                                 CODE OF VIRGINIA

EXAMINATION OF BOOKS AND RECORDS OF COMPANY; BOND; RULES AND REGULATIONS; ORDER
BY COMMISSION TO REMEDY CONCERNS (§ 38.2-4708)

A. 1. The Commission is empowered to examine the books and records of an
insurance premium finance company.

   2. The Commission is empowered to require an insurance premium finance company
   to enter into bond with surety approved by the Commission, in the amount
   determined as reasonable by the Commission, and conditioned to protect its
   customers and the public in the manner required by law. The aggregate
   liability of the surety for all breaches of the conditions of the bond shall
   in no event exceed the penalty of the bond. The surety on the bond shall have
   the right to cancel the bond upon thirty days&#8217; notice in writing to the
   Commission and shall be relieved of liability for any breach of condition
   occurring after the effective date of the cancellation.

   3. Any rules and regulations issued by the Commission with respect to the
   operation of insurance premium finance companies may include, without
   limitation, rules and regulations for the cancellation of policies by
   insurance premium finance companies, for the notice required to be given to
   the insured and the insurer, and for the mutual obligations and duties of
   insurers and insurance premium finance companies with regard to the
   cancellation of policies and the required notice.

B. If the Commission finds (i) that an insurance premium finance company&#8217;s
financial condition, method of operation or manner of doing business does not
satisfy the Commission that the company can meet its obligations to all
customers or (ii) that the company&#8217;s continued operation in this
Commonwealth is hazardous to customers and creditors in this Commonwealth and to
the public, it may order the company to take appropriate action within a
specified time to remedy the concerns of the Commission. The Commission shall
give the insurance premium finance company ten days&#8217; notice of its finding
and shall grant it the opportunity to be heard and to introduce evidence on its
behalf. Any hearing with regard to the order may be informal, and the required
notice may be waived with the mutual consent of the Commission and the company.

HISTORY: 1964, c. 147, § 38.1-742; 1981, c. 107; 1986, c. 562.