{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1706.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1706.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1706.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1706.html"}],"law_id":74544,"edition_id":1,"section_id":74544,"structure_id":14902,"section_number":"38.2-1706","catch_line":"Plan of operation","history":"1976, c. 330, \u00a7 38.1-482.24; 1986, c. 562; 2010, c. 510; 2018, c. 706.","full_text":"A\n\n1. The Association’s plan of operation approved under former \u00a7 38.1-482.24 shall remain in effect until modified in accordance with this subsection. The Association shall from time to time submit to the Commission any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the Association. Any amendments to the plan of operation shall become effective upon the Commission’s written approval or unless they have not been disapproved within 60 days.2\n\nIf at any time the Association fails to submit suitable amendments to the plan, the Commission shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the Commission or superseded by an amended plan submitted by the Association and approved by the Commission.B\n\nAll member insurers shall comply with the plan of operation.C\n\nThe plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:1\n\nEstablish procedures for handling assets of the Association;2\n\nEstablish the amount and method of reimbursing members of the board of directors under § 38.2-1703;3\n\nEstablish regular places and times for meetings, including telephone conference calls, of the board of directors;4\n\nEstablish procedures for records to be kept of all financial transactions of the Association, its agents, and the board of directors;5\n\nEstablish the procedures whereby selections for the board of directors will be made and submitted to the Commission;6\n\nEstablish any additional procedures for assessments under § 38.2-1705;7\n\nEstablish a plan for equitable distribution of refunds to member insurers;8\n\nContain additional provisions necessary or proper for the execution of the powers and duties of the Association;9\n\nEstablish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer; and10\n\nRequire the board of directors to establish a policy and procedures for addressing conflicts of interests.D\n\nThe plan of operation may provide that any or all powers and duties of the Association, except those under subdivision L 3 of § 38.2-1704 and § 38.2-1705, are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this Association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association. A delegation under this subsection shall take effect only with the approval of both the board of directors and the Commission, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this chapter.","order_by":null,"text":{"0":{"id":267889,"text":"1. The Association’s plan of operation approved under former \u00a7 38.1-482.24 shall remain in effect until modified in accordance with this subsection. The Association shall from time to time submit to the Commission any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable administration of the Association. Any amendments to the plan of operation shall become effective upon the Commission’s written approval or unless they have not been disapproved within 60 days.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":267890,"text":"If at any time the Association fails to submit suitable amendments to the plan, the Commission shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the Commission or superseded by an amended plan submitted by the Association and approved by the Commission.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"B"},"2":{"id":267891,"text":"All member insurers shall comply with the plan of operation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"3":{"id":267892,"text":"The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"4":{"id":267893,"text":"Establish procedures for handling assets of the Association;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"5":{"id":267894,"text":"Establish the amount and method of reimbursing members of the board of directors under § 38.2-1703;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"6":{"id":267895,"text":"Establish regular places and times for meetings, including telephone conference calls, of the board of directors;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"7":{"id":267896,"text":"Establish procedures for records to be kept of all financial transactions of the Association, its agents, and the board of directors;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"8":{"id":267897,"text":"Establish the procedures whereby selections for the board of directors will be made and submitted to the Commission;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"9":{"id":267898,"text":"Establish any additional procedures for assessments under § 38.2-1705;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"10":{"id":267899,"text":"Establish a plan for equitable distribution of refunds to member insurers;","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"11":{"id":267900,"text":"Contain additional provisions necessary or proper for the execution of the powers and duties of the Association;","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"C9"},"12":{"id":267901,"text":"Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer; and","type":"section","prefixes":["C","9"],"prefix":"9","entire_prefix":"C9","prefix_anchor":"C9","level":2,"prior_prefix":"C8","next_prefix":"C10"},"13":{"id":267902,"text":"Require the board of directors to establish a policy and procedures for addressing conflicts of interests.","type":"section","prefixes":["C","10"],"prefix":"10","entire_prefix":"C10","prefix_anchor":"C10","level":2,"prior_prefix":"C9","next_prefix":"D"},"14":{"id":267903,"text":"The plan of operation may provide that any or all powers and duties of the Association, except those under subdivision L 3 of § 38.2-1704 and § 38.2-1705, are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this Association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association. A delegation under this subsection shall take effect only with the approval of both the board of directors and the Commission, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this chapter.