{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1708.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1708.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1708.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1708.html"}],"law_id":65805,"edition_id":1,"section_id":65805,"structure_id":14902,"section_number":"38.2-1708","catch_line":"Detection and prevention of insolvencies","history":"1976, c. 330, \u00a7 38.1-482.26; 1986, c. 562; 2010, c. 510; 2018, c. 706.","full_text":"A\n\nTo aid in the detection and prevention of member insurer insolvencies, the Commission shall have the duty to:1\n\nNotify the insurance departments of all of the other states within 30 days following the action taken or the date the action occurs, when the Commission takes any of the following actions against a member insurer:\n\t\t\t\ta. Revocation of license;\n\t\t\t\tb. Suspension of license; or\n\t\t\t\tc. Enters a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the Commonwealth, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors;2\n\nReport to the board of directors when the Commission has taken any of the actions set forth in subdivision 1 or has received a report from any other insurance department indicating that any such action has been taken in another state. The report to the board of directors shall contain all significant details of the action taken or the report received from another insurance department;3\n\nReport to the board of directors when the Commission has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the member insurer may be an impaired or insolvent insurer; and4\n\nFurnish to the board of directors the National Association of Insurance Commissioners (NAIC) Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the NAIC, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the board of directors until such time as made public by the Commission or other lawful authority.B\n\nThe Commission may seek the advice and recommendations of the board of directors concerning any matter affecting its duties and responsibilities regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in the Commonwealth.C\n\nThe board of directors may, upon majority vote, make reports and recommendations to the Commission upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to transact business in the Commonwealth. These reports and recommendations shall not be considered public documents.D\n\nThe board of directors, upon majority vote, may notify the Commission of any information indicating a member insurer may be an impaired or insolvent insurer.E\n\nThe board of directors, upon majority vote, may make recommendations to the Commission for the detection and prevention of member insurer insolvencies.","order_by":null,"text":{"0":{"id":239172,"text":"To aid in the detection and prevention of member insurer insolvencies, the Commission shall have the duty to:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":239173,"text":"Notify the insurance departments of all of the other states within 30 days following the action taken or the date the action occurs, when the Commission takes any of the following actions against a member insurer:\n\t\t\t\ta. Revocation of license;\n\t\t\t\tb. Suspension of license; or\n\t\t\t\tc. Enters a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the Commonwealth, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":239174,"text":"Report to the board of directors when the Commission has taken any of the actions set forth in subdivision 1 or has received a report from any other insurance department indicating that any such action has been taken in another state. The report to the board of directors shall contain all significant details of the action taken or the report received from another insurance department;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":239175,"text":"Report to the board of directors when the Commission has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the member insurer may be an impaired or insolvent insurer; and","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":239176,"text":"Furnish to the board of directors the National Association of Insurance Commissioners (NAIC) Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the NAIC, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the board of directors until such time as made public by the Commission or other lawful authority.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":239177,"text":"The Commission may seek the advice and recommendations of the board of directors concerning any matter affecting its duties and responsibilities regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in the Commonwealth.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"C"},"6":{"id":239178,"text":"The board of directors may, upon majority vote, make reports and recommendations to the Commission upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to transact business in the Commonwealth. These reports and recommendations shall not be considered public documents.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"7":{"id":239179,"text":"The board of directors, upon majority vote, may notify the Commission of any information indicating a member insurer may be an impaired or insolvent insurer.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"8":{"id":239180,"text":"The board of directors, upon majority vote, may make recommendations to the Commission for the detection and prevention of member insurer insolvencies.