{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1925.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1925.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1925.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1925.html"}],"law_id":77979,"edition_id":1,"section_id":77979,"structure_id":13456,"section_number":"38.2-1925","catch_line":"Examination of rate service organizations and joint underwriting and joint reinsurance organizations","history":"1973, c. 504, \u00a7 38.1-279.53; 1986, c. 562.","full_text":"A\n\nWhenever the Commission considers it necessary to be informed about any matter related to the enforcement of the insurance laws, it may examine the affairs and condition of any rate service organization under subsection A of § 38.2-1913 and of any joint underwriting or joint reinsurance organization under § 38.2-1915.B\n\nSo far as reasonably necessary for any examination under subsection A of this section, the Commission may examine the accounts, records, documents or evidence of transactions, so far as they relate to the examinee, of any (i) officer, (ii) manager, (iii) general agent, (iv) employee, (v) person who has executive authority over or is in charge of any segment of the examinee’s affairs, (vi) person controlling or having a contract under which he has the right to control the examinee whether exclusively or with others, (vii) person who is under the control of the examinee, or (viii) person who is under the control of a person who controls or has a right to control the examinee whether exclusively or with others.C\n\nOn demand every examinee under subsection A of this section shall make available to the Commission for examination any of its own accounts, records, documents or evidences of transactions and any of those of the persons listed in subsection B of this section.D\n\nThe Commission may examine every licensed rate service organization at intervals established by the Commission.E\n\n1. Instead of all or part of an examination under subsections A and B of this section, or in addition to it, the Commission may order an independent audit by certified public accountants or actuarial evaluation by actuaries approved by it of any person subject to the examination requirement. Any accountant or actuary selected shall be subject to standards respecting conflicts of interest used by the Commission. Any audit or evaluation under this subsection shall be subject to subsections H through O of this section, so far as appropriate.2\n\nInstead of all or part of an examination under this section, the Commission may accept the report of an audit already made by certified public accountants or actuarial evaluation by actuaries approved by it, or the report of an examination made by the insurance department of another state.F\n\n[Reserved.]G\n\nAn examination may cover comprehensively all aspects of the examinee’s affairs and condition. The Commission shall determine the exact nature and scope of each examination, and in doing so shall take into account all relevant factors, including but not limited to (i) the length of time the examinee has been operating, (ii) the length of time it has been licensed in this Commonwealth, (iii) the nature of the services provided, (iv) the nature of the accounting records available and (v) the nature of examinations performed elsewhere.H\n\nFor each examination under this section, the Commission shall issue an order stating the scope of the examination and designating the examiner in charge. On demand a copy of the order shall be exhibited to the examinee.I\n\nAny examiner authorized by the Commission shall, so far as necessary for the purposes of the examination, have access at all reasonable hours to the premises and to any books, records, files, securities, documents or property of the examinee and to those of persons under subsection B of this section so far as they relate to the affairs of the examinee.J\n\nThe officers, employees and agents of the examinee and of persons under subsection B of this section shall comply with every reasonable request of the examiners for assistance in any matter relating to the examination. No person shall obstruct or interfere with the examination in any way other than by legal process.K\n\nIf the Commission finds the accounts or records to be inadequate for proper examination of the condition and affairs of the examinee or improperly kept or posted, it may employ experts to rewrite, post or balance them at the expense of the examinee.L\n\nThe examiner in charge of an examination shall make a proposed report of the examination that shall include the information and analysis as is ordered in subsection H of this section, together with the examiner’s recommendations. At the discretion of the examiner in charge, preparation of the proposed report may include conferences with the examinee or its representatives. The proposed report shall remain confidential until filed under subsection M of this section.M\n\nThe Commission shall serve a copy of the proposed report upon the examinee. Within twenty days after service, the examinee may serve upon the Commission a written demand for a hearing on the contents of the report. If a hearing is demanded the Commission shall give notice and hold a hearing, and on demand by the examinee the hearing shall be informal and private. The Commission shall adopt the report with any necessary modifications and file it for public inspection, or it may order a new examination within either (i) sixty days after the hearing or (ii) if no hearing is demanded, sixty days after the last day on