                                 CODE OF VIRGINIA

COMMISSION MAY APPLY FOR RECEIVER AND FOR OTHER RELIEF; WHAT ORDERS COURT MAY
ENTER (§ 38.2-1505)

A. Whenever the Commission finds that any of the grounds for rehabilitation or
liquidation of a domestic insurer set out in &#xA7; 38.2-1503 exist, it may
apply to the Circuit Court of the City of Richmond for an order directing the
insurer to show cause on or before a designated date (i) why a receiver other
than the Commission should not be appointed for the insurer, (ii) why an order
should not be entered authorizing the Commission, as a receiver, to proceed with
the rehabilitation or liquidation of the insurer or (iii) why other appropriate
steps authorized by this chapter should not be taken. The application and order
may include any other relief as the nature of the case and the interests of the
policyholders, creditors, stockholders, members of the insurer and of the public
may require. A copy of the application and the order to show cause shall be
served upon the insurer and shall constitute legal process. The State Treasurer
shall be made a party to the proceeding.

B. On or after the return of the order to show cause, and after a full hearing,
the court shall either deny the application, appoint a receiver for the insurer,
authorize the Commission to proceed with the rehabilitation or liquidation of
the insurer or to take any other appropriate proceedings as the Commission
considers advisable.

HISTORY: Code 1950, §§ 38-138, 38-139; 1952, c. 317, § 38.1-131; 1986, c.
562.