CODE OF VIRGINIA

RETURN OF DEPOSITS (§ 38.2-1048)

A. The Commission, at its discretion, may direct the State Treasurer to return
to any insurer all or a part of the deposit made by it under § 38.2-1045 if the
insurer (i) has complied with § 38.2-1049, or (ii) has ceased to transact
business in this Commonwealth. In the case of the latter, the fixed or
contingent liabilities secured by the deposit shall have been satisfied or
terminated or shall have been assumed by another insurer licensed to transact
the business of insurance in this Commonwealth. If the Commission finds that any
voluntary deposit of any insurer made under § 38.2-1050 no longer is required
in whole or in part to comply with the laws of this or any other state, it may
to such extent direct the return of that deposit. The Commission, before
directing the return of any deposit, may require evidence it considers
satisfactory that the insurer is entitled to the return of all or part of the
deposit.

B. Notwithstanding the provisions in § 38.2-1046 and subsection A of this
section, if an insurer domiciled in this Commonwealth is placed in receivership,
and a receiver is appointed, pursuant to the provisions of Chapter 15 (§
38.2-1500 et seq.) of this title, the Commission shall direct the State
Treasurer to return any deposit made with it by the insurer to such receiver for
distribution, disbursement, or other application in accordance with provisions
set forth in Chapter 15 (§ 38.2-1500 et seq.) of this title and any applicable
order of liquidation, conservation or rehabilitation.

HISTORY: Code 1950, § 38-52; 1952, c. 317, § 38.1-112; 1986, c. 562; 1988, c.
298; 1995, c. 60.