{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1441.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1441.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1441.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1441.html"}],"law_id":74841,"edition_id":1,"section_id":74841,"structure_id":14741,"section_number":"38.2-1441","catch_line":"Real estate","history":"1983, c. 457, \u00a7 38.1-217.44; 1986, c. 562; 1992, c. 588.","full_text":"A\n\nA domestic insurer may invest in real estate, as set forth in subsections B, C and D of this section, unless the property is to be used primarily for agricultural, horticultural, ranch, recreational, amusement or club purposes. The term “real estate” as used in this section shall include a leasehold of real estate having an unexpired term of not less than twenty years.B\n\nA domestic insurer may invest in dwellings, offices and other properties (including leasehold estates) for the production of income, other than real estate which is the subject of subsection C, situated in the United States, and the construction thereon of improvements, under the following conditions:1\n\nThe insurer shall either directly or through a land trust own the entire property, except that it may share ownership with one or more insurers authorized to do business in this state, or other business entities, excluding sole proprietorships, having a net worth of at least five million dollars under agreements that will assume concerted action in management and control of the property in case of the insolvency of any participating company, provided that each investment made pursuant to this subsection by the insurer and by each participant shall not be less than $100,000;2\n\nThe insurer alone or in conjunction with participants qualified under subdivision B 1 may let contracts for construction and pay costs of construction and leasing, hold, maintain, lease, and manage the property, collect rents and other income therefrom, and sell the property in whole or in part;3\n\nThe property may be encumbered by lease to tenants and by rights-of-way, easements, mineral reservations, building restrictions, and restrictive covenants, provided none of them can interfere substantially with the use of the property or result in a forfeiture of the property, unless a policy of title insurance, issued by a responsible title insurer qualified to do business in the state wherein the property is located, insures the insurer against loss or damage arising from such encumbrances or reversionary rights; and4\n\nAn insurer shall not invest under this subsection more than four percent of its admitted assets in any one property or in any one grouping of contiguous properties.C\n\nA domestic insurer may invest in real estate, including leasehold estates, for the convenient accommodation of the insurer’s business operations, including home office, branch office and field office operations, under the following conditions:1\n\nAny parcel of real estate acquired under this subsection may include excess space for rent to others if it is reasonably anticipated that the excess will be required by the insurer for expansion or if the excess is reasonably required in order to have one or more buildings that will function as an economic unit;2\n\nThe real estate may be subject to a mortgage;3\n\nAn insurer shall not invest under this subsection more than ten percent of the insurer’s admitted assets, except with the permission of the Commission if it is found that such percentage of the insurer’s admitted assets is insufficient to provide convenient accommodation for the insurer’s business; and4\n\nThe permission of the Commission shall be obtained by an insurer prior to the purchase of any real estate under this subsection if the insurer has been authorized in this Commonwealth for a period of less than five years.D\n\nReal property serving as the residence of an employee of any domestic insurer, other than a director or trustee of the insurer, may be acquired only in connection with the (i) relocation by the insurer of the place of employment of the employee, or (ii) any relocation in connection with the initial employment of the employee. The purchase price shall not exceed the fair market value of the property as determined by written appraisals of at least two competent independent real estate appraisers for the purpose of the acquisition. The employee shall have made reasonable efforts otherwise to dispose of the property for a period of not less than one month immediately prior to the acquisition.","order_by":null,"text":{"0":{"id":268903,"text":"A domestic insurer may invest in real estate, as set forth in subsections B, C and D of this section, unless the property is to be used primarily for agricultural, horticultural, ranch, recreational, amusement or club purposes. The term “real estate” as used in this section shall include a leasehold of real estate having an unexpired term of not less than twenty years.