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C10"}},"ancestry":[{"id":14902,"edition_id":1,"name":"Establishment and Operation of the Association","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":14649,"metadata":{},"date_created":"2026-06-26 03:50:41","date_modified":"2026-06-26 03:50:41","permalink":{"id":212319,"object_type":"structure","relational_id":14902,"identifier":"1","token":"38.2\/17\/1","url":"\/38.2\/17\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14649,"edition_id":1,"name":"Virginia Life, Accident and Sickness Insurance Guaranty Association","identifier":"17","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:49:08","date_modified":"2026-06-26 03:49:08","permalink":{"id":212317,"object_type":"structure","relational_id":14649,"identifier":"17","token":"38.2\/17","url":"\/38.2\/17\/","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":85176,"structure_id":14902,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","url":"\/38.2-1700\/","token":"38.2\/17\/1\/38.2-1700","metadata":false},{"id":79730,"structure_id":14902,"section_number":"38.2-1701","catch_line":"Definitions","url":"\/38.2-1701\/","token":"38.2\/17\/1\/38.2-1701","metadata":false},{"id":62816,"structure_id":14902,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","url":"\/38.2-1702\/","token":"38.2\/17\/1\/38.2-1702","metadata":false},{"id":72232,"structure_id":14902,"section_number":"38.2-1703","catch_line":"Board of directors of Association","url":"\/38.2-1703\/","token":"38.2\/17\/1\/38.2-1703","metadata":false},{"id":65404,"structure_id":14902,"section_number":"38.2-1704","catch_line":"Powers and duties of Association","url":"\/38.2-1704\/","token":"38.2\/17\/1\/38.2-1704","metadata":false},{"id":59600,"structure_id":14902,"section_number":"38.2-1705","catch_line":"Assessments","url":"\/38.2-1705\/","token":"38.2\/17\/1\/38.2-1705","metadata":false},{"id":74544,"structure_id":14902,"section_number":"38.2-1706","catch_line":"Plan of operation","url":"\/38.2-1706\/","token":"38.2\/17\/1\/38.2-1706","metadata":false},{"id":64107,"structure_id":14902,"section_number":"38.2-1707","catch_line":"Duties and powers of the Commission","url":"\/38.2-1707\/","token":"38.2\/17\/1\/38.2-1707","metadata":false},{"id":65805,"structure_id":14902,"section_number":"38.2-1708","catch_line":"Detection and prevention of insolvencies","url":"\/38.2-1708\/","token":"38.2\/17\/1\/38.2-1708","metadata":false},{"id":69918,"structure_id":14902,"section_number":"38.2-1709","catch_line":"Tax write-offs of certificates of contributions","url":"\/38.2-1709\/","token":"38.2\/17\/1\/38.2-1709","metadata":false},{"id":56896,"structure_id":14902,"section_number":"38.2-1710","catch_line":"Miscellaneous provisions","url":"\/38.2-1710\/","token":"38.2\/17\/1\/38.2-1710","metadata":false},{"id":61703,"structure_id":14902,"section_number":"38.2-1711","catch_line":"Examination of the Association; annual report","url":"\/38.2-1711\/","token":"38.2\/17\/1\/38.2-1711","metadata":false},{"id":57475,"structure_id":14902,"section_number":"38.2-1712","catch_line":"Tax exemptions","url":"\/38.2-1712\/","token":"38.2\/17\/1\/38.2-1712","metadata":false},{"id":77644,"structure_id":14902,"section_number":"38.2-1713","catch_line":"Immunity","url":"\/38.2-1713\/","token":"38.2\/17\/1\/38.2-1713","metadata":false},{"id":59069,"structure_id":14902,"section_number":"38.2-1714","catch_line":"Stay of proceedings; reopening default judgments","url":"\/38.2-1714\/","token":"38.2\/17\/1\/38.2-1714","metadata":false},{"id":59869,"structure_id":14902,"section_number":"38.2-1715","catch_line":"Prohibited advertisement of Association coverage in insurance sales; notice to policy owners","url":"\/38.2-1715\/","token":"38.2\/17\/1\/38.2-1715","metadata":false}],"previous_section":{"id":59600,"structure_id":14902,"section_number":"38.2-1705","catch_line":"Assessments","url":"\/38.2-1705\/","token":"38.2\/17\/1\/38.2-1705","metadata":false},"next_section":{"id":64107,"structure_id":14902,"section_number":"38.2-1707","catch_line":"Duties and powers of the Commission","url":"\/38.2-1707\/","token":"38.2\/17\/1\/38.2-1707","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1706\/","history_text":"

This law was first created in 1976. The record of its establishment is cataloged in chapter 330 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 1976 \u201cActs\u201d aren\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 1986, chapter 562; in 2010, chapter 510<\/a>; in 2018, chapter 706<\/a>.<\/p>","references":[{"id":62816,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","order_by":null,"url":"\/38.2-1702\/"}],"refers_to":[{"id":72232,"section_number":"38.2-1703","catch_line":"Board of directors of Association","order_by":null,"url":"\/38.2-1703\/"},{"id":65404,"section_number":"38.2-1704","catch_line":"Powers and duties of Association","order_by":null,"url":"\/38.2-1704\/"},{"id":59600,"section_number":"38.2-1705","catch_line":"Assessments","order_by":null,"url":"\/38.2-1705\/"}],"permalink":{"id":212345,"object_type":"law","relational_id":74544,"identifier":"38.2-1706","token":"38.2\/17\/1\/38.2-1706","url":"\/38.2-1706\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1706\/","token":"38.2\/17\/1\/38.2-1706","dublin_core":{"Title":"Plan of operation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1706","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. The Association<\/span>’s plan of operation approved under former \u00a7 38.1-482.24 shall remain in effect until modified in accordance with this subsection. The Association<\/span> shall from time to time submit to the Commission<\/span> any amendments to the plan of operation necessary or suitable to assure the fair, reasonable, and equitable<\/span> administration of the Association<\/span>. Any amendments to the plan of operation shall become effective upon the Commission<\/span>’s written approval or unless they have not been disapproved within 60 days. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If at any time the Association<\/span> fails to submit suitable amendments to the plan, the Commission<\/span> shall, after notice and hearing<\/span>, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the Commission<\/span> or superseded by an amended plan submitted by the Association<\/span> and approved by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> All member insurers<\/span> shall comply with the plan of operation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Establish procedures for handling assets<\/span> of the Association<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Establish the amount and method of reimbursing members of the board of directors under § 38.2-1703<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Establish regular places and times for meetings, including telephone conference calls, of the board of directors; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Establish procedures for records to be kept of all financial transactions of the Association<\/span>, its agents, and the board of directors; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Establish the procedures whereby selections for the board of directors will be made and submitted to the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Establish any additional procedures for assessments under § 38.2-1705<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Establish a plan for equitable distribution<\/span> of refunds to member insurers<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Contain additional provisions necessary or proper for the execution of the powers and duties of the Association<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Establish procedures whereby a director may be removed for cause, including in the case where a member insurer<\/span> director becomes an impaired or insolvent insurer<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Require the board of directors to establish a policy and procedures for addressing conflicts of interests. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The plan of operation may provide that any or all powers and duties of the Association<\/span>, except those under subdivision L 3 of § 38.2-1704<\/a> and § 38.2-1705<\/a>, are delegated to a corporation, association<\/span>, or other organization that performs or will perform functions similar to those of this Association<\/span>, or its equivalent, in two or more states<\/span>. Such a corporation, association<\/span>, or organization shall be reimbursed for any payments made on behalf of the Association<\/span> and shall be paid for its performance of any function of the Association<\/span>. A delegation under this subsection shall take effect only with the approval of both the board of directors and the Commission<\/span>, and may be made only to a corporation, association<\/span>, or organization that extends protection not substantially less favorable and effective than that provided by this chapter. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPLAN OF OPERATION (\u00a7 38.2-1706)\n\nA. 1. The Association’s plan of operation approved under former \u00a7\n38.1-482.24 shall remain in effect until modified in accordance with this\nsubsection. The Association shall from time to time submit to the Commission any\namendments to the plan of operation necessary or suitable to assure the fair,\nreasonable, and equitable administration of the Association. Any amendments to\nthe plan of operation shall become effective upon the Commission’s written\napproval or unless they have not been disapproved within 60 days.\n\n 2. If at any time the Association fails to submit suitable amendments to the\n plan, the Commission shall, after notice and hearing, adopt and promulgate\n such reasonable rules as are necessary or advisable to effectuate the\n provisions of this chapter. The rules shall continue in force until modified\n by the Commission or superseded by an amended plan submitted by the\n Association and approved by the Commission.\n\nB. All member insurers shall comply with the plan of operation.\n\nC. The plan of operation shall, in addition to requirements enumerated elsewhere\nin this chapter:\n\n 1. Establish procedures for handling assets of the Association;\n\n 2. Establish the amount and method of reimbursing members of the board of\n directors under § 38.2-1703;\n\n 3. Establish regular places and times for meetings, including telephone\n conference calls, of the board of directors;\n\n 4. Establish procedures for records to be kept of all financial transactions\n of the Association, its agents, and the board of directors;\n\n 5. Establish the procedures whereby selections for the board of directors will\n be made and submitted to the Commission;\n\n 6. Establish any additional procedures for assessments under § 38.2-1705;\n\n 7. Establish a plan for equitable distribution of refunds to member insurers;\n\n 8. Contain additional provisions necessary or proper for the execution of the\n powers and duties of the Association;\n\n 9. Establish procedures whereby a director may be removed for cause, including\n in the case where a member insurer director becomes an impaired or insolvent\n insurer; and\n\n 10. Require the board of directors to establish a policy and procedures for\n addressing conflicts of interests.\n\nD. The plan of operation may provide that any or all powers and duties of the\nAssociation, except those under subdivision L 3 of § 38.2-1704 and §\n38.2-1705, are delegated to a corporation, association, or other organization\nthat performs or will perform functions similar to those of this Association, or\nits equivalent, in two or more states. Such a corporation, association, or\norganization shall be reimbursed for any payments made on behalf of the\nAssociation and shall be paid for its performance of any function of the\nAssociation. A delegation under this subsection shall take effect only with the\napproval of both the board of directors and the Commission, and may be made only\nto a corporation, association, or organization that extends protection not\nsubstantially less favorable and effective than that provided by this chapter.\n\nHISTORY: 1976, c. 330, \u00a7 38.1-482.24; 1986, c. 562; 2010, c. 510; 2018, c. 706.","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}}