                                 CODE OF VIRGINIA

EXAMINATIONS; WHEN AUTHORIZED OR REQUIRED (§ 38.2-1317)

A. Whenever the Commission considers it expedient for the protection of the
interests of the people of this Commonwealth, it may make or direct to be made
an examination into the affairs of any person licensed to transact any insurance
business in this Commonwealth or any other person subject to the jurisdiction of
the Commission pursuant to provisions of this title. The Commission may also
make or direct to be made, whenever necessary or advisable an examination into
the affairs of:

   1. Any person having a contract under which he has the exclusive or dominant
   right to manage or control any licensed insurer,

   2. Any person holding the shares of capital stock or policyholder proxies of
   any domestic insurer amounting to control as defined in &#xA7; 38.2-1322
   either as voting trustee or otherwise,

   3. Any person engaged or assisting in, or proposing or claiming to engage or
   assist in the promotion or formation of a domestic insurer, or

   4. Any person seeking a license to transact any insurance business in this
   Commonwealth.

B. The Commission shall examine or cause to be examined every domestic insurer
at least once in every five years; however, on or after January 1, 1993, the
Commission shall examine every insurer licensed in this Commonwealth at least
once in every five years.

C. The examination of any foreign or alien insurer or any other foreign or alien
person subject to examination shall be made to the extent practicable in
cooperation with the insurance departments of other states.

D. Instead of making its own examination, the Commission may accept a full
report of the examination of a foreign or alien person, duly authenticated by
the insurance supervisory official of the state of domicile or of entry until
January 1, 1994. Thereafter, such reports may only be accepted if:

   1. The insurance department was at the time of the examination accredited
   under the National Association of Insurance Commissioners&#8217; (NAIC)
   Financial Regulation Standards and Accreditation Program;

   2. The examination is performed under the supervision of such an accredited
   insurance department or with the participation of one or more examiners who
   are employed by an accredited insurance department and who, after a review of
   the examination work papers and report, state under oath that the examination
   was performed in a manner consistent with the standards and procedures
   required by their insurance department; or

   3. The Commission determines, in its sole discretion, that the examination was
   performed in a manner consistent with standards and procedures employed by the
   Commission in the examination of domestic insurers, and the report of
   examination is duly authenticated by the insurance supervisory official of the
   insurer&#8217;s state of domicile or entry.

HISTORY: Code 1950, §§ 38-125, 38-126, 38-216, 38-253.40, 38-253.86, 38-516;
1952, c. 317, § 38.1-174; 1972, c. 836; 1973, c. 504; 1977, c. 321; 1986, c.
562; 1992, c. 588; 1996, c. 47.