{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-203.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-203.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-203.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-203.html"}],"law_id":66056,"edition_id":1,"section_id":66056,"structure_id":14221,"section_number":"38.2-203","catch_line":"Management and exclusive agency contracts subject to approval by Commission","history":"1954, c. 363, \u00a7 38.1-29.1; 1986, c. 562; 1998, c. 42.","full_text":"A\n\nFor the purpose of this section, an insurer shall mean a stock or mutual insurer, cooperative nonprofit life benefit company, mutual assessment life, accident and sickness insurer, burial society, fraternal benefit society, mutual assessment property and casualty insurer, home protection company, health maintenance organization, premium finance company or a person licensed under Chapter 42 (§ 38.2-4200 et seq.), 44 (§ 38.2-4400 et seq.) or 45 (§ 38.2-4500 et seq.) of this title, incorporated or organized under the laws of this Commonwealth.B\n\nNo insurer shall make or enter into any contract that provides for the control and management of the insurer, or the controlling or preemptive right to produce substantially all insurance business for the insurer, unless the contract has been filed with and approved by the Commission and approval has not been withdrawn by the Commission. Any approval, disapproval, or withdrawal of approval shall be delivered to the insurer in writing. The notice of disapproval or withdrawal of approval shall state the grounds of such action and shall be delivered to the insurer at least fifteen days before the effective date.C\n\nThe Commission may disapprove or withdraw approval of any contract referred to in this section that:1\n\nSubjects the insurer to excessive charges for expenses or commissions;2\n\nDoes not contain fair and adequate standards of performance;3\n\nExtends for an unreasonable length of time; or4\n\nContains other inequitable provisions or provisions that may jeopardize the security of policyholders.D\n\nThe provisions of this section shall not affect contracts made before June 30, 1954, but shall apply to all renewals of those contracts made after that date.E\n\nAny insurer aggrieved by a disapproval or withdrawal of approval under this section may proceed under the provisions of § 38.2-222.","order_by":null,"text":{"0":{"id":240008,"text":"For the purpose of this section, an insurer shall mean a stock or mutual insurer, cooperative nonprofit life benefit company, mutual assessment life, accident and sickness insurer, burial society, fraternal benefit society, mutual assessment property and casualty insurer, home protection company, health maintenance organization, premium finance company or a person licensed under Chapter 42 (§ 38.2-4200 et seq.), 44 (§ 38.2-4400 et seq.) or 45 (§ 38.2-4500 et seq.) of this title, incorporated or organized under the laws of this Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":240009,"text":"No insurer shall make or enter into any contract that provides for the control and management of the insurer, or the controlling or preemptive right to produce substantially all insurance business for the insurer, unless the contract has been filed with and approved by the Commission and approval has not been withdrawn by the Commission. Any approval, disapproval, or withdrawal of approval shall be delivered to the insurer in writing. The notice of disapproval or withdrawal of approval shall state the grounds of such action and shall be delivered to the insurer at least fifteen days before the effective date.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":240010,"text":"The Commission may disapprove or withdraw approval of any contract referred to in this section that:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":240011,"text":"Subjects the insurer to excessive charges for expenses or commissions;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":240012,"text":"Does not contain fair and adequate standards of performance;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":240013,"text":"Extends for an unreasonable length of time; or","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":240014,"text":"Contains other inequitable provisions or provisions that may jeopardize the security of policyholders.