                                 CODE OF VIRGINIA

DISCLAIMER OF CONTROL (§ 38.2-1337)

1. A domestic insurer may acquire voting securities of any company in an amount
sufficient to presume control without the company&#8217;s being considered a
subsidiary if the domestic insurer files a disclaimer of affiliation with the
Commission. The disclaimer shall disclose fully (i) the nature and purpose of
the investment, (ii) all material transactions and relationships between the
domestic insurer and the company, and (iii) the basis for the disclaimer. The
Commission may disallow the disclaimer only after giving the domestic insurer
and the company notice and an opportunity to be heard. Any disallowance shall be
supported by specific findings of fact.

2. If the Commission disallows the disclaimer, the domestic insurer shall
immediately take action sufficient to satisfy the Commission that the domestic
insurer does not control the company.

HISTORY: 1977, c. 414, § 38.1-178.13; 1986, c. 562.