{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-212.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-212.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-212.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-212.html"}],"law_id":78879,"edition_id":1,"section_id":78879,"structure_id":14221,"section_number":"38.2-212","catch_line":"Certain compensation not prohibited","history":"Code 1950, \u00a7 38-4.3; 1952, c. 317, \u00a7 38.1-35; 1977, c. 261; 1978, c. 701; 1981, c. 272; 1983, c. 457; 1986, c. 562; 1992, c. 588.","full_text":"A\n\nNothing contained in §§ 38.2-210 and 38.2-211 shall prohibit any officer or director of any company listed in § 38.2-210 from receiving usual compensation for services rendered in the ordinary course of his duties as an officer or director, if the compensation is authorized by vote of the board of directors or other governing body of the company. Nor shall the provisions of §§ 38.2-210 and 38.2-211 prohibit the payment to an officer or director of any such company who is a licensed attorney-at-law of a fee in connection with loans made by the company if and when those fees are paid by the borrower and do not constitute a charge against the company.B\n\nNothing contained in this chapter shall prohibit a life insurer from making a loan upon a policy of insurance issued by it and held by the borrower. This loan shall not exceed the net cash value of the policy. Nothing contained in this chapter shall prohibit any company from (i) making a loan on real property owned by the officer and improved with a dwelling that is to serve as his residence if the loan qualifies under subdivision 1 of § 38.2-1434 and under § 38.2-1437 or (ii) acquiring the residence of the officer in conformance with subsection D of § 38.2-1441 if the transaction is in connection with the relocation of the place of employment of an officer who is neither a director nor a trustee of the company.C\n\nNothing contained in § 38.2-211 shall prohibit a director of any such company from receiving compensation that is usual and customary in the director’s business with respect to transactions in the ordinary course of business of the company and of the director. Prior to payment of the compensation, written request for the Commission’s approval shall be made. This written request shall set forth under oath complete details concerning the transactions that the company intends to conduct with a director. Any approval given by the Commission shall be in writing. No approval granted under this subsection shall imply that the Commission approves any investment of any company.","order_by":null,"text":{"0":{"id":282531,"text":"Nothing contained in §§ 38.2-210 and 38.2-211 shall prohibit any officer or director of any company listed in § 38.2-210 from receiving usual compensation for services rendered in the ordinary course of his duties as an officer or director, if the compensation is authorized by vote of the board of directors or other governing body of the company. Nor shall the provisions of §§ 38.2-210 and 38.2-211 prohibit the payment to an officer or director of any such company who is a licensed attorney-at-law of a fee in connection with loans made by the company if and when those fees are paid by the borrower and do not constitute a charge against the company.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":282532,"text":"Nothing contained in this chapter shall prohibit a life insurer from making a loan upon a policy of insurance issued by it and held by the borrower. This loan shall not exceed the net cash value of the policy. Nothing contained in this chapter shall prohibit any company from (i) making a loan on real property owned by the officer and improved with a dwelling that is to serve as his residence if the loan qualifies under subdivision 1 of § 38.2-1434 and under § 38.2-1437 or (ii) acquiring the residence of the officer in conformance with subsection D of § 38.2-1441 if the transaction is in connection with the relocation of the place of employment of an officer who is neither a director nor a trustee of the company.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":282533,"text":"Nothing contained in § 38.2-211 shall prohibit a director of any such company from receiving compensation that is usual and customary in the director’s business with respect to transactions in the ordinary course of business of the company and of the director. Prior to payment of the compensation, written request for the Commission’s approval shall be made. This written request shall set forth under oath complete details concerning the transactions that the company intends to conduct with a director. Any approval given by the Commission shall be in writing. No approval granted under this subsection shall imply that the Commission approves any investment of any company.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-212\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 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 1952, chapter 317; in 1977, chapter 261; in 1978, chapter 701; in 1981, chapter 272; in 1983, chapter 457; in 1986, chapter 562; in 1992, chapter 588.