdiction in which the subsidiary is incorporated;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":301070,"text":"Acting as an insurance broker or as an insurance agent for its parent or for any of its parent’s insurer subsidiaries;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":301071,"text":"Investing, reinvesting or trading in securities for its own account, that of its parent, any subsidiary of its parent, or any affiliate or subsidiary;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":301072,"text":"Managing any investment company subject to or registered pursuant to the Investment Company Act of 1940, as amended, including related sales and services;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":301073,"text":"Acting as a broker-dealer subject to or registered pursuant to the Securities Exchange Act of 1934, as amended;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":301074,"text":"Rendering investment advice to governments, governmental agencies, corporations or other organizations or groups;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":301075,"text":"Rendering other services related to the operations of an insurance business including, but not limited to, actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal and collection services;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":301076,"text":"Owning and managing assets that the domestic insurer could itself own or manage;","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":301077,"text":"Acting as administrative agent for a governmental instrumentality that is performing an insurance function;","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":301078,"text":"Financing of insurance premiums or agents;","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":301079,"text":"Engaging in any other business activity the Commission determines to be reasonably ancillary to an insurance business; or","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":301080,"text":"Owning a corporation or corporations engaged or organized to engage exclusively in one or more of the businesses specified in this section.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11"}},"ancestry":[{"id":14592,"edition_id":1,"name":"Subsidiaries of Insurance Companies","identifier":"6","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:48:48","date_modified":"2026-06-26 03:48:48","permalink":{"id":211759,"object_type":"structure","relational_id":14592,"identifier":"6","token":"38.2\/13\/6","url":"\/38.2\/13\/6\/","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":85446,"structure_id":14592,"section_number":"38.2-1335","catch_line":"Definitions","url":"\/38.2-1335\/","token":"38.2\/13\/6\/38.2-1335","metadata":false},{"id":84008,"structure_id":14592,"section_number":"38.2-1336","catch_line":"Subsidiaries of insurers","url":"\/38.2-1336\/","token":"38.2\/13\/6\/38.2-1336","metadata":false},{"id":79125,"structure_id":14592,"section_number":"38.2-1337","catch_line":"Disclaimer of control","url":"\/38.2-1337\/","token":"38.2\/13\/6\/38.2-1337","metadata":false},{"id":56094,"structure_id":14592,"section_number":"38.2-1338","catch_line":"Applicability","url":"\/38.2-1338\/","token":"38.2\/13\/6\/38.2-1338","metadata":false},{"id":57950,"structure_id":14592,"section_number":"38.2-1339","catch_line":"Exemptions","url":"\/38.2-1339\/","token":"38.2\/13\/6\/38.2-1339","metadata":false},{"id":71810,"structure_id":14592,"section_number":"38.2-1340","catch_line":"Revocation, suspension, or nonrenewal of insurer's license","url":"\/38.2-1340\/","token":"38.2\/13\/6\/38.2-1340","metadata":false}],"previous_section":{"id":85446,"structure_id":14592,"section_number":"38.2-1335","catch_line":"Definitions","url":"\/38.2-1335\/","token":"38.2\/13\/6\/38.2-1335","metadata":false},"next_section":{"id":79125,"structure_id":14592,"section_number":"38.2-1337","catch_line":"Disclaimer of control","url":"\/38.2-1337\/","token":"38.2\/13\/6\/38.2-1337","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1336\/","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 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":false,"permalink":{"id":211765,"object_type":"law","relational_id":84008,"identifier":"38.2-1336","token":"38.2\/13\/6\/38.2-1336","url":"\/38.2-1336\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1336\/","token":"38.2\/13\/6\/38.2-1336","dublin_core":{"Title":"Subsidiaries of insurers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1336","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Notwithstanding the provisions of any other law<\/span>, a domestic insurer<\/span> shall not organize, acquire, or obtain control of any subsidiary, either by itself or in cooperation with one or more persons<\/span>, unless the subsidiary is engaged in the following kinds of business:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Transacting any kind of insurance<\/span> business authorized by the jurisdiction<\/span> in which the subsidiary is incorporated; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Acting as an insurance<\/span> broker or as an insurance<\/span> agent for its parent or for any of its parent’s insurer<\/span> subsidiaries; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Investing, reinvesting or trading in securities for its own account, that of its parent, any subsidiary of its parent, or any affiliate or subsidiary; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Managing any investment company<\/span> subject to or registered pursuant to the Investment Company<\/span> Act of 1940, as amended, including related sales and services; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Acting as a broker-dealer subject to or registered pursuant to the Securities Exchange Act of 1934, as amended; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Rendering investment advice to governments, governmental agencies, corporations or other organizations or groups; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Rendering other services related to the operations of an insurance<\/span> business including, but not limited to, actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal and collection services; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Owning and managing assets<\/span> that the domestic insurer<\/span> could itself own or manage; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Acting as administrative agent for a governmental instrumentality that is performing an insurance<\/span> function; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Financing of insurance<\/span> premiums or agents; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Engaging in any other business activity the Commission<\/span> determines to be reasonably ancillary to an insurance<\/span> business; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> Owning a corporation or corporations engaged or organized to engage exclusively in one or more of the businesses specified in this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSUBSIDIARIES OF INSURERS (\u00a7 38.2-1336)\n\nNotwithstanding the provisions of any other law, a domestic insurer shall not\norganize, acquire, or obtain control of any subsidiary, either by itself or in\ncooperation with one or more persons, unless the subsidiary is engaged in the\nfollowing kinds of business:\n\n1. Transacting any kind of insurance business authorized by the jurisdiction in\nwhich the subsidiary is incorporated;\n\n2. Acting as an insurance broker or as an insurance agent for its parent or for\nany of its parent’s insurer subsidiaries;\n\n3. Investing, reinvesting or trading in securities for its own account, that of\nits parent, any subsidiary of its parent, or any affiliate or subsidiary;\n\n4. Managing any investment company subject to or registered pursuant to the\nInvestment Company Act of 1940, as amended, including related sales and\nservices;\n\n5. Acting as a broker-dealer subject to or registered pursuant to the Securities\nExchange Act of 1934, as amended;\n\n6. Rendering investment advice to governments, governmental agencies,\ncorporations or other organizations or groups;\n\n7. Rendering other services related to the operations of an insurance business\nincluding, but not limited to, actuarial, loss prevention, safety engineering,\ndata processing, accounting, claims, appraisal and collection services;\n\n8. Owning and managing assets that the domestic insurer could itself own or\nmanage;\n\n9. Acting as administrative agent for a governmental instrumentality that is\nperforming an insurance function;\n\n10. Financing of insurance premiums or agents;\n\n11. Engaging in any other business activity the Commission determines to be\nreasonably ancillary to an insurance business; or\n\n12. Owning a corporation or corporations engaged or organized to engage\nexclusively in one or more of the businesses specified in this section.\n\nHISTORY: 1977, c. 414, \u00a7 38.1-178.12; 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}}