{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4208.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4208.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4208.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4208.html"}],"law_id":61631,"edition_id":1,"section_id":61631,"structure_id":12968,"section_number":"38.2-4208","catch_line":"Nonstock corporation not required to act as agent","history":"Code 1950, \u00a7 32-195.5:1; 1972, c. 429, \u00a7 38.1-816; 1974, c. 54; 1979, c. 721; 1980, c. 682; 1982, c. 129; 1983, c. 464, \u00a7 38.1-813.4; 1985, c. 233; 1986, c. 562; 1988, c. 185.","full_text":"A\n\nA nonstock corporation may offer or administer a plan without being required to act as an agent for providers of health care services.B\n\nA nonstock corporation applying for its initial license pursuant to this chapter in order to offer or administer a plan must elect in its application whether to act (i) as agent for providers of health care services, in which case §§ 38.2-4210 and 38.2-4211 shall apply, or (ii) as a nonagent, in which case the provisions of subsection D of this section shall apply.C\n\nA nonstock corporation operating a plan pursuant to §§ 38.2-4202, 38.2-4203, 38.2-4204 or this section prior to June 30, 1985, and any successor nonstock corporation shall continue to operate as either an agent or nonagent nonstock corporation, in accordance with the manner in which it was operating as of that date, provided that it may petition the Commission to change its status as an agent or nonagent nonstock corporation, and if it does so, it shall give notice of the petition to all interested parties. The Commission shall conduct a hearing on the petition if requested by any interested party. A nonstock corporation seeking to change its status shall make application to the Commission within ninety days following the end of any calendar year. A change in status shall only be effective as to subscriber contracts issued or renewed on and after the date of a change in status. The Commission shall enter an order in response to the nonstock corporation’s petition.D\n\nIf any nonstock corporation offers or administers a plan without acting as an agent for providers of health care services, the Commission may elect to (i) require the nonstock corporation to maintain its contingency reserves above a minimum level set by the Commission, or (ii) subject the nonstock corporation, notwithstanding the provisions of § 38.2-1700, to the requirements of Chapter 17 of this title, or (iii) both. The minimum level for contingency reserves shall not exceed forty-five days of the anticipated operating expenses and incurred claims expense generated from subscription contracts issued by the nonstock corporation, and shall be computed as the Commission requires.","order_by":null,"text":{"0":{"id":224997,"text":"A nonstock corporation may offer or administer a plan without being required to act as an agent for providers of health care services.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":224998,"text":"A nonstock corporation applying for its initial license pursuant to this chapter in order to offer or administer a plan must elect in its application whether to act (i) as agent for providers of health care services, in which case §§ 38.2-4210 and 38.2-4211 shall apply, or (ii) as a nonagent, in which case the provisions of subsection D of this section shall apply.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":224999,"text":"A nonstock corporation operating a plan pursuant to §§ 38.2-4202, 38.2-4203, 38.2-4204 or this section prior to June 30, 1985, and any successor nonstock corporation shall continue to operate as either an agent or nonagent nonstock corporation, in accordance with the manner in which it was operating as of that date, provided that it may petition the Commission to change its status as an agent or nonagent nonstock corporation, and if it does so, it shall give notice of the petition to all interested parties. The Commission shall conduct a hearing on the petition if requested by any interested party. A nonstock corporation seeking to change its status shall make application to the Commission within ninety days following the end of any calendar year. A change in status shall only be effective as to subscriber contracts issued or renewed on and after the date of a change in status. The Commission shall enter an order in response to the nonstock corporation’s petition.