which the examinee might have demanded a hearing.N\n\nThe Commission shall forward a copy of the examination report to the examinee immediately upon adoption, except that if the proposed report is adopted without change, the Commission need only so notify the examinee.O\n\nThe examinee shall furnish copies of the adopted report to each member of its board of directors or other governing board.P\n\nThe Commission may furnish, without cost or at a price to be determined by it, a copy of the adopted report to the insurance commissioner of any jurisdiction in which the examinee is licensed and to any other interested person in this Commonwealth or elsewhere.Q\n\nIn any proceeding by or against the examinee or any officer or agent of the examinee, the examination report as adopted by the Commission shall be admissible as evidence of the facts stated in the examination report. In any proceeding by or against the examinee the facts asserted in any report properly admitted in evidence shall be presumed to be true in the absence of contrary evidence.R\n\nThe reasonable costs of an examination under this section shall be paid by the examinee except as provided in subsection U of this section. The costs shall include the salary and expenses of each examiner and any other expenses directly apportioned to the examination.S\n\nThe amount payable under subsection R of this section shall become due ten days after the examinee has been served a detailed account of the costs.T\n\nThe Commission may require any examinee, before or during an examination, to deposit with the State Treasurer any deposits the Commission considers necessary to pay the cost of the examination. Any deposit and any payment made under subsections R and S of this section shall be credited to the special fund of the Bureau of Insurance.U\n\nOn the examinee’s request or on its own motion, the Commission may pay all or part of the costs of an examination whenever it finds that, because of the frequency of examinations or other factors, imposition of the costs would place an unreasonable burden on the examinee. The Commission shall include in its annual report information about any instance in which it applied this subsection.V\n\nDeposits and payments under subsections R through U of this section shall not be considered to be a tax or license fee within the meaning of any law. If any other state charges a per diem fee for examination of examinees domiciled in this Commonwealth, any examinee domiciled in that other state shall pay the same fee when examined by the Commission.","order_by":null,"text":{"0":{"id":279591,"text":"Whenever the Commission considers it necessary to be informed about any matter related to the enforcement of the insurance laws, it may examine the affairs and condition of any rate service organization under subsection A of § 38.2-1913 and of any joint underwriting or joint reinsurance organization under § 38.2-1915.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":279592,"text":"So far as reasonably necessary for any examination under subsection A of this section, the Commission may examine the accounts, records, documents or evidence of transactions, so far as they relate to the examinee, of any (i) officer, (ii) manager, (iii) general agent, (iv) employee, (v) person who has executive authority over or is in charge of any segment of the examinee’s affairs, (vi) person controlling or having a contract under which he has the right to control the examinee whether exclusively or with others, (vii) person who is under the control of the examinee, or (viii) person who is under the control of a person who controls or has a right to control the examinee whether exclusively or with others.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":279593,"text":"On demand every examinee under subsection A of this section shall make available to the Commission for examination any of its own accounts, records, documents or evidences of transactions and any of those of the persons listed in subsection B of this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":279594,"text":"The Commission may examine every licensed rate service organization at intervals established by the Commission.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":279595,"text":"1. Instead of all or part of an examination under subsections A and B of this section, or in addition to it, the Commission may order an independent audit by certified public accountants or actuarial evaluation by actuaries approved by it of any person subject to the examination requirement. Any accountant or actuary selected shall be subject to standards respecting conflicts of interest used by the Commission. Any audit or evaluation under this subsection shall be subject to subsections H through O of this section, so far as appropriate.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E2"},"5":{"id":279596,"text":"Instead of all or part of an examination under this section, the Commission may accept the report of an audit already made by certified public accountants or actuarial evaluation by actuaries approved by it, or the report of an examination made by the insurance department of another state.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E","next_prefix":"F"},"6":{"id":279597,"text":"[Reserved.]","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E2","next_prefix":"G"},"7":{"id":279598,"text":"An examination may cover comprehensively all aspects of the examinee’s affairs and condition. The Commission shall determine the exact nature and scope of each examination, and in doing so shall take into account all relevant factors, including but not limited to (i) the length of time the examinee has been operating, (ii) the length of time it has been licensed in this Commonwealth, (iii) the nature of the services provided, (iv) the nature of the accounting records available and (v) the nature of examinations performed elsewhere.