                                 CODE OF VIRGINIA

APPROVAL BY COMMISSION (§ 38.2-1326)

The Commission shall approve the application required by § 38.2-1323 unless,
after giving notice and opportunity to be heard, it determines that:

1. After the change of control, the insurer would not be able to satisfy the
requirements for the issuance of a license to write the classes of insurance for
which it is presently licensed;

2. The acquisition of control would lessen competition substantially or tend to
create a monopoly in insurance in this Commonwealth;

3. The financial condition of any acquiring person might jeopardize the
financial stability of the insurer, or prejudice the interest of its
policyholders;

4. Any plans or proposals of the acquiring party to liquidate the insurer, sell
its assets or consolidate or merge it with any person, or to make any other
material change in its business or corporate structure or management, are unfair
and unreasonable to policyholders of the insurer and not in the public interest;

5. The competence, experience, and integrity of those persons who would control
the operation of the insurer are such that it would not be in the interest of
policyholders of the insurer and of the public to permit the acquisition of
control;

6. After the change of control, the insurer&#8217;s surplus as regards
policyholders would not be reasonable in relation to its outstanding liabilities
or adequate to its financial needs; or

7. The acquisition is likely to be hazardous or prejudicial to the
insurance-buying public.

HISTORY: 1977, c. 414, § 38.1-178.1:4; 1986, c. 562; 2014, c. 309.