<\/p>","references":[{"id":57078,"section_number":"38.2-210","catch_line":"Loans to officers, directors, etc., prohibited","order_by":null,"url":"\/38.2-210\/"},{"id":75678,"section_number":"38.2-211","catch_line":"Other interests and payments to officers, directors, etc., prohibited","order_by":null,"url":"\/38.2-211\/"}],"refers_to":[{"id":71966,"section_number":"38.2-1434","catch_line":"Mortgage loans","order_by":null,"url":"\/38.2-1434\/"},{"id":67740,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","order_by":null,"url":"\/38.2-1437\/"},{"id":74841,"section_number":"38.2-1441","catch_line":"Real estate","order_by":null,"url":"\/38.2-1441\/"},{"id":57078,"section_number":"38.2-210","catch_line":"Loans to officers, directors, etc., prohibited","order_by":null,"url":"\/38.2-210\/"},{"id":75678,"section_number":"38.2-211","catch_line":"Other interests and payments to officers, directors, etc., prohibited","order_by":null,"url":"\/38.2-211\/"}],"permalink":{"id":213145,"object_type":"law","relational_id":78879,"identifier":"38.2-212","token":"38.2\/2\/38.2-212","url":"\/38.2-212\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-212\/","token":"38.2\/2\/38.2-212","dublin_core":{"Title":"Certain compensation not prohibited","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-212","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Nothing contained in §§ 38.2-210<\/a> and 38.2-211<\/a> shall prohibit any officer or director of any company<\/span> listed in § 38.2-210<\/a> from receiving usual compensation for services rendered in the ordinary course of his duties as an officer or director, if the compensation is authorized by vote of the board of directors or other governing body of the company<\/span>. Nor shall the provisions of §§ 38.2-210<\/a> and 38.2-211<\/a> prohibit the payment to an officer or director of any such company<\/span> who is a licensed attorney-at-law<\/span> of a fee in connection with loans made by the company<\/span> if and when those fees are paid by the borrower and do not constitute a charge against the company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Nothing contained in this chapter shall prohibit a life insurer<\/span> from making a loan upon a policy of insurance<\/span> issued by it and held by the borrower. This loan shall not exceed the net cash value of the policy. Nothing contained in this chapter shall prohibit any company<\/span> from (i) making a loan on real property owned by the officer and improved with a dwelling that is to serve as his residence if the loan qualifies under subdivision 1 of § 38.2-1434<\/a> and under § 38.2-1437<\/a> or (ii) acquiring the residence of the officer in conformance with subsection D of § 38.2-1441<\/a> if the transaction is in connection with the relocation of the place of employment of an officer who is neither a director nor a trustee of the company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing contained in § 38.2-211<\/a> shall prohibit a director of any such company<\/span> from receiving compensation that is usual and customary in the director’s business with respect to transactions in the ordinary course of business of the company<\/span> and of the director. Prior to payment of the compensation, written request for the Commission<\/span>’s approval shall be made. This written request shall set forth under oath<\/span> complete details concerning the transactions that the company<\/span> intends to conduct with a director. Any approval given by the Commission<\/span> shall be in writing. No approval granted under this subsection shall imply that the Commission<\/span> approves any investment of any company<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCERTAIN COMPENSATION NOT PROHIBITED (\u00a7 38.2-212)\n\nA. Nothing contained in §§ 38.2-210 and 38.2-211 shall prohibit any\nofficer or director of any company listed in § 38.2-210 from receiving\nusual compensation for services rendered in the ordinary course of his duties as\nan officer or director, if the compensation is authorized by vote of the board\nof directors or other governing body of the company. Nor shall the provisions of\n§§ 38.2-210 and 38.2-211 prohibit the payment to an officer or\ndirector of any such company who is a licensed attorney-at-law of a fee in\nconnection with loans made by the company if and when those fees are paid by the\nborrower and do not constitute a charge against the company.\n\nB. Nothing contained in this chapter shall prohibit a life insurer from making a\nloan upon a policy of insurance issued by it and held by the borrower. This loan\nshall not exceed the net cash value of the policy. Nothing contained in this\nchapter shall prohibit any company from (i) making a loan on real property owned\nby the officer and improved with a dwelling that is to serve as his residence if\nthe loan qualifies under subdivision 1 of § 38.2-1434 and under §\n38.2-1437 or (ii) acquiring the residence of the officer in conformance with\nsubsection D of § 38.2-1441 if the transaction is in connection with the\nrelocation of the place of employment of an officer who is neither a director\nnor a trustee of the company.\n\nC. Nothing contained in § 38.2-211 shall prohibit a director of any such\ncompany from receiving compensation that is usual and customary in the\ndirector’s business with respect to transactions in the ordinary course of\nbusiness of the company and of the director. Prior to payment of the\ncompensation, written request for the Commission’s approval shall be made.\nThis written request shall set forth under oath complete details concerning the\ntransactions that the company intends to conduct with a director. Any approval\ngiven by the Commission shall be in writing. No approval granted under this\nsubsection shall imply that the Commission approves any investment of any\ncompany.\n\nHISTORY: Code 1950, \u00a7 38-4.3; 1952, c. 317, \u00a7 38.1-35; 1977, c. 261; 1978, c.\n701; 1981, c. 272; 1983, c. 457; 1986, c. 562; 1992, c. 588.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}