                                 CODE OF VIRGINIA

REQUIREMENTS WHEN PROCEEDINGS INSTITUTED BY ANY PERSON OTHER THAN COMMISSION (§
38.2-1504)

A. No circuit court in this Commonwealth shall appoint a receiver for any
domestic insurer on application of any person other than the Commission until:

   1. The applicant has presented to the Commission a copy of a bill in equity
   for receivership and has given reasonable notice to the affected insurer that
   a copy of the bill has been presented to the Commission.

   2. The affected insurer has been given ten days after the service of this
   notice to present to the Commission a copy of the answer that it proposes to
   file.

   3. The Commission has investigated the merits of the application for
   receivership and has held a hearing on the results of the investigation. The
   Commission shall act within a reasonable period of time.

   4. Within a reasonable time after completing its investigation, the Commission
   shall make a recommendation to the proper court regarding the appointment of
   the proposed receiver.

B. The court shall appoint or refuse to appoint the proposed receiver after
considering the merits of the application for a receiver.

HISTORY: 1952, c. 317, § 38.1-130; 1986, c. 562.