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":268904,"text":"A domestic insurer may invest in dwellings, offices and other properties (including leasehold estates) for the production of income, other than real estate which is the subject of subsection C, situated in the United States, and the construction thereon of improvements, under the following conditions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":268905,"text":"The insurer shall either directly or through a land trust own the entire property, except that it may share ownership with one or more insurers authorized to do business in this state, or other business entities, excluding sole proprietorships, having a net worth of at least five million dollars under agreements that will assume concerted action in management and control of the property in case of the insolvency of any participating company, provided that each investment made pursuant to this subsection by the insurer and by each participant shall not be less than $100,000;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":268906,"text":"The insurer alone or in conjunction with participants qualified under subdivision B 1 may let contracts for construction and pay costs of construction and leasing, hold, maintain, lease, and manage the property, collect rents and other income therefrom, and sell the property in whole or in part;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":268907,"text":"The property may be encumbered by lease to tenants and by rights-of-way, easements, mineral reservations, building restrictions, and restrictive covenants, provided none of them can interfere substantially with the use of the property or result in a forfeiture of the property, unless a policy of title insurance, issued by a responsible title insurer qualified to do business in the state wherein the property is located, insures the insurer against loss or damage arising from such encumbrances or reversionary rights; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":268908,"text":"An insurer shall not invest under this subsection more than four percent of its admitted assets in any one property or in any one grouping of contiguous properties.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":268909,"text":"A domestic insurer may invest in real estate, including leasehold estates, for the convenient accommodation of the insurer’s business operations, including home office, branch office and field office operations, under the following conditions:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"7":{"id":268910,"text":"Any parcel of real estate acquired under this subsection may include excess space for rent to others if it is reasonably anticipated that the excess will be required by the insurer for expansion or if the excess is reasonably required in order to have one or more buildings that will function as an economic unit;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":268911,"text":"The real estate may be subject to a mortgage;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"9":{"id":268912,"text":"An insurer shall not invest under this subsection more than ten percent of the insurer’s admitted assets, except with the permission of the Commission if it is found that such percentage of the insurer’s admitted assets is insufficient to provide convenient accommodation for the insurer’s business; and","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"10":{"id":268913,"text":"The permission of the Commission shall be obtained by an insurer prior to the purchase of any real estate under this subsection if the insurer has been authorized in this Commonwealth for a period of less than five years.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"11":{"id":268914,"text":"Real property serving as the residence of an employee of any domestic insurer, other than a director or trustee of the insurer, may be acquired only in connection with the (i) relocation by the insurer of the place of employment of the employee, or (ii) any relocation in connection with the initial employment of the employee. The purchase price shall not exceed the fair market value of the property as determined by written appraisals of at least two competent independent real estate appraisers for the purpose of the acquisition. The employee shall have made reasonable efforts otherwise to dispose of the property for a period of not less than one month immediately prior to the acquisition.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4"}},"ancestry":[{"id":14741,"edition_id":1,"name":"Category 1 Investments","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13282,"metadata":{},"date_created":"2026-06-26 03:49:39","date_modified":"2026-06-26 03:49:39","permalink":{"id":211947,"object_type":"structure","relational_id":14741,"identifier":"2","token":"38.2\/14\/2","url":"\/38.2\/14\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13282,"edition_id":1,"name":"Investments","identifier":"14","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:34","date_modified":"2026-06-26 03:44:34","permalink":{"id":211887,"object_type":"structure","relational_id":13282,"identifier":"14","token":"38.2\/14","url":"\/38.2\/14\/","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":78849,"structure_id":14741,"section_number":"38.2-1412","catch_line":"Scope of article","url":"\/38.2-1412\/","token":"38.2\/14\/2\/38.2-1412","metadata":false},{"id":80227,"structure_id":14741,"section_number":"38.2-1413","catch_line":"Investment limits for one obligor, one issue or one loan","url":"\/38.2-1413\/","token":"38.2\/14\/2\/38.2-1413","metadata":false},{"id":81959,"structure_id":14741,"section_number":"38.2-1414","catch_line":"Limits by type of investment","url":"\/38.2-1414\/","token":"38.2\/14\/2\/38.2-1414","metadata":false},{"id":84933,"structure_id":14741,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","url":"\/38.2-1415\/","token":"38.2\/14\/2\/38.2-1415","metadata":false},{"id":57477,"structure_id":14741,"section_number":"38.2-1416","catch_line":"Canadian