{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2604.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2604.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2604.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2604.html"}],"law_id":80501,"edition_id":1,"section_id":80501,"structure_id":12840,"section_number":"38.2-2604","catch_line":"Qualification for license; net worth; deposit of securities with State Treasurer","history":"1981, c. 530, \u00a7 38.1-934; 1982, c. 132; 1984, c. 640; 1986, c. 562; 2006, c. 634; 2017, c. 727.","full_text":"A\n\nNo license shall be issued to any home protection company unless the applicant:1\n\nIs a Virginia corporation formed under the provisions of Article 3 (§ 13.1-618 et seq.) of Chapter 9 of Title 13.1, or Article 3 (§ 13.1-818 et seq.) of Chapter 10 of Title 13.1; or2\n\nIs a foreign corporation subject to regulation and licensing under the laws of its domiciliary jurisdiction which are substantially similar to those provided in this chapter, and has obtained a certificate of authority to transact business in this Commonwealth;3\n\nFurnishes the Commission with evidence satisfactory to it that the management of the home protection company is competent and trustworthy, and can be reasonably expected to successfully manage the company’s affairs in compliance with law;4\n\nEstablishes to the satisfaction of the Commission that it (i) maintains employees or has contractual arrangements sufficient to provide the services or indemnity undertaken by it, and (ii) agrees to accept requests for heating, electrical and plumbing services contracted for twenty-four hours per day, seven days per week;5\n\nMakes the deposit of bonds or other securities required by this section;6\n\nIs otherwise in compliance with this chapter;7\n\nHas filed the required application and paid the required fee;8\n\nHas paid all fees, taxes, and charges required by law;9\n\nHas the minimum net worth prescribed by this section;10\n\nHas filed any financial statement and any reports, certificates, or other documents as the Commission deems necessary to secure a full and accurate knowledge of its affairs and financial condition; and11\n\nKeeps adequate, correct and complete books and records of accounts and maintains proper accounting controls.B\n\nThe Commission shall not issue a license to or renew the license of a home protection company unless it is satisfied that the financial condition, the method of operation, and the manner of doing business enable the home protection company to meet its obligations to all contract holders and that the home protection company has otherwise complied with all the requirements of law.C\n\nA home protection company shall maintain a net worth in an amount not less than 20% of the premiums charged on its contracts currently in force; however, the minimum required net worth shall be not less than $100,000, and the maximum required net worth shall be that amount required of insurers under the provisions of Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title.D\n\nNo license shall be granted to any home protection company until it presents to the Commission a certificate of the State Treasurer that bonds or other securities have been deposited with him to be held in accordance with the provisions of and upon the terms and conditions and in the amount as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.","order_by":null,"text":{"0":{"id":288374,"text":"No license shall be issued to any home protection company unless the applicant:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":288375,"text":"Is a Virginia corporation formed under the provisions of Article 3 (§ 13.1-618 et seq.) of Chapter 9 of Title 13.1, or Article 3 (§ 13.1-818 et seq.) of Chapter 10 of Title 13.1; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":288376,"text":"Is a foreign corporation subject to regulation and licensing under the laws of its domiciliary jurisdiction which are substantially similar to those provided in this chapter, and has obtained a certificate of authority to transact business in this Commonwealth;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":288377,"text":"Furnishes the Commission with evidence satisfactory to it that the management of the home protection company is competent and trustworthy, and can be reasonably expected to successfully manage the company’s affairs in compliance with law;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":288378,"text":"Establishes to the satisfaction of the Commission that it (i) maintains employees or has contractual arrangements sufficient to provide the services or indemnity undertaken by it, and (ii) agrees to accept requests for heating, electrical and plumbing services contracted for twenty-four hours per day, seven days per week;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":288379,"text":"Makes the deposit of bonds or other securities required by this