                                 CODE OF VIRGINIA

VOTING OF SECURITIES, INJUNCTIONS, AND SEQUESTRATION OF VOTING SECURITIES (§
38.2-1334.1)

A. No security that is the subject of any agreement or arrangement regarding
acquisition, or that is acquired or to be acquired, in contravention of the
provisions of this article or of any rule, regulation, or order issued by the
Commission hereunder, may be voted at any shareholders&#8217; meeting, or may be
counted for quorum purposes, and any action of shareholders requiring the
affirmative vote of a percentage of shares may be taken as though such
securities were not issued and outstanding. However, no action taken at any such
meeting shall be invalidated by the voting of such securities, unless the action
would materially affect control of an insurer subject to any provision of this
article or unless the Commission or other court of the Commonwealth has so
ordered. If the insurer or Commissioner of Insurance has reason to believe that
any security of the insurer has been or is about to be acquired in contravention
of the provisions of this article or of any rule, regulation or order issued by
the Commission hereunder, the insurer or Commissioner of Insurance may apply to
the Commission to enter an order (i) enjoining any offer, request, invitation,
agreement, or acquisition made in contravention of &#xA7; 38.2-1323; (ii)
enforcing any rule, regulation, or order issued by the Commission under the
foregoing sections to enjoin the voting of any security so acquired; or (iii)
voiding any vote of such security already cast at any meeting of shareholders or
providing for such other equitable relief as the nature of the case and the
interest of the insurer&#8217;s policyholders, creditors, and shareholders or
the public may require.

B. Whenever it appears to the Commission that any person has committed or is
about to commit a violation of this article, the Commission may enter an order
enjoining such person from violating or continuing to violate this article or
any such rule or order, and for such other equitable relief as the nature of the
case and the interests of the domestic insurer&#8217;s policyholders or the
public may require.

C. In any case where a person has acquired or is proposing to acquire any voting
securities in violation of this article or any rule, regulation, or order issued
by the Commission hereunder, the Commission may, after reasonable notice, upon
application of the insurer or application of the Commissioner of Insurance,
seize or sequester any voting securities of the insurer owned directly or
indirectly by the person, and issue the order with respect thereto as may be
appropriate to effectuate the provisions of this article.
			Notwithstanding any other provisions of law, for the purposes of this
article, the situs of the ownership of the securities of domestic insurers shall
be deemed to be in the Commonwealth.

D. The actions authorized by this section are in addition to any remedies
provided for by other sections of this title and may be imposed, in addition to
or in lieu of any other penalties or actions provided for by law, whenever such
actions involve a person that is neither domiciled nor licensed in this
Commonwealth.

HISTORY: 1993, c. 158; 2014, c. 309.