                                 CODE OF VIRGINIA

DETECTION AND PREVENTION OF INSOLVENCIES (§ 38.2-1708)

A. To aid in the detection and prevention of member insurer insolvencies, the
Commission shall have the duty to:

   1. Notify the insurance departments of all of the other states within 30 days
   following the action taken or the date the action occurs, when the Commission
   takes any of the following actions against a member insurer:
   				a. Revocation of license;
   				b. Suspension of license; or
   				c. Enters a formal order that the member insurer restrict its premium
   writing, obtain additional contributions to surplus, withdraw from the
   Commonwealth, reinsure all or any part of its business, or increase capital,
   surplus, or any other account for the security of policy owners, contract
   owners, certificate holders, or creditors;

   2. Report to the board of directors when the Commission has taken any of the
   actions set forth in subdivision 1 or has received a report from any other
   insurance department indicating that any such action has been taken in another
   state. The report to the board of directors shall contain all significant
   details of the action taken or the report received from another insurance
   department;

   3. Report to the board of directors when the Commission has reasonable cause
   to believe from an examination, whether completed or in process, of any member
   insurer that the member insurer may be an impaired or insolvent insurer; and

   4. Furnish to the board of directors the National Association of Insurance
   Commissioners (NAIC) Insurance Regulatory Information System (IRIS) ratios and
   listings of companies not included in the ratios developed by the NAIC, and
   the board may use the information contained therein in carrying out its duties
   and responsibilities under this section. The report and the information
   contained therein shall be kept confidential by the board of directors until
   such time as made public by the Commission or other lawful authority.

B. The Commission may seek the advice and recommendations of the board of
directors concerning any matter affecting its duties and responsibilities
regarding the financial condition of member insurers and insurers or health
maintenance organizations seeking admission to transact business in the
Commonwealth.

C. The board of directors may, upon majority vote, make reports and
recommendations to the Commission upon any matter germane to the solvency,
liquidation, rehabilitation or conservation of any member insurer or germane to
the solvency of any insurer or health maintenance organization seeking to
transact business in the Commonwealth. These reports and recommendations shall
not be considered public documents.

D. The board of directors, upon majority vote, may notify the Commission of any
information indicating a member insurer may be an impaired or insolvent insurer.

E. The board of directors, upon majority vote, may make recommendations to the
Commission for the detection and prevention of member insurer insolvencies.

HISTORY: 1976, c. 330, § 38.1-482.26; 1986, c. 562; 2010, c. 510; 2018, c. 706.