section;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":288380,"text":"Is otherwise in compliance with this chapter;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":288381,"text":"Has filed the required application and paid the required fee;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":288382,"text":"Has paid all fees, taxes, and charges required by law;","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":288383,"text":"Has the minimum net worth prescribed by this section;","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":288384,"text":"Has filed any financial statement and any reports, certificates, or other documents as the Commission deems necessary to secure a full and accurate knowledge of its affairs and financial condition; and","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"A11"},"11":{"id":288385,"text":"Keeps adequate, correct and complete books and records of accounts and maintains proper accounting controls.","type":"section","prefixes":["A","11"],"prefix":"11","entire_prefix":"A11","prefix_anchor":"A11","level":2,"prior_prefix":"A10","next_prefix":"B"},"12":{"id":288386,"text":"The Commission shall not issue a license to or renew the license of a home protection company unless it is satisfied that the financial condition, the method of operation, and the manner of doing business enable the home protection company to meet its obligations to all contract holders and that the home protection company has otherwise complied with all the requirements of law.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A11","next_prefix":"C"},"13":{"id":288387,"text":"A home protection company shall maintain a net worth in an amount not less than 20% of the premiums charged on its contracts currently in force; however, the minimum required net worth shall be not less than $100,000, and the maximum required net worth shall be that amount required of insurers under the provisions of Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"14":{"id":288388,"text":"No license shall be granted to any home protection company until it presents to the Commission a certificate of the State Treasurer that bonds or other securities have been deposited with him to be held in accordance with the provisions of and upon the terms and conditions and in the amount as provided in Article 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":12840,"edition_id":1,"name":"Home Protection Companies","identifier":"26","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":213943,"object_type":"structure","relational_id":12840,"identifier":"26","token":"38.2\/26","url":"\/38.2\/26\/","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":85986,"structure_id":12840,"section_number":"38.2-2600","catch_line":"Definitions","url":"\/38.2-2600\/","token":"38.2\/26\/38.2-2600","metadata":false},{"id":75121,"structure_id":12840,"section_number":"38.2-2601","catch_line":"Exemptions","url":"\/38.2-2601\/","token":"38.2\/26\/38.2-2601","metadata":false},{"id":59380,"structure_id":12840,"section_number":"38.2-2602","catch_line":"Limited applicability to certain insurers","url":"\/38.2-2602\/","token":"38.2\/26\/38.2-2602","metadata":false},{"id":66093,"structure_id":12840,"section_number":"38.2-2603","catch_line":"License required; application; fee","url":"\/38.2-2603\/","token":"38.2\/26\/38.2-2603","metadata":false},{"id":80501,"structure_id":12840,"section_number":"38.2-2604","catch_line":"Qualification for license; net worth; deposit of securities with State Treasurer","url":"\/38.2-2604\/","token":"38.2\/26\/38.2-2604","metadata":false},{"id":79225,"structure_id":12840,"section_number":"38.2-2605","catch_line":"Expiration and renewal of license","url":"\/38.2-2605\/","token":"38.2\/26\/38.2-2605","metadata":false},{"id":56816,"structure_id":12840,"section_number":"38.2-2606","catch_line":"Reserves required","url":"\/38.2-2606\/","token":"38.2\/26\/38.2-2606","metadata":false},{"id":73559,"structure_id":12840,"section_number":"38.2-2607","catch_line":"Annual statements","url":"\/38.2-2607\/","token":"38.2\/26\/38.2-2607","metadata":false},{"id":74863,"structure_id":12840,"section_number":"38.2-2608","catch_line":"Home protection contracts; filing; form and contents; application or agreement to purchase; regulation of rates and charges","url":"\/38.2-2608\/","token":"38.2\/26\/38.2-2608","metadata":false},{"id":59105,"structure_id":12840,"section_number":"38.2-2609","catch_line":"Qualifications of agents","url":"\/38.2-2609\/","token":"38.2\/26\/38.2-2609","metadata":false},{"id":81246,"structure_id":12840,"section_number":"38.2-2610","catch_line":"Cancellation of home protection contracts","url":"\/38.2-2610\/","token":"38.2\/26\/38.2-2610","metadata":false},{"id":70070,"structure_id":12840,"section_number":"38.2-2611","catch_line":"Unfair discrimination","url":"\/38.2-2611\/","token":"38.2\/26\/38.2-2611","metadata":false},{"id":55408,"structure_id":12840,"section_number":"38.2-2612","catch_line":"Unfair