{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4504.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4504.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4504.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4504.html"}],"law_id":59439,"edition_id":1,"section_id":59439,"structure_id":14149,"section_number":"38.2-4504","catch_line":"Nonstock corporation required","history":"1980, c. 682, \u00a7 38.1-895; 1986, c. 562; 2000, cc. 171, 204; 2013, c. 11.","full_text":"A\n\nEach plan shall be conducted either by or through (i) a nonstock corporation organized pursuant to the laws of this Commonwealth or (ii) a foreign nonstock corporation that is subject to regulation and licensing under the laws of its domiciliary jurisdiction that are substantially similar to those provided by this chapter.B\n\nNotwithstanding the provisions of §§ 38.2-4502 and 38.2-4503, a nonstock corporation may offer or administer a plan without being required to act as agent for participating dentists or optometrists.C\n\nA nonstock corporation applying for its initial license pursuant to this chapter to offer or administer a plan may elect in its application to act as a nonagent, in which case the provisions of this section shall apply to such nonagent.D\n\nA nonstock corporation operating a plan pursuant to § 38.2-4502 or § 38.2-4503 may petition the Commission to change its status from an agent nonstock corporation to a nonagent nonstock corporation by making application to the Commission no less than ninety days preceding the proposed date of the change. The nonstock corporation shall give notice of the petition to its contract holders and participating dentists or optometrists. The Commission shall not approve the change of status unless it is satisfied that the financial condition of the nonstock corporation and the proposed method of operation and manner of doing business enable the nonstock corporation to meet its contractual obligations to all subscribers and that the nonstock corporation has otherwise complied with the requirements of this chapter. The Commission shall (i) consider, among other things, the sufficiency of the contingency reserve required under subsection E and (ii) subject the nonstock corporation, notwithstanding the provisions of § 38.2-1700, to the requirements of Chapter 17 (§ 38.2-1700 et seq.). If the Commission fails to approve the change of status, it shall state the reason in its order. A change in status shall only be effective as to subscription contracts issued or renewed on and after the date of a change in status.E\n\nNo nonstock corporation shall offer or administer a plan without acting as an agent for participating dentists or optometrists unless it maintains at all times a contingency reserve of at least $4 million. The contingency reserve shall be computed as the Commission requires.F\n\nThe provisions of §§ 38.2-4505, 38.2-4507, 38.2-4508, and 38.2-4512 shall not apply to a nonstock corporation that does not act as agent for participating dentists or optometrists.","order_by":null,"text":{"0":{"id":217819,"text":"Each plan shall be conducted either by or through (i) a nonstock corporation organized pursuant to the laws of this Commonwealth or (ii) a foreign nonstock corporation that is subject to regulation and licensing under the laws of its domiciliary jurisdiction that are substantially similar to those provided by this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":217820,"text":"Notwithstanding the provisions of §§ 38.2-4502 and 38.2-4503, a nonstock corporation may offer or administer a plan without being required to act as agent for participating dentists or optometrists.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":217821,"text":"A nonstock corporation applying for its initial license pursuant to this chapter to offer or administer a plan may elect in its application to act as a nonagent, in which case the provisions of this section shall apply to such nonagent.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":217822,"text":"A nonstock corporation operating a plan pursuant to § 38.2-4502 or § 38.2-4503 may petition the Commission to change its status from an agent nonstock corporation to a nonagent nonstock corporation by making application to the Commission no less than ninety days preceding the proposed date of the change. The nonstock corporation shall give notice of the petition to its contract holders and participating dentists or optometrists. The Commission shall not approve the change of status unless it is satisfied that the financial condition of the nonstock corporation and the proposed method of operation and manner of doing business enable the nonstock corporation to meet its contractual obligations to all subscribers and that the nonstock corporation has otherwise complied with the requirements of this chapter. The Commission shall (i) consider, among other things, the sufficiency of the contingency reserve required under subsection E and (ii) subject the nonstock corporation, notwithstanding the provisions of § 38.2-1700, to the requirements of Chapter 17 (§ 38.2-1700 et seq.). If the Commission fails to approve the change of status, it shall state the reason in its order. A change in status shall only be effective as to subscription contracts issued or renewed on and after the date of a change in status.