                                 CODE OF VIRGINIA

SUBSIDIARIES OF INSURERS (§ 38.2-1336)

Notwithstanding the provisions of any other law, a domestic insurer shall not
organize, acquire, or obtain control of any subsidiary, either by itself or in
cooperation with one or more persons, unless the subsidiary is engaged in the
following kinds of business:

1. Transacting any kind of insurance business authorized by the jurisdiction in
which the subsidiary is incorporated;

2. Acting as an insurance broker or as an insurance agent for its parent or for
any of its parent&#8217;s insurer subsidiaries;

3. Investing, reinvesting or trading in securities for its own account, that of
its parent, any subsidiary of its parent, or any affiliate or subsidiary;

4. Managing any investment company subject to or registered pursuant to the
Investment Company Act of 1940, as amended, including related sales and
services;

5. Acting as a broker-dealer subject to or registered pursuant to the Securities
Exchange Act of 1934, as amended;

6. Rendering investment advice to governments, governmental agencies,
corporations or other organizations or groups;

7. Rendering other services related to the operations of an insurance business
including, but not limited to, actuarial, loss prevention, safety engineering,
data processing, accounting, claims, appraisal and collection services;

8. Owning and managing assets that the domestic insurer could itself own or
manage;

9. Acting as administrative agent for a governmental instrumentality that is
performing an insurance function;

10. Financing of insurance premiums or agents;

11. Engaging in any other business activity the Commission determines to be
reasonably ancillary to an insurance business; or

12. Owning a corporation or corporations engaged or organized to engage
exclusively in one or more of the businesses specified in this section.

HISTORY: 1977, c. 414, § 38.1-178.12; 1986, c. 562.