{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-136.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-136.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-136.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-136.html"}],"law_id":83796,"edition_id":1,"section_id":83796,"structure_id":16626,"section_number":"38.2-136","catch_line":"Reinsurance","history":"Code 1950, \u00a7\u00a7 38-160, 38-519; 1952, c. 317, \u00a7 38.1-26; 1986, c. 562; 1993, c. 158.","full_text":"A\n\nExcept as otherwise provided in this title, any insurer licensed to transact the business of insurance in this Commonwealth may, by policy, treaty or other agreement, cede to or accept from any insurer reinsurance upon the whole or any part of any risk, with or without contingent liability or participation, and, if a mutual insurer, with or without membership therein.B\n\nNo insurer licensed in this Commonwealth shall cede or assume policy obligations on risks located in this Commonwealth whereby the assuming insurer assumes the policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under the policies and in substitution for the obligations of the ceding insurer to the payees, unless: (i) the policyholder has consented to the assumption and (ii) the assuming insurer is licensed in this Commonwealth to write the class or classes of insurance applicable to the policy obligations assumed.C\n\nNotwithstanding the provisions of subsection B, the transfer of risk under any reinsurance agreement may be effected by entry of an order by the Commission approving the transaction whenever (i) the Commission finds a licensed insurer to be impaired or in hazardous financial condition, (ii) a delinquency proceeding has been instituted against the licensed insurer for the purpose of conserving, rehabilitating, or liquidating the insurer, or (iii) the Commission finds, after giving the insurer notice and an opportunity to be heard, that the transfer of the contracts is in the best interests of the policyholders. In granting any such approval, the Commission shall ensure that policyholders do not lose any rights or claims afforded under their original policies pursuant to Chapter 16 (§ 38.2-1600 et seq.) or 17 (§ 38.2-1700 et seq.) of this title. Prior to granting an approval under clause (iii), the Commission shall consider whether there is a reasonable expectation that the ceding insurer may not be able to meet its obligations to all policyholders; whether the ceding insurer’s continued operation in this Commonwealth may become hazardous to policyholders, creditors and the public in this Commonwealth; or whether the ceding insurer may otherwise be unable to comply with the provisions of this title.","order_by":null,"text":{"0":{"id":300376,"text":"Except as otherwise provided in this title, any insurer licensed to transact the business of insurance in this Commonwealth may, by policy, treaty or other agreement, cede to or accept from any insurer reinsurance upon the whole or any part of any risk, with or without contingent liability or participation, and, if a mutual insurer, with or without membership therein.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":300377,"text":"No insurer licensed in this Commonwealth shall cede or assume policy obligations on risks located in this Commonwealth whereby the assuming insurer assumes the policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under the policies and in substitution for the obligations of the ceding insurer to the payees, unless: (i) the policyholder has consented to the assumption and (ii) the assuming insurer is licensed in this Commonwealth to write the class or classes of insurance applicable to the policy obligations assumed.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":300378,"text":"Notwithstanding the provisions of subsection B, the transfer of risk under any reinsurance agreement may be effected by entry of an order by the Commission approving the transaction whenever (i) the Commission finds a licensed insurer to be impaired or in hazardous financial condition, (ii) a delinquency proceeding has been instituted against the licensed insurer for the purpose of conserving, rehabilitating, or liquidating the insurer, or (iii) the Commission finds, after giving the insurer notice and an opportunity to be heard, that the transfer of the contracts is in the best interests of the policyholders. In granting any such approval, the Commission shall ensure that policyholders do not lose any rights or claims afforded under their original policies pursuant to Chapter 16 (§ 38.2-1600 et seq.) or 17 (§ 38.2-1700 et seq.) of this title. Prior to granting an approval under clause (iii), the Commission shall consider whether there is a reasonable expectation that the ceding insurer may not be able to meet its obligations to all policyholders; whether the ceding insurer’s continued operation in this Commonwealth may become hazardous to policyholders, creditors and the public in this Commonwealth; or whether the ceding insurer may otherwise be unable to comply with the provisions of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":16626,"edition_id":1,"name":"Classes of Insurance Companies May Write; Reinsurance","identifier":"3","label":"article","depth":3,"order_by":1,"parent_id":13745,"metadata":{},"date_created":"2026-06-26 04:28:17","date_modified":"2026-06-26 04:28:17","permalink":{"id":210837,"object_type":"structure","relational_id":16626,"identifier":"3","token":"38.2\/1\/3","url":"\/38.2\/1\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13745,"edition_id":1,"name":"General Provisions","identifier":"1","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:45","date_modified":"2026-06-26 03:45:45","permalink":{"id":210663,"object_type":"structure","relational_id":13745,"identifier":"1","token":"38.2\/1","url":"\/38.2\/1\/","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":73014,"structure_id":16626,"section_number":"38.2-135","catch_line":"Classes of insurance companies may be licensed to write","url":"\/38.2-135\/","token":"38.2\/1\/3\/38.2-135","metadata":false},{"id":83796,"structure_id":16626,"section_number":"38.2-136","catch_line":"Reinsurance","url":"\/38.2-136\/","token":"38.2\/1\/3\/38.2-136","metadata":false},{"id":82817,"structure_id":16626,"section_number":"38.2-137","catch_line":"Flood insurance","url":"\/38.2-137\/","token":"38.2\/1\/3\/38.2-137","metadata":false}],"previous_section":{"id":73014,"structure_id":16626,"section_number":"38.2-135","catch_line":"Classes of insurance companies may be licensed to write","url":"\/38.2-135\/","token":"38.2\/1\/3\/38.2-135","metadata":false},"next_section":{"id":82817,"structure_id":16626,"section_number":"38.2-137","catch_line":"Flood insurance","url":"\/38.2-137\/","token":"38.2\/1\/3\/38.2-137","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-136\/","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 1993, chapter 158.