governmental obligations","url":"\/38.2-1416\/","token":"38.2\/14\/2\/38.2-1416","metadata":false},{"id":73318,"structure_id":14741,"section_number":"38.2-1417","catch_line":"Canadian corporate obligations","url":"\/38.2-1417\/","token":"38.2\/14\/2\/38.2-1417","metadata":false},{"id":82385,"structure_id":14741,"section_number":"38.2-1418","catch_line":"Obligations of certain international agencies","url":"\/38.2-1418\/","token":"38.2\/14\/2\/38.2-1418","metadata":false},{"id":82955,"structure_id":14741,"section_number":"38.2-1419","catch_line":"Railroad terminal and other securities","url":"\/38.2-1419\/","token":"38.2\/14\/2\/38.2-1419","metadata":false},{"id":87150,"structure_id":14741,"section_number":"38.2-1420","catch_line":"Transportation equipment trust certificates","url":"\/38.2-1420\/","token":"38.2\/14\/2\/38.2-1420","metadata":false},{"id":59466,"structure_id":14741,"section_number":"38.2-1421","catch_line":"Business entity obligations","url":"\/38.2-1421\/","token":"38.2\/14\/2\/38.2-1421","metadata":false},{"id":57257,"structure_id":14741,"section_number":"38.2-1422","catch_line":"Obligations secured by certain leases","url":"\/38.2-1422\/","token":"38.2\/14\/2\/38.2-1422","metadata":false},{"id":56462,"structure_id":14741,"section_number":"38.2-1423","catch_line":"Preferred stocks","url":"\/38.2-1423\/","token":"38.2\/14\/2\/38.2-1423","metadata":false},{"id":75394,"structure_id":14741,"section_number":"38.2-1424","catch_line":"Guaranteed stocks","url":"\/38.2-1424\/","token":"38.2\/14\/2\/38.2-1424","metadata":false},{"id":79550,"structure_id":14741,"section_number":"38.2-1425","catch_line":"Common stock of banks or trust companies","url":"\/38.2-1425\/","token":"38.2\/14\/2\/38.2-1425","metadata":false},{"id":77680,"structure_id":14741,"section_number":"38.2-1426","catch_line":"Application of earnings tests","url":"\/38.2-1426\/","token":"38.2\/14\/2\/38.2-1426","metadata":false},{"id":69831,"structure_id":14741,"section_number":"38.2-1427","catch_line":"Common stock; covered call options","url":"\/38.2-1427\/","token":"38.2\/14\/2\/38.2-1427","metadata":false},{"id":83916,"structure_id":14741,"section_number":"38.2-1427.1","catch_line":"Limited partnerships","url":"\/38.2-1427.1\/","token":"38.2\/14\/2\/38.2-1427.1","metadata":false},{"id":86379,"structure_id":14741,"section_number":"38.2-1427.2","catch_line":"Investment company shares and units of beneficial interest","url":"\/38.2-1427.2\/","token":"38.2\/14\/2\/38.2-1427.2","metadata":false},{"id":74587,"structure_id":14741,"section_number":"38.2-1427.3","catch_line":"Investment authority; subsidiary corporations","url":"\/38.2-1427.3\/","token":"38.2\/14\/2\/38.2-1427.3","metadata":false},{"id":69711,"structure_id":14741,"section_number":"38.2-1428","catch_line":"Derivative instruments","url":"\/38.2-1428\/","token":"38.2\/14\/2\/38.2-1428","metadata":false},{"id":80990,"structure_id":14741,"section_number":"38.2-1429","catch_line":"Lending of securities","url":"\/38.2-1429\/","token":"38.2\/14\/2\/38.2-1429","metadata":false},{"id":86617,"structure_id":14741,"section_number":"38.2-1430","catch_line":"Collateral loans","url":"\/38.2-1430\/","token":"38.2\/14\/2\/38.2-1430","metadata":false},{"id":69205,"structure_id":14741,"section_number":"38.2-1431","catch_line":"Policy loans","url":"\/38.2-1431\/","token":"38.2\/14\/2\/38.2-1431","metadata":false},{"id":74795,"structure_id":14741,"section_number":"38.2-1432","catch_line":"Savings, certificates, etc","url":"\/38.2-1432\/","token":"38.2\/14\/2\/38.2-1432","metadata":false},{"id":79072,"structure_id":14741,"section_number":"38.2-1433","catch_line":"Foreign securities","url":"\/38.2-1433\/","token":"38.2\/14\/2\/38.2-1433","metadata":false},{"id":71966,"structure_id":14741,"section_number":"38.2-1434","catch_line":"Mortgage loans","url":"\/38.2-1434\/","token":"38.2\/14\/2\/38.2-1434","metadata":false},{"id":75123,"structure_id":14741,"section_number":"38.2-1435","catch_line":"Second mortgages; wrap-around mortgages","url":"\/38.2-1435\/","token":"38.2\/14\/2\/38.2-1435","metadata":false},{"id":78317,"structure_id":14741,"section_number":"38.2-1436","catch_line":"Mortgage participations","url":"\/38.2-1436\/","token":"38.2\/14\/2\/38.2-1436","metadata":false},{"id":67740,"structure_id":14741,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","url":"\/38.2-1437\/","token":"38.2\/14\/2\/38.2-1437","metadata":false},{"id":80668,"structure_id":14741,"section_number":"38.2-1437.1","catch_line":"Mortgage pass-through securities","url":"\/38.2-1437.1\/","token":"38.2\/14\/2\/38.2-1437.1","metadata":false},{"id":64298,"structure_id":14741,"section_number":"38.2-1438","catch_line":"Renewals and extensions when value of property decreases","url":"\/38.2-1438\/","token":"38.2\/14\/2\/38.2-1438","metadata":false},{"id":62837,"structure_id":14741,"section_number":"38.2-1439","catch_line":"Chattel mortgages","url":"\/38.2-1439\/","token":"38.2\/14\/2\/38.2-1439","metadata":false},{"id":65110,"structure_id":14741,"section_number":"38.2-1440","catch_line":"Investment in personal property","url":"\/38.2-1440\/","token":"38.2\/14\/2\/38.2-1440","metadata":false},{"id":74841,"structure_id":14741,"section_number":"38.2-1441","catch_line":"Real estate","url":"\/38.2-1441\/","token":"38.2\/14\/2\/38.2-1441","metadata":false},{"id":58210,"structure_id":14741,"section_number":"38.2-1442","catch_line":"Guaranty association obligations","url":"\/38.2-1442\/","token":"38.2\/14\/2\/38.2-1442","metadata":false}],"previous_section":{"id":65110,"structure_id":14741,"section_number":"38.2-1440","catch_line":"Investment in personal property","url":"\/38.2-1440\/","token":"38.2\/14\/2\/38.2-1440","metadata":false},"next_section":{"id":58210,"structure_id":14741,"section_number":"38.2-1442","catch_line":"Guaranty association obligations","url":"\/38.2-1442\/","token":"38.2\/14\/2\/38.2-1442","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1441\/","history_text":"

