Virginia Code 38.2-1506: Requirements when receiver appointed; disbursement of available assets to association, etc.
A. Whenever a receiver, other than the Commission, is appointed pursuant to § 38.2-1504 for any domestic insurer other than an insurer writing exclusively title, fidelity and surety, credit or ocean marine insurance, the receiver shall petition the court for approval of a plan to disburse the assets. This shall be completed within 120 days of a final determination by the Commission that the insurer is insolvent. After the application of an association for an insolvent insurer’s available assets has been granted, the insolvent insurer’s assets will be disbursed to any association entitled to them as they become available.
Terms Used In Virginia Code 38.2-1506
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means the Virginia Property and Casualty Insurance Guaranty Association created by Chapter 16 (§ 38. See Virginia Code 38.2-1501
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Insolvent: means (i) the condition of an insurer that has liabilities in excess of assets or (ii) the inability of an insurer to pay its obligations as they become due in the usual course of business. See Virginia Code 38.2-1501
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Receiver: means the Commission or any person appointed to manage delinquency proceedings. See Virginia Code 38.2-1501
B. The plan shall include provisions for the receiver to take all the actions required by subsections B and C of § 38.2-1509.
C. Notice of the petition by the receiver to the court for approval of a plan to disburse an insurer’s assets shall be given to the associations and the commissioners of insurance of the other states. This notice shall be deemed given when sent by certified mail at least thirty days before submission of the petition to the court. Action on the petition may be taken by the court or a judge of the court if the required notice has been given and the plan of the receiver contains the provisions set forth in this section.
1978, c. 696, § 38.1-131.1; 1986, c. 562.