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"8":{"id":279599,"text":"For each examination under this section, the Commission shall issue an order stating the scope of the examination and designating the examiner in charge. On demand a copy of the order shall be exhibited to the examinee.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"9":{"id":279600,"text":"Any examiner authorized by the Commission shall, so far as necessary for the purposes of the examination, have access at all reasonable hours to the premises and to any books, records, files, securities, documents or property of the examinee and to those of persons under subsection B of this section so far as they relate to the affairs of the examinee.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"10":{"id":279601,"text":"The officers, employees and agents of the examinee and of persons under subsection B of this section shall comply with every reasonable request of the examiners for assistance in any matter relating to the examination. No person shall obstruct or interfere with the examination in any way other than by legal process.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"11":{"id":279602,"text":"If the Commission finds the accounts or records to be inadequate for proper examination of the condition and affairs of the examinee or improperly kept or posted, it may employ experts to rewrite, post or balance them at the expense of the examinee.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"12":{"id":279603,"text":"The examiner in charge of an examination shall make a proposed report of the examination that shall include the information and analysis as is ordered in subsection H of this section, together with the examiner’s recommendations. At the discretion of the examiner in charge, preparation of the proposed report may include conferences with the examinee or its representatives. The proposed report shall remain confidential until filed under subsection M of this section.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K","next_prefix":"M"},"13":{"id":279604,"text":"The Commission shall serve a copy of the proposed report upon the examinee. Within twenty days after service, the examinee may serve upon the Commission a written demand for a hearing on the contents of the report. If a hearing is demanded the Commission shall give notice and hold a hearing, and on demand by the examinee the hearing shall be informal and private. The Commission shall adopt the report with any necessary modifications and file it for public inspection, or it may order a new examination within either (i) sixty days after the hearing or (ii) if no hearing is demanded, sixty days after the last day on which the examinee might have demanded a hearing.","type":"section","prefixes":["M"],"prefix":"M","entire_prefix":"M","prefix_anchor":"M","level":1,"prior_prefix":"L","next_prefix":"N"},"14":{"id":279605,"text":"The Commission shall forward a copy of the examination report to the examinee immediately upon adoption, except that if the proposed report is adopted without change, the Commission need only so notify the examinee.","type":"section","prefixes":["N"],"prefix":"N","entire_prefix":"N","prefix_anchor":"N","level":1,"prior_prefix":"M","next_prefix":"O"},"15":{"id":279606,"text":"The examinee shall furnish copies of the adopted report to each member of its board of directors or other governing board.","type":"section","prefixes":["O"],"prefix":"O","entire_prefix":"O","prefix_anchor":"O","level":1,"prior_prefix":"N","next_prefix":"P"},"16":{"id":279607,"text":"The Commission may furnish, without cost or at a price to be determined by it, a copy of the adopted report to the insurance commissioner of any jurisdiction in which the examinee is licensed and to any other interested person in this Commonwealth or elsewhere.","type":"section","prefixes":["P"],"prefix":"P","entire_prefix":"P","prefix_anchor":"P","level":1,"prior_prefix":"O","next_prefix":"Q"},"17":{"id":279608,"text":"In any proceeding by or against the examinee or any officer or agent of the examinee, the examination report as adopted by the Commission shall be admissible as evidence of the facts stated in the examination report. In any proceeding by or against the examinee the facts asserted in any report properly admitted in evidence shall be presumed to be true in the absence of contrary evidence.","type":"section","prefixes":["Q"],"prefix":"Q","entire_prefix":"Q","prefix_anchor":"Q","level":1,"prior_prefix":"P","next_prefix":"R"},"18":{"id":279609,"text":"The reasonable costs of an examination under this section shall be paid by the examinee except as provided in subsection U of this section. The costs shall include the salary and expenses of each examiner and any other expenses directly apportioned to the examination.","type":"section","prefixes":["R"],"prefix":"R","entire_prefix":"R","prefix_anchor":"R","level":1,"prior_prefix":"Q","next_prefix":"S"},"19":{"id":279610,"text":"The amount payable under subsection R of this section shall become due ten days after the examinee has been served a detailed account of the costs.","type":"section","prefixes":["S"],"prefix":"S","entire_prefix":"S","prefix_anchor":"S","level":1,"prior_prefix":"R","next_prefix":"T"},"20":{"id":279611,"text":"The