{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-217.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-217.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-217.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-217.html"}],"law_id":81338,"edition_id":1,"section_id":81338,"structure_id":14221,"section_number":"38.2-217","catch_line":"When assets may not be distributed among stockholders","history":"Code 1950, \u00a7\u00a7 38-170, 38-171; 1952, c. 317, \u00a7 38.1-39; 1986, c. 562.","full_text":"No domestic insurer shall distribute its assets among its stockholders until all risks have expired or have been cancelled, or have been replaced by the policies of another solvent insurer licensed to transact the business of insurance in this Commonwealth, and until all claims against the insurer have been settled. No insurer shall contract to reinsure its risks for the purpose of distributing its assets without first obtaining the written approval of the Commission. However, nothing in this section shall be construed to prohibit the lawful payment of dividends.","order_by":null,"text":{"0":{"id":291495,"text":"No domestic insurer shall distribute its assets among its stockholders until all risks have expired or have been cancelled, or have been replaced by the policies of another solvent insurer licensed to transact the business of insurance in this Commonwealth, and until all claims against the insurer have been settled. No insurer shall contract to reinsure its risks for the purpose of distributing its assets without first obtaining the written approval of the Commission. However, nothing in this section shall be construed to prohibit the lawful payment of dividends.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-217\/","history_text":"<p>The record of this law\u2019s original creation isn\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 1952, chapter 317; in 1986, chapter 562.<\/p>","references":false,"refers_to":false,"permalink":{"id":213165,"object_type":"law","relational_id":81338,"identifier":"38.2-217","token":"38.2\/2\/38.2-217","url":"\/38.2-217\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-217\/","token":"38.2\/2\/38.2-217","dublin_core":{"Title":"When assets may not be distributed among stockholders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-217","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>No domestic <span class=\"dictionary\">insurer<\/span> shall distribute its <span class=\"dictionary\">assets<\/span> among its stockholders until all risks have expired or have been cancelled, or have been replaced by the policies of another solvent <span class=\"dictionary\">insurer<\/span> licensed to transact the business of <span class=\"dictionary\">insurance<\/span> in this Commonwealth, and until all claims against the <span class=\"dictionary\">insurer<\/span> have been settled. No <span class=\"dictionary\">insurer<\/span> shall <span class=\"dictionary\">contract<\/span> to reinsure its risks for the purpose of distributing its <span class=\"dictionary\">assets<\/span> without first obtaining the written approval of the <span class=\"dictionary\">Commission<\/span>. However, nothing in this section shall be construed to prohibit the lawful payment of dividends.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nWHEN ASSETS MAY NOT BE DISTRIBUTED AMONG STOCKHOLDERS (\u00a7 38.2-217)\n\nNo domestic insurer shall distribute its assets among its stockholders until all\nrisks have expired or have been cancelled, or have been replaced by the policies\nof another solvent insurer licensed to transact the business of insurance in\nthis Commonwealth, and until all claims against the insurer have been settled.\nNo insurer shall contract to reinsure its risks for the purpose of distributing\nits assets without first obtaining the written approval of the Commission.\nHowever, nothing in this section shall be construed to prohibit the lawful\npayment of dividends.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-170, 38-171; 1952, c. 317, \u00a7 38.1-39; 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}}