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1708\/","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":false,"refers_to":false,"permalink":{"id":212353,"object_type":"law","relational_id":65805,"identifier":"38.2-1708","token":"38.2\/17\/1\/38.2-1708","url":"\/38.2-1708\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1708\/","token":"38.2\/17\/1\/38.2-1708","dublin_core":{"Title":"Detection and prevention of insolvencies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1708","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> To aid in the detection and prevention of member insurer<\/span> insolvencies, the Commission<\/span> shall have the duty to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Notify the insurance<\/span> departments of all of the other states<\/span> within 30 days following the action taken or the date the action occurs, when the Commission<\/span> takes any of the following actions against a member insurer<\/span>:\n\t\t\t\ta. Revocation<\/span> of license;\n\t\t\t\tb. Suspension of license; or\n\t\t\t\tc. Enters a formal order<\/span> that the member insurer<\/span> restrict its premium writing, obtain additional contributions to surplus, withdraw from the Commonwealth, reinsure all or any part of its business, or increase capital, surplus, or any other account<\/span> for the security of policy owners<\/span>, contract owners<\/span>, certificate holders, or creditors<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Report to the board of directors when the Commission<\/span> has taken any of the actions set forth in subdivision 1 or has received a report from any other insurance<\/span> department indicating that any such action has been taken in another state<\/span>. The report to the board of directors shall contain all significant details of the action taken or the report received from another insurance<\/span> department; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Report to the board of directors when the Commission<\/span> has reasonable cause to believe from an examination, whether completed or in process, of any member insurer<\/span> that the member insurer<\/span> may be an impaired or insolvent insurer<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Furnish to the board of directors the National Association<\/span> of Insurance<\/span> Commissioners<\/span> (NAIC) Insurance<\/span> Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the NAIC, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the board of directors until such time as made public by the Commission<\/span> or other lawful authority. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> may seek the advice and recommendations of the board of directors concerning any matter affecting its duties and responsibilities regarding the financial condition of member insurers<\/span> and insurers or health maintenance organizations seeking admission to transact business in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The board of directors may, upon majority vote, make reports and recommendations to the Commission<\/span> upon any matter germane to the solvency, liquidation<\/span>, rehabilitation or conservation of any member insurer<\/span> or germane to the solvency of any insurer or health maintenance organization seeking to transact business in the Commonwealth. These reports and recommendations shall not be considered public documents. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The board of directors, upon majority vote, may notify the Commission<\/span> of any information indicating a member insurer<\/span> may be an impaired or insolvent insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The board of directors, upon majority vote, may make recommendations to the Commission<\/span> for the detection and prevention of member insurer<\/span> insolvencies. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDETECTION AND PREVENTION OF INSOLVENCIES (\u00a7 38.2-1708)\n\nA. To aid in the detection and prevention of member insurer insolvencies, the\nCommission shall have the duty to:\n\n 1. Notify the insurance departments of all of the other states within 30 days\n following the action taken or the date the action occurs, when the Commission\n takes any of the following actions against a member insurer:\n \t\t\t\ta. Revocation of license;\n \t\t\t\tb. Suspension of license; or\n \t\t\t\tc. Enters a formal order that the member insurer restrict its premium\n writing, obtain additional contributions to surplus, withdraw from the\n Commonwealth, reinsure all or any part of its business, or increase capital,\n surplus, or any other account for the security of policy owners, contract\n owners, certificate holders, or creditors;\n\n 2. Report to the board of directors when the Commission has taken any of the\n actions set forth in subdivision 1 or has received a report from any other\n insurance department indicating that any such action has been taken in another\n state. The report to the board of directors shall contain all significant\n details of the action taken or the report received from another insurance\n department;\n\n 3. Report to the board of directors when the Commission has reasonable cause\n to believe from an examination, whether completed or in process, of any member\n insurer that the member insurer may be an impaired or insolvent insurer; and\n\n 4. Furnish to the board of directors the National Association of Insurance\n Commissioners (NAIC) Insurance Regulatory Information System (IRIS) ratios and\n listings of companies not included in the ratios developed by the NAIC, and\n the board may use the information contained therein in carrying out its duties\n and responsibilities under this section. The report and the information\n contained therein shall be kept confidential by the board of directors until\n such time as made public by the Commission or other lawful authority.\n\nB. The Commission may seek the advice and recommendations of the board of\ndirectors concerning any matter affecting its duties and responsibilities\nregarding the financial condition of member insurers and insurers or health\nmaintenance organizations seeking admission to transact business in the\nCommonwealth.\n\nC. The board of directors may, upon majority vote, make reports and\nrecommendations to the Commission upon any matter germane to the solvency,\nliquidation, rehabilitation or conservation of any member insurer or germane to\nthe solvency of any insurer or health maintenance organization seeking to\ntransact business in the Commonwealth. These reports and recommendations shall\nnot be considered public documents.\n\nD. The board of directors, upon majority vote, may notify the Commission of any\ninformation indicating a member insurer may be an impaired or insolvent insurer.\n\nE. The board of directors, upon majority vote, may make recommendations to the\nCommission for the detection and prevention of member insurer insolvencies.\n\nHISTORY: 1976, c. 330, \u00a7 38.1-482.26; 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}}