Commission may require any examinee, before or during an examination, to deposit with the State Treasurer any deposits the Commission considers necessary to pay the cost of the examination. Any deposit and any payment made under subsections R and S of this section shall be credited to the special fund of the Bureau of Insurance.","type":"section","prefixes":["T"],"prefix":"T","entire_prefix":"T","prefix_anchor":"T","level":1,"prior_prefix":"S","next_prefix":"U"},"21":{"id":279612,"text":"On the examinee’s request or on its own motion, the Commission may pay all or part of the costs of an examination whenever it finds that, because of the frequency of examinations or other factors, imposition of the costs would place an unreasonable burden on the examinee. The Commission shall include in its annual report information about any instance in which it applied this subsection.","type":"section","prefixes":["U"],"prefix":"U","entire_prefix":"U","prefix_anchor":"U","level":1,"prior_prefix":"T","next_prefix":"V"},"22":{"id":279613,"text":"Deposits and payments under subsections R through U of this section shall not be considered to be a tax or license fee within the meaning of any law. If any other state charges a per diem fee for examination of examinees domiciled in this Commonwealth, any examinee domiciled in that other state shall pay the same fee when examined by the Commission.","type":"section","prefixes":["V"],"prefix":"V","entire_prefix":"V","prefix_anchor":"V","level":1,"prior_prefix":"U"}},"ancestry":[{"id":13456,"edition_id":1,"name":"Regulation of Rates Generally","identifier":"19","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:55","date_modified":"2026-06-26 03:44:55","permalink":{"id":212945,"object_type":"structure","relational_id":13456,"identifier":"19","token":"38.2\/19","url":"\/38.2\/19\/","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":66229,"structure_id":13456,"section_number":"38.2-1900","catch_line":"Purposes of chapter","url":"\/38.2-1900\/","token":"38.2\/19\/38.2-1900","metadata":false},{"id":57539,"structure_id":13456,"section_number":"38.2-1901","catch_line":"Definitions","url":"\/38.2-1901\/","token":"38.2\/19\/38.2-1901","metadata":false},{"id":74191,"structure_id":13456,"section_number":"38.2-1902","catch_line":"Scope of chapter","url":"\/38.2-1902\/","token":"38.2\/19\/38.2-1902","metadata":false},{"id":70651,"structure_id":13456,"section_number":"38.2-1903","catch_line":"Exemptions","url":"\/38.2-1903\/","token":"38.2\/19\/38.2-1903","metadata":false},{"id":86657,"structure_id":13456,"section_number":"38.2-1903.1","catch_line":"Exemptions of large commercial risks","url":"\/38.2-1903.1\/","token":"38.2\/19\/38.2-1903.1","metadata":false},{"id":68129,"structure_id":13456,"section_number":"38.2-1904","catch_line":"Rate standards","url":"\/38.2-1904\/","token":"38.2\/19\/38.2-1904","metadata":false},{"id":57802,"structure_id":13456,"section_number":"38.2-1905","catch_line":"Motor vehicle insurer not to charge points or increase premiums in certain instances","url":"\/38.2-1905\/","token":"38.2\/19\/38.2-1905","metadata":false},{"id":80697,"structure_id":13456,"section_number":"38.2-1905.1","catch_line":"Repealed","url":"\/38.2-1905.1\/","token":"38.2\/19\/38.2-1905.1","metadata":false},{"id":70804,"structure_id":13456,"section_number":"38.2-1906","catch_line":"Filing and use of rates","url":"\/38.2-1906\/","token":"38.2\/19\/38.2-1906","metadata":false},{"id":54809,"structure_id":13456,"section_number":"38.2-1906.1","catch_line":"Misquote of premium","url":"\/38.2-1906.1\/","token":"38.2\/19\/38.2-1906.1","metadata":false},{"id":67605,"structure_id":13456,"section_number":"38.2-1907","catch_line":"Filings open to inspection","url":"\/38.2-1907\/","token":"38.2\/19\/38.2-1907","metadata":false},{"id":61334,"structure_id":13456,"section_number":"38.2-1908","catch_line":"Rate making and delegation of filing obligation","url":"\/38.2-1908\/","token":"38.2\/19\/38.2-1908","metadata":false},{"id":76329,"structure_id":13456,"section_number":"38.2-1909","catch_line":"Review of rates by Commission","url":"\/38.2-1909\/","token":"38.2\/19\/38.2-1909","metadata":false},{"id":64325,"structure_id":13456,"section_number":"38.2-1910","catch_line":"Disapproval of rates","url":"\/38.2-1910\/","token":"38.2\/19\/38.2-1910","metadata":false},{"id":63878,"structure_id":13456,"section_number":"38.2-1911","catch_line":"Special restrictions on individual insurers","url":"\/38.2-1911\/","token":"38.2\/19\/38.2-1911","metadata":false},{"id":77322,"structure_id":13456,"section_number":"38.2-1912","catch_line":"Delayed effect of rates; certification of reinsurance with affiliated company","url":"\/38.2-1912\/","token":"38.2\/19\/38.2-1912","metadata":false},{"id":76016,"structure_id":13456,"section_number":"38.2-1912.1","catch_line":"Approval of prospective loss costs and supplementary rate information; \u00a7 38.2-119 rate filings","url":"\/38.2-1912.1\/","token":"38.2\/19\/38.2-1912.1","metadata":false},{"id":73514,"structure_id":13456,"section_number":"38.2-1913","catch_line":"Operation and control of rate service organizations","url":"\/38.2-1913\/","token":"38.2\/19\/38.2-1913","metadata":false},{"id":68776,"structure_id":13456,"section_number":"38.2-1914","catch_line":"Licensing of rate service organizations","url":"\/38.2-1914\/","token":"38.2\/19\/38.2-1914","metadata":false},{"id":77780,"structure_id":13456,"section_number":"38.2-1915","catch_line":"Joint underwriting or joint reinsurance