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":217823,"text":"No nonstock corporation shall offer or administer a plan without acting as an agent for participating dentists or optometrists unless it maintains at all times a contingency reserve of at least $4 million. The contingency reserve shall be computed as the Commission requires.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":217824,"text":"The provisions of §§ 38.2-4505, 38.2-4507, 38.2-4508, and 38.2-4512 shall not apply to a nonstock corporation that does not act as agent for participating dentists or optometrists.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14149,"edition_id":1,"name":"Dental or Optometric Services Plans","identifier":"45","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:47:02","date_modified":"2026-06-26 03:47:02","permalink":{"id":217051,"object_type":"structure","relational_id":14149,"identifier":"45","token":"38.2\/45","url":"\/38.2\/45\/","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":59325,"structure_id":14149,"section_number":"38.2-4500","catch_line":"Applicability of chapter","url":"\/38.2-4500\/","token":"38.2\/45\/38.2-4500","metadata":false},{"id":78064,"structure_id":14149,"section_number":"38.2-4501","catch_line":"Definitions","url":"\/38.2-4501\/","token":"38.2\/45\/38.2-4501","metadata":false},{"id":73246,"structure_id":14149,"section_number":"38.2-4502","catch_line":"Dental services plans","url":"\/38.2-4502\/","token":"38.2\/45\/38.2-4502","metadata":false},{"id":59544,"structure_id":14149,"section_number":"38.2-4503","catch_line":"Optometric services plans","url":"\/38.2-4503\/","token":"38.2\/45\/38.2-4503","metadata":false},{"id":59439,"structure_id":14149,"section_number":"38.2-4504","catch_line":"Nonstock corporation required","url":"\/38.2-4504\/","token":"38.2\/45\/38.2-4504","metadata":false},{"id":80037,"structure_id":14149,"section_number":"38.2-4505","catch_line":"Liability of participants","url":"\/38.2-4505\/","token":"38.2\/45\/38.2-4505","metadata":false},{"id":57331,"structure_id":14149,"section_number":"38.2-4506","catch_line":"Terms of participation","url":"\/38.2-4506\/","token":"38.2\/45\/38.2-4506","metadata":false},{"id":69619,"structure_id":14149,"section_number":"38.2-4507","catch_line":"Change of participants","url":"\/38.2-4507\/","token":"38.2\/45\/38.2-4507","metadata":false},{"id":61186,"structure_id":14149,"section_number":"38.2-4508","catch_line":"Board of directors of nonstock corporation","url":"\/38.2-4508\/","token":"38.2\/45\/38.2-4508","metadata":false},{"id":62548,"structure_id":14149,"section_number":"38.2-4509","catch_line":"Application of certain laws","url":"\/38.2-4509\/","token":"38.2\/45\/38.2-4509","metadata":false},{"id":85127,"structure_id":14149,"section_number":"38.2-4509.1","catch_line":"Rehabilitation, liquidation, conservation","url":"\/38.2-4509.1\/","token":"38.2\/45\/38.2-4509.1","metadata":false},{"id":82537,"structure_id":14149,"section_number":"38.2-4510","catch_line":"Quarterly reports","url":"\/38.2-4510\/","token":"38.2\/45\/38.2-4510","metadata":false},{"id":55305,"structure_id":14149,"section_number":"38.2-4511","catch_line":"Corporation's contracts with participating dentists or optometrists","url":"\/38.2-4511\/","token":"38.2\/45\/38.2-4511","metadata":false},{"id":84503,"structure_id":14149,"section_number":"38.2-4512","catch_line":"Contracts between participating dentists or optometrists and subscribers","url":"\/38.2-4512\/","token":"38.2\/45\/38.2-4512","metadata":false},{"id":81032,"structure_id":14149,"section_number":"38.2-4513","catch_line":"Subscriber to have free choice of practitioners available","url":"\/38.2-4513\/","token":"38.2\/45\/38.2-4513","metadata":false},{"id":71843,"structure_id":14149,"section_number":"38.2-4514","catch_line":"Subscriber to be advised in writing as to benefits and limitations thereon","url":"\/38.2-4514\/","token":"38.2\/45\/38.2-4514","metadata":false},{"id":58336,"structure_id":14149,"section_number":"38.2-4515","catch_line":"Geographical