                                 CODE OF VIRGINIA

INJUNCTION; LIQUIDATION; RECEIVERSHIP OF DOMESTIC SOCIETY (§ 38.2-4130)

No domestic society shall:

1. Exceed its powers;

2. Fail to comply with any provisions of this chapter;

3. Fail to fulfill its contracts in good faith;

4. Have a membership of less than 400 after an existence of 1 year or more; or

5. Conduct business fraudulently or in a manner hazardous to its members,
creditors, the public or the business.
			If the Commission, upon investigation, finds such deficiencies, it shall
issue a written notice to the society citing the deficiencies, stating the
reasons for dissatisfaction, and requiring that the deficiencies be corrected
within the period it designates. The period shall be at least thirty days but
not more than six months from the service of the notice. If the Commission
believes the interest of the certificate holders of the society will be best
served by extending the period of time beyond six months, it may do so for the
period of time it considers best. If the society does not correct the deficiency
to the satisfaction of the Commission, the Commission may institute delinquency
proceedings against the society in the manner set out in Chapter 15 (&#xA7;
38.2-1500 et seq.) of this title. If the Commission institutes a delinquency
proceeding, all the provisions of Chapter 15 of this title with respect to the
rehabilitation, liquidation, conservation and reorganization of insurers
generally shall be applicable to the society.

HISTORY: Code 1950, §§ 38-261, 38-275, 38-319, 38.1-592, 38.1-628; 1952, c.
317, §§ 38.1-638.24, 38.1-638.49; 1968, c. 654; 1986, c. 562.