organizations","url":"\/38.2-1915\/","token":"38.2\/19\/38.2-1915","metadata":false},{"id":82148,"structure_id":13456,"section_number":"38.2-1916","catch_line":"Certain conduct by insurers and rate service organizations prohibited","url":"\/38.2-1916\/","token":"38.2\/19\/38.2-1916","metadata":false},{"id":75759,"structure_id":13456,"section_number":"38.2-1916.1","catch_line":"Investigation by Attorney General of suspected violations; investigative demand to witnesses; access to business records, etc.; penalties","url":"\/38.2-1916.1\/","token":"38.2\/19\/38.2-1916.1","metadata":false},{"id":54431,"structure_id":13456,"section_number":"38.2-1916.2","catch_line":"Penalties; injunctive relief; restitution","url":"\/38.2-1916.2\/","token":"38.2\/19\/38.2-1916.2","metadata":false},{"id":64311,"structure_id":13456,"section_number":"38.2-1917","catch_line":"Injunctive relief","url":"\/38.2-1917\/","token":"38.2\/19\/38.2-1917","metadata":false},{"id":64825,"structure_id":13456,"section_number":"38.2-1918","catch_line":"Agreements for equitable apportionment of insurance","url":"\/38.2-1918\/","token":"38.2\/19\/38.2-1918","metadata":false},{"id":62231,"structure_id":13456,"section_number":"38.2-1919","catch_line":"Collection of experience data; uniformity; compilations available to insurers and rate service organizations","url":"\/38.2-1919\/","token":"38.2\/19\/38.2-1919","metadata":false},{"id":72323,"structure_id":13456,"section_number":"38.2-1919.1","catch_line":"Interchange of rating data and information","url":"\/38.2-1919.1\/","token":"38.2\/19\/38.2-1919.1","metadata":false},{"id":60173,"structure_id":13456,"section_number":"38.2-1920","catch_line":"Excess rate for a specific risk","url":"\/38.2-1920\/","token":"38.2\/19\/38.2-1920","metadata":false},{"id":81510,"structure_id":13456,"section_number":"38.2-1921","catch_line":"Combination policies","url":"\/38.2-1921\/","token":"38.2\/19\/38.2-1921","metadata":false},{"id":61464,"structure_id":13456,"section_number":"38.2-1921.1","catch_line":"Professional employer organization workers' compensation rating","url":"\/38.2-1921.1\/","token":"38.2\/19\/38.2-1921.1","metadata":false},{"id":54416,"structure_id":13456,"section_number":"38.2-1922","catch_line":"No rule prohibiting or regulating payment of dividends, etc., to be adopted","url":"\/38.2-1922\/","token":"38.2\/19\/38.2-1922","metadata":false},{"id":73419,"structure_id":13456,"section_number":"38.2-1923","catch_line":"Person aggrieved by application of rating system to be heard; appeal to Commission","url":"\/38.2-1923\/","token":"38.2\/19\/38.2-1923","metadata":false},{"id":56103,"structure_id":13456,"section_number":"38.2-1924","catch_line":"Cooperation among rate service organizations, or among rate service organizations and insurers, authorized; review by Commission","url":"\/38.2-1924\/","token":"38.2\/19\/38.2-1924","metadata":false},{"id":77979,"structure_id":13456,"section_number":"38.2-1925","catch_line":"Examination of rate service organizations and joint underwriting and joint reinsurance organizations","url":"\/38.2-1925\/","token":"38.2\/19\/38.2-1925","metadata":false},{"id":67284,"structure_id":13456,"section_number":"38.2-1926","catch_line":"Action of Commission upon request for hearing on order or decision made without a hearing","url":"\/38.2-1926\/","token":"38.2\/19\/38.2-1926","metadata":false},{"id":62597,"structure_id":13456,"section_number":"38.2-1927","catch_line":"Withholding information; giving false or misleading information","url":"\/38.2-1927\/","token":"38.2\/19\/38.2-1927","metadata":false},{"id":73884,"structure_id":13456,"section_number":"38.2-1928","catch_line":"Violations of chapter","url":"\/38.2-1928\/","token":"38.2\/19\/38.2-1928","metadata":false}],"previous_section":{"id":56103,"structure_id":13456,"section_number":"38.2-1924","catch_line":"Cooperation among rate service organizations, or among rate service organizations and insurers, authorized; review by Commission","url":"\/38.2-1924\/","token":"38.2\/19\/38.2-1924","metadata":false},"next_section":{"id":67284,"structure_id":13456,"section_number":"38.2-1926","catch_line":"Action of Commission upon request for hearing on order or decision made without a hearing","url":"\/38.2-1926\/","token":"38.2\/19\/38.2-1926","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1925\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 504 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 1973 \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":[{"id":73514,"section_number":"38.2-1913","catch_line":"Operation and control of rate service organizations","order_by":null,"url":"\/38.2-1913\/"}],"permalink":{"id":213079,"object_type":"law","relational_id":77979,"identifier":"38.2-1925","token":"38.2\/19\/38.2-1925","url":"\/38.2-1925\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1925\/","token":"38.2\/19\/38.2-1925","dublin_core":{"Title":"Examination of rate service organizations and joint underwriting and joint reinsurance organizations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1925","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Whenever the Commission<\/span> considers it necessary to be informed about any matter related to the enforcement of the insurance<\/span> laws<\/span>, it may examine the affairs and condition of any rate service organization<\/span> under subsection A of § 38.2-1913<\/a> and of any joint underwriting or joint reinsurance organization under § 38.2-1915<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> So far as reasonably necessary for any examination under subsection A of this section, the Commission<\/span> may examine the accounts, records, documents or evidence<\/span> of transactions, so far as they relate to the examinee, of any (i) officer, (ii) manager, (iii) general agent, (iv) employee, (v) person<\/span> who has executive authority over or is in charge of any segment of the examinee’s affairs, (vi) person<\/span> controlling or having a contract<\/span> under which he has the right to control the examinee whether exclusively or with others, (vii) person<\/span> who is under the control of the examinee, or (viii) person<\/span> who is under the control of a person<\/span> who controls or has a right to control the examinee whether exclusively or with others. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> On demand every examinee under subsection A of this section shall make available to the Commission<\/span> for examination any of its own accounts, records, documents or evidences<\/span> of transactions and any of those of the persons<\/span> listed in subsection B of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission<\/span> may examine every licensed rate service organization<\/span> at intervals established by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> 1. Instead of all or part of an examination under subsections A and B of this section, or in addition to it, the Commission<\/span> may order<\/span> an independent audit by certified public accountants or actuarial evaluation by actuaries approved by it of any person<\/span> subject to the examination requirement. Any accountant or actuary selected shall be subject to standards respecting conflicts of interest used by the Commission<\/span>. Any audit or evaluation under this subsection shall be subject to subsections H through O of this section, so far as appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Instead of all or part of an examination under this section, the Commission<\/span> may accept the report of an audit already made by certified public accountants or actuarial evaluation by actuaries approved by it, or the report of an examination made by the insurance<\/span> department of another state<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> [Reserved.] <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> An examination may cover comprehensively all aspects of the examinee’s affairs and condition. The Commission<\/span> shall determine the exact nature and scope of each examination, and in doing so shall take into account all relevant factors, including but not limited to (i) the length of time the examinee has been operating, (ii) the length of time it has been licensed in this Commonwealth, (iii) the nature of the services provided, (iv) the nature of the accounting records available and (v) the nature of examinations performed elsewhere. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> For each examination under this section, the Commission<\/span> shall issue<\/span> an order<\/span> stating the scope of the examination and designating the examiner in charge. On demand a copy of the order<\/span> shall be exhibited to the examinee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Any examiner authorized by the Commission<\/span> shall, so far as necessary for the purposes of the examination, have access at all reasonable hours to the premises and to any books, records, files, securities, documents or property of the examinee and to those of persons<\/span> under subsection B of this section so far as they relate to the affairs of the examinee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The officers, employees and agents of the examinee and of persons<\/span> under subsection B of this section shall comply with every reasonable request of the examiners for assistance in any matter relating to the examination. No person<\/span> shall obstruct or interfere with the examination in any way other than by legal process. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> If the Commission<\/span> finds the accounts or records to be inadequate for proper examination of the condition and affairs of the examinee or improperly kept or posted, it may employ experts to rewrite, post or balance them at the expense of the examinee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The examiner in charge of an examination shall make a proposed report of the examination that shall include the information and analysis as is ordered in subsection H of this section, together with the examiner’s recommendations. At the discretion of the examiner in charge, preparation of the proposed report may include conferences with the examinee or its representatives. The proposed report shall remain confidential until filed under subsection M of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

M.<\/span> The Commission<\/span> shall serve a copy of the proposed report upon the examinee. Within twenty days after service, the examinee may serve upon the Commission<\/span> a written demand for a hearing<\/span> on the contents of the report. If a hearing<\/span> is demanded the Commission<\/span> shall give notice and hold a hearing<\/span>, and on demand by the examinee the hearing<\/span> shall be informal and private. The Commission<\/span> shall adopt the report with any necessary modifications and file it for public inspection, or it may order<\/span> a new examination within either (i) sixty days after the hearing<\/span> or (ii) if no hearing<\/span> is demanded, sixty days after the last day on which the examinee might have demanded a hearing<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