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"7":{"id":240015,"text":"The provisions of this section shall not affect contracts made before June 30, 1954, but shall apply to all renewals of those contracts made after that date.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"E"},"8":{"id":240016,"text":"Any insurer aggrieved by a disapproval or withdrawal of approval under this section may proceed under the provisions of § 38.2-222.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14221,"edition_id":1,"name":"Provisions of a General Nature","identifier":"2","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:47:20","date_modified":"2026-06-26 03:47:20","permalink":{"id":213095,"object_type":"structure","relational_id":14221,"identifier":"2","token":"38.2\/2","url":"\/38.2\/2\/","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":84875,"structure_id":14221,"section_number":"38.2-200","catch_line":"General powers of the Commission relative to insurance","url":"\/38.2-200\/","token":"38.2\/2\/38.2-200","metadata":false},{"id":70951,"structure_id":14221,"section_number":"38.2-201","catch_line":"Recommendations by Commission to General Assembly","url":"\/38.2-201\/","token":"38.2\/2\/38.2-201","metadata":false},{"id":71634,"structure_id":14221,"section_number":"38.2-202","catch_line":"Regulation of solicitation of proxies, consents and authorizations","url":"\/38.2-202\/","token":"38.2\/2\/38.2-202","metadata":false},{"id":66056,"structure_id":14221,"section_number":"38.2-203","catch_line":"Management and exclusive agency contracts subject to approval by Commission","url":"\/38.2-203\/","token":"38.2\/2\/38.2-203","metadata":false},{"id":86443,"structure_id":14221,"section_number":"38.2-204","catch_line":"Repealed","url":"\/38.2-204\/","token":"38.2\/2\/38.2-204","metadata":false},{"id":55426,"structure_id":14221,"section_number":"38.2-205.1","catch_line":"Temporary contracts of insurance permitted","url":"\/38.2-205.1\/","token":"38.2\/2\/38.2-205.1","metadata":false},{"id":77907,"structure_id":14221,"section_number":"38.2-206","catch_line":"Corporations as members of mutual insurers","url":"\/38.2-206\/","token":"38.2\/2\/38.2-206","metadata":false},{"id":78608,"structure_id":14221,"section_number":"38.2-207","catch_line":"Enforcement of right of subrogation in name of insured","url":"\/38.2-207\/","token":"38.2\/2\/38.2-207","metadata":false},{"id":66293,"structure_id":14221,"section_number":"38.2-208","catch_line":"Limitation of risks generally","url":"\/38.2-208\/","token":"38.2\/2\/38.2-208","metadata":false},{"id":71333,"structure_id":14221,"section_number":"38.2-209","catch_line":"Award of insured's attorney fees in certain cases","url":"\/38.2-209\/","token":"38.2\/2\/38.2-209","metadata":false},{"id":57078,"structure_id":14221,"section_number":"38.2-210","catch_line":"Loans to officers, directors, etc., prohibited","url":"\/38.2-210\/","token":"38.2\/2\/38.2-210","metadata":false},{"id":75678,"structure_id":14221,"section_number":"38.2-211","catch_line":"Other interests and payments to officers, directors, etc., prohibited","url":"\/38.2-211\/","token":"38.2\/2\/38.2-211","metadata":false},{"id":78879,"structure_id":14221,"section_number":"38.2-212","catch_line":"Certain compensation not prohibited","url":"\/38.2-212\/","token":"38.2\/2\/38.2-212","metadata":false},{"id":85199,"structure_id":14221,"section_number":"38.2-213","catch_line":"Violation of \u00a7 38.2-210 or \u00a7 38.2-211","url":"\/38.2-213\/","token":"38.2\/2\/38.2-213","metadata":false},{"id":74840,"structure_id":14221,"section_number":"38.2-214","catch_line":"Restrictions upon purchase and sale of equity securities of domestic stock insurers","url":"\/38.2-214\/","token":"38.2\/2\/38.2-214","metadata":false},{"id":64172,"structure_id":14221,"section_number":"38.2-215","catch_line":"Liability