{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-806.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-806.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-806.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-806.html"}],"law_id":72642,"edition_id":1,"section_id":72642,"structure_id":12980,"section_number":"38.2-806","catch_line":"Defense of action by unlicensed insurer","history":"1952, c. 317, \u00a7 38.1-69; 1986, c. 562.","full_text":"A\n\nBefore any unlicensed insurer files or causes to be filed any pleading in any action, suit or proceeding instituted against it, that insurer shall either:1\n\nDeposit cash or securities with the clerk of the court in which the action, suit or proceeding is pending, or file with the clerk a bond in an amount to be fixed by the court which shall be sufficient to secure the payment of any final judgment; or2\n\nProcure a certificate of authority and a license to transact the business of insurance in this Commonwealth.B\n\nThe court may order a postponement in any action, suit or proceeding in which service is made in the manner provided in § 38.2-802 or § 38.2-803 to afford the unlicensed insurer reasonable opportunity to comply with the provisions of subsection A of this section and to defend the action.C\n\nNothing in subsection A of this section shall be construed to prevent any unlicensed insurer from appearing specially in the suit or other proceeding in which service was made in the manner provided in this article on the ground either that (i) the insurer has not done any of the acts listed in § 38.2-801, or (ii) the person on whom service was made pursuant to § 38.2-803 was not doing any of the acts listed in § 38.2-803.","order_by":null,"text":{"0":{"id":261486,"text":"Before any unlicensed insurer files or causes to be filed any pleading in any action, suit or proceeding instituted against it, that insurer shall either:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":261487,"text":"Deposit cash or securities with the clerk of the court in which the action, suit or proceeding is pending, or file with the clerk a bond in an amount to be fixed by the court which shall be sufficient to secure the payment of any final judgment; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":261488,"text":"Procure a certificate of authority and a license to transact the business of insurance in this Commonwealth.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":261489,"text":"The court may order a postponement in any action, suit or proceeding in which service is made in the manner provided in § 38.2-802 or § 38.2-803 to afford the unlicensed insurer reasonable opportunity to comply with the provisions of subsection A of this section and to defend the action.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":261490,"text":"Nothing in subsection A of this section shall be construed to prevent any unlicensed insurer from appearing specially in the suit or other proceeding in which service was made in the manner provided in this article on the ground either that (i) the insurer has not done any of the acts listed in § 38.2-801, or (ii) the person on whom service was made pursuant to § 38.2-803 was not doing any of the acts listed in § 38.2-803.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":12980,"edition_id":1,"name":"Unlicensed Insurers Process","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12979,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":218477,"object_type":"structure","relational_id":12980,"identifier":"1","token":"38.2\/8\/1","url":"\/38.2\/8\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12979,"edition_id":1,"name":"Service of Process","identifier":"8","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":218475,"object_type":"structure","relational_id":12979,"identifier":"8","token":"38.2\/8","url":"\/38.2\/8\/","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":54065,"structure_id":12980,"section_number":"38.2-800","catch_line":"Definition","url":"\/38.2-800\/","token":"38.2\/8\/1\/38.2-800","metadata":false},{"id":80221,"structure_id":12980,"section_number":"38.2-801","catch_line":"What constitutes appointment of agent for service of process","url":"\/38.2-801\/","token":"38.2\/8\/1\/38.2-801","metadata":false},{"id":67923,"structure_id":12980,"section_number":"38.2-802","catch_line":"How process served","url":"\/38.2-802\/","token":"38.2\/8\/1\/38.2-802","metadata":false},{"id":84413,"structure_id":12980,"section_number":"38.2-803","catch_line":"Alternate method of service","url":"\/38.2-803\/","token":"38.2\/8\/1\/38.2-803","metadata":false},{"id":75575,"structure_id":12980,"section_number":"38.2-804","catch_line":"Other legal service not limited","url":"\/38.2-804\/","token":"38.2\/8\/1\/38.2-804","metadata":false},{"id":86778,"structure_id":12980,"section_number":"38.2-805","catch_line":"When judgment may be