{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4229.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4229.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4229.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4229.2.html"}],"law_id":82144,"edition_id":1,"section_id":82144,"structure_id":12968,"section_number":"38.2-4229.2","catch_line":"Hearings and investigations on effect of other state’s law","history":"2010, c. 704; 2015, cc. 519, 520.","full_text":"A\n\nIf another state enacts a law or takes any other regulatory action that requires a health services plan operating in the Commonwealth to provide a program or benefits for the residents of the other state or to distribute or reduce its surplus on grounds that it is excessive in whole or in part, the Commission shall conduct a proceeding to review and evaluate the impact of the law or action on the health services plan. The Commission shall direct the Commissioner to conduct an examination of the health service plan in accordance with Article 4 (§ 38.2-1317 et seq.) of Chapter 13 and report its findings to the Commission, including the impact on (i) surplus; (ii) premium rates for residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state; and (iii) solvency.B\n\nBased on the findings of the Commissioner, the Commission shall determine whether the impact on the health services plan is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state.C\n\nIf the Commission determines the program or benefits for the residents of another state or the surplus distribution or reduction has an impact on the health services plan that is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state, the Commission shall issue an appropriate order to protect such residents of the Commonwealth. The order may include:1\n\nA prohibition on the health services plan subsidizing the program or benefits for the residents of another state through:\n\t\t\t\ta. Premiums charged or otherwise allocable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state; or\n\t\t\t\tb. The use of any earned surplus attributable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state;2\n\nA prohibition on the health services plan’s distributing or reducing its surplus for the benefit of residents of another state; or3\n\nAny other action the Commission finds necessary to protect the interests of the residents of the Commonwealth.\n\t\t\t\tThe determination of premiums charged or otherwise allocable to residents of the Commonwealth and the determination of surplus attributable to residents of the Commonwealth in each case covered by policies issued or delivered either in the Commonwealth or in any other state shall be based upon the number of residents in the Commonwealth compared with the number of residents in other states covered by the policies of the health services plan.D\n\nNo health services plan shall distribute or reduce its surplus pursuant to a law or regulatory action the impact of which is subject to a proceeding under subsection A except with the approval of the Commission after the examination required by this section.","order_by":null,"text":{"0":{"id":294404,"text":"If another state enacts a law or takes any other regulatory action that requires a health services plan operating in the Commonwealth to provide a program or benefits for the residents of the other state or to distribute or reduce its surplus on grounds that it is excessive in whole or in part, the Commission shall conduct a proceeding to review and evaluate the impact of the law or action on the health services plan. The Commission shall direct the Commissioner to conduct an examination of the health service plan in accordance with Article 4 (§ 38.2-1317 et seq.) of Chapter 13 and report its findings to the Commission, including the impact on (i) surplus; (ii) premium rates for residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state; and (iii) solvency.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":294405,"text":"Based on the findings of the Commissioner, the Commission shall determine whether the impact on the health services plan is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":294406,"text":"If the Commission determines the program or benefits for the residents of another state or the surplus distribution or reduction has an impact on the health services plan that is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state, the Commission shall issue an appropriate order to protect such residents of the Commonwealth. The order may include:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":294407,"text":"A prohibition on the health services plan subsidizing the program or benefits for the residents of another state through:\n\t\t\t\ta. Premiums charged or otherwise allocable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state; or\n\t\t\t\tb. The use of any earned surplus attributable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":294408,"text":"A prohibition on the health services plan’s distributing or reducing its surplus for the benefit of residents of another state; or","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":294409,"text":"Any other action the Commission finds necessary to protect the interests of the residents of the Commonwealth.