                                 CODE OF VIRGINIA

PENALTIES (§ 38.2-1345)

A. If the Commission finds, after providing an opportunity to be heard, that the
controlling producer or any other person has not materially complied with the
provisions of this article, or any regulation or order promulgated hereunder,
the Commission may order the controlling producer to cease placing business with
the controlled insurer.

B. If it is found that because of such material noncompliance that the
controlled insurer or any policyholder thereof has suffered any loss or damage,
the Commission may order the controlling producer or any other party licensed
under this title to make restitution to the controlled insurer or its statutory
successor, including any rehabilitator, liquidator or receiver of the insurer,
for the net losses or damages incurred by the insurer or its policyholders.

C. Nothing contained in this section shall affect the right of the Commission to
impose any other penalties provided for in this title.

D. Nothing contained in this section is intended to or shall in any manner alter
or affect the rights of policyholders, claimants, creditors or other third
parties.

HISTORY: 1993, c. 158.