                                 CODE OF VIRGINIA

REHABILITATION OR MUTUALIZATION OF COMPANIES (§ 38.2-1518)

If at any time the Commission acting as the receiver finds that it is in the
best interests of the policyholders and creditors of a delinquent insurer that
it be rehabilitated or mutualized, the Commission shall prepare a plan of
rehabilitation or mutualization. If at any time a receiver, other than the
Commission, of a delinquent insurer reports to the court that it is in the best
interests of the policyholders and creditors of the insurer that it be
rehabilitated or mutualized, the receiver shall submit a plan of rehabilitation
or mutualization to the court for its approval. The plan may include a provision
imposing liens upon the net equities of policyholders of the insurer, and in the
case of life insurers, a provision imposing a moratorium upon the loan or cash
surrender values of the policies for whatever period of time is necessary. A
hearing on the plan shall be held and notice of the hearing given in a manner
prescribed by either the Commission or the court. After the hearing, the plan
may be approved, disapproved, or modified by the Commission or the court.

HISTORY: Code 1950, § 38-139; 1952, c. 317, § 38.1-142; 1986, c. 562.