79114138.2-4233Virginia Decodedhttps://vacode.org2016InsuranceHealth Services PlansHolding CompaniesCommission approval required for certain transactions1989, c. 606; 1993, c. 158.http://law.lis.virginia.gov/vacode/38.2-4233/38.2-222Appeals generally/38.2-222/38.2-4231Registration of nonstock corporations that are members of holding company system/38.2-4231/38.2-4232Standards for transactions with affiliates; adequacy of surplus; dividends and other distributions/38.2-4232//38.2-4233/38.2/42/2/38.2-423338.2-4230

Prior written approval of the Commission shall be required for any transaction between a nonstock corporation licensed under this chapter and any of its affiliates, if such transaction involves more than three-fourths of one percent of admitted assets or five percent of surplus as of the immediately preceding December 31, whichever is less. Failure of the Commission to act within sixty days after notification by the nonstock corporation shall constitute approval of the transaction.section

A

AA1

Nothing contained in this section shall authorize or permit any transaction that would be otherwise contrary to law.section

B

BB1

The Commission, in reviewing any transaction under this section, shall consider whether the transaction complies with the standards set forth in § 38.2-4232. The Commission shall set forth the specific reasons for the disapproval of any transaction.section

C

CC1

section

D

DD1

The Commission shall have continuing oversight over the terms and conditions of all continuing transactions by a nonstock corporation licensed under this chapter with its affiliates. The Commission may prohibit the continuation of any continuing transaction if the Commission finds that, because of changed circumstances or material information unknown to the Commission at the time of the approval of the transaction, the transaction does not comply with the standards set forth in § 38.2-4232.section

E

EE1

Existing transactions entered into between a nonstock corporation and its affiliates prior to July 1, 1989, shall be filed with the Commission for approval no later than September 1, 1989, if such transaction involves more than three-fourths of one percent of admitted assets or five percent of surplus as of the immediately preceding December 31, whichever is less. Failure of the Commission to act within 120 days after such filings shall constitute approval of such transactions. The Commission shall not disapprove any transaction entered into prior to July 1, 1989, if such transaction was lawful when entered into, but if any such transaction is found not to meet the standards of this section, such transaction shall not be renewed or extended except upon terms approved by the Commission.section

F

FF1

Any nonstock corporation aggrieved by a disapproval or withdrawal of approval under this section may proceed under the provisions of § 38.2-222.section

G

GG1

section

H

HH1