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":225000,"text":"If any nonstock corporation offers or administers a plan without acting as an agent for providers of health care services, the Commission may elect to (i) require the nonstock corporation to maintain its contingency reserves above a minimum level set by the Commission, or (ii) subject the nonstock corporation, notwithstanding the provisions of § 38.2-1700, to the requirements of Chapter 17 of this title, or (iii) both. The minimum level for contingency reserves shall not exceed forty-five days of the anticipated operating expenses and incurred claims expense generated from subscription contracts issued by the nonstock corporation, and shall be computed as the Commission requires.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":12968,"edition_id":1,"name":"In General","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12967,"metadata":{},"date_created":"2026-06-26 03:44:05","date_modified":"2026-06-26 03:44:05","permalink":{"id":216659,"object_type":"structure","relational_id":12968,"identifier":"1","token":"38.2\/42\/1","url":"\/38.2\/42\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12967,"edition_id":1,"name":"Health Services Plans","identifier":"42","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 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plans","url":"\/38.2-4204.1\/","token":"38.2\/42\/1\/38.2-4204.1","metadata":false},{"id":54058,"structure_id":12968,"section_number":"38.2-4205","catch_line":"Dental and optometric services","url":"\/38.2-4205\/","token":"38.2\/42\/1\/38.2-4205","metadata":false},{"id":70123,"structure_id":12968,"section_number":"38.2-4206","catch_line":"Nonstock corporation required","url":"\/38.2-4206\/","token":"38.2\/42\/1\/38.2-4206","metadata":false},{"id":84087,"structure_id":12968,"section_number":"38.2-4207","catch_line":"Existing foreign nonstock corporation","url":"\/38.2-4207\/","token":"38.2\/42\/1\/38.2-4207","metadata":false},{"id":61631,"structure_id":12968,"section_number":"38.2-4208","catch_line":"Nonstock corporation not required to act as agent","url":"\/38.2-4208\/","token":"38.2\/42\/1\/38.2-4208","metadata":false},{"id":80669,"structure_id":12968,"section_number":"38.2-4209","catch_line":"Preferred provider subscription contracts","url":"\/38.2-4209\/","token":"38.2\/42\/1\/38.2-4209","metadata":false},{"id":67453,"structure_id":12968,"section_number":"38.2-4209.1","catch_line":"Pharmacies; freedom of choice","url":"\/38.2-4209.1\/","token":"38.2\/42\/1\/38.2-4209.1","metadata":false},{"id":79670,"structure_id":12968,"section_number":"38.2-4209.2","catch_line":"Repealed","url":"\/38.2-4209.2\/","token":"38.2\/42\/1\/38.2-4209.2","metadata":false},{"id":65462,"structure_id":12968,"section_number":"38.2-4210","catch_line":"Liability of participants","url":"\/38.2-4210\/","token":"38.2\/42\/1\/38.2-4210","metadata":false},{"id":65554,"structure_id":12968,"section_number":"38.2-4211","catch_line":"Change of participants","url":"\/38.2-4211\/","token":"38.2\/42\/1\/38.2-4211","metadata":false},{"id":80058,"structure_id":12968,"section_number":"38.2-4212","catch_line":"Board of directors of nonstock corporation operating 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corporation","url":"\/38.2-4215\/","token":"38.2\/42\/1\/38.2-4215","metadata":false},{"id":83790,"structure_id":12968,"section_number":"38.2-4216","catch_line":"Repealed","url":"\/38.2-4216\/","token":"38.2\/42\/1\/38.2-4216","metadata":false},{"id":75758,"structure_id":12968,"section_number":"38.2-4216.1","catch_line":"Repealed","url":"\/38.2-4216.1\/","token":"38.2\/42\/1\/38.2-4216.1","metadata":false},{"id":76300,"structure_id":12968,"section_number":"38.2-4217","catch_line":"Reports","url":"\/38.2-4217\/","token":"38.2\/42\/1\/38.2-4217","metadata":false},{"id":73797,"structure_id":12968,"section_number":"38.2-4218","catch_line":"Subscriber to have free choice of medical practitioners available","url":"\/38.2-4218\/","token":"38.2\/42\/1\/38.2-4218","metadata":false},{"id":73334,"structure_id":12968,"section_number":"38.2-4219","catch_line":"Subscriber to be advised in writing as to benefits and limitations thereon","url":"\/38.2-4219\/","token":"38.2\/42\/1\/38.2-4219","metadata":false},{"id":57164,"structure_id":12968,"section_number":"38.2-4220","catch_line":"Interplan arrangements","url":"\/38.2-4220\/","token":"38.2\/42\/1\/38.2-4220","metadata":false},{"id":74708,"structure_id":12968,"section_number":"38.2-4221","catch_line":"Services of certain practitioners other than physicians to be covered","url":"\/38.2-4221\/","token":"38.2\/42\/1\/38.2-4221","metadata":false},{"id":70849,"structure_id":12968,"section_number":"38.2-4222","catch_line":"Licensing