                                 CODE OF VIRGINIA

CERTAIN MUTUAL COMPANIES AND SOCIETIES NOT TO BECOME STOCK COMPANIES WITHOUT
APPROVAL OF COMMISSION (§ 38.2-1005)

No mutual insurance company, mutual assessment property and casualty insurer,
cooperative nonprofit life benefit company, mutual assessment life, accident and
sickness company, burial society, or fraternal benefit society shall be
converted into a stock corporation unless such conversion and the plan for
conversion are approved by the Commission. The insurer shall comply with §
38.2-1028 before approval for conversion is granted by the Commission unless the
Commission finds that the insurer will have the required capital and surplus
within a reasonable time after conversion. A society or other nonstock company
licensed under any chapter of this title except Chapter 10 (§ 38.2-1000 et
seq.) shall be licensed as a mutual insurer subject to § 38.2-1029 prior to
seeking approval for conversion under § 38.2-1005.1 or § 38.2-1005.1:9.

HISTORY: 1952, c. 317, § 38.1-79; 1970, c. 636; 1986, c. 562; 2001, c. 726.