CODE OF VIRGINIA

CONVERSION TO DOMESTIC MUTUAL INSURER (§ 38.2-4229.1)

A. Any domestic nonstock corporation subject to the provisions of this chapter
that has the surplus required by § 38.2-1030 for domestic mutual insurers
issuing policies without contingent liability may, at its option and without
reincorporation, convert to a domestic mutual insurer by following the procedure
set forth in this section.

B. Any nonstock corporation eligible to convert to a domestic mutual insurer
under subsection A may effect such conversion by amending its articles of
incorporation to delete any reference to this chapter and to comply with the
provisions of § 38.2-1002 relating to the articles of incorporation of a
domestic mutual insurer. Upon the issuance of a certificate of amendment by the
Commission, the conversion shall be effective, such nonstock corporation shall
become subject to all of the provisions of this title relating to domestic
mutual insurers, and such nonstock corporation shall no longer be subject to the
provisions of this chapter.

C. If any nonstock corporation converts from a health services plan organized
under this chapter to a domestic mutual insurer, then at least 90 days prior to
the effective date of conversion, the nonstock corporation shall comply with §
38.2-316 by filing with the Commission copies of all policies of insurance that
it proposes to issue after the effective date of conversion. All subscription
contracts issued and outstanding as of the effective date of conversion shall
remain in force in accordance with their terms until the expiration or
termination of such contracts.

D. No policy of accident and sickness insurance issued by a nonstock corporation
after its conversion to a domestic mutual insurer shall deny the policyholder
the right to assign his benefit, except that denial may be made where the
benefit is 80 percent of covered charges or greater.

HISTORY: 1991, c. 87; 1992, c. 473; 1994, c. 294; 1997, cc. 807, 913; 2013, cc.
136, 210.