<\/p>","references":[{"id":58348,"section_number":"38.2-1347","catch_line":"Definitions","order_by":null,"url":"\/38.2-1347\/"},{"id":81301,"section_number":"38.2-1603","catch_line":"Definitions","order_by":null,"url":"\/38.2-1603\/"},{"id":67952,"section_number":"38.2-4319","catch_line":"Statutory construction and relationship to other laws","order_by":null,"url":"\/38.2-4319\/"},{"id":68759,"section_number":"38.2-513.1","catch_line":"Insurance sales by depository institutions and other lending institutions","order_by":null,"url":"\/38.2-513.1\/"}],"refers_to":[{"id":69368,"section_number":"38.2-1600","catch_line":"Purpose","order_by":null,"url":"\/38.2-1600\/"},{"id":85176,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","order_by":null,"url":"\/38.2-1700\/"}],"permalink":{"id":210843,"object_type":"law","relational_id":83796,"identifier":"38.2-136","token":"38.2\/1\/3\/38.2-136","url":"\/38.2-136\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-136\/","token":"38.2\/1\/3\/38.2-136","dublin_core":{"Title":"Reinsurance","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-136","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise provided in this title, any insurer<\/span> licensed to transact the business of insurance<\/span> in this Commonwealth may, by policy, treaty or other agreement, cede to or accept from any insurer<\/span> reinsurance upon the whole or any part of any risk, with or without contingent liability or participation, and, if a mutual insurer<\/span>, with or without membership therein. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No insurer<\/span> licensed in this Commonwealth shall cede or assume policy obligations on risks located in this Commonwealth whereby the assuming insurer<\/span> assumes the policy obligations of the ceding insurer<\/span> as direct obligations of the assuming insurer<\/span> to the payees under the policies and in substitution for the obligations of the ceding insurer<\/span> to the payees, unless: (i) the policyholder has consented to the assumption and (ii) the assuming insurer<\/span> is licensed in this Commonwealth to write the class or classes of insurance<\/span> applicable to the policy obligations assumed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the provisions of subsection B, the transfer of risk under any reinsurance agreement may be effected by entry of an order<\/span> by the Commission<\/span> approving the transaction whenever (i) the Commission<\/span> finds a licensed insurer<\/span> to be impaired or in hazardous financial condition, (ii) a delinquency proceeding has been instituted against the licensed insurer<\/span> for the purpose of conserving, rehabilitating, or liquidating the insurer<\/span>, or (iii) the Commission<\/span> finds, after giving the insurer<\/span> notice and an opportunity to be heard, that the transfer of the contracts<\/span> is in the best interests of the policyholders. In granting any such approval, the Commission<\/span> shall ensure that policyholders do not lose any rights or claims afforded under their original policies pursuant to Chapter 16 (§ 38.2-1600<\/a> et seq.) or 17 (§ 38.2-1700<\/a> et seq.) of this title. Prior to granting an approval under clause (iii), the Commission<\/span> shall consider whether there is a reasonable expectation that the ceding insurer<\/span> may not be able to meet its obligations to all policyholders; whether the ceding insurer<\/span>’s continued operation in this Commonwealth may become hazardous to policyholders, creditors<\/span> and the public in this Commonwealth; or whether the ceding insurer<\/span> may otherwise be unable to comply with the provisions of this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREINSURANCE (\u00a7 38.2-136)\n\nA. Except as otherwise provided in this title, any insurer licensed to transact\nthe business of insurance in this Commonwealth may, by policy, treaty or other\nagreement, cede to or accept from any insurer reinsurance upon the whole or any\npart of any risk, with or without contingent liability or participation, and, if\na mutual insurer, with or without membership therein.\n\nB. No insurer licensed in this Commonwealth shall cede or assume policy\nobligations on risks located in this Commonwealth whereby the assuming insurer\nassumes the policy obligations of the ceding insurer as direct obligations of\nthe assuming insurer to the payees under the policies and in substitution for\nthe obligations of the ceding insurer to the payees, unless: (i) the\npolicyholder has consented to the assumption and (ii) the assuming insurer is\nlicensed in this Commonwealth to write the class or classes of insurance\napplicable to the policy obligations assumed.\n\nC. Notwithstanding the provisions of subsection B, the transfer of risk under\nany reinsurance agreement may be effected by entry of an order by the Commission\napproving the transaction whenever (i) the Commission finds a licensed insurer\nto be impaired or in hazardous financial condition, (ii) a delinquency\nproceeding has been instituted against the licensed insurer for the purpose of\nconserving, rehabilitating, or liquidating the insurer, or (iii) the Commission\nfinds, after giving the insurer notice and an opportunity to be heard, that the\ntransfer of the contracts is in the best interests of the policyholders. In\ngranting any such approval, the Commission shall ensure that policyholders do\nnot lose any rights or claims afforded under their original policies pursuant to\nChapter 16 (§ 38.2-1600 et seq.) or 17 (§ 38.2-1700 et seq.) of this\ntitle. Prior to granting an approval under clause (iii), the Commission shall\nconsider whether there is a reasonable expectation that the ceding insurer may\nnot be able to meet its obligations to all policyholders; whether the ceding\ninsurer’s continued operation in this Commonwealth may become hazardous to\npolicyholders, creditors and the public in this Commonwealth; or whether the\nceding insurer may otherwise be unable to comply with the provisions of this\ntitle.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-160, 38-519; 1952, c. 317, \u00a7 38.1-26; 1986, c. 562;\n1993, 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}}