                                 CODE OF VIRGINIA

GEOGRAPHICAL AREA (§ 38.2-4515)

A. Each nonstock corporation seeking to be licensed by the Commission shall
specify the geographical area it desires to serve and shall satisfy the
Commission that it is able to render the services of the plan.

B. The Commission may, after notice and hearing, license more than one nonstock
corporation for the same geographical area unless the Commission finds that the
(i) nonstock corporation&#8217;s proposed method of operation or manner of doing
business is not satisfactory or (ii) licensing of more than one nonstock
corporation for the same geographical area will not promote the public welfare.
If more than one nonstock corporation is licensed in a geographical area, the
nonstock corporations in that area shall make arrangements among themselves to
see that any claim filed with the wrong nonstock corporation in that area be
promptly forwarded to the proper nonstock corporation, if it can be determined.

C. Subscription contracts shall not be sold to persons residing outside the area
of the nonstock corporation unless they are regularly employed within the area.
The subscription contract of a subscriber who neither lives nor is employed
within the area shall be cancelled by notice given in accordance with the terms
of the subscription contract.

HISTORY: 1980, c. 682, § 38.1-904; 1986, c. 562.