This law was first created in 1983. The record of its establishment is cataloged in chapter 457 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 1983 \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 1992, chapter 588.<\/p>","references":[{"id":81959,"section_number":"38.2-1414","catch_line":"Limits by type of investment","order_by":null,"url":"\/38.2-1414\/"},{"id":78879,"section_number":"38.2-212","catch_line":"Certain compensation not prohibited","order_by":null,"url":"\/38.2-212\/"}],"refers_to":false,"permalink":{"id":212081,"object_type":"law","relational_id":74841,"identifier":"38.2-1441","token":"38.2\/14\/2\/38.2-1441","url":"\/38.2-1441\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1441\/","token":"38.2\/14\/2\/38.2-1441","dublin_core":{"Title":"Real estate","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1441","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A domestic insurer<\/span> may invest in real estate<\/span>, as set forth in subsections B, C and D of this section, unless the property is to be used primarily for agricultural, horticultural, ranch, recreational, amusement or club purposes. The term “real estate<\/span>” as used in this section shall include a leasehold of real estate<\/span> having an unexpired term of not less than twenty years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A domestic insurer<\/span> may invest in dwellings, offices and other properties (including leasehold estates) for the production of income, other than real estate<\/span> which is the subject of subsection C, situated in the United States<\/span>, and the construction thereon of improvements, under the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The insurer<\/span> shall either directly or through a land trust own the entire property, except that it may share ownership with one or more insurers<\/span> authorized to do business in this state<\/span>, or other business entities, excluding sole proprietorships, having a net worth of at least five million dollars under agreements that will assume concerted action in management and control of the property in case of the insolvency of any participating company<\/span>, provided that each investment made pursuant to this subsection by the insurer<\/span> and by each participant shall not be less than $100,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The insurer<\/span> alone or in conjunction with participants qualified under subdivision B 1 may let contracts<\/span> for construction and pay costs of construction and leasing, hold, maintain, lease, and manage the property, collect rents and other income therefrom, and sell the property in whole or in part; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The property may be encumbered by lease to tenants and by rights-of-way, easements, mineral reservations, building restrictions, and restrictive covenants, provided none of them can interfere substantially with the use of the property or result in a forfeiture of the property, unless a policy of title insurance<\/span>, issued by a responsible title insurer<\/span> qualified to do business in the state<\/span> wherein the property is located, insures the insurer<\/span> against loss or damage arising from such encumbrances or reversionary rights; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest under this subsection more than four percent of its admitted assets<\/span> in any one property or in any one grouping of contiguous properties. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A domestic insurer<\/span> may invest in real estate<\/span>, including leasehold estates, for the convenient accommodation of the insurer<\/span>’s business operations, including home office, branch office and field office operations, under the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any parcel of real estate<\/span> acquired under this subsection may include excess space for rent to others if it is reasonably anticipated that the excess will be required by the insurer<\/span> for expansion or if the excess is reasonably required in order<\/span> to have one or more buildings that will function as an economic unit; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The real estate<\/span> may be subject to a mortgage; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> shall not invest under this subsection more than ten percent of the insurer<\/span>’s admitted assets<\/span>, except with the permission of the Commission<\/span> if it is found that such percentage of the insurer<\/span>’s admitted assets<\/span> is insufficient to provide convenient accommodation for the insurer<\/span>’s business; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The permission of the Commission<\/span> shall