{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/38.2-4708.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/38.2-4708.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/38.2-4708.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/38.2-4708.html"}],"law_id":362702,"edition_id":2,"section_id":362702,"structure_id":51785,"section_number":"38.2-4708","catch_line":"Examination of books and records of company; bond; rules and regulations; order by Commission to remedy concerns","history":"1964, c. 147, \u00a7 38.1-742; 1981, c. 107; 1986, c. 562.","full_text":"A\n\n1. The Commission is empowered to examine the books and records of an insurance premium finance company.\n\n2\n\nThe Commission is empowered to require an insurance premium finance company to enter into bond with surety approved by the Commission, in the amount determined as reasonable by the Commission, and conditioned to protect its customers and the public in the manner required by law. The aggregate liability of the surety for all breaches of the conditions of the bond shall in no event exceed the penalty of the bond. The surety on the bond shall have the right to cancel the bond upon thirty days’ notice in writing to the Commission and shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation.\n\n3\n\nAny rules and regulations issued by the Commission with respect to the operation of insurance premium finance companies may include, without limitation, rules and regulations for the cancellation of policies by insurance premium finance companies, for the notice required to be given to the insured and the insurer, and for the mutual obligations and duties of insurers and insurance premium finance companies with regard to the cancellation of policies and the required notice.\n\nB\n\nIf the Commission finds (i) that an insurance premium finance company’s financial condition, method of operation or manner of doing business does not satisfy the Commission that the company can meet its obligations to all customers or (ii) that the company’s continued operation in this Commonwealth is hazardous to customers and creditors in this Commonwealth and to the public, it may order the company to take appropriate action within a specified time to remedy the concerns of the Commission. The Commission shall give the insurance premium finance company ten days’ notice of its finding and shall grant it the opportunity to be heard and to introduce evidence on its behalf. Any hearing with regard to the order may be informal, and the required notice may be waived with the mutual consent of the Commission and the company.\n\n","order_by":null,"text":{"0":{"id":1350821,"text":"1. The Commission is empowered to examine the books and records of an insurance premium finance company.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":1350822,"text":"The Commission is empowered to require an insurance premium finance company to enter into bond with surety approved by the Commission, in the amount determined as reasonable by the Commission, and conditioned to protect its customers and the public in the manner required by law. The aggregate liability of the surety for all breaches of the conditions of the bond shall in no event exceed the penalty of the bond. The surety on the bond shall have the right to cancel the bond upon thirty days’ notice in writing to the Commission and shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"A3"},"2":{"id":1350823,"text":"Any rules and regulations issued by the Commission with respect to the operation of insurance premium finance companies may include, without limitation, rules and regulations for the cancellation of policies by insurance premium finance companies, for the notice required to be given to the insured and the insurer, and for the mutual obligations and duties of insurers and insurance premium finance companies with regard to the cancellation of policies and the required notice.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"3":{"id":1350824,"text":"If the Commission finds (i) that an insurance premium finance company’s financial condition, method of operation or manner of doing business does not satisfy the Commission that the company can meet its obligations to all customers or (ii) that the company’s continued operation in this Commonwealth is hazardous to customers and creditors in this Commonwealth and to the public, it may order the company to take appropriate action within a specified time to remedy the concerns of the Commission. The Commission shall give the insurance premium finance company ten days’ notice of its finding and shall grant it the opportunity to be heard and to introduce evidence on its behalf. Any hearing with regard to the order may be informal, and the required notice may be waived with the mutual consent of the Commission and the company.