trade practices","url":"\/38.2-2612\/","token":"38.2\/26\/38.2-2612","metadata":false},{"id":75413,"structure_id":12840,"section_number":"38.2-2613","catch_line":"Application of insurance laws","url":"\/38.2-2613\/","token":"38.2\/26\/38.2-2613","metadata":false},{"id":79863,"structure_id":12840,"section_number":"38.2-2614","catch_line":"Fronting not permitted","url":"\/38.2-2614\/","token":"38.2\/26\/38.2-2614","metadata":false},{"id":63662,"structure_id":12840,"section_number":"38.2-2615","catch_line":"Other insurance transactions prohibited","url":"\/38.2-2615\/","token":"38.2\/26\/38.2-2615","metadata":false},{"id":63494,"structure_id":12840,"section_number":"38.2-2616","catch_line":"Binding arbitration provisions in contract","url":"\/38.2-2616\/","token":"38.2\/26\/38.2-2616","metadata":false},{"id":53987,"structure_id":12840,"section_number":"38.2-2617","catch_line":"Repealed","url":"\/38.2-2617\/","token":"38.2\/26\/38.2-2617","metadata":false},{"id":63420,"structure_id":12840,"section_number":"38.2-2628","catch_line":"Repealed","url":"\/38.2-2628\/","token":"38.2\/26\/38.2-2628","metadata":false}],"previous_section":{"id":66093,"structure_id":12840,"section_number":"38.2-2603","catch_line":"License required; application; fee","url":"\/38.2-2603\/","token":"38.2\/26\/38.2-2603","metadata":false},"next_section":{"id":79225,"structure_id":12840,"section_number":"38.2-2605","catch_line":"Expiration and renewal of license","url":"\/38.2-2605\/","token":"38.2\/26\/38.2-2605","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2604\/","history_text":"

This law was first created in 1981. The record of its establishment is cataloged in chapter 530 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 1981 \u201cActs\u201d aren\u2019t available online. It has been modified 5 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 1982, chapter 132; in 1984, chapter 640; in 1986, chapter 562; in 2006, chapter 634<\/a>; in 2017, chapter 727<\/a>.<\/p>","references":false,"refers_to":[{"id":86934,"section_number":"13.1-618","catch_line":"Incorporators","order_by":null,"url":"\/13.1-618\/"},{"id":85649,"section_number":"13.1-818","catch_line":"Incorporators","order_by":null,"url":"\/13.1-818\/"},{"id":86158,"section_number":"38.2-1024","catch_line":"License required to transact the business of insurance; application fee requirements for license","order_by":null,"url":"\/38.2-1024\/"},{"id":57089,"section_number":"38.2-1045","catch_line":"Deposits required of insurers generally","order_by":null,"url":"\/38.2-1045\/"}],"permalink":{"id":213961,"object_type":"law","relational_id":80501,"identifier":"38.2-2604","token":"38.2\/26\/38.2-2604","url":"\/38.2-2604\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2604\/","token":"38.2\/26\/38.2-2604","dublin_core":{"Title":"Qualification for license; net worth; deposit of securities with State Treasurer","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2604","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No license shall be issued to any home protection company<\/span> unless the applicant: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Is a Virginia corporation formed under the provisions of Article 3 (§ 13.1-618<\/a> et seq.) of Chapter 9 of Title 13.1, or Article 3 (§ 13.1-818<\/a> et seq.) of Chapter 10 of Title 13.1; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Is a foreign corporation subject to regulation and licensing under the laws<\/span> of its domiciliary jurisdiction<\/span> which are substantially similar to those provided in this chapter, and has obtained a certificate of authority to transact business in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Furnishes the Commission<\/span> with evidence<\/span> satisfactory to it that the management of the home protection company<\/span> is competent and trustworthy, and can be reasonably expected to successfully manage the company’s affairs in compliance with law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Establishes to the satisfaction of the Commission<\/span> that it (i) maintains employees or has contractual arrangements sufficient to provide the services or indemnity undertaken by it, and (ii) agrees to accept requests for heating, electrical and plumbing services contracted for twenty-four hours per day, seven days per week; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Makes the deposit of bonds<\/span> or other securities required by this section; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Is otherwise in compliance with this chapter; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Has filed the required application and paid the required fee; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Has paid all fees, taxes, and charges required by law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Has the minimum net worth prescribed by this section; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Has filed any financial statement and any reports, certificates, or other documents as the Commission<\/span> deems necessary to secure a full and accurate knowledge of its affairs and financial condition; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Keeps adequate, correct and complete books and records of accounts and maintains proper accounting controls. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall not issue<\/span> a license to or renew the license of a home protection company<\/span> unless it is satisfied that the financial condition, the method of operation, and the manner of doing business enable the home protection company<\/span> to meet its obligations to all contract<\/span> holders and that the home protection company<\/span> has otherwise complied with all the requirements of law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A home protection company<\/span> shall maintain a net worth in an amount not less than 20% of the premiums charged on its contracts<\/span> currently in force; however, the minimum required net worth shall be not less than $100,000, and the maximum required net worth shall be that amount required of insurers<\/span> under the provisions of Article 5 (§ 38.2-1024<\/a> et seq.) of Chapter 10 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No license shall be granted to any home protection company<\/span> until it presents to the Commission<\/span> a certificate of the State<\/span> Treasurer that bonds<\/span> or other securities have been deposited with him to be held in accordance with the provisions of and upon the terms and conditions and in the amount as provided in Article 7 (§ 38.2-1045<\/a> et seq.) of Chapter 10 of this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nQUALIFICATION FOR LICENSE; NET WORTH; DEPOSIT OF SECURITIES WITH STATE TREASURER\n(\u00a7 38.2-2604)\n\nA. No license shall be issued to any home protection company unless the\napplicant:\n\n 1. Is a Virginia corporation formed under the provisions of Article 3 (§\n 13.1-618 et seq.) of Chapter 9 of Title 13.1, or Article 3 (§ 13.1-818 et\n seq.) of Chapter 10 of Title 13.1; or\n\n 2. Is a foreign corporation subject to regulation and licensing under the laws\n of its domiciliary jurisdiction which are substantially similar to those\n provided in this chapter, and has obtained a certificate of authority to\n transact business in this Commonwealth;\n\n 3. Furnishes the Commission with evidence satisfactory to it that the\n management of the home protection company is competent and trustworthy, and\n can be reasonably expected to successfully manage the company’s affairs\n in compliance with law;\n\n 4. Establishes to the satisfaction of the Commission that it (i) maintains\n employees or has contractual arrangements sufficient to provide the services\n or indemnity undertaken by it, and (ii) agrees to accept requests for heating,\n electrical and plumbing services contracted for twenty-four hours per day,\n seven days per week;\n\n 5. Makes the deposit of bonds or other securities required by this section;\n\n 6. Is otherwise in compliance with this chapter;\n\n 7. Has filed the required application and paid the required fee;\n\n 8. Has paid all fees, taxes, and charges required by law;\n\n 9. Has the minimum net worth prescribed by this section;\n\n 10. Has filed any financial statement and any reports, certificates, or other\n documents as the Commission deems necessary to secure a full and accurate\n knowledge of its affairs and financial condition; and\n\n 11. Keeps adequate, correct and complete books and records of accounts and\n maintains proper accounting controls.\n\nB. The Commission shall not issue a license to or renew the license of a home\nprotection company unless it is satisfied that the financial condition, the\nmethod of operation, and the manner of doing business enable the home protection\ncompany to meet its obligations to all contract holders and that the home\nprotection company has otherwise complied with all the requirements of law.\n\nC. A home protection company shall maintain a net worth in an amount not less\nthan 20% of the premiums charged on its contracts currently in force; however,\nthe minimum required net worth shall be not less than $100,000, and the maximum\nrequired net worth shall be that amount required of insurers under the\nprovisions of Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of this title.\n\nD. No license shall be granted to any home protection company until it presents\nto the Commission a certificate of the State Treasurer that bonds or other\nsecurities have been deposited with him to be held in accordance with the\nprovisions of and upon the terms and conditions and in the amount as provided in\nArticle 7 (§ 38.2-1045 et seq.) of Chapter 10 of this title.\n\nHISTORY: 1981, c. 530, \u00a7 38.1-934; 1982, c. 132; 1984, c. 640; 1986, c. 562;\n2006, c. 634; 2017, c. 727.","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}}