of nonstock corporations","url":"\/38.2-4222\/","token":"38.2\/42\/1\/38.2-4222","metadata":false},{"id":68899,"structure_id":12968,"section_number":"38.2-4223","catch_line":"Renewal of license","url":"\/38.2-4223\/","token":"38.2\/42\/1\/38.2-4223","metadata":false},{"id":63881,"structure_id":12968,"section_number":"38.2-4224","catch_line":"Licensing of agents","url":"\/38.2-4224\/","token":"38.2\/42\/1\/38.2-4224","metadata":false},{"id":75183,"structure_id":12968,"section_number":"38.2-4225","catch_line":"Repealed","url":"\/38.2-4225\/","token":"38.2\/42\/1\/38.2-4225","metadata":false},{"id":61125,"structure_id":12968,"section_number":"38.2-4226","catch_line":"Taxation","url":"\/38.2-4226\/","token":"38.2\/42\/1\/38.2-4226","metadata":false},{"id":78423,"structure_id":12968,"section_number":"38.2-4227","catch_line":"Misleading applications or contracts","url":"\/38.2-4227\/","token":"38.2\/42\/1\/38.2-4227","metadata":false},{"id":68671,"structure_id":12968,"section_number":"38.2-4228","catch_line":"Controversies involving subscription contracts","url":"\/38.2-4228\/","token":"38.2\/42\/1\/38.2-4228","metadata":false},{"id":60792,"structure_id":12968,"section_number":"38.2-4229","catch_line":"Reinsurance","url":"\/38.2-4229\/","token":"38.2\/42\/1\/38.2-4229","metadata":false},{"id":86012,"structure_id":12968,"section_number":"38.2-4229.1","catch_line":"Conversion to domestic mutual insurer","url":"\/38.2-4229.1\/","token":"38.2\/42\/1\/38.2-4229.1","metadata":false},{"id":82144,"structure_id":12968,"section_number":"38.2-4229.2","catch_line":"Hearings and investigations on effect of other state's law","url":"\/38.2-4229.2\/","token":"38.2\/42\/1\/38.2-4229.2","metadata":false}],"previous_section":{"id":84087,"structure_id":12968,"section_number":"38.2-4207","catch_line":"Existing foreign nonstock corporation","url":"\/38.2-4207\/","token":"38.2\/42\/1\/38.2-4207","metadata":false},"next_section":{"id":80669,"structure_id":12968,"section_number":"38.2-4209","catch_line":"Preferred provider subscription contracts","url":"\/38.2-4209\/","token":"38.2\/42\/1\/38.2-4209","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4208\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 9 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 1972, chapter 429; in 1974, chapter 54; in 1979, chapter 721; in 1980, chapter 682; in 1982, chapter 129; in 1983, chapter 464; in 1985, chapter 233; in 1986, chapter 562; in 1988, chapter 185.<\/p>","references":[{"id":80058,"section_number":"38.2-4212","catch_line":"Board of directors of nonstock corporation operating plan","order_by":null,"url":"\/38.2-4212\/"},{"id":57275,"section_number":"38.2-4230","catch_line":"Definitions","order_by":null,"url":"\/38.2-4230\/"}],"refers_to":[{"id":85176,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","order_by":null,"url":"\/38.2-1700\/"},{"id":71531,"section_number":"38.2-4202","catch_line":"Hospital services plans","order_by":null,"url":"\/38.2-4202\/"},{"id":80676,"section_number":"38.2-4203","catch_line":"Medical or surgical services plans","order_by":null,"url":"\/38.2-4203\/"},{"id":68874,"section_number":"38.2-4204","catch_line":"Merger of nonstock corporations","order_by":null,"url":"\/38.2-4204\/"},{"id":65462,"section_number":"38.2-4210","catch_line":"Liability of participants","order_by":null,"url":"\/38.2-4210\/"},{"id":65554,"section_number":"38.2-4211","catch_line":"Change of participants","order_by":null,"url":"\/38.2-4211\/"}],"permalink":{"id":216697,"object_type":"law","relational_id":61631,"identifier":"38.2-4208","token":"38.2\/42\/1\/38.2-4208","url":"\/38.2-4208\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4208\/","token":"38.2\/42\/1\/38.2-4208","dublin_core":{"Title":"Nonstock corporation not required to act as agent","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4208","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A nonstock corporation<\/span> may offer or administer a plan<\/span> without being required to act as an agent for providers of health care services. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A nonstock corporation<\/span> applying for its initial license pursuant to this chapter in order<\/span> to offer or administer a plan<\/span> must elect in its application whether to act (i) as agent for providers of health care services, in which case §§ 38.2-4210<\/a> and 38.2-4211<\/a> shall apply, or (ii) as a nonagent, in which case the provisions of subsection D of this section shall apply. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A nonstock corporation<\/span> operating a plan<\/span> pursuant to §§ 38.2-4202<\/a>, 38.2-4203<\/a>, 38.2-4204<\/a> or this section prior to June 30, 1985, and any successor nonstock corporation<\/span> shall continue to operate as either an agent or nonagent nonstock corporation<\/span>, in accordance with the manner in which it was operating as of that date, provided that it may petition<\/span> the Commission<\/span> to change its status as an agent or nonagent nonstock corporation<\/span>, and if it does so, it shall give notice of the petition<\/span> to all interested parties. The Commission<\/span> shall conduct a hearing<\/span> on the petition<\/span> if requested by any interested party<\/span>. A nonstock corporation<\/span> seeking to change its status shall make application to the Commission<\/span> within ninety days following the end of any calendar year. A change in status shall only be effective as to subscriber<\/span> contracts<\/span> issued or renewed on and after the date of a change in status. The Commission<\/span> shall enter an order<\/span> in response to the nonstock corporation<\/span>’s petition<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If any nonstock corporation<\/span> offers or administers a plan<\/span> without acting as an agent for providers of health care services, the Commission<\/span> may elect to (i) require the nonstock corporation<\/span> to maintain its contingency reserves above a minimum level set by the Commission<\/span>, or (ii) subject the nonstock corporation<\/span>, notwithstanding the provisions of § 38.2-1700<\/a>, to the requirements of Chapter 17 of this title, or (iii) both. The minimum level for contingency reserves shall not exceed forty-five days of the anticipated operating expenses and incurred claims expense generated from subscription contracts<\/span> issued by the nonstock corporation<\/span>, and shall be computed as the Commission<\/span> requires. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONSTOCK CORPORATION NOT REQUIRED TO ACT AS AGENT (\u00a7 38.2-4208)\n\nA. A nonstock corporation may offer or administer a plan without being required\nto act as an agent for providers of health care services.\n\nB. A nonstock corporation applying for its initial license pursuant to this\nchapter in order to offer or administer a plan must elect in its application\nwhether to act (i) as agent for providers of health care services, in which case\n§§ 38.2-4210 and 38.2-4211 shall apply, or (ii) as a nonagent, in\nwhich case the provisions of subsection D of this section shall apply.\n\nC. A nonstock corporation operating a plan pursuant to §§ 38.2-4202,\n38.2-4203, 38.2-4204 or this section prior to June 30, 1985, and any successor\nnonstock corporation shall continue to operate as either an agent or nonagent\nnonstock corporation, in accordance with the manner in which it was operating as\nof that date, provided that it may petition the Commission to change its status\nas an agent or nonagent nonstock corporation, and if it does so, it shall give\nnotice of the petition to all interested parties. The Commission shall conduct a\nhearing on the petition if requested by any interested party. A nonstock\ncorporation seeking to change its status shall make application to the\nCommission within ninety days following the end of any calendar year. A change\nin status shall only be effective as to subscriber contracts issued or renewed\non and after the date of a change in status. The Commission shall enter an order\nin response to the nonstock corporation’s petition.\n\nD. If any nonstock corporation offers or administers a plan without acting as an\nagent for providers of health care services, the Commission may elect to (i)\nrequire the nonstock corporation to maintain its contingency reserves above a\nminimum level set by the Commission, or (ii) subject the nonstock corporation,\nnotwithstanding the provisions of § 38.2-1700, to the requirements of\nChapter 17 of this title, or (iii) both. The minimum level for contingency\nreserves shall not exceed forty-five days of the anticipated operating expenses\nand incurred claims expense generated from subscription contracts issued by the\nnonstock corporation, and shall be computed as the Commission requires.\n\nHISTORY: Code 1950, \u00a7 32-195.5:1; 1972, c. 429, \u00a7 38.1-816; 1974, c. 54; 1979,\nc. 721; 1980, c. 682; 1982, c. 129; 1983, c. 464, \u00a7 38.1-813.4; 1985, c. 233;\n1986, c. 562; 1988, c. 185.","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}}