N.<\/span> The Commission<\/span> shall forward a copy of the examination report to the examinee immediately upon adoption, except that if the proposed report is adopted without change, the Commission<\/span> need only so notify the examinee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

O.<\/span> The examinee shall furnish copies of the adopted report to each member of its board of directors or other governing board. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

P.<\/span> The Commission<\/span> may furnish, without cost or at a price to be determined by it, a copy of the adopted report to the insurance<\/span> commissioner<\/span> of any jurisdiction<\/span> in which the examinee is licensed and to any other interested person<\/span> in this Commonwealth or elsewhere. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

Q.<\/span> In any proceeding by or against the examinee or any officer or agent of the examinee, the examination report as adopted by the Commission<\/span> shall be admissible<\/span> as evidence<\/span> of the facts<\/span> stated in the examination report. In any proceeding by or against the examinee the facts<\/span> asserted in any report properly admitted in evidence<\/span> shall be presumed to be true in the absence of contrary evidence<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

R.<\/span> The reasonable costs of an examination under this section shall be paid by the examinee except as provided in subsection U of this section. The costs shall include the salary and expenses of each examiner and any other expenses directly apportioned to the examination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

S.<\/span> The amount payable under subsection R of this section shall become due ten days after the examinee has been served a detailed account of the costs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

T.<\/span> The Commission<\/span> may require any examinee, before or during an examination, to deposit with the State<\/span> Treasurer any deposits the Commission<\/span> considers necessary to pay the cost of the examination. Any deposit and any payment made under subsections R and S of this section shall be credited to the special fund of the Bureau of Insurance<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

U.<\/span> On the examinee’s request or on its own motion<\/span>, the Commission<\/span> may pay all or part of the costs of an examination whenever it finds that, because of the frequency of examinations or other factors, imposition of the costs would place an unreasonable burden on the examinee. The Commission<\/span> shall include in its annual report information about any instance in which it applied this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

V.<\/span> Deposits and payments under subsections R through U of this section shall not be considered to be a tax or license fee within the meaning of any law<\/span>. If any other state<\/span> charges a per diem fee for examination of examinees domiciled in this Commonwealth, any examinee domiciled in that other state<\/span> shall pay the same fee when examined by the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEXAMINATION OF RATE SERVICE ORGANIZATIONS AND JOINT UNDERWRITING AND JOINT\nREINSURANCE ORGANIZATIONS (\u00a7 38.2-1925)\n\nA. Whenever the Commission considers it necessary to be informed about any\nmatter related to the enforcement of the insurance laws, it may examine the\naffairs and condition of any rate service organization under subsection A of\n§ 38.2-1913 and of any joint underwriting or joint reinsurance organization\nunder § 38.2-1915.\n\nB. So far as reasonably necessary for any examination under subsection A of this\nsection, the Commission may examine the accounts, records, documents or evidence\nof transactions, so far as they relate to the examinee, of any (i) officer, (ii)\nmanager, (iii) general agent, (iv) employee, (v) person who has executive\nauthority over or is in charge of any segment of the examinee’s affairs,\n(vi) person controlling or having a contract under which he has the right to\ncontrol the examinee whether exclusively or with others, (vii) person who is\nunder the control of the examinee, or (viii) person who is under the control of\na person who controls or has a right to control the examinee whether exclusively\nor with others.\n\nC. On demand every examinee under subsection A of this section shall make\navailable to the Commission for examination any of its own accounts, records,\ndocuments or evidences of transactions and any of those of the persons listed in\nsubsection B of this section.\n\nD. The Commission may examine every licensed rate service organization at\nintervals established by the Commission.\n\nE. 1. Instead of all or part of an examination under subsections A and B of this\nsection, or in addition to it, the Commission may order an independent audit by\ncertified public accountants or actuarial evaluation by actuaries approved by it\nof any person subject to the examination requirement. Any accountant or actuary\nselected shall be subject to standards respecting conflicts of interest used by\nthe Commission. Any audit or evaluation under this subsection shall be subject\nto subsections H through O of this section, so far as appropriate.\n\n 2. Instead of all or part of an examination under this section, the Commission\n may accept the report of an audit already made by certified public accountants\n or actuarial evaluation by actuaries approved by it, or the report of an\n examination made by the insurance department of another state.