                                 CODE OF VIRGINIA

HOW DEPOSITS APPLIED TO PAYMENT OF CLAIMS; DEFICIT TO BE MADE GOOD (§
38.2-1047)

A. This section shall apply only where:

   1. The insurer has failed to pay any of its liabilities after the liabilities
   have been ascertained (i) by any agreement of the parties binding the insurer,
   or (ii) by judgment, order or decree of a court of competent jurisdiction
   which has not been appealed, superseded or stayed; and

   2. The provisions of subsection B of &#xA7; 38.2-1046 are not applicable.

B. Upon application of the person to whom the debt or money is due and after
giving notice as provided in subsection C of this section, the State Treasurer
shall (i) sell an amount of securities with accrued interest that provides
sufficient funds to pay the sums due and the expenses of the sale and (ii) pay
the sums due and expenses out of the available funds. This shall be subject to
the approval of the Commission.

C. The State Treasurer shall give the insurer or its agent ten days&#8217;
notice, either by mail or personally, of the time and place of the sale. The
sale shall be advertised daily for ten days in a newspaper of general
circulation published in the City of Richmond.

D. The insurer shall immediately make good any deficit in its deposit resulting
from a sale. The State Treasurer shall report to the Commission in writing (i)
the amount and kind of securities sold in accordance with the provisions of this
section and (ii) the amount and kind of securities deposited to make good the
deficit.

HISTORY: Code 1950, § 38-49; 1950, p. 996; 1952, c. 317, § 38.1-111; 1986, c.
562; 1988, c. 298.