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3"}},"ancestry":[{"id":51785,"edition_id":2,"name":"Insurance Premium Finance Companies","identifier":"47","label":"chapter","depth":2,"order_by":49,"parent_id":51644,"metadata":{"child_laws":13,"child_structures":0},"date_created":"2026-08-02 02:48:44","date_modified":"2026-08-02 12:33:20","permalink":{"id":1444237,"object_type":"structure","relational_id":51785,"identifier":"47","token":"38.2\/47","url":"\/38.2\/47\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51644,"edition_id":2,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":88,"parent_id":null,"metadata":{"child_laws":1890,"child_structures":173},"date_created":"2026-08-02 02:45:30","date_modified":"2026-08-02 12:32:55","permalink":{"id":1437663,"object_type":"structure","relational_id":51644,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":362694,"structure_id":51785,"section_number":"38.2-4700","catch_line":"What persons deemed insurance premium finance companies","url":"\/38.2-4700\/","token":"38.2\/47\/38.2-4700","metadata":false},{"id":362695,"structure_id":51785,"section_number":"38.2-4701","catch_line":"License required; application; fee","url":"\/38.2-4701\/","token":"38.2\/47\/38.2-4701","metadata":{"court_decisions":""}},{"id":362696,"structure_id":51785,"section_number":"38.2-4702","catch_line":"Investigation of applicant; issuance of license","url":"\/38.2-4702\/","token":"38.2\/47\/38.2-4702","metadata":false},{"id":362697,"structure_id":51785,"section_number":"38.2-4703","catch_line":"Renewal of license","url":"\/38.2-4703\/","token":"38.2\/47\/38.2-4703","metadata":false},{"id":362698,"structure_id":51785,"section_number":"38.2-4704","catch_line":"Suspension, revocation or failure to renew license; imposition of penalty","url":"\/38.2-4704\/","token":"38.2\/47\/38.2-4704","metadata":false},{"id":362699,"structure_id":51785,"section_number":"38.2-4705","catch_line":"Maximum interest rate and maximum service charge on premium finance agreement","url":"\/38.2-4705\/","token":"38.2\/47\/38.2-4705","metadata":{"court_decisions":{"0":{"name":"Devnew v. Brown & Brown, Inc.","case_number":"Civ.A.2:05CV00400","citation":"396 F. Supp. 2d 665","date":"2005-10-17","url":"https:\/\/www.courtlistener.com\/opinion\/2567270\/devnew-v-brown-brown-inc\/","abstract":" .\u202f.\u202f. 396 F.Supp.2d 665 (2005) .\u202f.\u202f. ","court_html":"District Court, E.D. Virginia"}}}},{"id":362700,"structure_id":51785,"section_number":"38.2-4706","catch_line":"Default charge; bad check charge","url":"\/38.2-4706\/","token":"38.2\/47\/38.2-4706","metadata":{"court_decisions":""}},{"id":362701,"structure_id":51785,"section_number":"38.2-4707","catch_line":"Forms of premium finance agreements and related forms to be approved by Commission; false or misleading statements or omissions prohibited","url":"\/38.2-4707\/","token":"38.2\/47\/38.2-4707","metadata":{"court_decisions":""}},{"id":362702,"structure_id":51785,"section_number":"38.2-4708","catch_line":"Examination of books and records of company; bond; rules and regulations; order by Commission to remedy concerns","url":"\/38.2-4708\/","token":"38.2\/47\/38.2-4708","metadata":{"court_decisions":""}},{"id":362703,"structure_id":51785,"section_number":"38.2-4709","catch_line":"Disposition of license and other fees","url":"\/38.2-4709\/","token":"38.2\/47\/38.2-4709","metadata":{"court_decisions":""}},{"id":362704,"structure_id":51785,"section_number":"38.2-4710","catch_line":"Penalty for engaging in business without license","url":"\/38.2-4710\/","token":"38.2\/47\/38.2-4710","metadata":{"court_decisions":""}},{"id":362705,"structure_id":51785,"section_number":"38.2-4711","catch_line":"Exemptions","url":"\/38.2-4711\/","token":"38.2\/47\/38.2-4711","metadata":{"court_decisions":""}},{"id":362706,"structure_id":51785,"section_number":"38.2-4712","catch_line":"Validity of secured transactions","url":"\/38.2-4712\/","token":"38.2\/47\/38.2-4712","metadata":{"court_decisions":""}}],"previous_section":{"id":362701,"structure_id":51785,"section_number":"38.2-4707","catch_line":"Forms of premium finance agreements and related forms to be approved by Commission; false or misleading statements or omissions prohibited","url":"\/38.2-4707\/","token":"38.2\/47\/38.2-4707","metadata":{"court_decisions":""}},"next_section":{"id":362703,"structure_id":51785,"section_number":"38.2-4709","catch_line":"Disposition of license and other fees","url":"\/38.2-4709\/","token":"38.2\/47\/38.2-4709","metadata":{"court_decisions":""}},"metadata":{"court_decisions":""},"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4708\/","history_text":"