\n\t\t\t\tThe determination of premiums charged or otherwise allocable to residents of the Commonwealth and the determination of surplus attributable to residents of the Commonwealth in each case covered by policies issued or delivered either in the Commonwealth or in any other state shall be based upon the number of residents in the Commonwealth compared with the number of residents in other states covered by the policies of the health services plan.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"6":{"id":294410,"text":"No health services plan shall distribute or reduce its surplus pursuant to a law or regulatory action the impact of which is subject to a proceeding under subsection A except with the approval of the Commission after the examination required by this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3"}},"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 03:44:05","date_modified":"2026-06-26 03:44:05","permalink":{"id":216657,"object_type":"structure","relational_id":12967,"identifier":"42","token":"38.2\/42","url":"\/38.2\/42\/","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":78890,"structure_id":12968,"section_number":"38.2-4200","catch_line":"Applicability of chapter","url":"\/38.2-4200\/","token":"38.2\/42\/1\/38.2-4200","metadata":false},{"id":76897,"structure_id":12968,"section_number":"38.2-4201","catch_line":"Definitions","url":"\/38.2-4201\/","token":"38.2\/42\/1\/38.2-4201","metadata":false},{"id":71531,"structure_id":12968,"section_number":"38.2-4202","catch_line":"Hospital services plans","url":"\/38.2-4202\/","token":"38.2\/42\/1\/38.2-4202","metadata":false},{"id":80676,"structure_id":12968,"section_number":"38.2-4203","catch_line":"Medical or surgical services plans","url":"\/38.2-4203\/","token":"38.2\/42\/1\/38.2-4203","metadata":false},{"id":68874,"structure_id":12968,"section_number":"38.2-4204","catch_line":"Merger of nonstock corporations","url":"\/38.2-4204\/","token":"38.2\/42\/1\/38.2-4204","metadata":false},{"id":59642,"structure_id":12968,"section_number":"38.2-4204.1","catch_line":"Commission approval of mergers of nonstock corporations operating prepaid hospital, medical and surgical services 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 plan","url":"\/38.2-4212\/","token":"38.2\/42\/1\/38.2-4212","metadata":false},{"id":57906,"structure_id":12968,"section_number":"38.2-4213","catch_line":"Liability of participating providers upon merger of nonstock corporation","url":"\/38.2-4213\/","token":"38.2\/42\/1\/38.2-4213","metadata":false},{"id":55347,"structure_id":12968,"section_number":"38.2-4214","catch_line":"Application of certain provisions of law","url":"\/38.2-4214\/","token":"38.2\/42\/1\/38.2-4214","metadata":false},{"id":70935,"structure_id":12968,"section_number":"38.2-4214.1","catch_line":"Rehabilitation, liquidation, conservation","url":"\/38.2-4214.1\/","token":"38.2\/42\/1\/38.2-4214.1","metadata":false},{"id":69479,"structure_id":12968,"section_number":"38.2-4215","catch_line":"Payments by nonstock 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":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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4229.2\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapter 704<\/a> 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. It has been modified 1 time. 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. That modification is as follows: in 2015, chapters 519<\/a> and 520<\/a>.<\/p>","references":false,"refers_to":[{"id":85909,"section_number":"38.2-1317","catch_line":"Examinations; when authorized or required","order_by":null,"url":"\/38.2-1317\/"}],"permalink":{"id":216805,"object_type":"law","relational_id":82144,"identifier":"38.2-4229.2","token":"38.2\/42\/1\/38.2-4229.2","url":"\/38.2-4229.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4229.2\/","token":"38.2\/42\/1\/38.2-4229.2","dublin_core":{"Title":"Hearings and investigations on effect of other state’s law","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4229.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If another state<\/span> enacts a law<\/span> or takes any other regulatory action that requires a health services plan<\/span> operating in the Commonwealth to provide a program or benefits for the residents of the other state<\/span> or to distribute or reduce its surplus on grounds that it is excessive in whole or in part, the Commission<\/span> shall conduct a proceeding to review and evaluate the impact of the law<\/span> or action on the health services plan<\/span>. The Commission<\/span> shall direct the Commissioner<\/span> to conduct an examination of the health service plan in accordance with Article 4 (§ 38.2-1317<\/a> et seq.) of Chapter 13 and report its findings<\/span> to the Commission<\/span>, including the impact on (i) surplus; (ii) premium rates<\/span><\/span> for residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state<\/span>; and (iii) solvency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Based on the findings<\/span> of the Commissioner<\/span>, the Commission<\/span> shall determine whether the impact on the health services plan<\/span> is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the Commission<\/span> determines the program or benefits for the residents of