                                 CODE OF VIRGINIA

RETALIATORY PROVISIONS AS TO TAXES, FEES, DEPOSITS AND OTHER REQUIREMENTS (§
38.2-1026)

A. When a domestic insurer or its agents are subject to regulatory costs in
another state that are greater than those imposed in this Commonwealth upon
insurers domiciled in that state or their agents, then the regulatory costs
imposed by this Commonwealth on those foreign insurers or their agents shall be
increased to equal the regulatory costs imposed by the other state on the
domestic insurer or its agents. For the purpose of this section, regulatory cost
includes (i) any deposits of securities, (ii) payment of taxes, fines, penalties
or fees exacted for the privilege of doing business or (iii) any restitutions,
obligations or conditions necessary for doing business.

B. For the purposes of this section an alien insurance company shall be
considered domiciled in the state wherein it has the largest amount of its
assets held in trust and on deposit for the benefit of its policyholders, or of
its policyholders and creditors in the United States. An insurance company
incorporated in Canada shall be considered domiciled in Canada.

C. Any foreign or alien insurance company subject to this section shall
annually, on or before March 1, file a report with the Department of Taxation
which compares the regulatory costs imposed on such insurer by this Commonwealth
during the preceding calendar year to the regulatory costs that would have been
imposed on a similar insurer domiciled in this Commonwealth by such
insurer&#8217;s state of domicile during the preceding calendar year. This
report shall be filed on a form and in such detail as prescribed by the
Department of Taxation. Amounts owed due to the equalization of the regulatory
costs imposed on such insurer by this Commonwealth and the regulatory costs of
such insurer&#8217;s state of domicile shall be remitted to the Department of
Taxation on or before March 1 of each year. Upon the failure of any insurance
company to pay amounts due under this section before the date herein prescribed,
the Department of Taxation shall impose a penalty of 10 percent of the amount
due and interest shall be charged at a rate established pursuant to &#xA7;
58.1-15 for the period between the due date and the date of full payment.

HISTORY: Code 1950, §§ 38-12, 38-13; 1952, c. 317, § 38.1-87; 1986, c. 562;
1998, c. 60; 2011, c. 850.