of president, chief executive officer or directors if insurance issued when insurer insolvent","url":"\/38.2-215\/","token":"38.2\/2\/38.2-215","metadata":false},{"id":66704,"structure_id":14221,"section_number":"38.2-216","catch_line":"Restrictions on removal or transfer of property and on reinsurance; penalty","url":"\/38.2-216\/","token":"38.2\/2\/38.2-216","metadata":false},{"id":81338,"structure_id":14221,"section_number":"38.2-217","catch_line":"When assets may not be distributed among stockholders","url":"\/38.2-217\/","token":"38.2\/2\/38.2-217","metadata":false},{"id":64490,"structure_id":14221,"section_number":"38.2-218","catch_line":"Penalties and restitution payments","url":"\/38.2-218\/","token":"38.2\/2\/38.2-218","metadata":false},{"id":73928,"structure_id":14221,"section_number":"38.2-219","catch_line":"Violations; procedure; cease and desist orders","url":"\/38.2-219\/","token":"38.2\/2\/38.2-219","metadata":false},{"id":63210,"structure_id":14221,"section_number":"38.2-220","catch_line":"Injunctions","url":"\/38.2-220\/","token":"38.2\/2\/38.2-220","metadata":false},{"id":78078,"structure_id":14221,"section_number":"38.2-221","catch_line":"Enforcement of penalties","url":"\/38.2-221\/","token":"38.2\/2\/38.2-221","metadata":false},{"id":86567,"structure_id":14221,"section_number":"38.2-221.1","catch_line":"Confidentiality of information","url":"\/38.2-221.1\/","token":"38.2\/2\/38.2-221.1","metadata":false},{"id":55819,"structure_id":14221,"section_number":"38.2-221.2","catch_line":"Treatment of confidential information pursuant to federal law","url":"\/38.2-221.2\/","token":"38.2\/2\/38.2-221.2","metadata":false},{"id":69354,"structure_id":14221,"section_number":"38.2-221.3","catch_line":"Confidentiality of applications and investigations","url":"\/38.2-221.3\/","token":"38.2\/2\/38.2-221.3","metadata":false},{"id":84985,"structure_id":14221,"section_number":"38.2-222","catch_line":"Appeals generally","url":"\/38.2-222\/","token":"38.2\/2\/38.2-222","metadata":false},{"id":87496,"structure_id":14221,"section_number":"38.2-223","catch_line":"Rules and regulations; orders","url":"\/38.2-223\/","token":"38.2\/2\/38.2-223","metadata":false},{"id":55846,"structure_id":14221,"section_number":"38.2-224","catch_line":"Procedures","url":"\/38.2-224\/","token":"38.2\/2\/38.2-224","metadata":false},{"id":59699,"structure_id":14221,"section_number":"38.2-225","catch_line":"Disposition of fines and penalties","url":"\/38.2-225\/","token":"38.2\/2\/38.2-225","metadata":false},{"id":81892,"structure_id":14221,"section_number":"38.2-226","catch_line":"Provisions of title not to apply to certain mutual aid associations","url":"\/38.2-226\/","token":"38.2\/2\/38.2-226","metadata":false},{"id":66567,"structure_id":14221,"section_number":"38.2-226.1","catch_line":"Expired","url":"\/38.2-226.1\/","token":"38.2\/2\/38.2-226.1","metadata":false},{"id":84770,"structure_id":14221,"section_number":"38.2-226.2","catch_line":"Provisions of title not applicable to certain long-term care health plans","url":"\/38.2-226.2\/","token":"38.2\/2\/38.2-226.2","metadata":false},{"id":84912,"structure_id":14221,"section_number":"38.2-226.3","catch_line":"Expired","url":"\/38.2-226.3\/","token":"38.2\/2\/38.2-226.3","metadata":false},{"id":62181,"structure_id":14221,"section_number":"38.2-227","catch_line":"Public policy regarding punitive damages","url":"\/38.2-227\/","token":"38.2\/2\/38.2-227","metadata":false},{"id":68082,"structure_id":14221,"section_number":"38.2-228","catch_line":"Proof of future financial responsibility","url":"\/38.2-228\/","token":"38.2\/2\/38.2-228","metadata":false},{"id":62523,"structure_id":14221,"section_number":"38.2-229","catch_line":"Immunity from liability","url":"\/38.2-229\/","token":"38.2\/2\/38.2-229","metadata":false},{"id":84512,"structure_id":14221,"section_number":"38.2-230","catch_line":"Distributions by nonstock corporation","url":"\/38.2-230\/","token":"38.2\/2\/38.2-230","metadata":false},{"id":69255,"structure_id":14221,"section_number":"38.2-231","catch_line":"Notice