another state<\/span> or the surplus distribution or reduction has an impact on the health services plan<\/span> that is harmful to the interests of residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state<\/span>, the Commission<\/span> shall issue<\/span> an appropriate order<\/span> to protect such residents of the Commonwealth. The order<\/span> may include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A prohibition on the health services plan<\/span> subsidizing the program or benefits for the residents of another state<\/span> through:\n\t\t\t\ta. Premiums charged or otherwise allocable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state<\/span>; or\n\t\t\t\tb. The use of any earned surplus attributable to residents of the Commonwealth covered by policies issued or delivered either in the Commonwealth or in any other state<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A prohibition on the health services plan<\/span>’s distributing or reducing its surplus for the benefit of residents of another state<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any other action the Commission<\/span> finds necessary to protect the interests of the residents of the Commonwealth.\n\t\t\t\tThe determination of premiums charged or otherwise allocable to residents of the Commonwealth and the determination of surplus attributable to residents of the Commonwealth in each case covered by policies issued or delivered either in the Commonwealth or in any other state<\/span> shall be based upon the number of residents in the Commonwealth compared with the number of residents in other states<\/span> covered by the policies of the health services plan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No health services plan<\/span> shall distribute or reduce its surplus pursuant to a law<\/span> or regulatory action the impact of which is subject to a proceeding under subsection A except with the approval of the Commission<\/span> after the examination required by this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHEARINGS AND INVESTIGATIONS ON EFFECT OF OTHER STATE’S LAW (\u00a7\n38.2-4229.2)\n\nA. If another state enacts a law or takes any other regulatory action that\nrequires a health services plan operating in the Commonwealth to provide a\nprogram or benefits for the residents of the other state or to distribute or\nreduce its surplus on grounds that it is excessive in whole or in part, the\nCommission shall conduct a proceeding to review and evaluate the impact of the\nlaw or action on the health services plan. The Commission shall direct the\nCommissioner to conduct an examination of the health service plan in accordance\nwith Article 4 (§ 38.2-1317 et seq.) of Chapter 13 and report its findings\nto the Commission, including the impact on (i) surplus; (ii) premium rates for\nresidents of the Commonwealth covered by policies issued or delivered either in\nthe Commonwealth or in any other state; and (iii) solvency.\n\nB. Based on the findings of the Commissioner, the Commission shall determine\nwhether the impact on the health services plan is harmful to the interests of\nresidents of the Commonwealth covered by policies issued or delivered either in\nthe Commonwealth or in any other state.\n\nC. If the Commission determines the program or benefits for the residents of\nanother state or the surplus distribution or reduction has an impact on the\nhealth services plan that is harmful to the interests of residents of the\nCommonwealth covered by policies issued or delivered either in the Commonwealth\nor in any other state, the Commission shall issue an appropriate order to\nprotect such residents of the Commonwealth. The order may include:\n\n 1. A prohibition on the health services plan subsidizing the program or\n benefits for the residents of another state through:\n \t\t\t\ta. Premiums charged or otherwise allocable to residents of the\n Commonwealth covered by policies issued or delivered either in the\n Commonwealth or in any other state; or\n \t\t\t\tb. The use of any earned surplus attributable to residents of the\n Commonwealth covered by policies issued or delivered either in the\n Commonwealth or in any other state;\n\n 2. A prohibition on the health services plan’s distributing or reducing\n its surplus for the benefit of residents of another state; or\n\n 3. Any other action the Commission finds necessary to protect the interests of\n the residents of the Commonwealth.\n \t\t\t\tThe determination of premiums charged or otherwise allocable to residents\n of the Commonwealth and the determination of surplus attributable to residents\n of the Commonwealth in each case covered by policies issued or delivered\n either in the Commonwealth or in any other state shall be based upon the\n number of residents in the Commonwealth compared with the number of residents\n in other states covered by the policies of the health services plan.\n\nD. No health services plan shall distribute or reduce its surplus pursuant to a\nlaw or regulatory action the impact of which is subject to a proceeding under\nsubsection A except with the approval of the Commission after the examination\nrequired by this section.\n\nHISTORY: 2010, c. 704; 2015, cc. 519, 520.","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}}