                                 CODE OF VIRGINIA

AUTHORITY OF COMMISSION TO ISSUE ORDERS COVERING INSURERS IN HAZARDOUS FINANCIAL
CONDITION (§ 38.2-1038)

If, after reviewing an insurer&#8217;s financial condition, method of operation,
or manner of doing business, the Commission finds that (i) the insurer cannot,
or there is a reasonable expectation that the insurer will not be able to, meet
its obligations to all policyholders or (ii) the insurer&#8217;s continued
operation in this Commonwealth is hazardous to policyholders, creditors and the
public in this Commonwealth the Commission may order the insurer to take
appropriate action to remedy the Commission&#8217;s concerns. The insurer shall
be given ten days&#8217; notice prior to issuing the order and shall be given
the opportunity to be heard and introduce evidence on its behalf. The hearing
may be informal, and the required notice may be waived by the Commission and the
insurer. If the insurer fails to comply with the Commission&#8217;s order within
the prescribed time, the Commission may suspend or revoke the license of the
insurer to transact the business of insurance in this Commonwealth as set forth
in Article 6 (§ 38.2-1040 et seq.) of this chapter.

HISTORY: 1978, c. 20, § 38.1-97.2; 1986, c. 562; 1991, c. 261.