38.2-1038 - Authority of Commission to issue orders covering insurers in hazardous financial condition.
§ 38.2-1038. Authority of Commission to issue orders covering insurers inhazardous financial condition.
If, after reviewing an insurer's financial condition, method of operation, ormanner of doing business, the Commission finds that (i) the insurer cannot,or there is a reasonable expectation that the insurer will not be able to,meet its obligations to all policyholders or (ii) the insurer's continuedoperation in this Commonwealth is hazardous to policyholders, creditors andthe public in this Commonwealth the Commission may order the insurer to takeappropriate action to remedy the Commission's concerns. The insurer shall begiven ten days' notice prior to issuing the order and shall be given theopportunity to be heard and introduce evidence on its behalf. The hearing maybe informal, and the required notice may be waived by the Commission and theinsurer. If the insurer fails to comply with the Commission's order withinthe prescribed time, the Commission may suspend or revoke the license of theinsurer to transact the business of insurance in this Commonwealth as setforth in Article 6 (§ 38.2-1040 et seq.) of this chapter.
(1978, c. 20, § 38.1-97.2; 1986, c. 562; 1991, c. 261.)