area","url":"\/38.2-4515\/","token":"38.2\/45\/38.2-4515","metadata":false},{"id":76374,"structure_id":14149,"section_number":"38.2-4516","catch_line":"Interplan arrangements","url":"\/38.2-4516\/","token":"38.2\/45\/38.2-4516","metadata":false},{"id":73516,"structure_id":14149,"section_number":"38.2-4517","catch_line":"Licensing of nonstock corporation","url":"\/38.2-4517\/","token":"38.2\/45\/38.2-4517","metadata":false},{"id":86358,"structure_id":14149,"section_number":"38.2-4518","catch_line":"Renewal of nonstock corporation license","url":"\/38.2-4518\/","token":"38.2\/45\/38.2-4518","metadata":false},{"id":65645,"structure_id":14149,"section_number":"38.2-4519","catch_line":"Licensing of agents","url":"\/38.2-4519\/","token":"38.2\/45\/38.2-4519","metadata":false},{"id":55429,"structure_id":14149,"section_number":"38.2-4520","catch_line":"Corporate restrictions","url":"\/38.2-4520\/","token":"38.2\/45\/38.2-4520","metadata":false},{"id":83904,"structure_id":14149,"section_number":"38.2-4521","catch_line":"Taxation","url":"\/38.2-4521\/","token":"38.2\/45\/38.2-4521","metadata":false},{"id":77097,"structure_id":14149,"section_number":"38.2-4522","catch_line":"Misleading applications or contracts","url":"\/38.2-4522\/","token":"38.2\/45\/38.2-4522","metadata":false},{"id":84644,"structure_id":14149,"section_number":"38.2-4523","catch_line":"Controversies involving subscription contracts","url":"\/38.2-4523\/","token":"38.2\/45\/38.2-4523","metadata":false}],"previous_section":{"id":59544,"structure_id":14149,"section_number":"38.2-4503","catch_line":"Optometric services plans","url":"\/38.2-4503\/","token":"38.2\/45\/38.2-4503","metadata":false},"next_section":{"id":80037,"structure_id":14149,"section_number":"38.2-4505","catch_line":"Liability of participants","url":"\/38.2-4505\/","token":"38.2\/45\/38.2-4505","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4504\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 682 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 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1986, chapter 562; in 2000, chapters 171<\/a> and 204<\/a>; in 2013, chapter 11<\/a>.<\/p>","references":false,"refers_to":[{"id":85176,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","order_by":null,"url":"\/38.2-1700\/"},{"id":73246,"section_number":"38.2-4502","catch_line":"Dental services plans","order_by":null,"url":"\/38.2-4502\/"},{"id":59544,"section_number":"38.2-4503","catch_line":"Optometric services plans","order_by":null,"url":"\/38.2-4503\/"},{"id":80037,"section_number":"38.2-4505","catch_line":"Liability of participants","order_by":null,"url":"\/38.2-4505\/"},{"id":69619,"section_number":"38.2-4507","catch_line":"Change of participants","order_by":null,"url":"\/38.2-4507\/"},{"id":61186,"section_number":"38.2-4508","catch_line":"Board of directors of nonstock corporation","order_by":null,"url":"\/38.2-4508\/"},{"id":84503,"section_number":"38.2-4512","catch_line":"Contracts between participating dentists or optometrists and subscribers","order_by":null,"url":"\/38.2-4512\/"}],"permalink":{"id":217069,"object_type":"law","relational_id":59439,"identifier":"38.2-4504","token":"38.2\/45\/38.2-4504","url":"\/38.2-4504\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4504\/","token":"38.2\/45\/38.2-4504","dublin_core":{"Title":"Nonstock corporation required","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4504","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each plan<\/span> shall be conducted either by or through (i) a nonstock corporation<\/span> organized pursuant to the laws<\/span> of this Commonwealth or (ii) a foreign nonstock corporation<\/span> that is subject to regulation and licensing under the laws<\/span> of its domiciliary jurisdiction<\/span> that are substantially similar to those provided by this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding the provisions of §§ 38.2-4502<\/a> and 38.2-4503<\/a>, a nonstock corporation<\/span> may offer or administer a plan<\/span> without being required to act as agent for participating dentists or optometrists. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A nonstock corporation<\/span> applying for its initial license pursuant to this chapter to offer or administer a plan<\/span> may elect in its application to act as a nonagent, in which case the provisions of this section shall apply to such nonagent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A nonstock corporation<\/span> operating a plan<\/span> pursuant to § 38.2-4502<\/a> or § 38.2-4503<\/a> may petition<\/span> the Commission<\/span> to change its status from an agent nonstock corporation<\/span> to a nonagent nonstock corporation<\/span> by making application to the Commission<\/span> no less than ninety days preceding the proposed date of the change. The nonstock corporation<\/span> shall give notice of the petition<\/span> to its contract holders<\/span> and participating dentists or optometrists. The Commission<\/span> shall not approve the change of status unless it is satisfied that the financial condition of the nonstock corporation<\/span> and the proposed method of operation and manner of doing business enable the nonstock corporation<\/span> to meet its contractual obligations to all subscribers<\/span> and that the nonstock corporation<\/span> has otherwise complied with the requirements of this chapter. The Commission<\/span> shall (i) consider, among other things, the sufficiency of the contingency reserve required under subsection E and (ii) subject the nonstock corporation<\/span>, notwithstanding the provisions of § 38.2-1700<\/a>, to the requirements of Chapter 17 (§ 38.2-1700<\/a> et seq.). If the Commission<\/span> fails to approve the change of status, it shall state<\/span> the reason in its order<\/span>. A change in status shall only be effective as to subscription contracts<\/span> issued or renewed on and after the date of a change in status. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No nonstock corporation<\/span> shall offer or administer a plan<\/span> without acting as an agent for participating dentists or optometrists unless it maintains at all times a contingency reserve of at least $4 million. The contingency reserve shall be computed as the Commission<\/span> requires. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The provisions of §§ 38.2-4505<\/a>, 38.2-4507<\/a>, 38.2-4508<\/a>, and 38.2-4512<\/a> shall not apply to a nonstock corporation<\/span> that does not act as agent for participating dentists or optometrists. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONSTOCK CORPORATION REQUIRED (\u00a7 38.2-4504)\n\nA. Each plan shall be conducted either by or through (i) a nonstock corporation\norganized pursuant to the laws of this Commonwealth or (ii) a foreign nonstock\ncorporation that is subject to regulation and licensing under the laws of its\ndomiciliary jurisdiction that are substantially similar to those provided by\nthis chapter.\n\nB. Notwithstanding the provisions of §§ 38.2-4502 and 38.2-4503, a\nnonstock corporation may offer or administer a plan without being required to\nact as agent for participating dentists or optometrists.\n\nC. A nonstock corporation applying for its initial license pursuant to this\nchapter to offer or administer a plan may elect in its application to act as a\nnonagent, in which case the provisions of this section shall apply to such\nnonagent.\n\nD. A nonstock corporation operating a plan pursuant to § 38.2-4502 or\n§ 38.2-4503 may petition the Commission to change its status from an agent\nnonstock corporation to a nonagent nonstock corporation by making application to\nthe Commission no less than ninety days preceding the proposed date of the\nchange. The nonstock corporation shall give notice of the petition to its\ncontract holders and participating dentists or optometrists. The Commission\nshall not approve the change of status unless it is satisfied that the financial\ncondition of the nonstock corporation and the proposed method of operation and\nmanner of doing business enable the nonstock corporation to meet its contractual\nobligations to all subscribers and that the nonstock corporation has otherwise\ncomplied with the requirements of this chapter. The Commission shall (i)\nconsider, among other things, the sufficiency of the contingency reserve\nrequired under subsection E and (ii) subject the nonstock corporation,\nnotwithstanding the provisions of § 38.2-1700, to the requirements of\nChapter 17 (§ 38.2-1700 et seq.). If the Commission fails to approve the\nchange of status, it shall state the reason in its order. A change in status\nshall only be effective as to subscription contracts issued or renewed on and\nafter the date of a change in status.\n\nE. No nonstock corporation shall offer or administer a plan without acting as an\nagent for participating dentists or optometrists unless it maintains at all\ntimes a contingency reserve of at least $4 million. The contingency reserve\nshall be computed as the Commission requires.\n\nF. The provisions of §§ 38.2-4505, 38.2-4507, 38.2-4508, and 38.2-4512\nshall not apply to a nonstock corporation that does not act as agent for\nparticipating dentists or optometrists.\n\nHISTORY: 1980, c. 682, \u00a7 38.1-895; 1986, c. 562; 2000, cc. 171, 204; 2013, c.\n11.","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}}