be obtained by an insurer<\/span> prior to the purchase of any real estate<\/span> under this subsection if the insurer<\/span> has been authorized in this Commonwealth for a period of less than five years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Real property serving as the residence of an employee of any domestic insurer<\/span>, other than a director or trustee of the insurer<\/span>, may be acquired only in connection with the (i) relocation by the insurer<\/span> of the place of employment of the employee, or (ii) any relocation in connection with the initial employment of the employee. The purchase price shall not exceed the fair market value<\/span> of the property as determined by written appraisals of at least two competent independent real estate<\/span> appraisers for the purpose of the acquisition. The employee shall have made reasonable efforts otherwise to dispose of the property for a period of not less than one month immediately prior to the acquisition. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREAL ESTATE (\u00a7 38.2-1441)\n\nA. A domestic insurer may invest in real estate, as set forth in subsections B,\nC and D of this section, unless the property is to be used primarily for\nagricultural, horticultural, ranch, recreational, amusement or club purposes.\nThe term “real estate” as used in this section shall include a\nleasehold of real estate having an unexpired term of not less than twenty years.\n\nB. A domestic insurer may invest in dwellings, offices and other properties\n(including leasehold estates) for the production of income, other than real\nestate which is the subject of subsection C, situated in the United States, and\nthe construction thereon of improvements, under the following conditions:\n\n 1. The insurer shall either directly or through a land trust own the entire\n property, except that it may share ownership with one or more insurers\n authorized to do business in this state, or other business entities, excluding\n sole proprietorships, having a net worth of at least five million dollars\n under agreements that will assume concerted action in management and control\n of the property in case of the insolvency of any participating company,\n provided that each investment made pursuant to this subsection by the insurer\n and by each participant shall not be less than $100,000;\n\n 2. The insurer alone or in conjunction with participants qualified under\n subdivision B 1 may let contracts for construction and pay costs of\n construction and leasing, hold, maintain, lease, and manage the property,\n collect rents and other income therefrom, and sell the property in whole or in\n part;\n\n 3. The property may be encumbered by lease to tenants and by rights-of-way,\n easements, mineral reservations, building restrictions, and restrictive\n covenants, provided none of them can interfere substantially with the use of\n the property or result in a forfeiture of the property, unless a policy of\n title insurance, issued by a responsible title insurer qualified to do\n business in the state wherein the property is located, insures the insurer\n against loss or damage arising from such encumbrances or reversionary rights;\n and\n\n 4. An insurer shall not invest under this subsection more than four percent of\n its admitted assets in any one property or in any one grouping of contiguous\n properties.\n\nC. A domestic insurer may invest in real estate, including leasehold estates,\nfor the convenient accommodation of the insurer’s business operations,\nincluding home office, branch office and field office operations, under the\nfollowing conditions:\n\n 1. Any parcel of real estate acquired under this subsection may include excess\n space for rent to others if it is reasonably anticipated that the excess will\n be required by the insurer for expansion or if the excess is reasonably\n required in order to have one or more buildings that will function as an\n economic unit;\n\n 2. The real estate may be subject to a mortgage;\n\n 3. An insurer shall not invest under this subsection more than ten percent of\n the insurer’s admitted assets, except with the permission of the\n Commission if it is found that such percentage of the insurer’s admitted\n assets is insufficient to provide convenient accommodation for the\n insurer’s business; and\n\n 4. The permission of the Commission shall be obtained by an insurer prior to\n the purchase of any real estate under this subsection if the insurer has been\n authorized in this Commonwealth for a period of less than five years.\n\nD. Real property serving as the residence of an employee of any domestic\ninsurer, other than a director or trustee of the insurer, may be acquired only\nin connection with the (i) relocation by the insurer of the place of employment\nof the employee, or (ii) any relocation in connection with the initial\nemployment of the employee. The purchase price shall not exceed the fair market\nvalue of the property as determined by written appraisals of at least two\ncompetent independent real estate appraisers for the purpose of the acquisition.\nThe employee shall have made reasonable efforts otherwise to dispose of the\nproperty for a period of not less than one month immediately prior to the\nacquisition.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.44; 1986, c. 562; 1992, c. 588.","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}}