CODE OF VIRGINIA

APPLICATION FOR LICENSE; LIMITATIONS ON AUTHORITY (§ 38.2-1102)

A. No captive insurer shall transact any insurance business in this Commonwealth
unless (i) it is permitted to do so by its articles of incorporation or charter
and (ii) it procures a license to transact the business of insurance from the
Commission in accordance with Article 5 (§ 38.2-1024 et seq.) of Chapter 10 of
this title. The license shall be renewed in accordance with § 38.2-1025. A
captive insurer may only be licensed to write the classes of insurance described
in §§ 38.2-110 through 38.2-120, 38.2-124, 38.2-126 and reinsure in accordance
with § 38.2-136.

B. 

   1.  The Commission shall not issue a license to transact the business of
   insurance in this Commonwealth to any pure captive insurer until it is
   satisfied that the total insurance coverage necessary to insure all risks,
   hazards, and liabilities would develop, in the aggregate, gross annual
   premiums of at least $ 500,000.

   2.  The Commission shall not issue a license to transact the business of
   insurance in this Commonwealth to any association captive insurer until it is
   satisfied (i) that the total insurance coverage necessary to insure all risks,
   hazards, and liabilities would develop, in the aggregate, gross annual
   premiums of at least one million dollars and (ii) that its insurance
   association has been in existence for at least one year.  The Commission may
   waive the requirement that the insurance association be in existence for at
   least 1 year if the association captive insurer satisfies the Commission that
   each member of the insurance association would have a gross annual premium in
   excess of $ 100,000.

C. No captive insurer may write classes of personal insurance coverage for
individuals unless the individual is a parent.

D. No captive insurer may write insurance or reinsurance on personally owned
motor vehicles or homeowners’ insurance or any component of them.

HISTORY: 1980, c. 665, § 38.1-918; 1986, c. 562.