                                 CODE OF VIRGINIA

REGULATION AND AUTHORITY OF A MUTUAL HOLDING COMPANY (§ 38.2-1005.1:7)

A. A mutual holding company organized under Title 13.1 pursuant to the authority
granted by this article shall have all of the powers granted to a domestic
mutual insurance company licensed under Chapter 10 (&#xA7; 38.2-1000 et seq.)
and shall be subject to the same limitations and restrictions imposed on
insurance holding companies by Article 5 (&#xA7; 38.2-1322 et seq.), Article 5.1
(&#xA7; 38.2-1334.3 et seq.), Article 5.2 (&#xA7; 38.2-1334.11 et seq.), and
Article 6 (&#xA7; 38.2-1335 et seq.) of Chapter 13 as well as all requirements
and provisions of the laws of this Commonwealth that are not inconsistent with
the provisions of this article except that a mutual holding company shall not
have authority to transact insurance pursuant to this title.

B. Neither the mutual holding company nor any intermediate holding company shall
issue or reinsure policies of insurance.

C. A mutual holding company may enter into an affiliation agreement or merger
agreement either at the time of the conversion, or at some later time with the
approval of the Commission, with any mutual insurance company licensed to
transact insurance in this Commonwealth or another mutual holding company. Any
such merger agreement may authorize members of the mutual insurance company or
other mutual holding company to become members of the mutual holding company.
Any such affiliation or merger agreement shall be subject to the provisions of
this title relating to transactions entered into by a mutual insurance company
organized and licensed under the laws of this Commonwealth.

D. The assets of the mutual holding company shall be held in trust under such
arrangements and on such terms as the Commission may approve for the benefit of
the policyholders of the converted company. Any residual rights of the MHC in
such assets or any of the assets of the MHC determined not to be held in trust
shall be subject to a lien in favor of the policyholders of the converted
company under such terms as the Commission may approve. Upon conversion of the
mutual holding company as provided for in &#xA7; 38.2-1005.1:9, such assets
shall be released from trust in accordance with the plan of conversion approved
by the Commission.

HISTORY: 2001, c. 726; 2014, c. 248; 2017, c. 643.