CODE OF VIRGINIA

IMPAIRMENT OF CAPITAL AND SURPLUS OF FOREIGN AND ALIEN COMPANY GROUND FOR
SUSPENSION OR REVOCATION OF LICENSE (§ 38.2-1036)

Each foreign and each alien insurer shall maintain at all times the minimum
surplus, capital and surplus, or trusteed surplus required by §§ 38.2-1028,
38.2-1029, 38.2-1030 or § 38.2-1031.  If the Commission finds an impairment of
(i) the required minimum capital and surplus of any foreign stock insurer, (ii)
the required minimum surplus of any foreign mutual insurer, or (iii) the
required minimum trusteed surplus of any alien insurer, the Commission may order
the insurer to eliminate the impairment and restore the minimum capital and
surplus, minimum surplus or minimum trusteed surplus, to the amount required by
law. The Commission may, by order served upon the insurer, prohibit the insurer
from issuing any new policies while the impairment exists.  If the insurer fails
to comply with the Commission’s order within a period of not more than
ninety days, the Commission may, in the manner set out in Article 6 (§
38.2-1040 et seq.) of this chapter, suspend or revoke the license of the insurer
to transact the business of insurance in this Commonwealth.

HISTORY: Code 1950, § 38-511; 1952, c. 317, § 38.1-96; 1978, c. 20; 1986, c.
562.