entered","url":"\/38.2-805\/","token":"38.2\/8\/1\/38.2-805","metadata":false},{"id":72642,"structure_id":12980,"section_number":"38.2-806","catch_line":"Defense of action by unlicensed insurer","url":"\/38.2-806\/","token":"38.2\/8\/1\/38.2-806","metadata":false},{"id":71622,"structure_id":12980,"section_number":"38.2-807","catch_line":"Attorney fees","url":"\/38.2-807\/","token":"38.2\/8\/1\/38.2-807","metadata":false}],"previous_section":{"id":86778,"structure_id":12980,"section_number":"38.2-805","catch_line":"When judgment may be entered","url":"\/38.2-805\/","token":"38.2\/8\/1\/38.2-805","metadata":false},"next_section":{"id":71622,"structure_id":12980,"section_number":"38.2-807","catch_line":"Attorney fees","url":"\/38.2-807\/","token":"38.2\/8\/1\/38.2-807","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-806\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 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 1952 \u201cActs\u201d aren\u2019t available online. 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 1986, chapter 562.<\/p>","references":[{"id":60078,"section_number":"38.2-4408","catch_line":"Application of certain provisions","order_by":null,"url":"\/38.2-4408\/"}],"refers_to":[{"id":80221,"section_number":"38.2-801","catch_line":"What constitutes appointment of agent for service of process","order_by":null,"url":"\/38.2-801\/"},{"id":67923,"section_number":"38.2-802","catch_line":"How process served","order_by":null,"url":"\/38.2-802\/"},{"id":84413,"section_number":"38.2-803","catch_line":"Alternate method of service","order_by":null,"url":"\/38.2-803\/"}],"permalink":{"id":218503,"object_type":"law","relational_id":72642,"identifier":"38.2-806","token":"38.2\/8\/1\/38.2-806","url":"\/38.2-806\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-806\/","token":"38.2\/8\/1\/38.2-806","dublin_core":{"Title":"Defense of action by unlicensed insurer","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-806","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Before any unlicensed insurer<\/span> files or causes to be filed any pleading in any action, suit or proceeding instituted against it, that insurer<\/span> shall either: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Deposit cash or securities with the clerk of the court<\/span> in which the action, suit or proceeding is pending, or file with the clerk a bond<\/span> in an amount to be fixed by the court<\/span> which shall be sufficient to secure the payment of any final judgment<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Procure a certificate of authority and a license to transact the business of insurance<\/span> in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The court<\/span> may order<\/span> a postponement in any action, suit or proceeding in which service is made in the manner provided in § 38.2-802<\/a> or § 38.2-803<\/a> to afford the unlicensed insurer<\/span> reasonable opportunity to comply with the provisions of subsection A of this section and to defend the action. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing in subsection A of this section shall be construed to prevent any unlicensed insurer<\/span> from appearing specially in the suit or other proceeding in which service was made in the manner provided in this article on the ground either that (i) the insurer<\/span> has not done any of the acts listed in § 38.2-801<\/a>, or (ii) the person<\/span> on whom service was made pursuant to § 38.2-803<\/a> was not doing any of the acts listed in § 38.2-803<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFENSE OF ACTION BY UNLICENSED INSURER (\u00a7 38.2-806)\n\nA. Before any unlicensed insurer files or causes to be filed any pleading in any\naction, suit or proceeding instituted against it, that insurer shall either:\n\n 1. Deposit cash or securities with the clerk of the court in which the action,\n suit or proceeding is pending, or file with the clerk a bond in an amount to\n be fixed by the court which shall be sufficient to secure the payment of any\n final judgment; or\n\n 2. Procure a certificate of authority and a license to transact the business\n of insurance in this Commonwealth.\n\nB. The court may order a postponement in any action, suit or proceeding in which\nservice is made in the manner provided in § 38.2-802 or § 38.2-803 to\nafford the unlicensed insurer reasonable opportunity to comply with the\nprovisions of subsection A of this section and to defend the action.\n\nC. Nothing in subsection A of this section shall be construed to prevent any\nunlicensed insurer from appearing specially in the suit or other proceeding in\nwhich service was made in the manner provided in this article on the ground\neither that (i) the insurer has not done any of the acts listed in §\n38.2-801, or (ii) the person on whom service was made pursuant to §\n38.2-803 was not doing any of the acts listed in § 38.2-803.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-69; 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}}