of cancellation, refusal to renew, reduction in coverage or increase in premium of certain liability insurance policies","url":"\/38.2-231\/","token":"38.2\/2\/38.2-231","metadata":false},{"id":82223,"structure_id":14221,"section_number":"38.2-232","catch_line":"Notice of lapse or pending lapse of certain life and accident and sickness insurance policies","url":"\/38.2-232\/","token":"38.2\/2\/38.2-232","metadata":false},{"id":84169,"structure_id":14221,"section_number":"38.2-233","catch_line":"Credit involuntary unemployment insurance; credit property insurance; disclosure and readability","url":"\/38.2-233\/","token":"38.2\/2\/38.2-233","metadata":false},{"id":57202,"structure_id":14221,"section_number":"38.2-234","catch_line":"Release of information","url":"\/38.2-234\/","token":"38.2\/2\/38.2-234","metadata":false},{"id":69385,"structure_id":14221,"section_number":"38.2-235","catch_line":"Liability insurance; carbon monoxide exclusions","url":"\/38.2-235\/","token":"38.2\/2\/38.2-235","metadata":false},{"id":80448,"structure_id":14221,"section_number":"38.2-236","catch_line":"Notice of settlement payment","url":"\/38.2-236\/","token":"38.2\/2\/38.2-236","metadata":false},{"id":83795,"structure_id":14221,"section_number":"38.2-237","catch_line":"Provider complaints","url":"\/38.2-237\/","token":"38.2\/2\/38.2-237","metadata":false}],"previous_section":{"id":71634,"structure_id":14221,"section_number":"38.2-202","catch_line":"Regulation of solicitation of proxies, consents and authorizations","url":"\/38.2-202\/","token":"38.2\/2\/38.2-202","metadata":false},"next_section":{"id":86443,"structure_id":14221,"section_number":"38.2-204","catch_line":"Repealed","url":"\/38.2-204\/","token":"38.2\/2\/38.2-204","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-203\/","history_text":"

This law was first created in 1954. The record of its establishment is cataloged in chapter 363 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 1954 \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 1998, chapter 42<\/a>.<\/p>","references":[{"id":77733,"section_number":"32.1-374","catch_line":"Obligations of nonprofit entity","order_by":null,"url":"\/32.1-374\/"},{"id":55347,"section_number":"38.2-4214","catch_line":"Application of certain provisions of law","order_by":null,"url":"\/38.2-4214\/"},{"id":67952,"section_number":"38.2-4319","catch_line":"Statutory construction and relationship to other laws","order_by":null,"url":"\/38.2-4319\/"},{"id":60078,"section_number":"38.2-4408","catch_line":"Application of certain provisions","order_by":null,"url":"\/38.2-4408\/"},{"id":62548,"section_number":"38.2-4509","catch_line":"Application of certain laws","order_by":null,"url":"\/38.2-4509\/"}],"refers_to":[{"id":84985,"section_number":"38.2-222","catch_line":"Appeals generally","order_by":null,"url":"\/38.2-222\/"},{"id":78890,"section_number":"38.2-4200","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4200\/"},{"id":67200,"section_number":"38.2-4400","catch_line":"Definitions","order_by":null,"url":"\/38.2-4400\/"},{"id":59325,"section_number":"38.2-4500","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4500\/"}],"permalink":{"id":213109,"object_type":"law","relational_id":66056,"identifier":"38.2-203","token":"38.2\/2\/38.2-203","url":"\/38.2-203\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-203\/","token":"38.2\/2\/38.2-203","dublin_core":{"Title":"Management and exclusive agency contracts subject to approval by Commission","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-203","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For the purpose of this section, an insurer<\/span> shall mean a stock or mutual insurer<\/span>, cooperative nonprofit life benefit company<\/span>, mutual assessment life, accident and sickness insurer<\/span>, burial society, fraternal benefit society, mutual assessment property and casualty insurer<\/span>, home protection company<\/span>, health maintenance organization, premium finance company<\/span> or a person<\/span> licensed under Chapter 42 (§ 38.2-4200<\/a> et seq.), 44 (§ 