This law was first created in 1964. The record of its establishment is cataloged in chapter 147 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1964 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1981, chapter 107; in 1986, chapter 562.<\/p>","references":false,"refers_to":false,"permalink":{"id":1444271,"object_type":"law","relational_id":362702,"identifier":"38.2-4708","token":"38.2\/47\/38.2-4708","url":"\/38.2-4708\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/38.2-4708\/","token":"38.2\/47\/38.2-4708","dublin_core":{"Title":"Examination of books and records of company; bond; rules and regulations; order by Commission to remedy concerns","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4708","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. The Commission<\/span> is empowered to examine the books and records of an insurance<\/span> premium finance company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission<\/span> is empowered to require an insurance<\/span> premium finance company<\/span> to enter into bond<\/span> with surety<\/span> approved by the Commission<\/span>, in the amount determined as reasonable by the Commission<\/span>, and conditioned to protect its customers and the public in the manner required by law<\/span>. The aggregate liability of the surety<\/span> for all breaches of the conditions of the bond<\/span> shall in no event exceed the penalty<\/span> of the bond<\/span>. The surety<\/span> on the bond<\/span> shall have the right to cancel the bond<\/span> upon thirty days’ notice in writing to the Commission<\/span> and shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any rules and regulations issued by the Commission<\/span> with respect to the operation of insurance<\/span> premium finance companies may include, without limitation, rules and regulations for the cancellation of policies by insurance<\/span> premium finance companies, for the notice required to be given to the insured and the insurer<\/span>, and for the mutual obligations and duties of insurers<\/span> and insurance<\/span> premium finance companies with regard to the cancellation of policies and the required notice. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the Commission<\/span> finds (i) that an insurance<\/span> premium finance company<\/span>’s financial condition, method of operation or manner of doing business does not satisfy the Commission<\/span> that the company<\/span> can meet its obligations to all customers or (ii) that the company<\/span>’s continued operation in this Commonwealth is hazardous to customers and creditors<\/span> in this Commonwealth and to the public, it may order<\/span> the company<\/span> to take appropriate action within a specified time to remedy the concerns of the Commission<\/span>. The Commission<\/span> shall give the insurance<\/span> premium finance company<\/span> ten days’ notice of its finding<\/span> and shall grant it the opportunity to be heard and to introduce evidence<\/span> on its behalf. Any hearing<\/span> with regard to the order<\/span> may be informal, and the required notice may be waived with the mutual consent of the Commission<\/span> and the company<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEXAMINATION OF BOOKS AND RECORDS OF COMPANY; BOND; RULES AND REGULATIONS; ORDER\nBY COMMISSION TO REMEDY CONCERNS (\u00a7 38.2-4708)\n\nA. 1. The Commission is empowered to examine the books and records of an\ninsurance premium finance company.\n\n 2. The Commission is empowered to require an insurance premium finance company\n to enter into bond with surety approved by the Commission, in the amount\n determined as reasonable by the Commission, and conditioned to protect its\n customers and the public in the manner required by law. The aggregate\n liability of the surety for all breaches of the conditions of the bond shall\n in no event exceed the penalty of the bond. The surety on the bond shall have\n the right to cancel the bond upon thirty days’ notice in writing to the\n Commission and shall be relieved of liability for any breach of condition\n occurring after the effective date of the cancellation.\n\n 3. Any rules and regulations issued by the Commission with respect to the\n operation of insurance premium finance companies may include, without\n limitation, rules and regulations for the cancellation of policies by\n insurance premium finance companies, for the notice required to be given to\n the insured and the insurer, and for the mutual obligations and duties of\n insurers and insurance premium finance companies with regard to the\n cancellation of policies and the required notice.\n\nB. If the Commission finds (i) that an insurance premium finance company’s\nfinancial condition, method of operation or manner of doing business does not\nsatisfy the Commission that the company can meet its obligations to all\ncustomers or (ii) that the company’s continued operation in this\nCommonwealth is hazardous to customers and creditors in this Commonwealth and to\nthe public, it may order the company to take appropriate action within a\nspecified time to remedy the concerns of the Commission. The Commission shall\ngive the insurance premium finance company ten days’ notice of its finding\nand shall grant it the opportunity to be heard and to introduce evidence on its\nbehalf. Any hearing with regard to the order may be informal, and the required\nnotice may be waived with the mutual consent of the Commission and the company.\n\nHISTORY: 1964, c. 147, \u00a7 38.1-742; 1981, c. 107; 1986, c. 562.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}