\n\nF. [Reserved.]\n\nG. An examination may cover comprehensively all aspects of the examinee’s\naffairs and condition. The Commission shall determine the exact nature and scope\nof each examination, and in doing so shall take into account all relevant\nfactors, including but not limited to (i) the length of time the examinee has\nbeen operating, (ii) the length of time it has been licensed in this\nCommonwealth, (iii) the nature of the services provided, (iv) the nature of the\naccounting records available and (v) the nature of examinations performed\nelsewhere.\n\nH. For each examination under this section, the Commission shall issue an order\nstating the scope of the examination and designating the examiner in charge. On\ndemand a copy of the order shall be exhibited to the examinee.\n\nI. Any examiner authorized by the Commission shall, so far as necessary for the\npurposes of the examination, have access at all reasonable hours to the premises\nand to any books, records, files, securities, documents or property of the\nexaminee and to those of persons under subsection B of this section so far as\nthey relate to the affairs of the examinee.\n\nJ. The officers, employees and agents of the examinee and of persons under\nsubsection B of this section shall comply with every reasonable request of the\nexaminers for assistance in any matter relating to the examination. No person\nshall obstruct or interfere with the examination in any way other than by legal\nprocess.\n\nK. If the Commission finds the accounts or records to be inadequate for proper\nexamination of the condition and affairs of the examinee or improperly kept or\nposted, it may employ experts to rewrite, post or balance them at the expense of\nthe examinee.\n\nL. The examiner in charge of an examination shall make a proposed report of the\nexamination that shall include the information and analysis as is ordered in\nsubsection H of this section, together with the examiner’s\nrecommendations. At the discretion of the examiner in charge, preparation of the\nproposed report may include conferences with the examinee or its\nrepresentatives. The proposed report shall remain confidential until filed under\nsubsection M of this section.\n\nM. The Commission shall serve a copy of the proposed report upon the examinee.\nWithin twenty days after service, the examinee may serve upon the Commission a\nwritten demand for a hearing on the contents of the report. If a hearing is\ndemanded the Commission shall give notice and hold a hearing, and on demand by\nthe examinee the hearing shall be informal and private. The Commission shall\nadopt the report with any necessary modifications and file it for public\ninspection, or it may order a new examination within either (i) sixty days after\nthe hearing or (ii) if no hearing is demanded, sixty days after the last day on\nwhich the examinee might have demanded a hearing.\n\nN. The Commission shall forward a copy of the examination report to the examinee\nimmediately upon adoption, except that if the proposed report is adopted without\nchange, the Commission need only so notify the examinee.\n\nO. The examinee shall furnish copies of the adopted report to each member of its\nboard of directors or other governing board.\n\nP. The Commission may furnish, without cost or at a price to be determined by\nit, a copy of the adopted report to the insurance commissioner of any\njurisdiction in which the examinee is licensed and to any other interested\nperson in this Commonwealth or elsewhere.\n\nQ. In any proceeding by or against the examinee or any officer or agent of the\nexaminee, the examination report as adopted by the Commission shall be\nadmissible as evidence of the facts stated in the examination report. In any\nproceeding by or against the examinee the facts asserted in any report properly\nadmitted in evidence shall be presumed to be true in the absence of contrary\nevidence.\n\nR. The reasonable costs of an examination under this section shall be paid by\nthe examinee except as provided in subsection U of this section. The costs shall\ninclude the salary and expenses of each examiner and any other expenses directly\napportioned to the examination.\n\nS. The amount payable under subsection R of this section shall become due ten\ndays after the examinee has been served a detailed account of the costs.\n\nT. The Commission may require any examinee, before or during an examination, to\ndeposit with the State Treasurer any deposits the Commission considers necessary\nto pay the cost of the examination. Any deposit and any payment made under\nsubsections R and S of this section shall be credited to the special fund of the\nBureau of Insurance.\n\nU. On the examinee’s request or on its own motion, the Commission may pay\nall or part of the costs of an examination whenever it finds that, because of\nthe frequency of examinations or other factors, imposition of the costs would\nplace an unreasonable burden on the examinee. The Commission shall include in\nits annual report information about any instance in which it applied this\nsubsection.\n\nV. Deposits and payments under subsections R through U of this section shall not\nbe considered to be a tax or license fee within the meaning of any law. If any\nother state charges a per diem fee for examination of examinees domiciled in\nthis Commonwealth, any examinee domiciled in that other state shall pay the same\nfee when examined by the Commission.\n\nHISTORY: 1973, c. 504, \u00a7 38.1-279.53; 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}}