38.2-4400<\/a> et seq.) or 45 (§ 38.2-4500<\/a> et seq.) of this title, incorporated or organized under the laws<\/span> of this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No insurer<\/span> shall make or enter into any contract<\/span> that provides for the control and management of the insurer<\/span>, or the controlling or preemptive right to produce substantially all insurance<\/span> business for the insurer<\/span>, unless the contract<\/span> has been filed with and approved by the Commission<\/span> and approval has not been withdrawn by the Commission<\/span>. Any approval, disapproval, or withdrawal of approval shall be delivered to the insurer<\/span> in writing. The notice of disapproval or withdrawal of approval shall state<\/span> the grounds of such action and shall be delivered to the insurer<\/span> at least fifteen days before the effective date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Commission<\/span> may disapprove or withdraw approval of any contract<\/span> referred to in this section that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Subjects the insurer<\/span> to excessive charges for expenses or commissions<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Does not contain fair and adequate standards of performance; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Extends for an unreasonable length of time; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Contains other inequitable provisions or provisions that may jeopardize the security of policyholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The provisions of this section shall not affect contracts<\/span> made before June 30, 1954, but shall apply to all renewals of those contracts<\/span> made after that date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any insurer<\/span> aggrieved by a disapproval or withdrawal of approval under this section may proceed under the provisions of § 38.2-222<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS SUBJECT TO APPROVAL BY COMMISSION (\u00a7\n38.2-203)\n\nA. For the purpose of this section, an insurer shall mean a stock or mutual\ninsurer, cooperative nonprofit life benefit company, mutual assessment life,\naccident and sickness insurer, burial society, fraternal benefit society, mutual\nassessment property and casualty insurer, home protection company, health\nmaintenance organization, premium finance company or a person licensed under\nChapter 42 (§ 38.2-4200 et seq.), 44 (§ 38.2-4400 et seq.) or 45\n(§ 38.2-4500 et seq.) of this title, incorporated or organized under the\nlaws of this Commonwealth.\n\nB. No insurer shall make or enter into any contract that provides for the\ncontrol and management of the insurer, or the controlling or preemptive right to\nproduce substantially all insurance business for the insurer, unless the\ncontract has been filed with and approved by the Commission and approval has not\nbeen withdrawn by the Commission. Any approval, disapproval, or withdrawal of\napproval shall be delivered to the insurer in writing. The notice of disapproval\nor withdrawal of approval shall state the grounds of such action and shall be\ndelivered to the insurer at least fifteen days before the effective date.\n\nC. The Commission may disapprove or withdraw approval of any contract referred\nto in this section that:\n\n 1. Subjects the insurer to excessive charges for expenses or commissions;\n\n 2. Does not contain fair and adequate standards of performance;\n\n 3. Extends for an unreasonable length of time; or\n\n 4. Contains other inequitable provisions or provisions that may jeopardize the\n security of policyholders.\n\nD. The provisions of this section shall not affect contracts made before June\n30, 1954, but shall apply to all renewals of those contracts made after that\ndate.\n\nE. Any insurer aggrieved by a disapproval or withdrawal of approval under this\nsection may proceed under the provisions of § 38.2-222.\n\nHISTORY: 1954, c. 363, \u00a7 38.1-29.1; 1986, c. 562; 1998, c. 42.","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}}