                                 CODE OF VIRGINIA

LIABILITY OF PARTICIPATING PROVIDERS UPON MERGER OF NONSTOCK CORPORATION (§
38.2-4213)

If two or more nonstock corporations merge, §§ 38.2-4210 and 38.2-4211 shall
not apply to the new or surviving nonstock corporation, its plans or its
providers unless the nonstock corporations to be merged notify the Commission in
writing at least thirty days prior to the date of the merger that the new or
surviving nonstock corporation will remain subject to §§ 38.2-4210 and
38.2-4211. If notice is not given, the Commission may (i) require the new or
surviving nonstock corporation to maintain its contingency reserves above
minimum level, (ii) subject it, notwithstanding the provisions of § 38.2-1700,
to the requirements of Chapter 17 of this title or (iii) both. The minimum level
of contingency reserves shall not exceed thirty days of anticipated operating
expenses and claims receipts computed as the Commission requires. If the
nonstock corporation elects not to file the notice permitted by this section,
the nonstock corporation and not its providers shall be liable for the
obligations of the plan.

HISTORY: Code 1950, § 32-195.5:1; 1972, c. 429, § 38.1-816; 1974, c. 54; 1979,
c. 721; 1980, c. 682; 1982, c. 129; 1985, c. 233; 1986, c. 562.