                                 CODE OF VIRGINIA

FORMATION; LICENSURE AFTER EXAMINATION; AMENDMENT OF ARTICLES; PRINCIPAL AND
HOME OFFICE (§ 38.2-1104)

A. Captive insurers with shares of capital stock shall be incorporated under
Article 3 (&#xA7; 13.1-618 et seq.) of Chapter 9 of Title 13.1 as modified by
this title and, except as provided in this title, shall be subject to all the
general restrictions and shall have all the general powers imposed and conferred
upon such corporations by law.

B. Captive insurers without shares of capital stock shall be incorporated under
Article 3 (&#xA7; 13.1-818 et seq.) of Chapter 10 of Title 13.1, as modified by
this title and, except as provided in this title, shall be subject to all the
general restrictions and shall have all the general powers imposed and conferred
upon such corporations by law.

C. 1. No charter shall be granted to any captive insurer until the Commission
receives a certificate from the State Treasurer showing that (i) cash, bonds or
other securities in the amount required by § 38.2-1105 have been deposited or
(ii) an irrevocable letter of credit in that amount has been deposited and is to
be held under the provisions, terms and conditions set forth in § 38.2-1105.

   2. When the certificate has been presented to the Commission, the Commission
   may make or direct to be made an examination of the captive insurer.

   3. The Commission shall issue a license if the captive insurer complies with
   this chapter.

D. Any amendment of the articles of incorporation of a captive insurer shall be
pursuant to Article 11 (&#xA7; 13.1-705 et seq.) of Chapter 9 or of Article 10
(&#xA7; 13.1-884 et seq.) of Chapter 10 of Title 13.1.

E. The principal and home office of every captive insurer shall be in this
Commonwealth.

HISTORY: 1980, c. 665, § 38.1-920; 1986, c. 562.